Principles of Marketing: SWOT Analysis and Service Marketing Challenges of Tesco

This report analyses the SWOT analysis and service marketing challenges of Tesco. It provides recommendations to overcome challenges within the constraints of strengths and opportunities.

Principles of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of the strengths, weaknesses, opportunities, and threats (SWOT) facing the
organisation............................................................................................................................3
Identification of the organisation’s key service marketing challenges (Weakness and Threats)
for the next 3 years,................................................................................................................5
Analyses the threats through the lens of theoretical principles of services marketing and
provide recommendations to overcome challenges within the constraints of Strengths and
Opportunities..........................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.................................................................................................................9
Online.....................................................................................................................................9

INTRODUCTION
Marketing is business can be understood as the activity of promoting the goods and services
of the company. The act of persuading the buyers to purchase the products of the business
organisation in order to enhance the sales of company (Deepak and Jeyakumar, 2019). The use
of principles of marketing helps the company to establish effective image in market. The
company must analyse the trends in the market so that the company is able to provide best to the
customers. This report is based on Tesco. It is a British multinational groceries and general
merchandise retailer headquartered in England. They are third largest retailer in the world
measured in gross revenue. There is proper internal analysis of the company is done by
conducting SWOT analysis. There is key role of analysing the strengths and opportunities as
they benefit the company to carry on the work in future effectively. Along with that, the
weakness and threats must be measures and necessary actions must be taken.
MAIN BODY
Analysis of the strengths, weaknesses, opportunities, and threats (SWOT) facing the organisation
SWOT Analysis is a strategic planning tool that is used by company to know about the
strengths, weakness, opportunities and threats (Benzaghta and et.al., 2021). It helps the company
to take effective decisions and form strategies for growth and development in market. The
company is able to carry on the process of planning in proper manner by knowing their internal
capabilities and strengths. SWOT analysis is necessary to be prepared for future and take actions
for the success of company (Kotler, 2021). Tesco is a multinational company that started their
operations 103 years ago in 1919. The company was founded by Jack Cohen and has
headquarters in United Kingdom. The SWOT analysis of Tesco is done below:
Strengths Weaknesses
 Brand image: Tesco is operating since
1919 and serving the customers with
quality products. It helps the company
to set an effective image in market
(Soegoto, 2021). The brand image
helps the company to get loyal
customers and maintain relations with
 Low margins: It is seen that; Tesco
provides best quality products to the
customers. It is high costly affair for
Tesco. Along with that the pricing
policy of the company is affordable.
This reduces the profit margin of the
company and is a weakness for the

them in proper manner.
 Market share: The market share of
Tesco is around 25% and is classified
as one of the 'big four' supermarkets.
The high market share assists the
company in gaining competitive
advantage (Tesco PLC - Statistics and
Facts, 2022). They are able to serve the
needs and wants of the customers
properly and get high revenues.
 Quality products: Tesco has broad
portfolio of products and at the same
time company offers quality to the
customers. The quality products offered
by Tesco keep the customers loyal for
the company. Loyal customers are
important for success of the enterprise.
company.
 Demotivated employees: It is one of
the major weakness that is faced by
Tesco. It is analysed that due to Civid-
19, there are issues of demotivation
among the employees. They were
unable to work effectively due to the
situation of lockdown (Tirawatnapong
and Fernando, 2018). The employees
were also scared about loss of job.
 Inventory management: There is issue
faced by company in inventory
management. At the time of Covid-19,
there was shortage of products and the
problem was faced by Tesco as well.
Opportunities Threats
 Growth of Online Grocery Sales:
There is high growth of online grocery
sales in the market. It is seen that the
customers want to purchase the
products via online mode and enhance
the sales.
 Expansion opportunity: There are
various growth opportunities present
for Tesco. The company has established
effective brand image in the mind of
customers and it assist the company to
expand their operations and open stores
at new places (Kotler, Kartajaya, and
 Competition: There are so many direct
competitions of Tesco in the retail
sector such as Asda, Aldi, Morrision’s,
Sainsbury’s etc. The customers of the
company can switch to another brand
and is a major threat for Tesco.
 Covid-19: The scenario of Covid-19
has enhanced the threat for the
company. The business environment is
uncertain and the pandemic situation
raised the threats for the company.
 UK-EU Relations: There are various
changes in the trade seen after Brexit. It

Setiawan, 2021).
 Innovations: Tesco always analyses
the problem in the market and then
provide best available solution. They
provide self check out points for the
customers at the time of Covid-19. The
use of innovation and latest technology
in effective manner is opportunity for
Tesco.
is seen that the changes in the policies
are also threat for the company. The
company now has to pay extra tariffs
and custom checks.
Identification of the organisation’s key service marketing challenges (Weakness and Threats) for
the next 3 years,
There are certain challenges that are being faced by the business organisations nowadays.
The nature of business environment is dynamic and there are regular changes seen in the market.
This impacts the operations of the company and enhance the marketing challenges. The key
service marketing challenges faced by Tesco are as follows:
Competition: There are several players that are working in retain sector. It is necessary to know
about the products and services offered by them. There is need of analysing the strategies used
by competitions. The customers can switch to the competitors if they will not get the products
effectively. This is problematic situation for the company (Grewal and et.al., 2020). The
competitors can take over the position of the company. The company will face the issue in future
as well so there is need of taking precautionary actions to gain advantage in future.
Demotivated employees: The employees of the company were demotivated due to Covid-19.
The remote working by the company demotivated the employees. They were scare of situation
and unable to balance their professional working from home (Appel and et.al., 2020). The use of
latest technology also caused problem for the company. There is need of taking such actions that
motivate the employees and keep them motivating for the company.

Analyses the threats through the lens of theoretical principles of services marketing and provide
recommendations to overcome challenges within the constraints of Strengths and
Opportunities.
The issues faced by the company must be solved so that Tesco is able to manage their
operations. The use of theoretical principles of services marketing will help the company to
overcome the challenges and gain opportunities. Some of the recommendations are mentioned
below:
Marketing Mix: It is necessary for Tesco to work on enhancing the marketing mix. The
company must assure that they keep on enhancing the product portfolio and add features to the
products of the company. This makes the company to retain the customers. The pricing strategy
must be designed to satisfy the needs of customers and will make the company profitable
enterprise (Hoekstra and Leeflang, 2020). There is need of providing the customers the facility
on online and offline platforms. This assists the company to work at the time of Covid-19 as
well. There is trend of digital marketing and the promotional techniques of Tesco must involve
use of digital technology as it will help to enhance the reach of company and attract more
customers. The physical evidence includes the bills given by the company to the customers on
online modes as well. The process followed by the company is to build relations with the
customers and provide them quality products and services. It is necessary to take proper care of
the people of the company. By providing them effective training, the employees are able to work
with motivation and enhance the productivity of the company.

Stay current: To provide effective services to the customers it is necessary to stay in trend.
Tesco must enhance the expenditure on research and development as it benefits the company to
work as per the trends. There is need of working in such a manner to provide best quality
services to the customers.
Listen to customers: The needs and wants of the customers keep on changing and there
is need of the customers. By satisfying the needs and wants of customers the company is able to
provide best to the customers (Kotler and et.al., 2019). The use of proper strategies is necessary
to satisfy the requirement of customers.
Latest technology: The use of latest technology is necessary for Tesco. In this dynamic
world, the company who is able to adapt the changes is successful in the market. The use of
proper marketing channels also helps them to gain lead over the competitions.

CONCLUSION
From the above report, it is concluded that marketing plays a major role in promoting the
brand. There is key role of marketing in the success of company and the company that follows
principles of marketing are more successful. The analysis of strengths, weakness, opportunities
and threats of the company is done. The analysis helps the company to know about the
challenges and ways to overcome the challenges.

REFERENCES:
Books and Journals
Appel and et.al., 2020. The future of social media in marketing. Journal of the Academy of
Marketing Science, 48(1), pp.79-95.
Benzaghta and et.al., 2021. SWOT analysis applications: An integrative literature review.
Journal of Global Business Insights, 6(1), pp.55-73.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Grewal and et.al., 2020. The future of technology and marketing: A multidisciplinary
perspective. Journal of the Academy of Marketing Science, 48(1), pp.1-8.
Hoekstra, J.C. and Leeflang, P.S., 2020. Marketing in the era of COVID-19. Italian Journal of
Marketing, 2020(4), pp.249-260.
Kotler and et.al., 2019. Marketing Management: 4th European Edition. Pearson UK.
Kotler, P., 2021. Marketing 4.0 do tradicional ao digital.
Kotler, P., Kartajaya, H. and Setiawan, I., 2021. Marketing 5.0: Technology for humanity. John
Wiley & Sons.
Soegoto, F.A., 2021. Product Development using SWOT Analysis. International Journal of
Entrepreneurship & Technopreneur (INJETECH), 1, pp.1-10.
Tirawatnapong, R. and Fernando, M., 2018. Factors influencing Bangkok people purchase
intention towards Tesco Lotus house brand products. International Research E-Journal on
Business and Economics, 4(2), pp.15-29.
Online
Tesco PLC - Statistics and Facts, 2022. [Online] Available through: <
https://www.statista.com/topics/3807/tescoplc/#:~:text=In%20the%20United%20Kingdom%2C
%20Tesco,with%20Asda%2C%20Sainsbury's%20and%20Morrisons.>