Marketing Concepts and Strategies of Tesco: A Comprehensive Analysis

This report provides a comprehensive analysis of the marketing concepts and strategies of Tesco, a leading UK-based supermarket chain. It covers the definition of marketing in the 21st century, the role of marketing function, the extended marketing mix, and how it contributes to Tesco's success. The report also includes a strategic marketing plan, SMART marketing objectives, marketing research for new product launch, and situational analysis.

UNIT 2

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
PART 1..................................................................................................................................................3
1. An explanation of the concept/definition of marketing in the 21st century.................................3
2. Description of the role of marketing function with examples from the chosen organization......3
3. An analysis of how the marketing function works and interacts with other departments............4
4. An explanation of the extended marketing mix and examples from selected supermarket.........5
5. An evaluation of how the marketing mix of Tesco contributes to its success in meeting overall
business objectives...........................................................................................................................5
6. Recommendations........................................................................................................................7
PART 2..................................................................................................................................................7
Strategic marketing plan link with company’s mission, corporate strategy and objectives.............7
SMART Marketing objectives of Tesco...........................................................................................7
Marketing research to support new product launch..........................................................................8
Competitor analysis........................................................................................................................10
Setting of an overall marketing budget, including allocation of planned spend............................11
Tactical actions...............................................................................................................................11
Identifying appropriate control and monitoring measures to ensure achievement of objectives
including metrics to measure success.............................................................................................12
A comprehensive media plan that supports the planned marketing campaign, this will include:..12
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14

INTRODUCTION
Marketing is the systematic process with which companies world over promote their goods
and services. The structure of marketing entails several functions of marketing a product and its
interactions with other departments such as HR, sales, etc. The following report will precisely
discuss and analyze these marketing concepts in the context of the supermarket chain Tesco plc
which is based in UK with product ranges of food, clothing, and retai homely goods. The report
below will explain the role of marketing and the way it inter-relates with other business functions. It
will examine the marketing mix structure followed by a marketing plan of Tesco outlining its goals
which will be further supported by a media plan (Stevens and et.al., 2021).
PART 1
1. An explanation of the concept/definition of marketing in the 21st century
Marketing can be traditionally defined as a regulatory organizational function that is a vital
branch of any business organization to deliver value to its customers. A fully manufactured,
processed, and updated product is of no use until and unless it is properly marketed to the well-
defined customer segment and in well established products. The concept of marketing and its
definition has surely changed in the evolutionary modern era of the 21st century. In this century,
marketing consists of everything that is involved in creating the best consumer experience. In this
process of business function, products are not only marketed but also tailored as per the shifting
needs and perspectives of the end users. It also includes set process structures of satidafying the key
stakeholders of a company and striking good relationship among customers, management,

producers, and suppliers. The modern era has introduced several other technical elements like
automated devices that makes marketing easier and faster (Fuciu and Dumitrescu, 2018, June).
2. Description of the role of marketing function with examples from the chosen organization
The role of marketing function in an orgnization is to help facilitate the identification of
potentially successful product lines and help in sourcing and categorizing them according to
different customers' needs and requirements. For instance, in the organizational structure of the
retail supermarket Tesco, its business marketing function plays the role of promoting varied
products through broad differentiation strategy to gain the competitive factor (Sarkum and
SYAMSURI, 2021).
Functional roles of Tesco's marketing
Tesco's marketing strategy has introduced its conduct of business across cultures and
countries. The retail organization's marketing plan has been effectively adapted and standardized by
its management personnel and marketers in both the domestic and international business
environments through a comprehensive integration of global and local market factors. Tesco's
various marketing strategies are efficiently orienting its local and global businesses with customer
knowledge as compared to its market rivals.
The purpose of marketing is to research and analyze the ideal customer wants by sending
surveys and follow up timely their need to fulfil customer wants. The marketing function that Tesco
has applied to its retail organizational structure has helped in identifying its appropriate market
segments and target audience in order to strengthen its branding strategy.
Over the years, with the help of the local marketing approach in the global expansion area,
Tesco has launched extensive Euro-centric programs using foreign market strategies that has
registered gradual reductions in growth slippages.
3. An analysis of how the marketing function works and interacts with other departments
Organizational functions include a lot of business functions and marketing makes up an
integral part of it. However the function of marketing interacts with other business departments too
as is described below:
Operations management (OM) deals with the business administration functions for the
smooth and efficient working of an organization. It is primarily concerned with activities like
inventory checks, quality assurance, etc. Marketers need to be updated with the product flow
informaion that this business function provides.

Waste control management The generation of waste shows that either resources are not
being put to effective use or excessive resources are being used. Marketing personnel needs to bear
in mind the CSR initiatives of the company.
Human resource management department is involved with the process of recruiting, hiring,
training and focus on the skill development of their employees. The main HR practices for an
international business are talent aquisition, training and development, and performance
management. Both the HRM and the marketers ensure the internal balance of the product lines
(Olson and et.al., 2018).
4. An explanation of the extended marketing mix and examples from selected supermarket
Price - Price means the amount at which the product is put at valuation and the amount of revenue
generated by it. If the price of a product is lower than competitors then the customer will move
towards the lower price. Tesco needs to maintain their price level to sell more.
Place - It refers to the source of location where goods and services are stored and channelized from.
These places can be stores, apps, websites, etc. For its consumer goods sales, Tesco generally uses
direct selling method. But now it has increased it use of E- commerce websites.
Product - Product means the tangible goods and the intangible services which further falls in the
categories of core, actual, and augmented products. Customer always choose those products which
are beneficial for them. Tesco make and market its food items thinking about the customer's
benefits.
Promotion - The element of promotion includes communicative tools available for the marketing
process such as sales distribution, advertising, brand awareness, and social media marketing. The
customers always notice the advertisement so the retail company always try to give information
about their product with advertisement (Thabit and Raewf, 2018).
People - This category consists organizational staff, personnel, customers, etc. who shape the
customer experience and influence their perceptions. Tesco has maintained a positive reputation of
their business by hiring such type of employees who provide excellent customer service.
Process - Process means the company's journey through its planning procedures, decision-making
activities, and the final operations. If customer gets delayed shipping, poor communication, lack of
support then they will be frustrated.
Physical evidence - Physical evidence relates the quality of experience of the entire production
channel which has the power to either positively impact a business or harm it. Tesco always tries to

impress their customers by attractive product packing and design, branding and quality.
5. An evaluation of how the marketing mix of Tesco contributes to its success in meeting overall
business objectives
Out of all the marketing mix elements, Tesco's pricing strategy follows the dimension of cost
leadership wherein product procurement channels work within low prices that reduces the
production costs. The main P's of marketing are discussed below in the chosen contextual
framework:
Product
Tesco's product strategy in the widespread marketplace consists multiple market segments
including several regional and traditional product categories as per the population demographics. It
also includes value culture above anything. Products such as baby & toddler products, household
items, etc. make up a diverse range.
Pricing
Pricing of any product is decided after analysing all the cost factors to keep the correct
valuation which helps in profit maximization of an organisation. The economies in which it operates
belong to varying zones therefore Tesco's low and stable prices are suitable for this approach.
Place/Distribution
Tesco's implementation of distributing products through the approaches of NGOs among
other sales channels prove best in reaching out to all kinds of target markets and customer segments
with the right mix of products.
Promotion/Advertising
Focusing on the ethnicities of people with low-priced products has given a great marketing
edge to Tesco in the market spheres. Promotion is usually done through posters, decal stickers, and
vendor jackets in wholsale markets (traditional forms) and through online promotions (social media
modes) (Lahtinen and et.al., 2020).
People
The Tesco firm provides the customer care training to the staff members and should help
them adopt the best out of them to treat and guide the customers in the good way to attract more of
the customers.
Process

Tesco defines how the staff should be behaving with the upcoming customers and say some greeting
message to the end users to increase the development of the company.
Physical evidence
The business of Tesco develops good environment for their customers so that the reviews
given by them on the website of the company and other social media platforms gives company more
of the customer base.
6. Recommendations
For a leading supermarket position, Tesco has a poor global reach as its geographical target
zones are mainly in its homeland UK. This lack of public attention is becoming expensive for the
UK market in a recession prone economy. Currently the company has promptly recognized the need
to segment its various markets based on the changing trends in demographics. Tesco plc can
segment its products based on the latest market researches to help identify its required market size
which can help formulate the where and how of its marketing efforts (Paul, 2019).
There is an array of opportunities for Tesco's growth, for instance establishing a strong
online consumer presence. The retail organization also has a good amount of scope for expanding
its international reach. The central purpose behind using the undifferentiated target strategy is that
the superstore has good strategic relations with smaller brands and companies which can prove
helpful in its business acquisitions.
The rising trend of e-commerce markets can be detrimental to the company. This issue can
be addressed and efficiently managed with the adoption and application of and effective market
positioning strategy hence offering customers products that are suitable for them.
PART 2
Strategic marketing plan link with company’s mission, corporate strategy and objectives
Strategic marketing plan is a process which enables an organization to develop and boost up
their sales in effective manner and can obtain the profitable outcome (Boschee, 2018). Tesco has
created a well-structured marketing plan which entirely link with their mission and vision and put
their efforts to launch a new luxurious range of branded food products and beverages which can
deliver the profitable outcome to the organization and can increase their product sale in wider range.

SMART Marketing objectives of Tesco
1. To enhance the revenue of the luxurious food products through digital sale which can lead
the business to obtain the successful outcome.
2. To increase the quantity approx 15% net profit by utilizing the different sources and
channels to influence wider range of customer at their workplace.
3. To recognized that the desired outcome are achievable or not in a particular time-frame.
4. To measure the result of using the digital marketing with regard to sales volume and
profitability to the firm.
5. To strengthen the customer satisfaction level which can improve the product and services
quality and build the brand image at higher level.
Marketing research to support new product launch
Marketing research simply means denazification of the various support area to launch the
product at appropriate place which can lead the organization to obtain the effective outcome
(Westwood, 2022). Market researches for a new product development needs to keep focus on
different areas where the appropriate quantity of demand and feature of the target group can be
observed in definite manner which can help Tesco to identify the luxurious food product need in
wider manner where the company has to adopt the relevant strategies and follow the market trends.
Situational analysis
A situational analysis is a procedure of collecting the numerous methods and technique to
analyse the internal and external factors in a business environment. This entire process includes the
factor in regard with Tesco which are described below:
Swot analysis
Strength
 Tesco company has a group of talented
and skilled employee
 Have a unique human resource
management and other resources which
are very effective for the growth of the
Weakness
 Tesco uses the low cost strategy
 Poor operational performance
 Unfair business practices
 Tesco do the publicity in negative way
which leads the customer to get offend
as it delivers the greedy schemes.

company
 Geographically diversified
Opportunity
 Expansion or diversifying market
provides the great opportunities to
Tesco to grow and obtain the
profitability in wider manner.
 Tesco also provide the one-hour
delivery in same area or city which
drives them to influence and approach
the consumers effectively.
Threat
 Tesco can have a threat from economic
crisis which lower down their
productivity level.
 Also, the supermarket store has a huge
competition in the market area which
leads the company to have a threat of
substitution.
Pestle analysis
Political Political factor defines the government and taxation areas of the particular
country from which the organization can get affected by the changes in their
rules and regulations. Tesco is delivering their products and services in
geographical area where they can get the wider impact of the political factor
where they are required to keep their focus on political stability which will
lead them to acquire appropriate outcome.
Economical Economical factor involves the inflation and deflation rates, taxes,
employment rates and such more which delivers the great challenges for the
retail industries (Sahaf, 2019). However, Tesco can get the impact in wider
manner due to changes in taxes which can lead the newly launched of the
company to be set as better pricing to influence the sale.
Social Demographic, cultural-beliefs, trends and even buying behaviour all includes
in the social factor where the buying behaviour of the customer puts an
impact on the company in wider manner. Tesco is launching a new luxurious
food product which also contains the organic ingredients due to changes in
nutritional trends where the customers are demanding for the nutritional food

in increasing manner.
Technological Technology is rapidly increasing in day to day life where Tesco is able to
adopt and use the digitization for the different working areas which can put
the positive impact on the company and can deliver the profitable result.
With the support of technologies, Tesco can promote their newly launch food
product through digital marketing as well.
Legal Legal policies, rules and regulations falls under this factor where Tesco is
required to follow all the ethical practices in regard with food retailing
commissioner from where negative aspects can be avoided accordingly.
Environmental Environmental factors delivers the major concern and issue in relation to
environmental protection where the government pressurized the retail
industries to follow and promote to reduce carbon emission and use the
resources which the environment friendly to surroundings.
5C's analysis
Company Tesco is a multinational organization who deals in all supermarket products
where the brand has a strong online presence where they can influence the
customer in increasing manner towards luxurious food products.
Customers It is very important to satisfy the customers from where only the company
can get the profitable outcome and result. Tesco always keeps their focus on
customer satisfaction area where they put efforts to meet their demands with
the new luxurious food product range (Gligorijević and Janičić, 2021).
Competitors In the retail industry, there are huge amounts of competition in the
marketplace where Tesco is essentially required to put their best efforts and
adoption of the relevant strategies for getting the appropriate result and
outcome.
Collaborators Each individual company works with different and various resources or
collaborators like suppliers where they have to adopt the strategic and skilled
people to develop the organizational growth.
Climate Climatic factor involves the risks in elation to environmental where the

company Tesco has required to follow and practise all the essential
guidelines and legal regulations which can help the business to run
accordingly.
Competitor analysis
Bargaining power of supplier: Tesco's supplier power is low as they have numerous supplier so
when the prices go high they are able to switch vendors accordingly.
Power of consumer: The power of customer is low as the company is already giving them multiple
offer which satisfy them which makes the customer to show their loyalty in return.
New entrants: The retail industry is growing and developing in day to day life where the newly
established supermarkets brings innovation (Zahay, Roberts, Parker and et.al., 2022).
Competitive Rivalry: Tesco has a great competition with Sainsbury and Asda and can become a
threat for the company in future times.
Threat of Substitution: The products of the Tesco is unique and affordable which lower down the
threat of substitution.
New product value-proposition
The value proposition defines the statement where it describes the products features and its
uses which can easily help the customer to resolve their issues and problems. The value-proposition
of Tesco newly launched food product is “Eat nutritional”.
Marketing strategies
Marketing strategies means a variety of ideologies to promote the particular service and
product which can create an awareness in the marketplace. Tesco is required to adopt some
appropriate and relevant marketing strategies where they identified a target market to grab the
audience in specific manner and can keep their focus on which will provide them a satisfaction
(Mokliak, Hyrka and Myronenko, 2019). The luxurious food product can be promoted by the Tesco
with the help of offline and online marketing sources and also they should keep their major focus on
the existing market which can help to grab the customer effectively.
Setting of an overall marketing budget, including allocation of planned spend
Tesco is required essentially to set the overall marketing budget for the promotion of the
new luxurious food item where the proper planning will help the company to understand and

identify the expenditures and spending of the finance (O'Connor, 2021). The main purpose of
implementation of the marketing strategies is to grab the target audience from where they can easily
influence maximum sales which will deliver the profitable outcome to the company. Also, the
company needs proper marketing planning including SMART goals and the measure of ROI and
tracking of the overall sources.
Tactical actions
The company is needed to understand the importance of the different tactical actions and
strategies which can support Tesco to promote their business and new product in geographical area.
The company needs to create a proper goals and objectives, understanding of marketing methods ad
execution which will deliver the positive result (Gyenge, Máté, Vida and et.al., 2021). Also, Tesco
need to adopt and implement the strategic actions where they can use the blog posting, social media,
digital campaigns for the better promotional growth and development.
Identifying appropriate control and monitoring measures to ensure achievement of objectives
including metrics to measure success
The above mentioned company is required to apply the appropriate control and motoring
measures or models which can measure the overall success of the organization and can support to
grow in effective manner.
Return of Marketing Investment
It is a kind of contribution which provides the insights into the effectiveness of the marketing and
leads to be at right direction (Brown, Abduljabbar, Englund and Treen, 2018). This is a tool used to
identify the investment and risk of the company where ROI metric is used in online marketing to
measure and calculate the effectiveness of the campaign and can support the people in the company
to tale better and appropriate decisions. Pick the sales growth from the business and subtract the
marketing cost and then divide it by the marketing cost which provides the return on investment.
However, the ROMI is calculated as:
Sales growth-Marketing Cost/Marketing cost =ROI
Customer Lifetime Value
The CLV is the tool or metric used for understanding the customer needs and requirement. It
can simply understand as if a customer subscribe to any company's plan then they are joined with
that customer for one year long and expects from them to take more plans in future period.
CLV= Average purchase Value * Average purchase frequency * Average customer lifespan

APV = Total revenue/ Total number of purchase
APF= Number of purchase/ Number of unique customer
ACL= Sum of customer life span/ Number of customer
A comprehensive media plan that supports the planned marketing campaign, this will include:
Media Channels July August September
Blog 10£ 30£ 20£
Display Advertising 180£ 120£ 150£
Social media
advertising
40£ 35£ 32£
Design Software
(TBD)
50£ 40£ 50£
Marketing platform
(Hub-spot)
22£ 15£ 20£
Recommendations and rationale for selected and integrated multi-media activities within the set
budget that meet the marketing objectives
Tesco is a well-known organization where they are recommanded to adopt and implement
the effective marketing strategies and techniques like they can keep their focus more on social
media marketing because in today world, billions of users are active on social media where this
platform can help to influence the customers in wider manner. Also, they can also approach the
customer with the help of social media influencer from where the customers can be attracted
effectively.
Appropriate digital, offline and social media channels for communication
In this contemporary digitalized society, it is important for the company Tesco to adopt the
appropriate communication source and application from where they can adopt the feedbacks and
views of the employee and customers as well in effective manner (Tafesse and Wien, 2018). In
regard with social media channels, Instagram and Facebook are the two common and popular
applications where the customer can give and share their feedbacks and can be improved by the

company accordingly.
Justification for a multi-media plan based on quantitative and qualitative criteria
As per the multi-media planning process, it defines that the company has measure the
quantitative form of channels by the number of subscribers over the social media where the number
likes and comments will be expressed. On another hand, qualitative includes the collection of
insights of the customer on the basis of posts and how they get attracted towards the brand in
effective manner.
CONCLUSION
The above report has critically analyzed the concept of marketing and its operations
including different areas and its roles in the businesss sector. It has evaluated the various elements
of the marketing mix in the context of the chosen supermarket retail organization Tesco plc and
examined its marketing functions. The research study has precisely compared the ways in which
these srategies are applied to the market plan for achieving its objectives. Further down the report
an elaborate and comprehensive marketing plan has been made including suitable and relevant
recommendation strategies which has been followed by an integrated rational for meeting the
budget needs of the marketing campaign brief.

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