Marketing Management: Tesco Marketing Plan

This report involves the marketing plan for the company Tesco. The report covers various important topics such as situational analysis, marketing mix, branding, and reputation of service. It also includes STP analysis, marketing theories and models, and marketing budget with implementation and control plan.

Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Application of environmental analysis tools and its impact...................................................2
Examination of marketing mix and its application.................................................................5
Various ways to improve branding and reputation of service................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Executive Summary :
The present report involves the marketing plan for the company Tesco. The company is a
British Based retail chain founded in 1919 with its headquarters in Welwyn Garden City, United
Kingdom. The present report covers the marketing plan and it involves various important topics
that plays a crucial role in order to handle the marketing challenges that are faced by the
company in its internal and external environment. It involves situational analysis in which it
includes customers, organizational strategy, porter's five forces, swot analysis and marketing
effectiveness in detail. It also involves the company's marketing plan, vision, mission, corporate
objectives and other marketing objectives. In addition to that it involves STP analysis and
marketing theories and models to describe the strategic alternatives, competitive strategies,
generic strategies and other important key factors such as branding innovation. Moreover it
involves various marketing elements and marketing budget with implementation and control plan
which involves key performance indicators.
INTRODUCTION
Marketing management involves the planning process, execution of conception,
promotion, pricing and distribution of goods, ideas and services in order to create exchanges in
order to satisfy organizational goals and individuals. A marketing plan is a document that
involves the marketing efforts of a company in its upcoming period which is usually for one
year. It involves the marketing strategy, promotional activities and advertising activities planned
for the period. The organization chosen for the assignment is TESCO. It is a British based leader
chain of food items in UK founded in 1919 with its headquarters in Welwyn Garden City, United
Kingdom. In the present scenario, the company is planning to revamp its online website with
updated features of offering personalized products and gifts. The report involves how the
company is analysing its competitive environment in order to identify opportunities and threats
that impact its operations. In addition to that it involves marketing mix that the company is
currently applying and few recommendations in order to improve its marketing mix.
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MAIN BODY
Application of environmental analysis tools and its impact
Swot analysis of Tesco :
It involves strategic management technique in order to help the organization to identify
its strengths, weakness, opportunities and threats in relation to project planning and business
competition. It is also known as situational analysis or situational assessment. In context to
Tesco, it uses swot analysis in order to identify strengths and weakness in order to create its
marketing plan and develop various strategies (Sarah Laoyan, 2021).
Strengths
 The company's main strength is its
brand name in the market and its
valuable customer base.
 The company has obtained consumer
loyalty during these years and had a
strong relationship with its customers.
 The company operates not only in UK
but has its operations in other countries
such as Asia and Europe and holds a
13% share and 26% growth in
international market.
 The company follows a focused price
strategy and have strong customer base
as compare to its competitors.
Weakness
 The company's main weakness is that it
is substantially depended upon the
Great Britain for its sale . The company
's business model uses approaches for
the Great Britain rather than other
world.
 The company's sales grows only
through low priced items and involves a
continuous fall when it cones to sell of
expensive products.
Opportunity
 The company's operations in the Asia
and Europe provide various excellent
growth opportunities and it results in
possibility for an increase of sales.
Threats
 The company's biggest threat involves
various environmental factors such as
taxes issue, political issues, climate
changes which are the biggest threat
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 The company can carry out high degree
of purchasing capacity to guarantee and
involves a scale effect in its home
brand line.
 In the year 2008, the companies mobile
have grown with million customers and
which resulted in providing profitable
status suggesting development in it
technological area and further growth
opportunities.
for the company.
 The company's operations can be
highly affected by its customer's
mentality which frequently keeps on
changing and might become a threat for
the company in future.
 The constant increase in the prices of
the raw material for both of its non food
and food items can result in crashing
general profit boundaries.
 The company's constant threat involves
capture from the market leader who
have equal motive and means to follow
such accomplishments.
Market analysis involves crucial part of marketing plan and it involves discussion about the
organizational customers, strategies and marketing effectiveness. For market analysis, Pestle
analysis will be done in order to understand the external environment factors which involves
political, economic, social, technology and legal factors (Narendra Kumar, 2017).
Pestle analysis involves a tool or framework that is used by marketers in order to monitor and
analyse the external marketing environment factors which have a major impact on the industry,
company and organization. The pestle analysis is used in order to identify weakness and threats
which are used in the swot analysis.
Political Factors :
It involves how the government intervenes in the economy. It involves factors such as
labour law, environmental law, tax policy, tariffs, trade restrictions and political stability. In
context to TESCO, the company is operating in globalization conditions with its stores
worldwide. Operating in 6 countries the company's performance is highly under influence of
legislative and political conditions of these countries including European Union ( EU).
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Economic Factors :
It involves factors that affects the economy and involves factors such as tax rates,
interest rates, governmental activities, wages and policies. These factors are not directly in
relation with the business but has a major influence on the investment value in future. In context
to Tesco, the economic factors causes a concern as it can affect the costs, prices , profits and
demand. One of the crucial influential factors involves increasing rate of unemployed which
decreases demand for goods and have a negative influence of demand of goods. These economic
forces does not depend on the company but their impact on marketing and productivity can be
deep. In addition to that, Tesco will be affected with any slowdown on the market of the Great
Britain and its exposure to market concentration risks (Ovidijus Jurevicius, 2021).
Social/Cultural Factors :
It involves the range of elements that have their roots in the social environment and
cultural factors have their roots in a particular society or culture. In context to Tesco, the
companies client in Malaysia have inclined to “volumetric” and “one stop” shopping which is
connected with various social changes. In order to deal with these social changes the company
have increased the quantity of non food items which are available for sale. Various other factors
such as ageing of the population, increase of women-workers, ageing of the population and
decrease in house preparation of meals have affected the operations of the company. With
consumers becoming more and more informed about health factors and their attitude towards
food has also changing day by day ( Peter Betts, 2021).
Technology Factors:
It involves information and communication resources, production techniques, logistics,
production, e-commerce technologies. All these factors affect the operations of organisation,
products selling, interaction and gathering intelligence on suppliers, customers and competitors.
In context to Tesco, technology acts as a major macro-environmental variable which has major
impact on development of various tesco products. The innovation and development of new
technologies benefits both the company and customers. In addition to that customer satisfaction
rises because of goods being available easily and services has become more personalized and
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convenient shopping. In order to enhance operations the stores of Tesco utilizes various
technologies which involves Electronic point of sale, radio frequency identification, intelligent
scale , wireless devices and electronic shelf labelling (Avetta Marketing, 2020).
Environmental factors:
It involves food, pollutants, sound, parasites, light , sound and population density. It
involves all those factors that influences living organisms. In content to Tesco, the managers
need to recognise the responsibility for the society in which the company operates. It is important
for the companies to fulfil its social responsibilities and taking care of environment in order to
maintain its reputation. The company in order to fulfil its environmental obligations started
following the strategies developed by the government which involves reduction in consumption
of resources, development of new strategies for consumption and manufacture to reduce waste
and to reduce the amount damage to an environment( Kristen E. Cosselman , 2020).
Legal factors :
These involves the factors that defines what a business organisation can or cannot do. It
involves political factors that have relationship between the government and business. Both legal
and political factors intersect when government bodies introduces new policies and legislature
that affects the business operations. In context to Tesco, there are various legislations
government policies that have di8rect influence on performance of the company. For example,
FRC( Food retailing commission has offered code of practice which prohibits many of the
existing practices which involves demanding payments from suppliers, variation to coordinate
prices without notice or retrospectively. In addition to that, government policy on monopoly of
management can result in decrease in power consumption of buyers and various laws
implemented on access to raw materials.
Examination of marketing mix and its application
Marketing mix involves a set of tactics, actions that a organisation uses in order to
promote its product or brand in the market. The marketing mix involves the 7ps which
comprises of product, price. Place , people, process and physical evidence.
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Product :
It involves a system or product which is made for the use of consumers which can be
offered to a market in order to satisfy the need and desire of a consumer. In context to TESCO,
the company offers a wide variety of products which involves stationery, clothing, food,
financial services, electronics etc. With a expanded product line, the company aims to fulfil
every possible demand of consumers. In content to company, it is now focusing on enhancing its
online operations with updated features and easy mode of payment in order to increase customer
satisfaction. The company through new features can create needs for new services and products
in the business scenario at the cost of established provision. In diversification and expansion,
assortment of products is important for the company in order to realise the internal process when
new products are developed(Benson P. Shapiro , 2021).
Price :
It involves the amount or sum of money in which a particular thing is valued. In context
to Tesco, the company follows a cost leadership pricing strategy which results in maintaining
low prices for both the services and products without compromising with the quality of services.
The company enjoys economies of scale and work continuously with suppliers in order to make
efficient supply chain to reduce prices. The companies pricing strategy is also affected by fierce
competition from companies which involves Aldi and Lidl in the UK market. Tesco in order top
gain a competitive advantage need to provide fair trade products at lower prices as compare to its
competitors. It is essential for the company to provide products at value added prices in order to
attract new customers. Pricing is also considered to be an effective and important element in the
marketing mix but when it comes to retail sector its importance is more significant by
considering few factors. The company through its recent changes in the website is focusing on
providing less prices to online customers as compare to retail stores with special discounts and
offers.
Place:
It involves the geographical location in which the organisation sells its products and
provide its services. Location of nay organisation plays an important role in preparation of
marketing strategies. In context to Tesco, it uses two main channels of distribution which is
divided into online and offline with almost 7000 offline stores around the world. The company
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has a m multi-channel approach that allows people to shop from anywhere whether its there store
or direct catalogue. The company offers different formats in order to fulfil customer needs. The
company now adding new features to their online sites which will provide 24 hour delivery with
easy mode of payments which will allow consumers to make less trips to retail shops in order to
buy daily necessities. The new features will help the consumers who are mum as it will allow
them to shop in their comfort zone. Now with the world going digital, consumers are choosing
cashless mode of payments, new features will allows them to pay digitally through any online
payment method.
Promotion:
It involves spreading information about a service, product or issue. Promotion is basically
a part of marketing mix which spreads information about the brand, product line, product and
company. It involves advertising, public relations and publicity. In context to Tesco, the
company has strong brand image which significantly helps the brand in its promotional activities.
The company uses newspaper, television and media outlets to send its message to the consumers.
In relation to advertising, the company uses forms of promotion such as providing offers which
involves discounts, buy one get one free offers for their online sites with loyalty card as well(
The company provides various o0fers and discounts as well. The company's promotion strategy
is consistent with its overall business strategy of cost advantage. The marketing objective of
company involves profit maximisation in long term and short term perspectives and increasing
the value of brand image. The objective can be achieved through various promotional tools
which involves charitable causes, sponsorships of events, media advertisements and regular
promotional offers and discounts. Moreover, the company's Clubcard is considered to be a
effective promotional tool that contributes to the business strategy of cost advantage. The
promotion involves all the various ways of how the company can communicate with consumers
involving various promotional tools such as publicity, public relations, sales promotion, direct
mail and direct and internet communications (Claudi, 2020).
Process:
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It involves the flow of mechanism or activities that takes place when there is a situation
of interaction among customers and businesses. In addition to that it is a set of standardized
activities to accomplish a specific task or processing a customer's order. In the company's offline
stores, the consumers pick up their products and make use of self-service machines to make
payments.
People:
It involves the transactional interface among the company and its customers. In context to
Tesco, it has a great number of consumer assistants who plays an important role in successful
operations of the company. The employees are highly competent and the company invests a
large sum of money development and training of employees. Although reward schemes for the
company's employees are very good but some analysts argue that Tesco fails to motivate young
workers
Physical Evidence:
It involves everything that a customer sees while interacting with the business. It includes
the environment where a product or service is provided. The environment includes all the
tangible representations of a company such as menu, brochures, reports, signage, equipment etc.
In context to Tesco, the company uses an excellent logo and uses attractive colours. The
company through launching its new products have given a complete new transformation which
catches customer's attention.
Various ways to improve marketing mix:
Innovative product packaging : Packaging plays an important role in any organisation. In
context to Tesco, the company has to shift towards higher quality packaging. The company in the
past has already been involved in repackaging of its high quality products in higher quality
packaging. The company in order to stand out among its competitors need to develop branding
campaigns and new packaging designs for various items
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Customizing Media: As the company has revamped its website, the brand focuses on enhancing
individual experience. The company's marketing managers has come up with a variety of ideas
for this approach. It involves sending personalised messages, discounts by emails on occasions
such as birthdays, direct delivery to door and customized products.
Shifting towards digital marketing :
There has been a major influence of digital marketing in today's world and companies are now
moving from traditional marketing to digital marketing. In context to Tesco, digital marketing
allows the companies to reach highly targeted individuals and provides an opportunity to reach
millions of customers that the traditional marketing method cannot provide (Digital Marketing
Insititute ,2018).
Various ways to improve branding and reputation of service
The company in order to improve its branding and image or reputation of the product or service
need to segment its audience and targeting each customer group according to their habits or
needs and developing marketing strategies in order to fulfil their needs and preferences.
STP Analysis:
It involves three terms segmentation, targeting and positioning. It is a marketing tool that
summarizes and simplifies the process of market segmentation. In context to Tesco, the company
identifies well-defined buyers who differ in habits and needs. The company in order to improve
its branding and enhance the image and reputation of the service or product need to use these
marketing strategies in order to promote fair trade product.
Segmentation: It involves division of huge market into identifiable groups that allows to
develop more related and engaging marketing campaigns. In context to Tesco, if the company
need to build reputation for its website and new features such as easy payment methods, 24 hour
delivery of groceries, the company need to evaluate difference among customer groups and
developing strategies according to various segments based on geographic, demographic and
behavioural.
Targeting: It involves the process of identifying potential customers to whom the company
wants to offers its products or services which involves segmentation of market, choosing
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appropriate market and determining products that need to be offered. In context to Tesco, the
company is focusing on younger generations who are very much fond of personalized products
or gifts in order to maintain company's reputation.
Positioning: It involves the last stage which focuses on how consumer eventually views the
brand's product or service as compare to other competitors in order to gain competitive
advantage in market. In context to Tesco, it is necessary to maintain and revamp product
positioning in order to create a stronger impact on target audience.
CONCLUSION
From the above report it can be concluded that marketing management plays an important
role in development of company's new product and developing a market plan is important in
order to introduce the product in the market. In addition to that it involves how Tesco analysis its
external environment in order to identify its strength and weakness. Moreover, the report
involves the current marketing mix of Tesco and how the company can improve its marketing
mix in order to introduce new services. In the last it involves the ways through which company
can improve its branding and reputation of the service in the market.
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REFERENCES
Books and Journals
Avetta Marketing. (2020). 7 factors to choose when choosing a technology solution . Available :
https://www.avetta.com/blog/7-factors-consider-when-choosing-technology-solution/ Last accessed
04/12/2021
Benson P. Shapiro. (2021). Rejuvenating the Marketing Mix Available :
https://hbr.org/1985/09/rejuvenating-the-marketing-mix/ Last accessed 01/01/2021
Claudi. (2020). 9 Marketing Promotion Strategies from Concept to Top Brands Practice
Available : https://www.creatopy.com/blog/marketing-promotion-strategies/ Last accessed
06/11/2021
Digital Marketing Insititute ,(2018). How to Make the Move From Traditional to Digital
Marketing Available : https://digitalmarketinginstitute.com/blog/how-to-make-the-move-
from-traditional-to-digital-marketing/ Last accessed 04/01/2018
Kristen E. Cosselman. ( 2020). Environmental factors in cardiovascular disease Available :
https://www.nature.com/articles/nrcardio.2015.152/ Last accessed 13/10/2015
Narendra Kumar. (2017). Tools for International Business Environment Analysis. Available :
https://enterslice.com/learning/business-environment-analysis/ Last accessed 17/10/2021.
Ovidijus Jurevicius. (2021). PEST & PESTEL Analysis. Available :
https://strategicmanagementinsight.com/tools/pest-pestel-analysis/ Last accessed 11/11/2021.
Peter Betts. (2021). Cultural, Political and social factors influence the meaning Translations.
Available : https://www.globalizationpartners.com/2016/06/09/cultural-political-and-social-factors-
influence-the-meaning-of-translations/ Last accessed 09/06/2021
Sarah Laoyan. (2021). 19 types of marketing you should know about. Available :
https://asana.com/resources/types-of-marketing?utm_campaign=NB--APAC--EN--Catch-
All--All-Device--
DSA&utm_source=google&utm_medium=pd_cpc_nb&gclid=EAIaIQobChMI4Kaq24fr9
AIVjUNgCh0iYgFjEAMYAiAAEgLB5fD_BwE&gclsrc=aw.ds/ . Last accessed 30/09/2021.
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9 Marketing Promotion Strategies
from Concept to Top Brands
Practice
9 Marketing Promotion Strategies
from Concept to Top Brands
Practice
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