Marketing Plan for Tesco: Analysis, SWOT, Marketing Mix, and Competition

This marketing plan report is based on Tesco, a British international general good and mart retailer. It covers the overview of the proposed idea of the company, evaluation of external and internal factors, marketing mix, discussion about the competition and competitive advantage to the firm, and suggestions about the proposed target market.

Marketing Plan

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
1. Overview of proposed business idea.......................................................................................3
2. Analysis of the external environment.....................................................................................3
3 SWOT Analysis.......................................................................................................................4
4. Marketing Mix........................................................................................................................5
4. Discussion of competition and competitive advantage...........................................................6
5. Suggestion for proposed market: ...........................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
A marketing plan is a working functional document that tells about the marketing techniques
which can executed by the firm in order generate audience reach and revenues in the particular
target market. It briefs the PR campaigns and outreach to be interpreted over the time which
involves on how the organisation will examine the impact of these various campaigns. The
following report is based on the company Tesco that is a British international general good and
mart retailer. It was Founded by Jack Cohen in 1919 and company is having its headquarters in
Welwyn Garden City, England. The following report will cover the overview of the proposed
idea of the company. Evaluation of external and internal factors and its marketing mix.
Moreover, it will include the discussion about the competition and competitive advantage to the
firm and also suggestion about the proposed target market (Chapman, 2019).
TASK
1. Overview of proposed business idea.
The organisation Tesco plc is planning to expand their business operations in their untapped
market segment in order to increase their long term growth and profitability. So, the management
of the organisation decided to target India as their new market area because as they know the
country is developing and people of India also diversifying themselves in order to buy branded
products and services and also due to the population as India is the second largest in terms of it
(Yu, 2017).
2. Analysis of the external environment.
PEST analysis is a framework that is utilised in order to understand the external factors of
specific product in the particular market area. It stand for Political, Economic, Social and
technological components and once these components are examined companies can make
various appropriate decisions. PEST Analysis of the Tesco is mentioned below:
 Political Factor – It refers to the various norms and polices of the particular market
segment. In order for smooth working of the organisation in a particular market area
companies need to obey all the policies which are made by the government. In context to
the company Tesco Plc, India is a developing country and they require more investment
s from forign companies so in accordance to that polices are supportive to the company

that can support the firm in properly expanding their business without any political
issues.
 Economic Factor – This factor has the essential effect on the economical growth,
success and decline of the organisation for the long run. If there is any type of fluctuation
in interest rates, foreign exchange rates, inflation in the country, economic growth are
various others then it can affect the business operations and its profitability for the long
term. In relation to Tesco Plc, as the foreign exchange of the Indian rupees as compare to
the pound is low it is beneficial for them as cost of production will be low in the country
so it can assist in more profit margins of the firm.
 Social Factor – This component involves the various expectations, health, population
growth rate, career behaviour, safety and cultural norms as well. This factor is very useful
for the organisation to make appropriate and beneficial plans in their marketing strategy.
In relation to the Tesco plc, management need to set up its research and development
team in order to properly examine the needs and wants of the consumers in the new
market area which can assist them in reducing future possible threats related to the
dynamic changes of trends.
 Technological Factor – This factor refers to the evolution and innovations in the
technologies and automation. This component affects the operations and functions of the
organisation. Various new evolution like deep learning, automated machine knowledge,
artificial intelligence, IOT are being done in the technology area. In relation to the
company Tesco Plc, management can initiate E commerce portals in order to enhance
their sales and revenues by using the online segment (Atherton, 2019).
3 SWOT Analysis.
It is a framework of evaluating internal elements of the organisation. It is a method to examine
its aspects to understand the organisation's competitive position and make a appropriate
techniques in order to eliminate the circumstances of failure. It also assist in examining internal
strengths and opportunities as well as reducing the possible threats and weaknesses.
Strengths
 Strong leadership and brawny
employees can be the biggest strength
to the company in order to expand their
Weaknesses
 Tesco plc, is the luxury brand with
offering high prices products and
services in the retail that can be a

business operations. As the company
can utilise their expatriates in order to
make them adapt and train various
employees in India that can assist firm
Tesco in accomplishing its long term
goals and objectives.
 Goodwill will also plays an important
role in the expansion of the firm in the
India as it can help the firm in
enhancing their sales and profitability
of the company due to the brand image.
weakness for the firm in the long run in
expanding their business operations.
 Company always lacks in obeying legal
issues as they were penalised their
accounting scandals.
Opportunities
 Company tesco plc. Can utilise the
various methods of e commerce in
order to increase their sale through
various online portals this can help
them in enhancement of the
profitability and brand image of the
company.
 After pandemic company can focus on
selling their day to day essential
products which can help them in
enhancing their sales because of need
of these products (Lancaster, and
Massingham, 2017).
Threats
 Competition is the major threat to the
organisation as there are various major
brands in India working on the retail
product segment. So in order to over
this threat company need to give low
price and better services to their
consumers.
 Covid 19 pandemic is a threat to the
company as the import of the raw
material will decrease because of the
lock down in the major countries world
wide.
4. Marketing Mix.
It refers to the combination of the various actions, tactics which an organisation utilises in order
to promote its goods or services in the target market area. There are 4Ps in this framework which

are price, product, promotion and place. In context to the company Tesco plc, its marketing mix
is mentioned below briefly:
 Price – It refers to the worth of a service or a product as it depends on the rate of
manufacturing, targeted market and capability of the consumers to pay, demand – supply
and hub of various direct or indirect elements. In context to the Tesco plc, management
provides their goods in high quality with least cost possible in order to tempt consumers.
 Product – It refers to the goods that are being sold currently in the market. It must gives
a minimum level of satisfaction to the consumers. In relation to Tesco plc, company is
offering a broad range of products to their consumers.
 Place – It refers to the area of sale in all the sectors and also the catching the eye of the
customers and keeping it conveniently for them to purchase. It is the main goal of the
supply chain or distribution. Wholesalers need to pay more amount for the appropriate
placing of their goods. In case of Tesco plc, company is well established in foreign and
domestic market.
 Promotion – It refers to every practices that are interpreted to make the goods or services
familiar to the consumers and in order to make them buy it. This can involve word of
mouth, press reports, incentives, commissions and rewards to the deal. Management is
advertising their goods by both ways traditional as well as digital marketing (Grundy,
2017).
4. Discussion of competition and competitive advantage.
Porter's 5 forces:
This framework render a structure for examining competitive position of the company and it
permits the administration to know its place within the commercial enterprise. It assist in
distinguishing the effect of five forces that is competitive rivalry, threat of new entrants, buyer
power, supplier power,, and threat of substitutes. Therefore, this theory is explained in brief
below in context to Tesco plc:
 Competition Rivalry – It is first of the five forces of this framework and it states that the
various competitors and their capability to undercut the organisation with their offerings.
The more number of the rivals together with the numerous of similar good and services
they give, the lower the power of the firm. In context to the Tesco plc, in India there are

various of competitors in this segment for the company. So, there is high threat of
competition rivalry.
 Threat of new entrants - A firm's power is also impacted by the introduction of the new
entrants in the market segments. It little time and capital it takes for a rival in order to
enter into an organisation's market and be an effectual rival and it can lead to the
lowering the position of the company more weak. A sector with brawny challenges to
enter is perfect for their current organisation in the sector since the organisation can be
capable to ask for more rates and later discuss for better terms. In case of the Tesco plc,
in order to establish an organisation like Tesco it requires lots of capital as well as
planning which is hard for many new entrants so this threat is low for them (Alwaily
Ruiz, 2018).
 Power of suppliers – This factor of this framework knows how conveniently suppliers
can influence the rate of the inputs. It is impacted by the numerous of the provider of the
vital inputs of the products as well as the services. The fewer suppliers in the sector the
more an organisation can depends on them so which can give the outcome that supplier
has more power. In context to Tesco plc, there are various of suppliers in India providing
raw material to the various companies so the power of suppliers is high for them.
 Power of buyers – The capability that consumers have to influence the rates lower or
into their level they desires. It is impacted by how many consumers or buyers an
organisation has and how important each consumer is. Moreover, also how much it can
cost an organisation to gain more consumers or different market place. In terms of the
firm Tesco plc, power of buyers is high for them as there are various of retailers like
Tesco offering similar products.
 Threat of substitutes - Substitutes products and services which can be utilised in place
of the organisation's goods or offered services which can give the threat to them.
Organisations that manufactures products or services which are unique or does not
offered by other companies will have more power to enhance rates. In context to Tesco
plc,
Porter's Generic:

It is a way for a company to engage its competitive point crossways the business of choice and as
the name express it is generic in nature. This framework can be applied to any services or
merchandise in all firms of all sectors Cieślikowska, 2021).
 Cost leadership - This strategy can execute by any organisation which is providing
services and products at lower cost. Companies can minimise their price by purchasing
raw materials at lower prices. In case of Tesco, management should adopt this strategy in
order to supply their consumers goods at lower cost.
 Differentiation - This strategy refers to alteration of services and merchandise in a
improved and fascinating way likeness to their competitors. In order to make effective
differentiation strategy institution must establish elements such as better research. In case
of Tesco, management can concentrates on making their merchandise in accordance to
want and needs of their consumers.
 Focus Strategy - This strategy look for a lower cost advantage in a small or specific
market by understanding the need and requirements of the consumer in that particular
market. In case of Tesco,
5. Suggestion for proposed market:
Management of the Tesco plc, has done a evaluation on the demographic as well as geographic
basis which has lead them in taping into India as because the population of the country as well as
it is developing country so their target consumer base can be middle level customers.
CONCLUSION
From the above report it is concluded that marketing plan is very much essential for the
expansion of the organisation in different parts of the world. Above mentioned respective firm is
planning to expand their business operations in the untapped market area for that management
has evaluated its external as well as internal factors that can affect the operations of the business.
Moreover, with the utilisation of various framework company has examined its competition and
its advantages.
REFERENCES
Books and Journals
Alwaily Ruiz, Y., 2018. Plan de marketing “Las Cabañas de Liermo”.
Atherton, J., 2019. Social media strategy: A practical guide to social media marketing and
customer engagement. Kogan Page Publishers.

Chapman, R.J., 2019. Exploring the value of risk management for projects: improving capability
through the deployment of a maturity model. IEEE Engineering Management Review,
47(1), pp.126-143.
Cieślikowska, P.W., 2021. Improvement of e-marketing activities in the Warsaw Spire building
(Doctoral dissertation, Katedra Systemów Zarządzania).
Dees, W., Walsh, P., McEvoy, C.D., McKelvey, S., Mullin, B.J., Hardy, S. and Sutton, W.A.,
2021. Sport marketing. Human Kinetics.
Grundy, T., 2017. Dynamic competitive strategy: Turning strategy upside down. Routledge.
Lancaster, G. and Massingham, L., 2017. Customer care and relationship marketing. In
Essentials of Marketing Management (pp. 260-278). Routledge.
Yu, S.O. ed., 2017. Art of modern oriental management: Applying the Chinese, Japanese and
Korean management styles at work. Worl