Introduction to Marketing: Tesco's Marketing Strategies and Tools

This report discusses Tesco's marketing strategies and tools, including the 7Ps of marketing, SWOT analysis, Ansoff matrix, and digital marketing. It also analyzes Tesco's competitive environment and provides insights into the company's expansion and growth.

INTRODUCTION TO
MARKETING

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
Marketing and 7Ps in marketing mix...............................................................................................4
What is marketing.....................................................................................................................4
7Ps of marketing........................................................................................................................4
Competitive environment................................................................................................................5
SWOT analysis................................................................................................................................6
Ansoff matrix...................................................................................................................................7
Analysation of Tesco Ansoff matrix................................................................................................7
Digital marketing and tools.............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing strategy and plan is made by organisation in order to achieve success in the industry.
Organisations uses various marketing tools and techniques to make the effective and effcient use
of resources and to reduce the risk of failure. This report is about Tesco which was founded in
1919 and it is an multinational general and grocery merchandise retailer. It’s headquarter is
located in England. This report involves various marketing strategies and tools which can help in
expanding the business. In this report various tools has been used to analyse the marketing
strategies of the organisation that are 7Ps of marketing, SWOT analysis, Ansoff’s matrix and
digital marketing. These points are analysed below.

TASK
Marketing and 7Ps in marketing mix
What is marketing
Marketing is known as the process of promoting company’s products and services in order to
increase the customer base. Marketing also involves research and advertising and it is also
known as the strategy of growth and development(Shapiro, and Layton, 2019). As this benefited
Tesco in many forms as it helps in raising brand awareness and it also helps in increasing
revenues and this helps in tracking the progress of the organisation in an effective form.
7Ps of marketing
Product
In Tesco there is a variety of products which involves clothing, financial service, food and
electronics. This company has its expanded product line which fulfil each need and requirement
of customers and by this customer base is also expanding globally and it is also providing a huge
variety of brand, type, international cuisine and regional.
Price
Tesco always sets the lowest possible price with quality for there customers without getting the
company in loss. Tesco uses cost plus strategy of pricing which adds an standard markup yo
there products cost. This company always sets the measure of economies of scale in order to
make their customers happy and get cost advantage(Otterbring, 2021).
Place
Tesco’s store are expanded globally and this mainly works in two channel of distribution in order
to sell company’s product and services which is online and offline. As there customers are not
happy and comfortable with the big store of Tesco. Therefore, they had opened small store for
there convenience and this gives a competitive advantage to the company.
Promotion
Tesco’s main advantage is low price with better quality. This makes this company different from
various other supermarket chain. This also helps in enhancing the brand image and this helps in
achieving aims and objectives of the organisation. This promotional activities which Tesco use

are promotional channels, hoardings, charitable events and television ads(Ferrell, and Ferrell,
2021).
Physical evidence
As Tesco does spend there capital in furnishing the store which looks attractive and cleaner. By
this all the products are categorised in an effective manner and also places many offers in order
to make customer feel comfortable by contriving all the potential resources and financial
resources. As its online website is also easy to operate.
People
In Tesco all the human resource is excellently trained and had appropriate skill and knowledge
for the better experience of customers. This also attracts the customers and also make the
employees loyal towards the companies.
Process
This is the various processes which involves business operations and all the operational work
which is related to the product and services. These are various ways by this product can be more
sustainable and profit in the business. As Tesco gives all the responsibility to there employees in
order to give them job satisfaction and in order to enhance there skills effectively. Tesco uses
formal theory of management in there organisation.
Competitive environment
Competitive environment is known as the types and number of companies which is against in an
competitive industry. There are two type of competitors in the market that are direct and indirect.
In which direct competitors are the organisation who sell similar products and services in the
industry and indirect competitors are those who has unrelated product and services in the same
market. In order to analyse internal and external environment of an organisation various tools are
used but mainly SWOT is used to analyse all the condition of an organisation(Brown, 2020).

SWOT analysis
This is an strategic tool which is used to analyse the environment of an organisation internally
and externally this involves company’s strength, weakness, opportunities and threats in order to
make better strategic planning.
Strength
The main strength of Tesco is as it has huge financial turn rate and has the huge market share
with 26.9% as there closest competitors has low market share as compared with Tesco. They had
also performed strong during pandemic with new innovation and techniques and shifting the
business online. This company is adaptable to all the situations presented in the industry. Tesco
is known as the successful company because of its leadership styles and growth of an
organisation(Gurrieri, Previte, and Prothero, 2020).
Weakness
Due to many leadership changes in Tesco, it is becoming challenging in order to manage with
new styles and operations. As it is known for its quality but due to some quality control
measures, they had face complaint from there customers. Thus company is also facing shortage
of goods and trying to use more safety and food measures in Tesco.
Opportunities
Tesco has many opportunities to grab as they should started growing online in order to expand
their customer base in the industry. As they can also introduce new technology in order to
increase the sustainability in the organisation as in the form of AI and machine learning. The
technology that Tesco use are google analytics and jQuery.
Threats
Brexit has huge impact in Tesco as due to bad relation in between UK and EU it is becoming
difficult to trade and expand their business in an effective form. This Brexit issue is also
affecting the supply chain and it is becoming challenging to get raw material at reasonable rate.
Economic recession is also becoming a threat for this company and can make an financial
uncertainty. Covid had benefited as well as created a threat to the company as shifting online
make it more expensive to manage(Galan-Ladero, and Alves, 2019). It is benefited as there
customer base has shifted online which has increased the sale of the same.

Ansoff matrix
Ansoff matrix is known as the tool which helps in making strategic planning for the expansion
and growth. This usually analyses and helps in making an plan according to the risk and
management of resources. This is further divided into four strategies that are market penetration,
product development, market development and diversification. This is used by Tesco in order to
grow and expand the business effectively.
Analysation of Tesco Ansoff matrix
Market penetration
Tesco was firstly an retailer store than later expanded it into different markets and industry in
order to increase there customer base. Tesco started this with the helps of Clubcard points and
this result as successful and has gained loyal customers in the market. This had helped Tesco
penetrating into new markets(Budnik, 2018). If Tesco will not penetrate there targeted market
effective can suffer loss in introducing new product.
Product development
Tesco use this strategy in order to expand in the industry. Tesco always identifies their products
which can help in growing and sustaining in the market. As by Tesco organics food has been
introduced in order to see the changes and they also uses environmental friendly and looks after
their social responsibility. As this company had also introduced diesel and petrol and still trying
to improving its quality. If Tesco does not succeed in improving the quality, it can decrease there
customer base.
Market development
This is considered as the important factor of this model and they follow many strategies in order
to expand there functions and business operations. As expanding in new country can profit the
organisation but at the same time it has huge risk as each country has different preferences. As
Tesco is going under many changes in related to expanding in Asian and European market. This
helps in expanding their market in new industry(Kotler, Pfoertsch, and Sponholz, 2021).
Diversification
This model helps the company in diversifying many risks when products are introduced into new
industry. As Tesco was first an grocer than diversified in different business operations. As this

company had introduced new electronics, furniture, rental service and selling books. This can be
result as profit or loss but trying it to make it possible.
Digital marketing and tools
Digital marketing is a medium by which information get transferred and help in connecting with
customer base and people in order to place it in right time and right place. All this marketing
allows all the efforts which can be used in digital channels. The four major marketing tools is
used by Tesco is social media, SEO, Affiliate marketing, PPC, Landing page tools and Email
automation tools(Mogaji, Maringe, and Hinson, 2020).
Tools of digital marketing
Social media
This is considered one of the most powerful tools which gives direction the organisation and also
allows technical support to the organisation and it further divided in to various sites which are
Facebook, twitter, google plus, LinkedIn and Instagram as these websites are used to attract the
audience of the organisation which promotes the Tesco company in an effective way.
Affiliate marketing
This is one of the oldest marketing tools in which if an individual refers the product of the
business online and the customer buys it that the middle man will get commission of
recommending the product. In this each advertisement are inter connected with the websites and
this is the best way of advertising the product of an organisation effectively. Tesco uses affiliate
marketing while introducing the product into new industry or country in order to get better
results of the product.

CONCLUSION
This report has concluded that these marketing strategies and tools gives an positive advantage as
all the strategies and planning is made with proper research therefore it make easier in order to
gain an competitive advantage. As this gives clarity and is data oriented. It also brings focus and
discipline in the organisation. This report also concluded that these various strategic tools which
is mentioned above is 7Ps of marketing, SWOT analysis, Ansoff matrix and digital marketing.

REFERENCES
Books and Journals
Mogaji, E., Maringe, F. and Hinson, R.E., 2020. Introduction: Higher education strategic marketing and
brand communications in Africa. In Strategic Marketing of Higher Education in Africa (pp. 1-8). Routledge.
Kotler, P., Pfoertsch, W. and Sponholz, U., 2021. H2H Marketing: The Genesis of Human-to-Human
Marketing. Cham: Springer.
Budnik, O., 2018. Theoretical and methodological bases of the cooperative marketing in
agribusiness. Agricultural and Resource Economics: International Scientific E-Journal, 4(4), pp.85-98.
Galan-Ladero, M. and Alves, H., 2019. Case studies on social marketing. Management for.
Gurrieri, L., Previte, J. and Prothero, A., 2020. Hidden in plain sight: Building visibility for critical gender
perspectives exploring markets, marketing and society. Journal of Macromarketing, 40(4), pp.437-444.
Brown, D.M., 2020. Internal Marketing: Theories, Perspectives, and Stakeholders. Routledge.
Jain, T.K., 2019. From Marketing to Digital Marketing: The Evergreen Profession for Executives. Available
at SSRN 3318178.
Shapiro, S.J. and Layton, R., 2019. Marketing systems—The evolution of a concept over time.
Otterbring, T., 2021. Evolutionary psychology in marketing: Deep, debated, but fancier with
fieldwork. Psychology & Marketing, 38(2), pp.229-238.
Ferrell, O.C. and Ferrell, L., 2021. New directions for marketing ethics and social responsibility
research. Journal of Marketing Theory and Practice, 29(1), pp.13-22.