Marketing Plan for Expanding Tesco's Organic Product Line

This marketing plan outlines the strategy for Tesco to expand its organic product line in other regions of the world. It includes a situation analysis, SMART objectives, STP strategy, Ansoff Matrix, marketing mix, and evaluation and control.

MARKETING PLAN

INTRODUCTION
Marketing plan is a document which outlines the marketing strategy of a concern in the
event of introducing new product or existing product to new segment or expanding current
operations to other regions of the world. In this report marketing plan for a well-established
company that is, Tesco where the purpose behind developing a plan is that the company is going
to expand its organic product line in other regions of the world.
MAIN BODY
Marketing plan for expanding Tesco’s organic product line
Situation Analysis
The most important part of every marketing plan is situation analysis where the organisational
capabilities and business environment can be understood with the help of external and internal
environmental analysis (McCollough and Shook, 2017). Here, for Tesco’s expansion of organic
product line, the situation analysis will be done through conducting SWOT analysis of the
company.
Strengths
 Enjoying strong brand image in the
market.
 Recognized as a market leader, as
Tesco is the third largest retailer in the
world.
 Diversification of business in various
regions of the world along with strong
distribution channel of Tesco.
Weaknesses
 The company is not able to create their
presence through city center market.
 Marketing approaches of Tesco is not
that efficient.

Opportunities
 Rising demand for private label
products in UK is a great opportunity
for Tesco (Camilleri, 2018).
 Growth opportunities due to higher
organic product’s demand in various
regions of the world.
Threats
 Emergence of low price products both
organic and non-organic products that
has been introduced by competitors.
 Recessionary condition in UK
economy causing threat to the
company’s market share and
profitability accordingly.
Mission of the company: To expand company’s market share and product line through the
introduction of organic products.
SMART Objectives to achieve the mission of the company
Specific, measurable, attainable, reliable and time bounded objectives must be in place to
achieve the mission of the company and even it should be designed from the perspective of both
company and its marketing function which must be business and customer oriented both.

SMART
Goals
Tesco’s corporate objectives Tesco’s marketing objectives
S - Specific To improvise the productivity of both
managerial and non-managerial staff
(Hisrich and Ramadani, 2018).
To obtain leading position in the
retail sector.
M-
Measurable
Alignment between different business
operations through the provision of training
to employees.
To boost up to 30% of market
share.
A-
Attainable
To ensure higher customer satisfaction with
the increment in response rate.
To enhance sales around 60 to
70% within 12 months.
R-
Reliable
To establish organic product’s retail stores
at untargeted areas.
To enhance customer base within
12 months.
T- Time
bound
To raise revenues and profitability by 30% within the period of 12 months.
Marketing strategy (STP) of Tesco plc.
Segmentation, targeting and positioning are known as three most important strategies that can be
utilized by Tesco to enhance their sales of organic products in an aggressive manner.
Segmentation: Through segmentation, mass, local & niche all market segments can be addressed
which will contribute towards boosting company’s sales of organic products by enhancing
customer satisfaction in an effective way (Polger, 2019). Customer satisfaction can be only
enhanced when behaviour, attitude, tastes and preferences and buying behaviour of all market
segments will be assessed effectively.
High Medium Low
Mass market Niche market Local market
The green portion in the above matrix indicates higher segment attractiveness and thus it is very
much suitable for the company for long time. While the blue portion indicates lesser segment
attractiveness as compared to mass market and thus is less suitable for the plan. And the last one
is the red portion which indicates least attractiveness while developing a marketing plan for
Tesco’s organic products.
Targeting: It indicates the target market of the company in terms of all those individuals who
have preferences for Tesco’s organic products (Camilleri, 2018). The target customers can be
either middle age people, old people, youngsters or children. Targeting must be done in a well-
planned manner by assessing the needs of the customers and the same can be ensured by
analyzing the customer’s preferences for organic products.
Positioning: Organic products must be placed well in the marketplace such as stores of Tesco at
city centres. Generally middle age and youngster people across UK demands organic products

and the same segment across the world can be targeted by positioning these organic product in a
persuasive manner. By communicating the value added quality of organic products and its
innovative design, the product can be positioned well in the minds of customers.
Marketing strategy- Models
According to Ansoff Matrix, which provides company with the strategic directions and assists in
growing its product line or market. The matrix so developed here for framing growth strategies
are as follows:
Existing product New product
Existing market Market penetration Product development
New market Market development Diversification
So, the market development is the best strategy fitting with the purpose of Tesco in expanding its
organic product line into different markets of the world with its existing organic product.
Marketing integration mix
The strategy suggested for each marketing mix of Tesco are as follows:
Product: To maximize market share, Tesco must concentrate on its organic products value and
quality.
Price: The pricing strategy used by Tesco while targeting international customers for its organic
product will be a combination of value added and competitive pricing strategy.
Place: Almost all the retail outlets of the company will now have a shelf for organic products, as
the company will incorporate intensive distribution strategy in order to penetrate into world
market for organic products (Hisrich and Ramadani, 2018).
Promotion: In order to boost the sales of organic product by entering into international market,
there is a need of aggressive promotional strategies which includes both online and offline media
such as social media and newspapers for demonstrating the marketing campaign of the company.
Evaluation and Control
In order to achieve the marketing objectives of increasing the sales of organic products, there is a
need of establishing an appropriate control over the activities of the company by evaluating
various factors, such as:
Marketing objectives KPI Timeline
Increase in sales up to 60 to
70%
Sales figure July 2022
Increase market share Market capitalization analysis February 2022
Maximization of customer
satisfaction
Customer response December 2021

REFERENCES
McCollough, M. A. and Shook, S. R., 2017. Integrating the marketing research and marketing
strategy courses. Journal of The Academy of Business Education, 18, pp.187-200.
Camilleri, M. A., 2018. Strategic planning and the marketing effectiveness audit. In Travel
marketing, tourism economics and the airline product (pp. 117-135). Springer, Cham.
Hisrich, R. D. and Ramadani, V., 2018. Entrepreneurial marketing: a practical managerial
approach. Edward Elgar Publishing.
Polger, M. A., 2019. Library marketing basics. Rowman & Littlefield.