Marketing Plan for Tesco plc's Expansion in India

This report provides a detailed marketing plan for Tesco plc's expansion in India, including the use of marketing mix tools such as product, pricing, place, promotion, process, people, BCG matrix, Ansoff matrix, and STP approach. The report also discusses the company's aim to provide varieties of products or services, including groceries, food items, electronics, financial services, Tesco mobile, Tesco bank, furniture, homeware, and internet services. The report suggests that product development strategy will be the most suitable strategy for the company. The report also highlights the importance of customer-driven strategy using STP approach to segment the market and target customers effectively.

Assessment 2 Principles of
Marketing

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................5
MARKETING PLAN..................................................................................................................5
Marketing mix –..........................................................................................................................5
Marketing BCG...........................................................................................................................7
market developing strategy Ansoff matrix..................................................................................8
Customer driven strategy STP approach –..................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
For any business to be successful, it is important to adopt good market strategy to target
audience and grasp effective market position in competitive world. It is important for an
organization to spread awareness about brand and its products or services to customers this can
be done through good distribution channels such as television, advertising and digital marketing.
Tesco plc is one of the popular food retail brand in the UK providing varieties of services and
products to customers. Every business wants to expand its business in other countries and
different locations. The present report provide details on Tesco plc who wants to attract new
customer via international strategy in India.

INTRODUCTION
Principles of marketing plays a vital role in the company because it can provide growth to
business. For any business to be successful, it is important to adopt good market strategy. It is
important for company to spread awareness about brand and its products or services to
customers. The present report will be based on Tesco plc a retail company providing groceries
and other appliances to customers. The company is situated in UK and wants to expand its
business in other countries. A company has limited presence in other countries like India, thus
needs to develop its products or services through marketing department. In addition to this, the
study will provide detailed information about marketing plan with the help of marketing mix
tools in order to enhance the organizations growth and improved market share.
MARKETING PLAN
Tesco plc is one of the largest food retailers in the world and holds a good market
position in the UK and believes in expanding its business all over the world. A firm operates
around 2318 stores and more than 326000 people are working in this company. Now, They need
to develop its strategies by establishing new stores, retail services and adapting the requirement
of loyal customers. The major aim of the company is to provide varieties of products or services.
Tesco plc provide clothing, groceries, food items, electronics, financial services, Tesco mobile,
Tesco bank, furniture, homeware, internet services etc. by using effective marketing strategies
the company attain its stated objectives and desired goals from last few years.
Marketing mix –
marking mix is one of the most popular tool used by companies to develop and
implement new actions in order to promote their services and products to the target market based
on STP approach (Thabit and Raewf, 2018). Tesco plc serves millions of customers, in its
physical store and online.
Products- Tesco plc provides varieties of products or services to its customers such as
food, clothing, cosmetics, financial services etc. it is mandatory to expand its product lines in
Indian locations to meet the customer needs (Ndofirepi, Farinloye and Mogaji, 2020). The firm
can expand its Tesco bank and provide financial services among Indian people and gain
competitive advantages. They can also offer Tesco value, everyday value and other own brands.

Pricing- As a result, Tesco plc maintain its market position by using effective pricing
strategy and keep its price as low as possible to attract its customers. The company can focus on
cost leadership strategy in order to gain competitive advantages. The firm can offer its services
or products at a low price without affecting its quality. With the help of effective and efficient
supply chain the company can reduce prices by continuously work with their suppliers. Due to
heavy competition in food retail industry, the company needs to use this pricing strategy and
keep track on changing market trends.
Place- Like other retailers Tesco plc provides its services online and offline both. The
company needs to expand its stores in India so that people can easily visit and purchase whatever
they want. Nowadays, people are spending more time of social media so this is an opportunity
for company to grasp this online servicing (Marketing mix, 2022). The Tesco provide Tesco
direct online business for the convenience of people. This is the best way to expand business by
using this method. Tesco is using different channels in UK to reach out to its customer and it is
essential to use those channels in India to gain competitive advantages.
Promotion strategies- As Tesco plc has a strong brand image and use varieties of
distribution channels to reach its potential customer, it is important to use those promotional
activities in India as well. The company can use social media platform like Instagram, Facebook,
you tube, online ads, marketing campaigns to take its message to Indians clients. The firm needs
to spend more on promotional activities and can do more investment on advertisement. It is
advisable to make proper budget to avoid any uncertainty in the near future and smooth running
of business. They can also give discount offers, such as buy 1 get 2 free for few products in order
to attract customers. In addition to this, firm can also provide loyalty schemes and membership
card in which they can redeem points in the form of cash and get discounts.
Process- It means a set of activities performed in order to achieve goals and something
good. When the company expand its new stores in different location they need to offer self-
service machines where people can easily make payments via online transfer. They can also give
option in their stores where clients pick up their services or products and go to cash counter for
making payment.
People- It has been noted that the cited organization has 42000 employees who work for
the company's success. Tesco plc has a talented workforce who play a vital role in the success
and progress of the firm (Blut, Teller and Floh, 2018). When the firm expand its business in

other location they can ultimately provide jobs to many people which can help to enhance
economic growth. Tesco can invest on training and development programmed of employees, and
they can also offer reward schemes in order to motivate them towards company goals.
Internationalization will provide a huge opportunity for company to maintain employment.
However, the company fails to motivate its young workers in the UK. To deal with this, it is
recommended to provide training sessions on regular basis which includes online workshops,
offline training via group project to build team work and establish communication system.
Physical evidence- It stands as a proof of authentic goods provided to the clients. To
attract customer, the company can use attractive packaging for their products in which they can
make efficient use of colours. Nowadays, people are more attracted towards appearance and
colour combination of packaging. The firm can invest on decorating its website and make it easy
so that people of India can make purchase.
By adopting this marketing mix, company can improve its growth and market share in
other countries and gain competitive advantages.
Marketing BCG
The Boston consulting group says that it is essential for any business to use important
tool for helping themselves decide what it should keep, invest more in or sell in the market. by
making things clear will help them to work effectively. BCG matrix is a growth share matrix tool
which is used by the company in order to manage things internally to assess the current state of
value of company's units. By using this method Tesco plc management team is able to decide
about which products to either sell, invest and keep further and which needs to be eliminated. In
short, company can decide how to prioritize their different businesses in the table form under the
four quadrants: cash cows, pet, stars and question marks. By using this growth share matrix, the
company Tesco plc will be able to set their own unique features in the market and make position
effective.
Dogs- this is the section in which company can put their low market share products or
services. This means that this should be totally sold or you can say repositioned. For example-
the mobile segment which is of no use then they must sell them as they are not generating much
cash for the firm.
Cash cows- this is the section where company can put their products or services which
has a relatively large market share as compare to dogs one (Khajezadeh and et.al., 2019.) These

products are considered as cash cows as they are generating cash and higher than the market’s
growth rate. In the Tesco plc, there are some units that tends to be the main source of earning for
the business entity just because of high market share which is owned by the firm. For Tesco plc,
the fresh meat section is considered as cash cows as they are in high demand all over the stores
of Tesco. Customer prefer to buy this product. Also vegetables and fruits are constituting a part
of business unit as it is profitable. For the further development in the marketplace, the fresh
produce market needs some little more investment so that it can make it profitable as they can
generate cash in the long run.
Stars- Tesco has some product which are generating sufficient income for the firm and
have the best chance in order to grow more in the future thus they are categorized as stars. For
example- Tesco plc bank has expanded its market presence just by providing some effective
benefits in the market and customers with services like loans and insurance.
Question marks- products like Tesco lard is not operating to their full potential and not
generate sufficient cash for the firm. This has not able to create a high demand from the
consumers because over the years Tesco has not sale lard which is unsatisfactory for them. This
creates pressure on the company’s management team whether to continue or not.
market developing strategy Ansoff matrix
as we all know that successful leaders understand about the need for business growth in
the long term manner. The leaders nowadays find out the new ways in order to improve the
performance and increase profitability to reach new clients. There are various options which is
available for them such as development of new products in the existing markets or development
of existing products in the new market.
Market penetration strategies
with the help of this strategy, Tesco plc can easily sell its existing products or services to
existing markets (Torquati and et.al., 2018). By using this strategies the company is able to expand
its business operations very well. It also helped increase its market share which can also provide
competitive advantages. By the implementation of competitive pricing strategy and marketing
campaigns and advertisement method, the firm is able to apply market penetration effectively for
working efficiently. By comping up with the efficient and special discount offers on various
kinds of products the company is able to increase its sales which helps them to achieve success.

Market development strategies
Tesco plc has implemented market development strategies which means selling their
existing products or service to new markets. This is quite challenging because there are many
new players in the new market. The company have to be very active while implementing this
strategy. In order to improve this, the firm needs to use different sales channels such as online
sales which can help to achieve goals. The firm can grasp the opportunity to enter into a
international countries and expand business via advertising.
Product development
since years Tesco plc has developed a very good number of its own label products in
order to sell to its existing markets. They sell in different types of market segments which needs
to be taken into consideration. By using this strategy, the company have achieved success and
come up with something more attractive. However, it has been noted that this strategy requires
more amount of money and huge investment because company have to invest more in research
and development technique in order to develop new products.
Diversification
This is the riskiest strategy among all and this is the reason behind companies find it very
difficult to implement. Selling new products to new customers is not easy thing as it can create
varieties of challenges which can hinder the performance if not done properly. If the company
launch new product and wants to sell it to different customers.
from the above mentioned analysis, it has been noted that product development strategy will be
suitable strategy.
Customer driven strategy STP approach –
In order to expand its business in different locations the company needs to make proper STP
approach in which they need to segment their market in a most effective way and target
customers and offer varieties of products or services to each segment.
Segmentation- To create market segment, the Tesco plc needs to evaluate the segment
for viability and construct segment profiles based upon the needs and requirement of customers
Cheng, Qi and Liu, 2018). Segmentation is all about dividing customers into various types of
categories which includes geographic, physiographic, demographic and behavioural.

 It is important for the cited company to make effective segmentation which should be
easily accessible, substantial, actionable and measurable.
 In geographic, the Tesco plc segment includes gender and age in which they are going to
focus on females and males of all age.
 While on the other side, demographic the company is going to focus on income level of
people which includes middle and lower income category people.
 In psychographic, the firm is going to focus on the lifestyle of Indian population and their
traditional culture. By understanding the personality and taste of people the firm can offer
them varieties of options.
 In behavioural, Tesco is going to concentrate on attitude of Indian people and here buyers
can be grouped according to occasions.
Targeting- it is a process in which company evaluate the various segments identified
during the segmentation process which is mentioned above and decides on the basis of this. They
take decision about how many and which segments it can serve best. Firstly, Tesco plc needs to
do market research on the customer trends, taste and preference (Sukma, Lubis and Utami,
2019). They need to understand the market factors which includes power of supplier, power of
customers, competitive rivalry, new entry in the market, pricing strategy of other companies. By
planning effective market strategy, the company can grow sales and spread brand awareness
within specific group of people. In India, people are more cost conscious, they value variety and
quality more and so, the firm needs to target those people who are more interested in bargaining.
Positioning- It means dealing with individual elements of marketing mix in order to
satisfy the needs of customer by attracting them on the basis of target customer segment in the
most effective way. The company helps its loyal customers in getting their daily requirements.
Tesco needs to use varieties of positioning strategy so that they can easily attract the customers
of India (Mintz and et.al., 2021). The firms can use effective pricing strategy because Indian
people are more concern about the price of product or service as compared to other components.
They can also target its customer who are more health conscious and want to use organic
products or services with good quality. Especially, after pandemic customers are becoming more
health conscious and want to maintain healthy environment all around. In this way, they can
easily meet the needs of customers and reach their target market.

CONCLUSION
To conclude, Marketing is all about giving potential customer information about services
or products and the reasons behind choosing company. By evaluating the report it has been
concluded that Tesco is the biggest supermarket in the world having market share of about 28%
and adopt good market position. By having effective marketing mix strategy and STP approach
the company can easily develop its business operation in other location of India. Furthermore, it
is recommended that before implementing any decision and strategy, Tesco plc needs to focus on
government policies, changing trends, external and internal factors which can impact business
operations, finding out opportunities and threat and also hire skilled and talented staff members
because moving into new market need more efforts and market research,

REFERENCES
Books and Journals
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Information Sciences. 61(1). pp.1-19.
Khajezadeh, M. and et.al., 2019. Application of neural network in portfolio product companies: Integration
of Boston Consulting Group matrix and Ansoff matrix. International Journal of Economics and
Management Engineering. 13(6). pp.809-813.
Mintz, O. and et.al., 2021. The right metrics for marketing-mix decisions. International Journal
of Research in Marketing. 38(1). pp.32-49.
Ndofirepi, E., Farinloye, T. and Mogaji, E., 2020. Marketing mix in a heterogenous higher
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Online
Marketing mix. 2022. [Online]. Available through:
<https://www.mindtools.com/pages/article/newSTR_94.htm>