Marketing Plan for Tesco plc: Growth Strategies, STP Approach, and Marketing Mix

This marketing plan discusses the growth strategies, STP approach, and marketing mix of Tesco plc, one of the largest brands in the grocery industry. It identifies issues such as heavy competition, product issue, and management issue, and provides solutions such as market penetration, product development, and market development. The plan also discusses the 4Ps of marketing mix and how Tesco can use them to meet the needs of customers and expand its business. The subject is marketing and the course code is not mentioned. The college/university is not mentioned.

Assessment 2

TABLE OF CONTENT
1. INTRODUCTION.......................................................................................................................4
MARKETING PLAN ....................................................................................................................4
2. Develop the marketing strategy...............................................................................................4
3. Marketing mix........................................................................................................................10
4. STP approach ........................................................................................................................11
5. CONCLUSION .........................................................................................................................11
REFERENCES..............................................................................................................................13

1. INTRODUCTION
As we all know that to be successful in the competitive world where everything is
changing so fast from marketing strategy used by company to innovation strategies to target
audience. By using marketing strategy the company spread awareness about brand and its
product or services to clients this can be done via good distribution channels such as
advertisement and digital marketing. Depends on the business structure the company use
marketing strategy after focusing on external environment as it can impact the business
performance and functioning. Tesco plc is one of the largest brand in the world providing various
types of products or services in the grocery industry it holds 3rd position in the world. On the
basis of revenue in the market it holds 9th position. The present report will be based on marketing
plan which is being prepared on the basis of issues identified before. The study will provide
detailed information about how Tesco plc can implement growth strategy to attract customers
and increase market share. Plus, it will give details on marketing mix and STP approach method.
MARKETING PLAN
Tesco holds a good market position in the UK retail sector and always believes in
expanding its business at global level. The firm have 326000 working professionals who work
for the betterment of company. Due to heavy competition in the retail industry the company have
to be active and use effective marketing strategy in order to attract customers, so this causes
product issue. Another issue which has been identified is that the firm has to work effectively in
order to attract more clients thus it causes marketing issue as they need to invest more in
marketing. Another issue which has been identified is conflict between employee due to lack of
communication and management, understanding between people. The major reason behind this
is COVID-19 as companies are using effective distribution channels in order to attract customer
and this creates high competition for Tesco plc.
2. Develop the marketing strategy
Basically, marketing strategy is used by Tesco plc in order to attract customer. By using
growth strategy the company can easily increase their market share. In the marketing planning
process, it is essential for company to make identification for informing which tactics should be
utilized in the marketing activity.
Ansoff growth matrix-

It is a business tool and strategy which is used to increase market share and reach different
markets in the competitive world (Khajezadeh and et.al., 2019).
source: (Khajezadeh and et.al., 2019).
Market penetration- This strategy can be implemented by Tesco plc for capturing the
retail market in the UK and growth can be analysed with the help of existing product (Ansoff
matrix, 2022). As we all know that consumers always focus on the name of brand and its
products rather than strategy used by them. Tesco has very well understood about this logic of
the consumers so the company promote its products and service through the website, and they
were also attracting customers by distributing leaflets within their stores. In order to deal with
product issue, management issue and operational issue the company can established new
schemes can gain the loyalty of the people and retain them effectively. By using market

penetration strategy, the firm can penetrate deep in the retail market as there is high competition,
the managers needs to focus on sustainability concept.
Product development- nowadays, due to changing customer trends in the market
company needs to come up with something new (Ansoff matrix, 2022). Tesco plc can use product
development strategy and should come up with new services and products on the basis of
preferences and tastes of the clients. For developing new products the company needs to focus on
research and development strategy so that it would provide idea about what is going on in the
particular market. However, Tesco offers a wide range of products or services as per the needs of
clients such as savings schemes, electronic goods and others, credit cards and insurance related
products. The company also focused on innovative products or services so that it would improve
the products quality as there is an issue in product due to heavy competition. By using this
strategy company is also trying its best to expand in other sectors too, such as tablets and mobile.
The reason behind that is customers are demanding about electronic items as compared to others
because of changing technology Tesco have to be very active while implementing any strategy.
In order to achieve satisfaction of consumers the company needs to focus on electronics
departments more and also think about telecommunications as it can remove the issue of product
and communication related issue.
Market development- By using this market development strategy, Tesco plc can easily
sell its existing products to new market. With this strategy the company is able to expand its
business into many countries which helps them attract more customers. In order to cater to
different new market segment the firm has its own and sells both versions. By using this strategy
the company is able to open new stores such as 750 physical stores in areas like Thailand over
the next 3 years which is quite good growing. For growth, the company can use direct sales and
online sales so that it would help people to grasp market opportunity and deal with issues related
to promotion activities and management. This is one of the best strategy and suitable method
Tesco can use and implement by using various distribution channel such as social media
marketing.
Diversification- this is one of the most risky strategy and difficult to implement (Ansoff
matrix, 2022). The reason behind that is selling new product into the very new market to new
customers is not an easy thing at all. The very first reason is heavy competition, another reason is
changing trends and another one is strategies used by competitors in the market to attract

customers. Many years ago when Tesco started its business they focused on grocery items and
over time it diversified into many areas. Such as insurance products, credit cards and mortgages.
This is how company expanded it business however, it was noted that the firm faced issues while
implementing this strategy and made heavy losses which has also impacted its performance,
market position, reputation as well. Therefore, for the current study diversification strategy is not
suitable for Tesco as it very risky to implement.
BCG matrix
This is one of the most effective and creative growth share matrix company can use in
order to prioritize their business products or services. The growth share matrix is all about a
portfolio management methods which helps the firms to decide how to prioritize businesses and
products or services into four important quadrants (what is BCG matrix, 2022). By using this
method Tesco plc is able to increase their profitability level and focus on their resources. By
using this powerful tool, company can achieve high growth in the competitive market as they can

easily decide about things to put or cut down. The concept behind this tool was built on the logic
that market leadership and cost leadership results in sustainable superior returns.
Star product- this type of product provide high growth to the company, so they should
significantly invest in these stars as they have high future potential. For Tesco plc, there are some
products that create growth opportunities for the firm. Tesco bank is one of the best product
which is generating sufficient income for the firm and have the chances to grow in the upcoming
years. So, the firm needs to focus on product development and investment more in Tesco bank as
it can create a supportive working environment for the business unit to develop further for future
success and deal with problems which can face due to crisis like COVID-19. In addition to this,
it has been noted that Tesco bank has provided many benefits to customer such as saving
accounts, loans and insurance which has attracted more new customers in the UK. As we all
know that banking industry is one of the growing industry which has high growth potential in the
upcoming years therefore it can be concluded that company will achieve good market share and
position in the coming years. Another product which is star for Tesco is petrol as this has also
high growth potential. By investing in petrol sale the company can achieve good profit and
attract customers to buy petrol.
Question mark product- this types of product shows low market share and high growth.
As we all know that not all products which has been launched by the company can work
smoothly. There are few products that can create lower market share and does not provide good
revenues. Due to this competition in telecommunication sector the company is facing share
prices issue. The market share of telecom department of the company is low as compared to
other competitors such as Samsung. So, the firm needs to focus on developing market
environment in a positive manner for the stability of these products. Due to this unsatisfactory
sales, it creates pressure on the company's management team to analyse whether it is feasible to
continue with the product of the particular product or stop doing production of it.
Cash cow product- there are some of the products which tend to be the main source of
earning for the company. For Tesco, fresh meat section is one of the high demand product which
comes under cash cow. In the past years, the company have faced some issue related to brand
image. However, the management has covered up these issues and found out effective solutions.
Not only this vegetables and fruits is also business unit which has high demand in the market of

UK. For further development, the company needs to make investment so that it can generate cash
in the long run.
Dogs- This is the last category in the BCG matrix tool, in this section company needs to
put all those products which present performance is not at all good and satisfactory (what is BCG
matrix, 2022). Just because of low return on investment in the market the company needs to keep
manage its business operations relating to business units. In the upcoming years, dogs category
products are not providing any financial benefits which create issue for management team to
manage things. The mobile industry of Tesco plc needs is not creating expected results. Due to
high competition in the mobile industry the company have to invest more in the business
operation.

3. Marketing mix
Basically, it is a tool used by company in order to implement new actions and develop
ideas in order to promote their products or services to the target marked which is totally based on
STP approach method (Thabit and Raewf, 2018). By using marketing mix, Tesco plc can define
their marketing options in terms of 4Ps so that their offering can easily meet the needs of
customers and able to satisfy their demand.
Product- Tesco plc is one of the leading brand in the world providing wide range of
products depending on the demand and taste of people. From grocery items to electronics to toys
each and every product is available at offline and online store. Not only this, the company is also
offering cosmetics, financial services and banking services such as loans and insurance. Due to
increasing competition in the retail field it is essential for the firm to meet the needs of
consumers and expand its product lines in other locations too.
Price- By using pricing strategy effectively the company can attract more new customers.
The management of the company needs to focus on low pricing strategy then only they can
create customer base (Marketing mix, 2022). Tesco use cost leadership strategy in order to gain
competitive advantages. In order to deal with product related issue Tesco needs to offer low price
at products without affecting quality as it can help to maintain market position. Due to heavy
competition in food retail industry especially after pandemic, Tesco needs to use cost leadership
strategy and make differentiation method useful for keeping track on changing market trends in
the world of retail business.
Place- Like other brand in the retail sector, Tesco also offers its services and products at
online stores and physical stores both. As the company needs to manage its work and wants to
deal with product issue it is essential for them to focus on online stores because people are using
online website for purchasing especially after pandemic (Lim, 2021). In today's world, people
are spending more time on social media platform so this is a great opportunity for the company
to expand its business via online servicing and deliver good at home globally.
Promotion- by adopting this marketing mix, Tesco can easily increase its market share
and growth in different countries which can help to gain competitive advantages (Marketing mix,
2022). As we all know that Tesco is one of the leading brand having strong image in front of
people and use varieties of distribution channels to reach its potential customer. It is essential for
the company to focus on promotion mix such as using social media platform Instagram,

Facebook, you tube and online advertisements can help the firm to reach market. It is essential to
invest more on promotion activities by using proper budget method. It can help company to
avoid any kind of uncertainty in the future success and can be able to run business smoothly. The
firm need to provide seasonal discounts, offers and coupons on few products. The company can
also offer loyalty schemes and membership card as this can help customers to improve their
loyalty towards brand.
4. STP approach
segmentation- the firm is focusing on market segment such as geographic, demographic,
behavioural and physiographic (Sukma, Lubis and Utami, 2019). It will include gender and age
of people they are going to focus on males and females of all age. Plus, income of people and
lifestyle can be taken into consideration. By understanding the behavioural, attitude and
personality of people the company can provided them wide range of options and meet their
goals.
Targeting- by using research method company can know about taste and preference of
customers. The company is going to target cost conscious people and those customers who are
interested in value quality and variety and firm can target those consumers who are more focused
on bargaining of products.
Positioning- Basically, positioning 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 firm can use pricing strategy such as low price because
nowadays people are more concern about quality with effective price by using promotion activity
firm can reach its market position this makes the company unique and different from others.
5. CONCLUSION
To conclude, As Tesco plc provide wide range of services and products and maintain
high quality in the market. For dealing with management issue as there is a conflict arises
between employees, the firm needs to focus on open communication method and feedback
system so that satisfaction level of people can be known easily. It can help company to build
strong relationship with people working in the firm. With the help of open communication the
company can motivate people and build trust and respect among team-mates. Plus, they can use
promotion mix social media platforms as its weapon to attract more customers.

REFERENCES
Books and Journals
Cheng, D., Qi, H. and Liu, Z., 2018. From STP to game-based control. Science China
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.
Lim, W. M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing. 29(5). pp.453-469.
Strydom, M., Kempen, E. L. and Tselepis, T. J., 2022. Marketing for Survival: The Survivalist
Promotional Mix of Informal Clothing Manufacturing Micro-enterprises. Journal of
African Business, pp.1-19.
Sukma, D., Lubis, P. H. and Utami, S., 2019. Analysis of Marketing Strategy of Minyeuk Pret
Using STP, Ansoff Matrix, and Marketing Mix.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies. 4(4).
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<https://www.tutor2u.net/business/reference/ansoffs-matrix>
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