Strategic Marketing Planning for TESCO PLC

Strategic Marketing
Planning

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Overview of the Company and Industry to which the organisation belongs..............................3
Current position of Retail industry..............................................................................................4
Environmental Analysis..............................................................................................................4
Marketing Objectives..................................................................................................................5
Marketing Strategy Selection along with Rationale and usage...................................................6
Marketing Targeting and Positioning .........................................................................................7
Assessment of the 7P’s................................................................................................................8
Implementation, Control and Evaluation....................................................................................9
TASK 2............................................................................................................................................9
Effectiveness of corporate strategy ............................................................................................9
Marketing strategy for TESCO PLC.........................................................................................11
Appropriate strategy related to market entry, substantive growth and retrenchment for TESCO
PLC...........................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic market planning is defined a continuous process through the use of which a
company creates and develop marketing strategies and other plans and it also facilitates effective
implementation of these strategies to achieves the desired goals in target market. This process
takes into account the current position of the organisation and further also helps in identifying
the promotional and existing opportunities so that best polices and strategies can be adopted to
evaluate and grab these existing opportunities for better growth and development of organisation.
Management and operations teams of a firm keeps on striving to come up with and implement
practical marketing strategies to ensure a stable and continuous flow of business operations for
an organisation.
For this assignment on Strategic market planning the selected organisation is TESCO
PLC which is a well known British multinational groceries and general merchandise retailer,
having its headquarters situated within the confines of Hertfordshire, England, United Kingdom.
This report includes a description about environmental analysis to understand the current local
economic conditions and also includes the marketing objectives. Beside this selection of most
suitable marketing strategy and marketing targeting and positioning also forms a part of this
report. Along with this an assessment of 7P’s (marketing mix) and implementations control and
evaluation is also included. At last, this project also consists of effectiveness of corporate and
marketing strategy.
TASK 1
Overview of the Company and Industry to which the organisation belongs
TESCO PLC is the leading supermarket chain operating by way of its large number of
outlets across the global periphery. It stands at Number 1 position in the retail sector of United
Kingdom which is its domestic market. Owing to this, this firm has a strong brand image across
the confines of UK. Its customer base is not willing to shift to other alternate brands looking
upon the quality of product as well as services offered by entity at market place. The core
product line of TESCO PLC is food segment but the entity is focussing upon expanding its non-
food segment to appeal to the people at global scale.
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Current position of Retail industry
The current state of retail sector is affected by the exit of Britain from EU, referred to as
BREXIT. The sale of companies pertaining to this industry has been affected to a significant
extent as a result of this national decision. Thus, it is required for corporations belonging to retail
sector to take effective measures through which they can retain their position at market place and
ensure their long term sustainability amidst adverse economic situations.
Environmental Analysis
SWOT Analysis of Tesco PLC
SWOT is one of the most effective business tools which are required to analyze internal
environment & forces that exert influence upon the operations of a firm (Ahmed and Rafiq,
2013). The major purpose of SWOT analysis is to accumulate positives such as strength &
opportunities and negatives such as threats & weakness to pursue action in accordance with
same. TESCO PLC which is the leading retailer is under relevancy to discuss such analysis to
gather all possible competencies of the firm to get solution accordingly. SWOT analysis of
TESCO PLC is as under:-
Strengths Weaknesses
The main strength of TESCO PLC is
reputation of being tagged as the most trusted
brand in sector of grocery and other shopping.
Alone Tesco holds out 34 percent of the market
share in the UK. They have unique strength in
gross development of sales and revenue. It has
approx. 3751 stores separate in UK and total
6800 stores in the worldwide. The most unique
strength is diversified visibility to their
customers in the form of home plus, Tesco
extra and express. TESCO PLC also believes
in the superior usage of technology such as
advance checking and payment system to their
grocery stores. Also, brand loyalty of the Tesco
Plc is high, as it believes in customer
In 2017, Tesco was accused with penalties due
to an illegal accounting declaration and
misrepresentation to their profits. Also,
decrease in their operating profits has caused
decrease in the share prices of Tesco after the
declaration of the BREXIT Referendum. In
past time, TESCO PLC has struggled with
breakdown of their financial performance due
to low cost strategy and poor financial
estimation. Due to BREXIT, prediction has
been made on side of further business losses
that would be encountered by the retailer firm,
TESCO.
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