Unit 07 Strategic Marketing - Evaluation of marketing tools and techniques, risk mitigation strategies, and development of a marketing plan for Tesco

This report discusses the evaluation of marketing tools and techniques, risk mitigation strategies, and development of a marketing plan for Tesco. It covers the relationship between marketing plan and strategic objectives, marketing methodologies, and risks associated with marketing plan. It also includes the critical analysis of components of a marketing plan and the levels of importance of each component to the achievement of strategic objectives. Additionally, it addresses mitigation strategies for high-risk components of the plan and provides a marketing plan that will achieve strategic objectives for a complex organisation. The report concludes with a discussion on how the plan supports strategic objectives.

Unit 07 Strategic
Marketing

Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
A.C 1.1 Evaluation of marketing tool and techniques which supports organisational strategy as
well as impact on marketing plan................................................................................................3
A.C 1.2 Marketing methodologies and approaches ....................................................................4
A.C 1.3 Risk associated with marketing plan..............................................................................4
A.C 2.1. Critically analyse the components of a marketing plan and the levels of importance of
each component to the achievement of strategic objectives........................................................5
A.C 2.2. Address mitigation strategies for high-risk components of the plan.............................6
A.C 2.3. Develop a marketing plan that will achieve strategic objectives for a complex
organisation..................................................................................................................................7
A.C 3.1. Discuss how the plan supports strategic objectives.......................................................9
A.C 3.2. Develop an approach to gain agreement for the marketing plan that will change
organisation actions and methods to achieve strategic objectives.............................................10
A.C 3.3. Critically evaluate and provide new review measures for the agreed plan.................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic marketing may be defined as the use of marketing disciplines so s to attain
organisational goals by framing and maintaining sustainable competitive advantage. Marketing
plan facilitates in identifying target market and coordinates company’s objectives and goals. It
depicts target market and allows establishment in segmenting as per needs. It is important for
company to frame marketing plan so that it becomes easier to identify and target audience so as
to attain organisational goals. The marketing plan should coordinate with organisational goals
and must support in fulfilment of objectives (Gerritsen and van Olderen, 2020). A strategic plan
outlines broad objectives of marketing. This project report is based on Tesco, a multinational
retailer, headquartered in Welwyn Garden city, UK. It will cover relationship between marketing
plan and strategic objectives and how marketing tools and techniques supports strategy. In
addition to that, it will cover marketing methodologies, risk associated with marketing plan. It
will also cover task 2 and task 3.
TASK
A.C 1.1 Evaluation of marketing tool and techniques which supports organisational strategy as
well as impact on marketing plan.
There are various marketing tools and techniques which supports organisational strategy such as
digital marketing, SEO (Search Engine Optimisation), video and content marketing. In relation
to Tesco, it opts combination these marketing tools while framing strategies. It is important for
company to frame effective strategies by analysing market or it may negatively impact
company’s productivity and profitability. by using digital marketing, company can communicate
with its customers and can identify needs and wants. It will help company in producing product
which can meet customer expectation. Social media marketing is also crucial as it helps in
understanding market trends and based on that formulates strategies. With SEO company can get
to know about traffic on company’s website and based on that, it contributes in effective
formation of strategies. By using all tools and techniques of marketing, it becomes easier for
marketers to frame strategies (Agic and et.al., 2016). In addition to that, all these elements
positively impact on marketing plan. By collecting data from various sources, marketers can
create insight so as to draft marketing plan. It helps in formation of effective marketing plan and
contributes in attainment of goals effectively and efficiently. As technology is emerging day by

day, it makes it easier for marketers to draft marketing plan by collecting information related to
buying behaviour and marketing trend. With online advertising, company can promote its
products over internet and capture larger market in short span of time. In social media marketing,
company takes feedback from its customers and based on that frames strategies so as to achieve
competitive advantage.
A.C 1.2 Marketing methodologies and approaches
 Market on one methodology- This concept states that company should keep in touch with
its customers in order to deeply understand needs and wants of customers. In relation to
Tesco, it maintains a healthy relationship with its customers and establish trust along with
more personal relationship. In addition to that, this approach facilitates in enhancing
effectiveness of marketing plan (Chernev, 2020). This approach is flexible and
modification can be done, if needed.
 Use of Demand generation tactics- This approach relates to wider the approach needed to
generate demand for products and services. This methodology is significantly opted by
Tesco and it creates brand awareness in market. Many forms of demand generation exist
at different part of funnel and demand generation can contribute in fulfilment of
marketing objective.
 Focus on customer success to drive growth- Customer success may be referred as art of
ensuring that customer is successful with the products of company. The main aim of
Tesco is to meet requirements of customer by producing quality products at low price.
Company should ensure customer success and facilitates in achieving competitive
advantage. Along with this, this methodology contributes in achieving marketing
objective of company.
A.C 1.3 Risk associated with marketing plan
 Brand Risk- With poor drafted marketing plan company can lose its brand equity. If a
company overestimate brand image, then it could end up making wrong use of marketing
techniques. So it is important for Tesco to allocate its valuable resources in an efficient
manner while framing marketing plan. It is vital for company to stand in a good position
in competitive market.

 Miscalculation of Target market- Failure to conduct market research and collecting data
from non-reliable platforms and improper use of data can be risk for marketing plan. It is
needed for company to extensive market research and collect data from viable sources as
well as interpret in order to draft effective marketing plan. Without conducting extensive
research of market, company may target wrong audience. Changing Trends- In today’s technological world, marketing trends are keep on
changing. It may be threat for bottom line of company, if marketing strategies are not up
to date. In order to address this issue, Tesco regularly use latest marketing promotional
technology so as to convey effective message to its audience. Changing trends may be
threat for marketing plan of company (Aquila, 2016).
 Promotional risk- Promotion of products significantly impacts on success of marketing
plan. An approach which is not well calculated, then efforts of marketers will fail.
Without opting right promotional channels can be risk for marketing and company cannot
effectively promote its products. So it is important for Tesco to opt correct promotional
tool which can bring efficiency to company. Digital marketing is one the important
marketing tool opted by many companies so as to showcase their products over internet.
In case of wrong decision over promotional channel, all efforts of marketers are waste for
company. It plays an important role in achieving success and ensures that promotional
tools and techniques are effective, powerful and compelling. Along with this, it is also
important for company to ensure that all marketing and advertising practices are ethical.
A.C 2.1. Critically analyse the components of a marketing plan and the levels of importance of
each component to the achievement of strategic objectives
There are seven essential components of marketing plan are Market Research, Target
Market,Positioning, Competitive analysis, Market Strategy, Budget and Metrics. These
components has been briefly discussed below-
Market Research – Market research plays an important role for smooth functioning of an
organisation. It is essential for every organisation to analyse market trends before formation
of its strategical plans(Homburg,Klarmann and Vomberg, 2019).Tesco uses various methods
for market research such as surveys, club card data, customer interviews etc. Market

research is carried out in Tesco so that the company can analyse future opportunities and can
plan strategies accordingly.
Target Market - It refers to the process of identification of potential consumers who has desire
to buy particular product. This strategy is important because it helps the organisations to use
its resources in effective manner. Tesco target consumers who want superior quality
product at affordable and reasonable price.
Positioning - It is the perception of the brand in the market. In simple words it can be explained
as the rank of your product among various similar products. Positing is important for
building brand image. Tesco make use of experiential positioning to understand behaviour
and desire of the consumers.
Competitive analysis – It refers to the process of analysing competitors in the marketplace to
gain competitive advantage. This analysis is important as it helps the business to recognise
how their business strategies can be improvised. There are many competitors of Tesco such
as ASDA, Sainsbury , Morrison etc. and to gain competitive advantage over them the
company needs to do competitive analysis.
Market Strategy- It refer to the plan which is formulated to achieve the organisational gaols and
objectives. This strategy helps the company in building organisatiional plans to fulfil
consumer needs. Marketing strategy of Tesco is to provide consumer with discounts,
affordable prices, 24*7 after sales services etc.
Budget – It refers to the income and expenditure sheet that is prepared to plan the monthly or
yearly expenditure. This strategy helps the organisation to maintain financial stability. The
yearly reported expenditure of Tesco is about 875 millions.
Metrics- It refers to a systematic way of tracking performance. It is important to measure
performance to enhance the effectiveness of the organisation. It also helps in management of
organisational functions moire efficiently. Tesco uses steering wheel to track performances.
A.C 2.2. Address mitigation strategies for high-risk components of the plan
Mitigation strategies are prepared to reduce the impact of risk on the business
organisations. Some key mitigation strategies are Assume and accept risk, Risk avoidance,Risk

Control,Risk Transfer, Watch and Monitor risk(Giovannoni,2020).These strategies has been
highlighted below-
 Assume and accept risk – Every organisation must identify,understand and assume some
future risk that can affect the output of the project. The aim of these risks is to bring it to
the conscious of the management of the organisation. By using this mitigation strategy
Tesco can undertake proper market research without making critical errors.
 Risk avoidance- It refers to the process of avoiding the activities which can impact the
organisation in adverse and negative manner. Risk avoidance strategy plays an important
role to prevent businesses from losses. By making effective use of this strategy Tesco can
target potential consumers and can develop positioning in the market.
 Risk Control – It refers to the set of strategies that are used by different organisation to
determine and evaluate losses and actions to be taken to reduce these threats. By using
this mitigation strategy Tesco can undertake competitive advantage by effectively
performing competitive analysis(Zipin, 2020).
 Risk Transfer – Transference of risk is a management strategy of transferring risk from
one party to another party. Example of this strategy is insurance purchase. This
mitigation strategy can be used by Tesco to reduce the burden of uncertain risks.
 Watch and Monitor risk – Risk monitoring strategies refers to the process of tracking
level of risk that are associated with an organisation. Tesco uses this strategy to maintain
its position in the marketplace(Neogi, Young and Dill2022).
A.C 2.3. Develop a marketing plan that will achieve strategic objectives for a complex
organisation
Marketing plan plays a very important role in achievement of organisational goals and
objectives. These plans helps the organisations to identify target market and potential consumer
base for the product. It also helps in proper allocation of scare resources. These marketing plans
gives direction to the employees of the company and also helps in enhancing their productivity
and efficiency. These plans also helps in preparation of policies, budgets, targets etc. It also
helps in achievement of strategic objectives.
Objectives KPI Action Plan Vision End result Time frame

Increasing
sales of organic
products.
Consumer
satisfaction
To develop
awareness
among
customer
about
environmental
concerns.
The vision is
to become the
business that
deals in
sustainable
products.
Fulfilling the
social
responsibility
6 Months
To provide
quality product
at affordable
price
Growth in
Revenue
Production
must be done
in bulk so that
the fixed cost
can be reduced
which is also
known as
economies of
scale.
The vision is
to provide
value for
money
It helps in
increasing
profitability
4 Months
Accounting for
customer
satisfaction
Consumer
retention
Providing
customer with
proper
assistance and
after sale
services
The vision is
to build a
strong
consumer base
Repeat
Purchase by
the consumer
3 Months
Company
Culture
Employee
retention
Create a
environment
in the
organisation in
which the
employee feel
The vision is
to build
Friendly work
environment
Reduces
miscommunic
ation in the
organisation.
1 Month

valued
Technological
development
Profit Margin To provide
training to the
employees so
that they can
learn to
operate new
technologies
The vision is
to become the
Tech- Friendly
Company.
Increase
Productivity
5 Months
A.C 3.1. Discuss how the plan supports strategic objectives
The marketing plan support strategic objectives of Tesco because it brings whole team together
and creates a cohesive unit. The plan help everyone in the organisation to understand the
objectives and their roles in the team (Lalaounis, 2020). The plan can help company to achieve
objectives effectively and efficiently.
Increased Brand Awareness – Increasing brand awareness is a important objective of Tesco
which can be achieved by successful implementing the marketing plan. The company is looking
to increase their brand loyalty to gain an competitive advantage. More brand awareness drives
more customers and sales and ultimately more profit for the business.
Generating leads – The marketing plan will also facilitate Tesco to generate new potential
customers. Advertising will bring more potential customers in the business which can become
the loyal customers for the company in future.
Increasing websites traffic - The marketing plan will also increasing Tesco's performance in the
online market. Through social media and various digital marketing strategies the plan will also
focus on increasing company's online presence and sales that support companies objective of
increasing online revenue.
Providing Market Insights – The marketing plan will provide market information and data
which can be very useful for Tesco in their future marketing campaigns or in taking future
strategic decisions. The plan can also help company to understand its customers base and
understand how they can create more value for their products in customer mind .

A.C 3.2. Develop an approach to gain agreement for the marketing plan that will change
organisation actions and methods to achieve strategic objectives
Tesco marketing strategy is based on print media and the company uses this channel to
communicate their message to their customers. Tesco is using a traditional approach of
marketing and with a new marketing plan the company have to make changes in their marketing
approach. The digital marketing plan also requires technical knowledge and the company need to
make sure that their employees are comfortable in using these digital marketing tools. After
evaluating the data and information gained from the marketing campaign the company may need
to make changes in their products and services. The company can also create new differentiated
products for the customers according to the insights. Tesco can also work on increasing their
customer experience by communicating with customers on regular basis. They can also
personalise their customer experience by doing little things like introducing them with their
name and wishing them on birthdays or anniversaries. The company has integrated sustainable
practice in their organisation, they can also use this as a marketing tactic (Sarkum and
SYAMSURI, 2021). Some customers prefer to buy products which gives something back to the
environment these customers value products more and can pay a premium amount for such
products. Companies sustainable approach can help them to gain a positive brand image in the
market.
A.C 3.3. Critically evaluate and provide new review measures for the agreed plan.
There are some review measures that Tesco can take to assess their success continuously in the
market and these are listed down below- Market reaction- The market reaction is the actions of the competitors which measures
the success or failure of a marketing plan. If the market reaction of the firm's marketing
plan is not good, then they has to adopt feedbacks which is given by the marketing
partners. As it reveals the effectiveness of the efforts that the workers of the firm has
made to consider success in the organisation (Hisrich and Ramadani, 2018). The outside

team members have more feedbacks as because they directly interact with the customers.
So, Tesco has to consider the market reaction which helps them to get reviews about their
marketing plans. Customer response- The customer response helps the firm to determine what type of
reactions the marketing plan creates. Generally, it is the customer service feedback and
online commentary which provides an opportunity to the firm to determine what they
think about your marketing plan and which campaigns have the greatest impact. Through
this, the firm can monitor the effectiveness of their marketing plan. If the effectiveness of
the company's marketing plan is not good, the firm can tie with this type of campaign
which helps them to deliver a value proposition to their products or services.
 Sales performance- It is the fastest and the primary way to determine whether your plan
in working or not. Through this, the company can determine that whether the efforts are
practical or not. If the feedback of the company's marketing plan is negative or not good,
Tesco has to revise their marketing plan and can better address the sale force needs to
assure growth. And the firm can uses various different strategies which run on the various
sales cycles but it requires a long-term investment before making a noticeable profit. As
if the firm provides an marketing plan according to this review, they may make sure that
it can access to their growth as it is an important part of achieving growth (Kolesnik,
2020).
CONCLUSION
In this report, we evaluates the techniques and tools used by Tesco to support the strategy and
how they will impact on the marketing plan of the company. This report consists of some
marketing methodologies and approaches which helps the firm to maintain a healthy
relationships with their customers and also facilitates in enhancing the effectiveness of the
marketing plan. There are also some risks associated when the firm creates their marketing plan
such as brand risk, changing trends, promotional risk and many more. When the firm makes
marketing plan, they has to consider some essential components like target market, competitive
analysis, budget and metrics, positioning and many other related components. The firm has to
address some mitigation strategies which reduces the impact of risk on the business
organisations. After evaluating the mitigation strategies, Tesco has to develop a marketing plan

which helps them to achieve their goals in an efficient manner. At last, this report discuss about
some ways to change the marketing plan of the organisation and also review measures to assess
their success continuously in the market.

REFERENCES
Books and Journals
Agic, E., Cinjarevic, M., Kurtovic, E. and Cicic, M., 2016. Strategic marketing patterns and
performance implications. European Journal of Marketing, 50(12), pp.2216-2248.
Aquila, A.J., 2016. The Marketing Plan: An Audit‐Based Approach. Bull's‐Eye! The Ultimate
How‐To Marketing & Sales Guide for CPAs, pp.39-64.
Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Gerritsen, D. and van Olderen, R., 2020. Events as a strategic marketing tool. CABI.
Giovannoni, E., 2020. Marketing Planning. Chasefive. com.
Hisrich, R.D. and Ramadani, V., 2018. Entrepreneurial marketing: a practical managerial
approach. Edward Elgar Publishing.
Homburg, C., Klarmann, M. and Vomberg, A. eds., 2019. Handbook of market research.
Springer International Publishing.
Kolesnik, T.V., 2020. Marketing communication strategies are in agricultural business
management. Annali d’Italia, (10-4), pp.25-35.
Lalaounis, S.T., 2020. Strategic brand management and development: Creating and marketing
successful brands. Routledge.
Neogi, N.A., Young, S.D. and Dill, E.T., 2022. Establishing the Assurance Efficacy of Risk
Mitigation Strategies. In AIAA AVIATION 2022 Forum (p. 3538).
Sarkum, S. and SYAMSURI, A., 2021. The Role of Marketing Function for Competitive
Advantage. Quality-Access to Success, 22(180).
Zipin, M.L., 2020. Developing a strategic marketing plan. Health Care Strategic Management,
7(6), pp.13-15.