Marketing Essentials: Strategies for Tesco

This report discusses the marketing aspect of Tesco, the leading retail company in the UK. It explores the marketing strategies used by Tesco, including the 7Ps of marketing mix and the STP model. The report also emphasizes the importance of market analysis and the role of a marketing plan in achieving business objectives.

MARKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
LO2..................................................................................................................................................3
Marketing mix.............................................................................................................................3
Marketing plan.............................................................................................................................6
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is very essential task for any business or venture in the market place. Without
running different functions of the marketing, no business can simply survive in market, that’s
why upper management of every business have to take quick action toward running different
operations of marketing to get better outcomes in the market. Basically, most marketing
managers within different companies uses some effective strategies of marketing to get very
appropriate results from their marketing functions (Halim and Hermawan, 2017). Currently only
those businesses are able gain effective results in the market place which has used different
strategies of marketing. This report discusses marketing aspect of Tesco. There is Tesco is the
leading retail company of the United Kingdom, which currently operates in many other countries
as well. This report discusses some such aspects and factors as well, which are directly linked
with the Tesco’s marketing functions.
LO1
Covered in PPT
LO2
Marketing mix
Marketing mix strategy has been applied below in the context two different companies
called; Tesco and Asda. These both are key retail companies of the United Kingdom which
currently has very large market shares in the market. Basically, this section of the report
discusses ways in which Tesco and Asda has applied the strategy of marketing mix to the
marketing planning process for achieving their objectives of business on time.
7Ps of
marketing mix
Tesco Asda
Product Tesco generally provides retail
products and services to different
customers in across the United
Asda is one of key competitors of
Tesco, because this company also
serves those all products and services

Kingdom, and also in many other
countries (Calvo-Porral, Medín and
Losada-López, 2017). Basically, it
has wide range of products, like;
groceries, clothes, shoes, food
items etc. which this company
serves in many countries at the
international level.
in market place which has offered by
Tesco. This company not serves its
products, like; food items, clothes
and groceries etc. in the international
market as Tesco. Reason is, Asda is
the subsidiary of American MNC
Walmart, in which Asda currently
serves only in the United Kingdom.
Price Tesco company generally uses
competitive-based pricing strategy
within its workplace. This strategy
of pricing enables to this retail
company for setting price of own
products and services something
cheaper than its competitors.
Sometimes company uses value-
based pricing strategy as well
where it charges price from its
customers on the basis of value of
the products and services.
Asda’s upper management mostly
uses value-based pricing strategy, in
which this strategy enables to Asda
for charging rate from customers
according to products’ market value.
Basically, this strategy has used by
company specially on that time when
it sells its premium range of
products. Many times, company uses
competitive based pricing strategy as
well for gaining huge competitive
advantage in market place.
Place Currently serves its products and
services in los of countries, like;
United Kingdom, United States,
Ireland, the Czech Republic,
Hungary, South Korea and
Malaysia. It means, these countries
are key market places for the
Tesco. There is United Kingdom is
home market place to this retail
company, this has he largest market
share in the UK.
Asda’s main market place is only the
United Kingdom. Basically, this
company not serves its products and
services in different countries as
Tesco (Petrovici and et.al., 2020).
However, top-level management of
this company has succeeded in
expanding Asda in across the United
Kingdom. So that, the UK is main
market place to this company.

Promotion The marketing team of Tesco is
very active in its existing job role,
because it is able to different
effective campaigns of marketing
within different segments of the
market. Currently digital marketing
strategy is highly used by Tesco to
effectively promote its brand in the
international market.
Asda’s marketing team is also very
effective in its job role, because this
company always runs very effective
advertisements in market for
promoting own brand at the wide
scale. The marketing manager at
Asda always believes in using
modern strategies of marketing
within its operations to promote own
brand.
People Currently Tesco’s upper
management has maintained very
effective relations within different
people in the market (Brewis,
2016). like; customers, employees
and suppliers etc. So that, currently
almost all stakeholders are very
satisfied with Tesco.
Asda also believes in maintaining
effective relations with different
people like; customers, employees.
Currently the Asda maintains
effective employee relations, so these
relations very positively affects
employees in workplace.
Process The Tesco has the strongest supply
chain its home country, so it can
simply deliver its different products
and services to its customers on
time in the market.
Currently Asda I taking lots of
advantages through strongest
distribution channel of its parent
company Walmart. So that, this
company also simple deliver its
products to customers on time.
Physical
evidence
Tesco most employees has well-
developed skill and competencies,
in which when any customer visits
in Tesco’s supermarket or store,
then these employees properly
inform customers about each
information of a product. Currently
Asda’s supermarkets and stores are
also very favourable to customers, so
that many customers very much like
to visit in its stores and
supermarkets. Basically, employees
of Asda also provide each and every
information to its customers.

well-developed communication
skills play an effective role to
employees of Tesco which enable
them to properly interact with
customers.
Interaction values of Asda’s
employees are also very effective, so
they can simply provide better
experience to different customers.
Evaluation
Top-level management at Tesco have to continue running its various operations of
marketing in market place. Marketing function is really essential to this company, because
without running different innovative marketing campaigns in the market, this company can’t
survive in existing highly competitive market. Currently key competitors of Tesco, like; Marks
and Spencer, Asda, Morrisons, Iceland foods also tries to do this same thing that, running
effective marketing campaigns in the market (Pandita and Mehta, 2019). In this situation, present
marketing manager at Tesco have to be very active in its job role to innovate some such
marketing strategies which can enable Tesco to gain huge competitive advantage in retail market
place of the United Kingdom. However, by using this 7Ps of marketing strategy, Tesco can
simply achieve it’s all over marketing objectives in market place.
Marketing plan
Marketing plan plays very effective as well as productive role to a company, in which
top-level management at Tesco have to give specific order its marketing team for making an
effective marketing plan. Basically, a marketing plan always includes different productive
strategies of marketing which always very positively affects to different organisations and
businesses in market place, in which this marketing plan will support to Tesco also for achieving
huge profit in the market (Jánošová and Jobczyk, 2019). The marketing manager at Tesco should
be understood one small thing that, business plan highly contributes in attracting lots of new
people customers towards own brand. However, an effective plan of marketing has been
mentioned below for Tesco company.
Marketing Plan
Aim: To increase the market share of Tesco by 12% in the UK’s retail sector.

SMART Objectives
Specific: Current aim of the company is completely specific, because by achieving this aim
company will enable to gain large customer base.
Measurable: Top-level management and marketing manager can simply measure is marketing
processes by using different tools, like; key performance indicator (KPI).
Achievable: The marketing team of company can simply achieve this aim, because the Tesco
already has very large market share, so that with the support of existing brand reputation, the
company can simply increase its market share with 12%.
Realistic: Existing aim of Tesco behind marketing plan is fully realistic, because many other
businesses with different sectors or industries also sets this type of aims.
Timely: The management at Tesco have to make an effective schedule for completing its
different marketing activities on time to time (Pastuhov, 2018). proper time management is
very necessary to company for achieving this aim in decided time period.
STP Model
STP model is one of key marketing strategies which has followed by many of
organisations and businesses within market place. Basically, STP model provides a specific
framework to a business for running its different marketing operations in very proper channel.
In this situation, marketing manager at Tesco have to focus on adopting and using STP model
within its workplace. With the support of this marketing model of strategy, the company will
enable to boost its performance in selected market segments. STP term generally refers three
stages of marketing called; segmentation, targeting, promotion, in which these all three stages
of STP has been discussed below;
Segmentation
Segmentation is the first stage in the STP model. In this stage, marketing department of
the company have to divide its whole large market into small segments of the market
(Finchum, Marr and White, 2019). The marketing team can divide its whole large market on
the basis of many factors and aspects, like; geographically, demographically, nature wise,
behaviour wise etc. This stage generally provides opportunity to company for saving its lots of
time and resources. Reason is, dividing whole large market into small segments of market
always aware company about the actual demands and needs of customers. That’s why this is
very necessary to marketing department of this company to conduct the segmentation stage of

STP model.
Targeting
Targeting is the second key stage in the STP model, in which the marketing team at
Tesco have to change target its customers on the basis of their different aspects called;
customers’ interest, attitude, community, ethnicity, religion etc. By targeting customers on the
basis of these aspects, the company will enable to systematically fulfil different needs, wants
and demands of customers. Many times, customers have different perceptions as well about
any brand, in which marketing team have to positively change the perception of customers by
targeting them (Klisinski and Melnyk, 2017). However, currently most customers within the
UK have very positive perception about the Tesco, because this company provides very
effective and quality products and services to different customers on market place.
Positioning
This is the last stage in the STP model of marketing, in which top-level management
have to order its marketing team for effectively running different marketing campaigns in
different targeted segments of the market. In these campaigns of marketing, company have to
use many useful and productive strategies of marketing. With the support of these all strategies
of marketing, the company will enable to positively affect different customers in market place,
and lastly many of customers can simply make decision towards buying different products and
services only through Tesco. On the other side, the company have to focus on developing its
supply chain or distribution channel also for providing its different products and services to
customers on time.
Marketing Strategies
The marketing department at Tesco have to use different marketing strategies within its
workplace for gaining effective outcomes within market place (Pajuoja, 2018). Currently there
are lots of effective marketing strategies available to marketing department of Tesco, like; 7Ps
of marketing mix, STP model, digital marketing etc. In this situation, marketing department at
Tesco have to choose these all strategies to gain effective results in the market.
Market Analysis
Market analysis is one of key steps within the marketing plan where company have to
analyse market very systematically. Basically, by analysing market, the company enable to get
aware about factors which can affect its marketing functions or other functions in both

manners positively and negatively. There are various models and tools also simply available to
Tesco’s marketing department for properly analysing market, called; PEST and SWOT
analysis tools. These both tools have been used below analysing different market conditions.
PEST Analysis
PEST analytical tool currently uses by many companies in the market, in which
marketing department at Tesco also have to choose this tool. Basically, PEST analytical tool
has used by companies for analysing factors which exists in its external business environment.
This PEST term will commonly show four key external factors of Tesco’s business
environment. In this situation, these all factors of PEST analysis have been discussed below;
Political Factors: Tesco’s business operations are very highly affected by political factors of
the United Kingdom (Ramanathan, Subramanian and Parrott, 2017). For example; one key
political factor is, every existed business or company within the UK’s business environment is
fully responsible to fulfil the taxation formalities. There is no any business allowed in the UK
which not fulfils its formalities of taxation. Many times, companies have to fulfil different
obligations also which has imposed by the government of United Kingdom. In this situation,
top-level management at Tesco have to make effective strategies towards systematically
dealing these political factors.
Economic Factors: Economic factors are also very highly influencing business operations and
activities of the Tesco. However, currently economic factors of the UK are very positively
affecting to this retail company, because the UK has very well economic conditions. There are
many other businesses of the UK also taking lots of advantages through this country’s well-
developed economic conditions.
Social Factors: Existing social factors of the United Kingdom are very favourable for Tesco,
because there are lots of people within this country like to buy only quality products and
services, in which the Tesco already has provided quality products and services in market
place. That’s why this social factor very positively affects to Tesco.
Technological Factors: Technological factors also plays an effective role for this company,
because upper level management ta Tesco currently able to adopt and implement those all
technological machineries and tools within the United Kingdom (Kirova, 2017). This country
has very hi-fi technologies, and technology advancement factor of this country is very
effective, so that upper management at Tesco have to take huge advantages through these

technological factors of the UK.
SWOT Analysis
SWOT analytical tool is another tool for analysing different market conditions, but this
tool commonly uses by different companies or ventures for identifying factors of their internal
business environment. This SWOT term generally refers four key internal business
environment factors of a company called; strengths, opportunities, threats and weaknesses, so
that these all four factors has been discussed below in the context of Tesco.
Strengths: Currently Tesco has the largest market share within the UK’s retail industry, in
which this is key strength of this retail company. On the other side, the company has the
biggest distribution channel or supply chain as well, so that it can simply deliver its various
products and services to its customers on time. That’s why having the biggest supply chain is
key strength of company.
Weaknesses: The weaknesses of Tesco are, top-level management of this retail company no
has effective skills of decision making (Melamed, 2017). Reason is, the management of
company sometimes takes such decisions in workplace which very badly or negatively affects
to its many business operations. On the other side, the management at Tesco still using many
traditional strategies within its workplace, so that these strategies not effectively affect to this
company.
Opportunities: Currently Tesco has lots of opportunities which can very positively impact to
its business operations. For example; Tesco has opportunity to make boots its sales ratio in
market place by adopting digital marketing strategy at the high scale. Of course, currently
company uses digital marketing strategy, but at very low scale, so it needs to use this strategy
highly within its different functions of marketing.
Threats: Currently there is very high competition in the UK’s retail industry as well as in the
international retail industry, so that this is one of key threats to Tesco in the market. In this
situation, top-level management of company have to run different effective marketing
campaigns in the market which can provide it a very huge competitive advantage in market
place.
Budget
The marketing department of every company has always required to use lots of fund
for successfully implementing their various marketing plans within their workplace (Joshi,

2020). In this situation, Tesco’s marketing department also will be required to use lots of fund,
so that top-level management of company have pass appropriate fund or budget for its
marketing team for enabling its marketing team for running various marketing activities and
operations effectively.
Monitoring and Controlling
Proper monitoring and controlling of any task is very necessary to a company for
gaining effective outcomes, in which top-level management and marketing manager at Tesco
are fully responsible to proper monitor and control its marketing plan. By doing this, both top-
level management and marketing manager will able to achieve very effective return in various
segments of the market.
KPI (Key Performance Indicator)
KPI is very innovative and useful tool for different companies and businesses right
now. Basically, using this tool, any business can simply indicate its performance of any task.
Currently implementing existing marketing plan is big task to marketing manager of Tesco, so
that marketing manager at Tesco have to make use KPI for properly analysing performance of
its marketing plan.
Evaluation
This marketing plan is very productive to the marketing department of Tesco, in which
marketing manager at this retail company have to systematically employ this marketing plan
within its workplace for gaining very positive outcomes (Scott and Scott, 2016). This plan
involves many effective strategies of marketing which will defiantly support to company for
attracting lots of new customers and people towards own brand. That’s why this existing
marketing plan is very useful and productive for this company.
CONCLUSION
According to above findings, it can be concluded that marketing function is very
important function to Tesco. Currently with the support of own effective marketing campaigns,
this company enable to maintain its effective brand image in the market. It also can be concluded
that, ways of using 7Ps of marketing mix strategy within Tesco and Asda are something similar,

because both are highly reputed retail brand of the UK. At the end, an effective marketing plan
has discussed for Tesco which will support to it for achieving very large market share in the UK.

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