Principles of Marketing: Tesco's New Cheese Mousse Tea Product Launch

This essay outlines a comprehensive marketing plan for Tesco's introduction of a new product: cheese mousse tea. It begins with a description of the product, highlighting its health benefits and appeal to modern consumer preferences. The analysis delves into the UK market, focusing on key trends such as hybrid shopping experiences, the demand for healthy and organic options, and the growing emphasis on sustainability. The competitive landscape is assessed, considering both direct competitors and alternative beverage options. Customer attitudes and behaviors are examined, noting the shift towards online shopping and health-conscious choices. The essay identifies opportunities for Tesco, including brand image enhancement and international expansion. A detailed STP (Segmentation, Targeting, and Positioning) analysis is provided, followed by a discussion of the marketing mix (product, price, place, promotion) tailored to the new product. The essay concludes by emphasizing the importance of a well-executed marketing strategy for the successful launch of cheese mousse tea at Tesco.

Principle of Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Give a brief description of the new product? .............................................................................3
Brief analysis of the market........................................................................................................4
Key market trends.......................................................................................................................4
Who are the competitors and how they are positioned...............................................................5
Explain the customers current attitude/ behaviours in this market.............................................5
Identify the key opportunities which are relevant for the business organisation .......................6
Explain the STP analysis for the product ...................................................................................6
Explain marketing mix in context of the new product ...............................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A good marketing strategy is the most essential part for the success of any business
organisation. The marketing is define4d as the making the customer aware about the product or
services and its basic and important information to its potential customers. It helps to facilitate
the exchange between for buyers and sellers for the mutual benefit for both the parties. The
marketing included the various activities which is undertaken by business enterprises to promote
the buying and selling of the products and services. This included advertising, personal selling
etc. Here the report is in context of Tesco which is a multinational British groceries and general
merchandise retailer. The company is headquartered in Welwyn Garden city, England(Samad,
2019). This report will include the various topics such as a brief description on the new product,
analysis of the market, key trends in the market, competitors of the company, identifying the
issue or opportunities for the company, segmentation targetting and positioning of the new
product launched and at last marketing mix.
TASK
Give a brief description of the new product?
As Tesco is a big multinational brand which deals in the variety of the food products
which are the essential in every house hold. The company deals in the groceries items and is
chain of supermarket. The customers are attracted towards the company because of its wide
range and the discounts available in the store. Here in this report is it assumed that the company
is planning to introduce a new product. The new product which can be taken into consideration is
the cheese milk tea drink which is the actually the green or a black tea which is topped with a
foam made from a salty or a sweet cream cheese, milk and whipping cream. This product will be
very much healthy for the consumers as it is garnished with the dash of sea salt. The product can
be named as “cheese mousse tea”.(Maravilhas, 2019). This product can be offer to the consumers
in the tetra packs or they can be served as a fresh by placing a counter in the supermarket where
the customers can have it in the store itself. This will attract customers because it is introduced
by keeping mind the health and safety measures of the people. The health has become the most
important aspect after the covid-19 and every individual wants to consume the hygiene and the

food which will make them immune system strong and keep them healthy. The green tea is
considered as the most essential and healthier drink. The product which the company will launch
is containing the ingredients which are healthy with a cheese taste in it
Brief analysis of the market
The economy is undergoing a historic realignment as the decision to leave the European
Union required the UK to re-establish itself as an independent economy, while at the same time
dealing with the COVID-19 pandemic. The UK had led Europe and most other countries in
deploying vaccines, and despite some setbacks, the country has fully reopened as of July 2021.
Due to this reopening, GDP growth was positive for the fifth consecutive month in June. While
posting the fastest growth rate among the countries in the second quarter of 2021, the UK’s
economy remains 4.4 percent below its pre COVID-19 level(Papagiannis, 2020).
Key market trends
As the United Kingdom is considered as the most developed country. The industries and
the companies located in the UK economy have a privileged of expanding their business
organisation in a vast area. As the Tesco is the largest company of the supermarket chain and
deals in the varieties of products. The strategies of the company makes its customer attracted and
its availability of the wide range of products is famous over the UK market. The current trend
which have been seen the market is that the people usually buy their groceries from such
supermarkets with the heavy discounts offers. Also the customer needs the variety of each
product so that they can make a choice between the different products. This is the speciality of
the supermarkets and it varies form company to company. Here is the discussion on he key
market trends which need to be adopted by the Tesco(Baker, Underwood III, and Thakur,
2017).
 Hybrid shops and eat concepts- This aspect is becoming very essential in order t attract
customers in the United Kingdom. The company should focus on the eating concept in
the supermarket itself. The new product which is been assumed to introduce will help in
adhering to this concept. Customers will like to have their meal with such drink in the
supermarket. This will attract customer and the company has an advantage of increasing
its sales.

 Aiding Product discovery- it is very important for the supermarkets to introduce new
product which has been observed in the market trend that the customer expects the health
and safety measures as well the products which contains proper nutrients and proteins in
order to keep them healthy. The need of the organic products is much in need in the super
market for meeting the customers expectation.
 Sustainability- This is also a trend which is observed in the United Kingdom. The stores
are offering the greener way to shop, selling the food items without the use of the
packaging which can harm the environment. The trend which is identified is that the
consumers are bringing their own containers for the purchased product so that the use of
the packaging is declined which cause a harmful effect in the environment(Ferrell and
Ferrell, 2020).
Who are the competitors and how they are positioned
As there are man competitors of the Tesco company such as Salisbury, ASDA etc. they
are the big retailer in the supermarket stores and thus Tesco is the largest supermarket chain in
the United Kingdom. But if it is consider about the new product only the china is the big
competitor otherwise the Tesco company can compete in the United Kingdom. The chine is the
biggest producer of the tea till now. Also the other competitors are the companies of the soft
drinks which are innovating themselves to serve the best service and the product to its customers.
The Tesco need to consider and evaluate its competitors in order to grab the opportunity and how
to innovate its product so that the customers are attracted to its uniqueness(Solomon and et.al.,
2019).
Explain the customers current attitude/ behaviours in this market
As if its discussed on the consumer buying behaviour or their attitude while shopping in
the supermarket it has changed and come so far from the past few years. It is observed that the
customers are totally dependent on the online shopping and this trend or it can be said that the
behaviour is emerging day by day. The consumers are preferring that either if they are going for
a physical store for shopping there is availability of every product at one roof with the wide
range of products in a similar product. Also it is identified that there are various factors which
are affecting the traditional and non traditional food retailing. The customer expect that

supermarkets evolve themselves more over in the online platforms. Also the use of the
digitalisation is accepted to be more evaluated at the stor4es because no one likes t stand in a que
for the billing process which usually takes a lot of time. Also the consumer attitude and
behaviour is changing because of the beliefs and the values. If it is talked about the food
consumption. Consumers are not ready to prefer the packed food because of the coronavirus
which has disruption the lives of the people. The consumers are more conscious about their
health. The new product which is introduced will help the company in meeting the customers
preferences(Purwanto and et.al., 2019).
Identify the key opportunities which are relevant for the business organisation
There are various opportunities which are relevant for the business organisation which
are discussed below;
 The company will able to expand its business into the new product line which will lead to
increase in the sales of the company.
 This will create a brand image as the product is healthier for the consumers.
 Tesco will be also able to expand its product internationally because of the pandemic and
the covid- 19 situation each and every one is concerned of their health.
 This will also help the company in expanding the range of product by the introduction of
this cheese mousse milk tea in its business organisation.
Explain the STP analysis for the product
The model consists of three steps which is segmentation, targeting and positioning which help
the business organisation in the growth strategy. It is very important for the organisation to
consider this analysis as it will help in analysing the right customers for the product and services
provided by the business enterprise. Tesco is going to analyse the segmentation, targeting and
positioning of the new product cheese mousse tea(Harini and Dhewanto, 2021).
Segmentation- This is determined with dividing the marketplace into parts and segments which
are accessible, actionable, and profitable to have growth potential. It is very important for the
business organisation to segments it product. This included the following basis on which the
company can segments its products:

 Geographic- This trait included the segmentation of the various aspects such as country,
religion, state etc.
 Demographic- this included dividing the audiences based on the age , gender, education,
occupation etc.
 Psycho graphic- This are included the the opinions of the customer, their lifestyle,
hobbies etc.
 Behavioural- This trait included the behaviour, belief and the values of the people which
differ.
The new product which is cheese mousse tea can be segmented on the psychographich basis
because this product will concentrating on the lifestyle of the people. As the consumers are
preferring the healthy drinks in their lifestyle. Also the people who are very fond of having their
morning start with a cup of a green tea. So in this case this basis will be the best option for the
company to segment its products(Mahdiyya, Malik and Srisusilawati, 2019).
Targeting- This is the second step involved in the marketing approach by the various business
organisation. The targeting involves the focus of the organisation on a specific group of
customers which are considered as the potential customers for the business enterprise. It also
involves the planning of the who are the customers which can give the best results to the
company and the people who are interested in the products and services of the busie4nss
organisation. Tesco can target the customers of age group between 20-45 with the people who
have a lavish lifestyle and they are more conscious of their health. This milk tea will focus in
giving a fresh start to the morning of the people. Also the office going people can be targeted so
that they have a good meal and the energy in the morning.
Positioning- This is the last step in this model which is positioning. It means that how the
company is able to set its product different from its competitors. It included the uniqueness in the
product or services of the business organisation. It is very important aspect for the busie4nss
enterprises to position its products because there are several products and services in the market
which can be similar for the customers. The product which is introduced is the most unique
product and this product is beneficial for the customers as it contains a type of a tea with cheese

in it. This product is benefited for the consumers if they consume in the morning. It is made up
of pure milk and cheese. Also, the flavour in it provides the good taste of cheese mousse tea.
Explain marketing mix in context of the new product
It includes the multiple areas to be focused on by the various business enterprises as a
part of comprehensive marketing plan. An effective marketing touches on a broad range of areas
as opposed to fixating on a particular message. The various elements are explained below
Product- It is the item which is offered by the company to satisfy its customers needs
and wants. The Tesco company is launching the new product which is cheese mousse milk tea in
the company. This will attract customer and satisfy the need to being healthy and a drink which
contains pure milk with the smashed sea salt(Hanna, and Dodge, 2017).
Price- It is the cos which is paid by the consumers for the purchase of the product. This is
the most important element of the marketing mix because the customer should be satisfy with the
price of the product. The price should not be too high which cannot be affordable by the
consumers. The pricing strategy which can be adopted by the company is value based pricing.
This strategy can attract customers.
Place- This is the elements which is focused on the distribution channel by which the
product will be delivered to the customers. The company can use both online and offline channel
of distribution for the ease of the customers. The offline availability can be placed in the store
itself where if the customers visits the store they can have over there. Also the company can
provide online delivery through the swiggy , zomato.
Promotion- This is related to the promotional techniques which the company will adopt
in order to make the people aware about the product. The company can use the digital platforms
such as social media. In this the company can promote over the Instagram, Facebook by
uploading the picture. The visual pictures will attract customers(Pham and et.al., 2019).
CONCLUSION
From the above report it is concluded hat a good marketing strategy is the most essential
part for the success of any business organisation. The marketing is define4d as the making the

customer aware about the product or services and its basic and important information to its
potential customers. The Tesco is introducing a new product which is cheese milk tea drink
which is healthier and good in taste. The product itself defines that it contains topped with a
foam made from salty or sweet cream cheese, milk, and whipping cream. There are competitors
of this product which is chine is considered as the largest producer of the tea drinks. The various
trends and the consumer behaviour suggests that people will prefer such type of drinks keep in
mind the safe and healthy drinks in their lifestyle. By introducing this the company will have
opportunity to expand its business and this will increase the sales of the company.

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