Competitive Marketing Strategy Analysis: TESCO vs LIDL Report

This report provides an analysis of the marketing strategies employed by TESCO and LIDL, two leading firms in the supermarket industry. It begins with an introduction to marketing strategy, emphasizing its role in achieving sustainable competitive advantage. The research aims to analyze the effect of marketing strategies on competitive organizations, specifically comparing LIDL and TESCO. The objectives include defining marketing strategies, assessing their importance in gaining a competitive edge, and determining their impact on TESCO and LIDL. The literature review explores the concept of marketing strategies, highlighting their importance for future growth and goal achievement. The report examines the marketing mix (4Ps) of both companies, including price, product, promotion, and place. It also details the research methodology, covering primary and secondary data collection methods, including interviews and email surveys, along with sampling techniques. The report acknowledges the limitations encountered during data collection.

MANAGEMENT FOUNDATION

Table of Contents
INTRODUCTION................................................................................................................................3
Research Aim :.................................................................................................................................3
Research Objectives : ......................................................................................................................3
Rationale of Research .....................................................................................................................3
Literature Review.................................................................................................................................3
To determine the concept of marketing strategies...........................................................................3
To study the importance of marketing strategies for attaining the competitive advantage.............4
To ascertain the effect of the marketing strategies on the leading firm TESCO and LIDL.............5
Research Methodology.........................................................................................................................6
Limitations............................................................................................................................................7
References............................................................................................................................................8

INTRODUCTION
Marketing Strategy is the process of reaching to the people and making or converting them
into customers for the product which is offered by the company. This is the type of long term
planning approach which is having the goal of attaining the sustainable competitive advantage. The
market share of LIDL company is low as compare to Tesco, but then also it is on e of the fastest
growing and developing firm in the industry of super market. To gain the competitive advantage the
firm LIDL will reduce the price of their product and provide the better and best quality to their
customers, so that they can gain and attract more customers (Banerjee, 2017). LIDL is having many
outlets, so their products are totally reachable by all the customers. The firm is also providing the
training and development sessions to their employees or workers so that they can focus on the
customers and understand that what are their requirements.
Research Aim :
“The aim is to analyse the effect and influence in the marketing strategy of the competitive
organisation. A case study on the difference between LIDL and TESCO”
Research Objectives :
 To determine the concept of marketing strategies.
 To study the importance of marketing strategies for attaining the competitive advantage.
 To ascertain the effect of the marketing strategies on the leading firm TESCO and LIDL.
Rationale of Research
This research has been undertaken to evaluate the impact of marketing strategies and its
effect on the competitive position of the leading company in the industry of supermarket. There will
be the difference between the two leading and competitive firms named as Tesco and LIDL. The
present research will enhance the practical knowledge and skills of the researcher. By this, the
investigator will able to do conduct the research in an effective manner and this will result in the
desired outcomes.
Literature Review
To determine the concept of marketing strategies
According to point of view of Cacciolatti and Lee, (2016), marketing strategy is a concept of
making plans and path for future, which is used by organisations, so that they can grow in future
and also can achieve their goals and objectives set by them. These are the long term and future
based plans that can help organisation in improving their working styles and also help them in
improving their performance in market place. TESCO is one of the leading organisation in the

world, which use to provide their products and service in grocery and daily need items. Therefore,
they uses different tools which helps them in achieving their future goals and objectives, so that
they can develop and grow in different marketing environment. They use different strategies like,
low pricing, promotional activities, new technology at work place, and other strategies. This all help
them in improving their performance and also help them in making products which can fulfil the
demands and needs of their customers. These also help them in attaining their goals and objectives
so that they can develop and also can grow in future. Where as, Lidl, is one of the biggest chain of
super market in world, therefore it is also very important for them to adopt and make appropriate
strategies that can help them in future and also help them in growing their business. The strategies
used by them are those which can help them in increasing their sales and revenue, so that they can
they can grow and develop in future. These strategies include, reducing the waste, provide fresh
material and also deliver best products to their with less spoliation. This all help them in increasing
the number of loyal customers, so that they can increase their sales and revenue.
To study the importance of marketing strategies for attaining the competitive advantage.
According to view point of Fang and et. al, (2014), making marketing strategies are very
much important for an organisation. This help them in improving their situation in market and also
help them in increasing their sustainability in market place. Along with this, it also help them in
attaining some competitive advantages, so that they can gain and increase their profitability, sales
and revenue. TESCO is of one of the biggest grocery providing organisation of the world, which
use to provide their products and services to end users. Along with this, they have ample number of
competitors which use to provide products and service same as TESCO use to provide. Therefore,
to increase their sustainability in market place and also to increase their sales, it is very much
important for them to proper marketing strategies like promotional strategies, discounting strategies
and other, so that they can attract ample number of new and old customers towards the products
offered by them. This all help them in keeping themselves one step ahead to their competitors and
also help them in increasing their profitability. Where as, Lidl is one of the greatest super market
chain of the world, which deals in daily life need products. That's why they have a long list of
competitors which make strategies to take some advantages of the strategies used by Lidl.
Therefore, it is very much important for them to make strategies like discounted prices, promotions
and other strategies, which will help them in attracting ample number of customers, so that they can
attain some competitive advantages and also can increase their profits. This will help them in
making future strategies very effectively, as fund in hand help them in making strategies of no profit
conditions.

To ascertain the effect of the marketing strategies on the leading firm TESCO and LIDL.
As given by Noe, and et. al, (2017), marketing strategies use to pose huge impact on
working of an organisation. It also help them in attaining several benefits which take them higher at
market place. Along with this, it organisations in gaining additional advantages which their
competitors do not have, so that they can develop and grow in future. TESCO use different
marketing strategies like, low pricing, high promotions, discounted offers on their products. This all
help them in attracting ample number of customers towards the products and service offered by
them. This all increase their sales and revenue and also help them in making good and positive
brand image in eyes of their customers. Along with this, it help them in getting additional
competitive advantages, which their competitors do not have and also help them in developing their
business in different nations. Lidl also use different marketing strategies which help them in
growing their super market chain in different part of the world. They use low waste strategies which
help them in providing good quality food items to their customers and also help them in reducing
their cost of waste, so that their costing over product get decreased. This all help them in increasing
their profits, which results in grow and future development.
Marketing – mix : It is a tool which is a combination of several factors, which help an
organisation in to make control over their products so that customers get influenced to buy those
products which are offered by organisation. This tool is very much helpful for organisations, so that
they can achieve their goals and objectives (O'shaughnessy, 2014). This tool include factors like,
Price, Product, Promotion and Place. Along with this, different factors which can also be consider in
this tool are Packing, Positioning and People. Beneath are marketing mix (4P's) of TESCO and Lidl,
for making comparison between them :-
1. Price : The pricing strategy which TESCO use in their products is cost leadership, in which
they use to provide their products and services at very low cost. This help them in attracting
ample number of customers towards them. Where as, Lidl use no frill and zero waste pricing
strategies, in which they use to deliver their products in special cartoon to their customers,
so tat product do not get spoiled. Along with this, that empty cartoon get replaced with full
one on next delivery. This helps them cutting down their extra cost and also help them in
reducing the waste.
2. Product : A huge variety of food and daily beverage items which are offered by TESCO.
This help them in fulfilling the daily needs of their customers, so that they come again and
again to buy products and services offered by them. Where as, Lidl use to provide ample
number of daily need products to their customers at discounted price (Marketing mix of Lidl,
2019). This help their customers in getting all daily need products under one roof, at
discounted price and also of mediocre quality.

3. Promotion : TESCO has very good brand image due to their low pricing strategies, and they
use only this for promoting their products and service. The promotional tools used by them
are, hoardings, advertisement, and charity work (Vellas, 2016). While on other hand, there
are ample number of marketing strategies used Lidl, for promoting their products to
customers. In this they use online promotions, hoardings, and advertisement.
4. Place : TESCO, is one of the leading organisation in the world of grocery. They have around
6900 stores in around 11 countries. Where as, Lidl is oen fo the leading super market chain
in world, and they use provide their products and service in ample number of nations of
world.
Service Quality : This is the quality of products and services offered by organisation to their
customers. TESCO and Lidl always try to provide best quality products, so that they can increase
satisfaction of their customers and also improve their experience with them.
Research Methodology
Methods of primary data collection : Primary data is data which is collected for time by the
researcher, by direct interaction with source of that data. This data is said to be as original and also
very much authenticated and appropriate according to the topic of research. The main advantage of
primary research is that, it help researcher to collect data on some specific topic which is required
for them. The methods which a researcher can use for collecting primary data are surveys,
interviews, questionnaires, direct observations and other. Beneath are detail about these methods :-
1. Interview : This is one of the most commonly used methods of primary data, in this
researcher use to ask different related questions of their interviewer, so that they can gain
proper information about that topic.
2. Email : This is another methods which is going very much popular in modern era. This help
researcher in sending their questions and queries to ample number of respondents, which
later on replied by them with their answers. This help researcher in saving their time, and
cost of going here and there.
Methods of collecting secondary data : This is the type of data which was already used and
examined by some one else, and researcher use this for completing the task related to theory on
some specific topic. The sources which are used by researcher for collecting data in secondary data
method are books, articles, journals, magazines, online websites and other.
Sampling techniques : Sampling is the process of collecting data from different sources and
respondents, so that authenticated and appropriate data can get collected on some specific topic. It is
said about sampling that id it is explained to people in clear manner that the output of it will be very
pure. Also, sampling become demonstrative when the characteristics of selected elements are
comparable by world.

Limitations
While collecting data for this research, researcher have faced ample number of limitations.
Some of these are :-
Time : This is the major challenge and limitation faced by researcher while collecting data
for this research. As the time allotted to complete this research was not sufficient and therefore, it
become very tough for researcher to collect most authenticated data for topic.
Cost : While on other hand, the another challenge faced by researcher, in collecting the data
of this was cost offered to them. As the cost given to researcher was not enough, due to which
adjusting with that amount become tough to collect appropriate data.

References
Books and Journals
Banerjee, S. B., 2017. Corporate environmentalism and the greening of strategic marketing:
Implications for marketing theory and practice. In Greener Marketing (pp. 16-40).
Routledge.
Cacciolatti, L. and Lee, S. H., 2016. Revisiting the relationship between marketing capabilities and
firm performance: The moderating role of market orientation, marketing strategy and
organisational power. Journal of Business Research. 69(12). pp.5597-5610.
Fang, S.R. and et. al., 2014. Internal market orientation, market capabilities and learning
orientation. European journal of marketing. 48(1/2). pp.170-192.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
O'shaughnessy, J., 2014. Competitive marketing (RLE marketing): A strategic approach. Routledge.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Online
Marketing mix of Lidl. 2019. [Online]. Available Through:
<https://www.marketing91.com/marketing-mix-of-lidl/>./