Detailed Marketing Plan: Strategies and Analysis for TESCO

This report provides a detailed analysis of TESCO's marketing plan, covering key aspects such as the STP strategy (segmentation, targeting, and positioning), customer relationship management (CRM), and product innovation. The report examines how TESCO segments its market demographically and targets middle to premium class households. It also explores the company's CRM techniques, including its club card program and feedback mechanisms, and suggests strategies for improvement. Furthermore, the report assesses TESCO's current product and service offerings, including groceries, financial services, and home products, and emphasizes the importance of innovation, such as introducing vegan products, to maintain a competitive edge. The report concludes with an evaluation of the marketing mix's effectiveness on the target group.

Marketing Plan

Contents
INTRODUCTION................................................................................................................................4
MAIN BODY.......................................................................................................................................4
STP strategy used by respective organisation..................................................................................4
Customer relationship management and how company can improve it..........................................5
Current Palette of products/services and how innovation be implemented here.............................7
Develop & evaluate the effectiveness of marketing mix on a particular target group in context to
chosen company...............................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................11

INTRODUCTION
Marketing plan is basically a document which outlines an advertising strategy that a
business entity will execute to generate leads and to reach target customers or market as well. In
addition to this, it is a strategic roadmap which company use to organise, implement as well as track
marketing strategy within a given time period (Gupta, 2019). For the present report, TESCO is
chosen as a base company. It is a multinational groceries and retailing organisation, which was
founded in the year 1919 by Jack Cohen. The head office of the company is located in England,
United Kingdom. The company has presence in more than 20 countries and has around 7,000 shops
worldwide that is one of the reason of its success. The report will cover STP strategy adopt by the
respective organisation. In addition to this, there is discussion about role of data in improving
service excellence and customer expectation as well. Moreover, effectiveness of marketing mix on
particular target group is described in a proper manner.
MAIN BODY
STP strategy used by respective organisation
It is defined as an approach of marketing which is used by company to identify most valuable
market segment & then sell product as well as service to them successfully. It is a three stage
approach to develop a targeted marketing plan in an effective manner. In addition to this, such
strategy allows an entity to develop a marketing strategy which help in attaining organisational
objectives within given time period. The higher authorities of TESCO make use of STP strategy in
order to segment market and target to them in an appropriate way. The STP strategy of respective
organisation is given below:
Segmentation: At this stage, the company divide the whole market into groups of people with
common neds as well as characteristics. In addition to this , it allow an entity to meet each group’s
requirement cost- effectively that help in attaining competitive advantage at marketplace. The
market is segmented on the basis of demographic, psychographic, geographic and behavioural as
well (Benyebdri, Berno ssi and Karaivanova, 2018). With reference to TESCO, it segment market
on the basis of demographics that consist of factors such as occupation, income, education, family
size, social status and so on. This assist company to focus on particular segment and effective
strategy in order to approach them in an effective manner.
Targeting: Herein, the company decides segments that is attractive and effective one to be
targeted. In addition to this, various factors are consider such as market size, type of product,
potential growth and so on. It is significant for an organisation to target the right customer group as

it help in gaining higher growth and success at marketplace. In relation to TESCO, its target market
are those people who belong from middle and premium class households. The main reason of
choosing this target market is to capture large market and to provide them quality that leads to
higher growth and success of company at marketplace. In addition to this, the company offer daily
products that is needed for an individual to survive and choosing such market to target will help in
achieving growth at marketplace.
Positioning: It is defined as developing an image in the mind of target customers towards the
product as well as services offered by company. For this, the company make use of advertising
strategies and promotional tools in an effective and appropriate manner. In relation to Tesco, it is the
retail store that assist customers to get their daily requirements in an easy and proper manner
(Calzada, 2020). The company make use of social media application in order to aware people and
develop positive image in their mind set towards its products. It make use of Facebook, YouTube,
Instagram and other applications which help in reaching large number of people within a short span
of time. The company also take feedback from its customers so that they can make improvements
which leads to customer satisfaction and retention as well.
Customer relationship management and how company can improve it
In today’s business scenario, customer relationship plays an important role in order to sustain in
market for longer time and to achieve growth in an effective manner. Customer relationship
management is defined as an activity by which an entity try to retain customers and turn them as
loyal customer of the organisation. In addition to this, customer relationship is the key of an
organisation growth which in turn impact positively on the efficiency and profitability of company.
For marinating positive customer relationship, one of the main important factor is providing quality
and on time delivery as it develop positive mind set of customer towards the brand (Opresnik,
2018). It is important for a business entity to focus on maintaining relationship with customers as it
help in improving brand image of company and enhance market reputation as well.
In relation to TESCO, its higher authorities believe that the customer are the key factor of
their growth and success in market so it is important to emphasis on fulfilling customer
requirements and wants in a timely and proper manner. There are various techniques used by
TESCO for customer relationship management. One of the effective technique its CRM program
that consist of segregation of customer as per the expenditure in the store. This help company to
preference customer in the basis of business they offer to the store. In addition to this, it help
TESCO in giving better service & sell goods more effectively to the customers (Chernev, 2020).
Focusing on the customers which is beneficial help organisation to enhance its market performance

level and increase its profitability and revenue level. Another technique used by company is
TESCO club card that facilitates regular and loyal customers to add points in their cards which can
be accumulate and used at the next shopping of customers. It increases the priority as well as loyalty
of customer towards the store as they seems that purchasing at TESCO store not only better for
savings but its loyalty is also awarded time to time with an unmatched and special offers as well as
discounts. This help company to attract large number of people and gain their trust towards the
brand due to which respective organisation reach towards higher growth and success as well. The
company also give extra points to customers when they purchase or use the eco-friendly Jute bag
for shopping. This technique not only assist customer but also develop their positive mind set as
company is more concern towards environment and betterment of people. All such activity help
company to develop an effective relations with customer and retain them for longer time period.
Now, the competition in market has increased as they companies developing effective techniques to
maintain their customers and to remain competitive, it is important for company to adopt some
strategies to improve its customer relationship management, which are as follows:
Taking feedback from customers: It is consider as one of the effective strategy to improve
customer relationship management as it help in making customers feel valued and important for the
company. The company can take feedback from customer after purchasing and consumption of
products as well as service by customer (de Vicuña Ancín, 2018). This help company to gain more
insight about their requirements that can be improved in an effective manner. In addition to this, it
help organisation to satisfy the requirements of customer and gain their loyalty in an effective and
timely manner.
Personalize customer service: Nowadays, the taste and preferences of customer is changed
as they like products as well as services according to their requirements. In addition to this, they
prefer to purchase products from the company who offer such services to them. Adoption of such
strategy by TESCO assist in attracting large number of people and also satisfy in an appropriate
way. It also help in gaining trust of customers and retain them for longer time period.
Provide relevant and up-to-date information: It is significant for a business entity to give
up-to-date and proper information to its customers so that they did not get confused and purchase
their products without any question in mind. In the present scenario, customer’s first search
products and services on internet in order to gain information and compare it with the competitors.
TESCO can make use of this strategy by focusing on putting all the information on its online
website and offline as well. In addition to this, it can also give update of new and alter products to
its customers via emails as tit help in remain touch with customers and develop good with them in a
proper manner.

Quick response time: One of the significant strategy is providing on time service and
giving quick response to the queries of customers in a proper manner. TESCO can hire employees
for providing 24*7 assistance to customers as it help company to rapidly resolve the query of
customer and gain their trust as well. In addition to this, it help company to improve its brand image
at market place and attain competitive advantage at marketplace. Moreover, it help TESCO to
develop an effective and string relationship with customer that has positive impact on performance
and profitability of respective organisation.
Current Palette of products/services and how innovation be implemented here
The range of products as well as services offered by Tesco is wide as it offer high quality
groceries , financial services, home products to the customers. In addition to this, Tesco offer all
grocery products such as all types of spices, cereals, daily products and all home essentials. Along
with this, it offer electronic goods, financial services, broadband and so on (Galli, 2020). It is
analysed that company offer products both offline and online and one of the main motive is to
capture large market share and gain higher profits as well. The company has superstore,
hypermarket, supermarket and more than 7,000 convince stores globally. The main objective of
Tesco is to provide quality products at reasonable price so that more number of customers can buy it
easily. Tesco also provides home delivery service or door-step service to its customers by taking
orders online. This will help in providing ease and convenience to customer that satisfy and retain
them for longer time period. It is significant for the company to make innovation in the products
and services offered by them in order to remain competitive in market and sustain for longer time
period. Bringing innovation help company to offer something unique and new in market, which
attract eyes of customer and make them to purchase the product of company. Moreover, it also
increase the number of offerings of company that has positive impact on performance and
profitability of the organisation.
It is analysed by the higher authorities of Tesco that taste and preferences of customer are
shifted as they are consuming organic and healthy products which is good for their health and
fitness as well. For this, the company is decided to offer vegan products in market in order to bring
some changes and innovation in market (Jimenez, 2020). This help company to attract large number
of customers and enhance their performance in an appropriate manner. In addition to this, offering
vegan products raise the customer base level of company that has positive impact on profitability
and revenue level of company. It is analysed that such innovation also help Tesco to attain
competitive advantage at marketplace and fight with their rivals in a proper manner. Offering vegan
products assist in developing positive mind set of customers as it make them feel that company is
contributing towards protecting the environment. This strengthen market performance as well as

image of Tesco in an appropriate manner.
In addition to this, the company brings an innovation that is replenishment application system
that allow to collect sales data from the checkout points, which is directly transferred to the supply
department of the organisation. This help company to decline the level of cost and increase its
revenue level. Along with this, it also assist in implementing all the activities as well as operations
in a systematic and smooth manner, which impact positively on performance of respective
organisation.
All such activities can be implemented by first determining the target audience and
developing positioning strategies properly. In addition to this, it is significant for company to
analyse requirements of customer first and then offer them such product innovation so that it can be
easily accepted by the, which is beneficial for Tesco. Furthermore, it is significant for higher
authorities of Tesco to develop a marketing plan that consist of how new product and services is
placed in market, what is the objective of bringing innovation and the effective strategies as well. It
will help company to carry out activities associated with bringing innovation in market. Moreover,
it help company to enhance the performance and gain competitive edge at marketplace.
Develop & evaluate the effectiveness of marketing mix on a particular target group in context to
chosen company
Marketing mix is defined as set of actions, tactics which an organisation used in order to
promote products as well as service at marketplace. In addition to this, it is a marketing tool which
combines various components to strengthen brand and assist in selling of goods as well as services.
It involve all the strategies related to the product in a proper manner (Hollensen, 2019). With
reference to Tesco, its higher authorities is decided to bringing innovation in market and for this,
the company is start offering organic product in market in order to meet with the demand and fulfil
the requirement of customer. The target market for such product is people belong from the middle
and premium class. The marketing mix involve 7P’s of marketing that is given below in context to
chosen organisation:
Product: It is defined as the commodity that is offered in market in order to create value and
satisfy the requirements of customer. In context to Tesco, it is going to bring new product in market
that is offering Vegan product to customers. This help company to attract large number of people
and enhance the performance of company in an effective manner.
Price: It is the value that is charge by company in return of product and service given to them.
In relation to Tesco, the price of its new product is reasonable which is afford by medium class that
increase the sale of company in an appropriate way.

Place: It is the place where the product as well as service offer by company in market properly.
In addition to this, it is important for company such as Tesco to place product at right place so that
purchasing of new product is increase at marketplace. The vegan product is offer at all the stores of
Tesco and in super market and convince stores as well.
Promotion: It is significant for company to promote their product in order to attract large
number of people and enhance its sales and profitability level. In order to aware about new product
that Vegan products, the company can make use of social media applications such as Facebook,
Instagram and YouTube that help in reaching large number of customer which has positive impact
on sales performance of company.
Physical evidence: This new product offer in market contributes towards the protection of
environment. In addition to this, the product is offered through online medium that increase the
profit and revenue level of company.
People: In order to give proper information about new product, Tesco provide training to its
employees so that they can give full detail to customer and deal with them in an effective way. In
addition to this, it help company to gain the trust of customers and improve its performance level.
Process: This new product is offering on both offline and online as well. This assist company
to increase its customer base level which has positive impact on the productivity and profitability of
the respective organisation.
From the above study, it is evaluated that marketing mix help an organisation to position the product
in a right place and also help in promoting brand in an effective manner. In addition to this, it also
assist in pricing the goods as well as services which is acceptable in market easily. It is significant
for company to make use of effective promotional tool in order to create awareness and promote
product that help in enhancing sales and profitability of company (Perreault, 2018). This can be take
place with the help of marketing mix tool and has positive influence on performance and
profitability if respective organisation.
CONCLUSION
From the above discussion, it is concluded that marketing plan is an effective document that
outlines all the marketing strategy in an effective manner. In addition to this, it is important for an
organisation to segment its market by considering factors such as market size, product and service
type, potential growth and many more. Nowadays, company make use of social media applications
in order to promote its product and provide information to large number of customer in an effective

and rapid manner. It is significant for an entity to focus on fulfilling requirements of customer and
providing quality as well as timely service to customers as it help in maintain an effective
relationship with customers and also assist in retaining them for longer time period. Moreover, the
companies make use of various strategies in order to improve their relationship with customer such
as taking feedback after providing services, quick and on time delivery, added value and many
more. Furthermore, it is important for companies to bring innovation at marketplace as it help in
offering something unique and trendy in market and gain attraction of customer towards the brand.
It also help company to fight with its rivals prevailing at marketplace which leads to increase in
productivity and profitability of the organisation.

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