Identifying and Evaluating Marketing Opportunities for Tesco

This report identifies and evaluates marketing opportunities for Tesco, focusing on market and product development strategies. It analyzes Tesco's current market position, competitive landscape, and potential for growth in new markets and product categories. The report examines the effects of these opportunities on sales volume, profitability, and overall business growth. It also considers the impact of external factors and internal policies on the implementation of these strategies. The analysis includes a gap analysis of Tesco's current state versus its desired future state, along with recommendations for actions and proposals to achieve its marketing objectives. The document discusses Tesco's marketing mix, including product offerings, promotional activities, and e-commerce strategies, and evaluates the potential return on investment for each opportunity. This assignment is available on Desklib, a platform offering a range of study tools and resources for students.

Running Header: Identify and Evaluate Marketing Opportunities
Identify and Evaluate Marketing Opportunities
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Identify and Evaluate Marketing Opportunities
Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
Part A...........................................................................................................................................4
Analysing and identifying two market opportunities..............................................................4
Identifying opportunities analyse information on Tesco.........................................................5
Research potential new markets for Tesco..............................................................................6
Gap analysis of Tesco and types of markets and aspects of marketing mix............................7
Effect of two marketing opportunities on the business of Tesco.............................................9
Estimation of demand and their effects on sales and profitability of Tesco............................9
Innovative options for each opportunity................................................................................11
Part B.........................................................................................................................................12
Covered in PPT......................................................................................................................12
Task 2.............................................................................................................................................12
Executive summary...............................................................................................................12
Part A.........................................................................................................................................12
Determining organizational fit, profitability and operational implications...........................12
BBQ fun sales data................................................................................................................13
Part B.........................................................................................................................................15
Analysing three opportunities................................................................................................15
Impact to current business and customer base.......................................................................17
Considering different aspects................................................................................................17
Assessing external factors......................................................................................................18
BBQfun Policies and Procedures...........................................................................................18
BBQfun simulated business documentation..........................................................................19
Return on investment on each opportunity............................................................................19
Rank tree marketing opportunities.........................................................................................19
Changes to current operations...............................................................................................20
Adequate changes..................................................................................................................20
Justification of changes based on quality..............................................................................21
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Identify and Evaluate Marketing Opportunities
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Identify and Evaluate Marketing Opportunities
Introduction
The chance of marketing is a sales-acceptable lead that qualifies as per your product or service
requirement. The Sales Representative determines that this person or company has the
opportunity to sell (Ratiu and Avram, 2013). Generally, the sales representative should
determine that the possibility is to have a budget, need, and authority to buy our product.
TESCO is retail supermarket having headquartered in Welwyn Garden City, England, UK. It is
the third largest retailer in the world. It was founded in 1919 by Jack Cohen. It has stores in 12
Countries across Asia and Europe. It has a market share around 28.4%. It has 460,000
employees, 6,809 shops and 79 million revenues from per week shopping trips.
The main objective of this assignment is to support and explain two marketing opportunities
which are identified in an assignment. Marketing mix for TESCO like distribution, products, and
types of promotional activities is also considered.
Task 1
Part A
Analysing and identifying two market opportunities
It is always important for the firms to utilize market opportunities because it helps them in
achieve competitive advantage over others. In the present time's company like Tesco has a higher
opportunity in the market. It has to utilize it by making many plans and policies which will help
them in moving in a particular path to obtain objectives (Wertime and Fenwick, 2011). Two
major marketing opportunity that Tesco can apply is Market development and product
development.
Market development: Checking the growth graph is the very much significant task for the firm
like Tesco. It can only be possible if the company is able to sell its existing product in the new
markets. This has been considered as significant for the firm in order to increase its revenue
because it provides the opportunity for the firm to enhance its base customers. Since Tesco has
diversified range of products, it can easily grow its roots in the new regions.
Product Development: This has been considered as another most important marketing
opportunity that this company has. It aids in developing a culture where new products can be
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Identify and Evaluate Marketing Opportunities
innovated (Malhotra, Birks and Wills, 2013). The company can market these new products a
better way so that they can create a fresh image in the minds of people.
Identifying opportunities analyse information on Tesco
Product development and market development are two strategies that can be adopted for
attaining competitive advantage. Other than this it is to be understood that analyzing information
is essential for the firm's growth. After accessing the available information it can be said that
Tesco has to grow at the faster rate since the competition is getting intense (Bean and Hussey,
2012).
Comparative market information
Comparative marketing information is concerned to the examination between the competing
brands or the similar products. The comparison is between the prices or the other similarities.
Some of the biggest competitors of Tesco are Sainsbury's, Morrison, Walmart, Waitrose and
ALDI etc. The comparison can be done against the products of Sainsbury and Tesco as both are
leading brand names in the supermarket sector.
Competitor’s performance
With the acquisition of ASDA, Walmart has become one of the key players in the industry. They
have larger stores and are considered as one of the biggest in the UK. Apart from this ALDI and
LIDL are other names that are intensifying the completion. They have shared a very larger part
of the market. Sainsbury's is also increasing the rate of intensification in competition.
Customer’s requirement
This industry has been performing exceptionally well in terms of understanding the demands of
the consumers and shaping their business accordingly. In modern lifestyle, people do not have
time for availing their requirements from different shops and they want that very thing must be
available for them at ease (Huotari and Hamari, 2012).
Legal and ethical requirements
One of the prime duties of a firm is to manage and follow all the ethical conducts of the
company. No false promises should be made to the consumers while marketing the products.
Any sort of evil practices by Tesco may result in legal considerations that may not be in the
goodwill of the firm and may result in a large amount of monetary loss.
Market Share
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Identify and Evaluate Marketing Opportunities
It is termed as the percentage of the market that is captured by the company. In terms of profits
and many other considerations, Tesco is the largest retailer in the UK and has covered 28.2 % of
the total market share in the industry inside the UK. It has increased its grocery market share by
around 5 times in last five years.
Market trends and development
There has been the continuous shift in the market demands of the people. This has started many
new kinds of trends. With the limitation of time with the people are coming to the larger
supermarket retail stores and buy all the things of requirements at once. Since there had been
continuous fluctuation in the UK economy and the decisions such as Brexit has reduced the trend
of buying expensive products (Weinstein, 2013).
New and emerging markets
There are various suburban areas which are having the larger potential for growth hence Tesco
can start its operations at these places. Apart from this, there are many developing countries
which are having higher scope for Tesco. A report by Global Retail Development Index suggests
that around 30 out of the 300 developing nation has the higher potential and can act as an
emerging market.
Profitability
Tesco is generating the larger amount of profits from its operations. Since a there larger number
of people that are coming for buying things from the stores hence they can gain the larger
amount of profits (Cox and Wray, 2011). This company has been ranked the best in the industry
in terms of profits generated by various companies.
Sales figure
Until this time in 2017 the company has made and a sale of around 49.9 billion pounds which is
up by 4.3% what it was last year (finance.Yahoo 2017).
Research potential new markets for Tesco
There is a larger scope for the expansion of Tesco. These potential markets are providing
sustainable growth of these firms. It can be understood by following descriptions:
Export markets: There is a number of export markets available for this company especially the
South East Asian countries. In the countries such as India where FDI in multi-brand retails up to
100 % has not been approved.
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Identify and Evaluate Marketing Opportunities
A segment of the market not currently penetrated: It has not penetrated in the market
segment that deals with the products for small children especially toys and their daily activity
items.
Increasing market share: With new product development strategy the business corporation can
satisfy the needs of larger sections of the society and the market share can be increased
(Kapferer, 2017).
Developing new markets
There are new markets for which company can develop its products. As the economic policies
have to experience changing trends, it has become easier for the firms to expand their business
reach (Rusek et al., 2013).
Gap analysis of Tesco and types of markets and aspects of marketing
mix
Current State Future State Action/Proposal
Expensive compared to Aldi, Lidl
and Morrison’s
To be more competitive and
customers see the value of
Tesco's products (Kumar,
2012).
Advertise more offers such
as buy one get one free,
price matching on certain
products costs. Use their
CRM data to identify
customers to target with
marketing campaign about
Tesco value brands (Wu et
al., 2013).
The two marketing opportunities which Tesco has to focus is Product development and Market
development. These are explained below:
 Product development: Product development, also called new product management, is a
series of series that includes the concept, design, development, and marketing of newly
created or new re-branded goods or services (Jones and Rowley, 2011). Tesco has a
product development opportunities as Tesco continues with the overhaul of its brand food
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Identify and Evaluate Marketing Opportunities
range, in the days following Christmas, "Tesco is healthy" is launching a new brand to
appeal to health-conscious customers.
 Market Development: Market development is a development strategy that recognizes
and develops new market areas for current products. Currently, a market development
strategy is a goal for non-buyers in targeted areas. It also targets new customers in new
segments. Tesco has a new market development opportunity in main UK grocery trade,
non-food, international expansion and retail services such as financial services, dot-com
business, and telecommunications package (Foxall, 2014). In fact, Tesco is using its
strong stable core, while moving forward the business, while it moves forward to new
risk areas of development.
Types of Markets:
There are five different types of markets, which is explained below:
Perfect Competition: Perfect competition is a market system that is characterized by many
different buyers and sellers, in the classic theoretical definition of ideal competition, there is an
infinite number of buyers and sellers (Satit, 2012).
 Monopoly
 Oligopoly
 Monopolistic Competition
 Monopsony (Goworek and McGoldrick, 2015\
Marketing Mix of Tesco
Tesco PLC is the leading brand of the supermarket in the UK. It has managed to gain so much
popularity that its stores have crossed the boundaries of the United Kingdom and have reached
twelve other countries in Europe and Asia! Founded by Jack Cohen, Tesco Market Stalls started
as a bunch.
Some of the important marketing mixes of Tesco are discussed below:
Products: Tesco offers a wide range of products, including food, clothing, electronics, financial
services, etc (Laczniak and Murphy, 2012).
Promotional Activities: The biggest advantage of Tesco is its low cost; it sets it apart from other
supermarket chains, and this is what it uses to increase its brand image. Tesco adopted various
types of promotional activities explained below:
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Identify and Evaluate Marketing Opportunities
E-Commerce: Through digital marketing, the company promotes its products online. Also, it
provides facilities to their customers to order online (Linoff and Berry, 2011).
Direct marketing: In this strategy of promotional mix, company appoints sellers for a door to
door marketing and to collect feedback from customers.
Telemarketing: Tesco’s appointed separate department for tele calling. Its basic role is to call
interested persons and try to convert them into potential customers of a company.
Effect of two marketing opportunities on the business of Tesco
Both the market opportunities for the Tesco, Product Development as well as Market
Development are highly useful for the company to gain the competitive edge over others (Bauer,
2012).
Effect on sales volume
Both these marketing opportunities have the larger effect on sales volume. Since market
development helps in capturing the larger part of the market hence it also increases the chances
of selling the products (Babin and Zikmund, 2015).
Growth
Growth and marketing opportunities are directly proportional to each other. More the number of
markets developed by the company more are their chances to grow as a firm (Della Corte et al.,
2013).
Market share
Both these market opportunities have increased the market share of the company in the industry.
Developing new markets helps in capturing larger population (Meissner, 2012).
Profitability
Both these market opportunities help a company in making more profits (Erragcha, 2016).
Developing new products or markets helps to sell more products which ultimately increases the
profitability of the Tesco.
Estimation of demand and their effects on sales and profitability of Tesco
The demand of Tesco can be estimated with the help of least square methods. Least square
methods is a form of mathematical regression analysis, which finds a line of best fit for a dataset,
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Identify and Evaluate Marketing Opportunities
which causes a visual representation of the relations between the data points (Grönroos and
Ravald, 2011).
Line of Best Fit Equation
The best fit line determined by the least squares method is an equation that tells the story of the
relationship between the data points (McDaniel, Hair and Lamb, 2011).
XX YY
1 2
2 5
3 3
4 8
5 7
Solution:
XX YY XYXY X2X2
Yˆ=1.1+
1.3XY^
=1.1+1.
3X
Y−Y
1 2 2 1 2.4 -0.4
2 5 10 4 3.7 1.3
3 3 9 9 5 -2
4 8 32 16 6.3 1.7
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Identify and Evaluate Marketing Opportunities
5 7 35 25 7.6 -0.6
∑X=15∑X=15 ∑Y=25∑Y=25 ∑XY=88∑XY=88 ∑X2=55∑X2=55 Trend
Values ∑(Y−Yˆ)=0
Effect of this estimation demand on sales and profitability of Tesco is explained below:
There is a heated relationship between supply and prices of goods and services when demand is
unchanged.
If the supply of goods and services has increased, the demand remains low, the prices are low
balance value and high quantity of goods and services (Sheth and Sisodia, 2015). If there is a
shortage of supplies for goods and services, the demand remains the same, the prices increase in
high balance value and in small quantities to goods and services. Supply and demand increase
and fall until the balance of a balance reaches. For example, suppose a luxury car company
determines the price of its new car model for $ 200,000.
Innovative options for each opportunity
Marketing Development: The development of marketing strategy is a very important task for
every organization; it requires detailed analysis of each and every aspect of the business involved
(Perreault Jr, Cannon and McCarthy, 2013). Here are some of the steps below that require Tesco
while developing a marketing strategy.
 External Analysis
 Setting Objectives (Hollensen, 2015).
 Formulation of strategy
Product Development: New product development can be described as a five-step process,
which begins with progress to create ideas and to market full product. Among the processes you
evaluate and evaluate the product, take steps to protect your thoughts, and can finalize the design
in the R & D phase. Details on each stage are as follows:
 Generating ideas (Warner, 2010)
 Evaluating and screening product ideas
 Protecting your ideas
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Identify and Evaluate Marketing Opportunities
 Finalizing design research and development (Mishra, 2015)
Promoting and marketing your product
Part B
Covered in PPT
Task 2
Executive summary
BBQfun is doing business in a best possible way and operating in the industry of selling food
and outdoor products retail. It can make use of the three marketing opportunities like
manufacturing and sell products under brand name, selling goods at the bargain price as well as
selling products using e-commerce websites (Luchs and Swan, 2011). These e-commerce
websites are highly helpful in reaching a large number of consumers in the market. There are
several kinds of changes that company is making so as to assure that all the opportunities are
utilized efficiently. There are many kinds of policies and procedures that have been made by the
firm so as to bring appropriateness in the processes. This helps a company in capturing the larger
part of the market as well as increasing the profitability of the firm by enhancing the sale of the
company's items.
Part A
Determining organizational fit, profitability and operational implications
There are three kinds of marketing opportunities that are used as the BBQ fun. Their
organizational fitness, profitability and operational implications have been discussed below:
Manufacture and sell own brand: This is one the best market opportunity that this company
has. It is highly fit for this company as it can manufacture its own product and can sell it to the
customers. They have excellent employees to ensure that tasty product is available for the
consumers. Selling under the own brand name provides the opportunity for the company to
create a better place in the market (Kowalkowski, Witell and Gustafsson, 2013). While talking
about the profitability it is to be understood as the manufacturing and selling products under the
own brand name reduce the operational cost which increases the overall profit of the firm. It
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