Marketing Essentials: Tesco PLC Marketing Analysis and Planning Report

This report provides a comprehensive analysis of marketing essentials, using Tesco PLC as a case study. It begins by examining the roles and responsibilities of a marketing department, both within the organization and in the broader marketing environment, including an analysis of the interrelationships between marketing and other functional units. The report then delves into marketing planning, comparing different approaches to achieve business goals, and evaluates tactics implemented by firms. The report also includes a comparison of marketing strategies, focusing on the marketing mix elements of Tesco and Sainsbury. Finally, the report develops and evaluates a basic marketing plan for a company, providing a practical application of the concepts discussed. The report aims to offer a detailed understanding of marketing principles and their application in a real-world business context.

Marketing
essentials
Contents
INTRODUCTION...........................................................................................................................2
TASK1.............................................................................................................................................2

P1: Roles and responsibilities of marketing department/function..........................................2
M1: Analyse the roles and responsibilities of marketing in the context of the marketing
environment............................................................................................................................3
P2: The key roles and responsibilities of the marketing relate to the wider organisational
context....................................................................................................................................3
M2: Analyse the significance of interrelationships between marketing and other functional
units of an organisation..........................................................................................................4
D1: Critically analyse and evaluate the key elements of the marketing function and how they
interrelate with other functional units of an organisation.......................................................4
TASK2.............................................................................................................................................5
P3: Compare ways of marketing planning process towards achievement of business goals. 5
M3: Evaluate tactics implemented by firm in order to demonstrate how business goals can be
accomplished..........................................................................................................................8
TASK3.............................................................................................................................................8
P4: Develop and evaluate basic marketing plan for company...............................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

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INTRODUCTION
Marketing refers to the process that will help the business or organisation to promote the product
and services and in which the businesses deals. This process will attract the customer by
introducing their specific market plan in which lot of strategies are made on the basis of business
structure such as new product strategy, pricing policies and promotional activities with a motive
to achieve organisational goals or objectives (Baker and Magnini, 2016).
Tesco plc is leading retailer of groceries, electronics and clothing goods based on Britain with
over 400000 employees who works effectively for serving the needs and demands of millions of
customers every week. It was developed in 1919 in England, United Kingdom. Essential
products of Tesco plc may include hypermarket, supermarket, superstores and convenience
shops.
This report is based on the company Tesco ,this industry is a retailing industry which
deals in supermarkets and hyper markets of general merchandise and groceries related products
having a headquarter in Welwyn garden city, UK. This reports covers the topic how the key role
and responsibility of the marketing function will relates with the wider organisation.
TASK1
P1: Roles and responsibilities of marketing department/function.
The marketing department plays an important role in making the organisation more
effective and efficient by designing and creating the marketing strategies in formulation of other
production activities some of the basic role of a marketing department is to promote the product
and services with analysing the market scenario and grow the efficiency of the business through
increase in brand image (Baker and Saren, 2016). There is following roles and responsibility that
is played by marketing department of Tesco and it is explained below as:
 Setting marketing strategy:
Marketing department deals with the formulation of strategy which have to implement in the
course of business or organisation activities by accomplishing the targets related to that strategy
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by the market players which are work under the largest retailing industry Tesco by proper
research and analysis of the market scenario and planning according for the attainment of goals.
 Brand equity: For every organisation the most important aspect is to achieve the strong
brand equity into the competitive market this will leads to generation of their goodwill
through promotional activities. Brand equity is the value of brand or worthiness of any
company or industry within the market place. For increasing the effectiveness of the
brand image Tesco will go with the function of dealing more customers by providing the
quality services in relation of retail merchandise to them.
M1: Analyse the roles and responsibilities of marketing in the context of the marketing
environment
Marketing environment is defined as sum of various internal and external arrangement and
factor which are having high impact on business. In current market scenario marketing
environment is highly dynamic in nature and high competition is existed as well. Marketing
department is playing essential role of understanding needs and demands of customers and this
department is putting major emphasis on society and their people (Blythe and Martin, 2019). The
responsibilities of marketing department are elaborated as under:
Responsibility towards customers: For customer marketing department is putting efforts
to recognise needs and demands of their customer in order to fulfil them by business offerings.
On the other hand marketing department is responsible to attain customer satisfaction by
adopting various promotional tools such as offers and campaigns.
Responsibility towards public: The marketing department is having huge responsibilities
of employing skilled people in the organisation so as to attain business objectives. This is helping
them to intensify brand image and customer loyalty so as to get special edge in competitive
market.
P2: The key roles and responsibilities of the marketing relate to the wider organisational context.
In current marketing situation there is highly competitive environment which will certainly
impact the organisation in their long run. This will be managed by marketing department by
taking all the remaining department inside the activities concerned with the finance, operations
and human resource etc. they are all inter-connected with each other due to marketing strategies
role and responsibilities are followed by the organisation for the completion of tasks and
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objectives so in the context of Tesco here are some of the roles and responsibility of marketer
this retailing industry (Campbell, Martin and Fabos, 2018).
Marketing and human resource department: In the process of marketing, the main
aspect is to enhance the organisation by making changes according to the market scenario if any
need generates in the organisation so to attain these changes marketer have to inculcate to the
company in respect to the organisation requirement for workforce if needed by the human
resource department they have to work according to the information and data of the market.
Marketing and finance department: For any business organisation the main approach
of them is to maintain the records and financial statement on regular basis this will directs the
organisation in dealing with the activities related in marketing in bigger aspect by the way of
converting the opportunities to marketer to go for any changes considered with the pricing
strategy, they will inter-related with each other in the context of Tesco, all the activities related to
marketing of retailing industry will directs the impact on finance department because of the cost
related statement.
M2: Analyse the significance of interrelationships between marketing and other functional units
of an organisation.
Although above consideration it is observed that there are several roles and responsibilities
of different departments within organisation that has prominent impact over business
performance and productivity based on effective relationships between them. Marketing
department of respective firm is related with others departments (Chernev, 2018). For instance
marketing department conducts research and then production department make effective goods
and services so as to meet market demands. Finance department have connection with marketing
department in order to provide effective funds in order to fulfil requirements of business.
D1: Critically analyse and evaluate the key elements of the marketing function and how they
interrelate with other functional units of an organisation.
As per above consideration it is analysed that marketing is essential function of any
business that has prominent impact over firm’s position in order to make marketing effective and
ensure future growth of business. Marketing is interrelated with other departments of respective
firm that has positive impacts on firm. For instance it helps to get right information at right time
that helps to timely producing of goods and products which helps to satisfy customers. Customer
satisfaction increases profits and sales of firm (Chinn, 2017). This helps to evaluate how much
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fund is required for producing and manufacturing goods and distributing them to end users. It
also performs important role in communicating company information as well as give customers
for how its products are different from competitors.
TASK2
P3: Compare ways of marketing planning process towards achievement of business goals.
Marketing mix is defined as the combination of elements that are important from
developing to serving needs and wants of customers. These elements and components of
marketing mix are considered as 7p’s are considered as follows with suitable comparison
between Tesco plc and Sainsbury:
Basis of comparison Tesco plc Sainsbury
Product Based on product element of
marketing mix in the process of
marketing planning for Tesco
includes wide variety of products
such as- food, clothing, electronics
and financial services. As per
product strategy respective
organisation focus on broader
product portfolio that helps to gain
more customers (Hanlon, 2019).
While as compared to Tesco plc
product portfolio of Sainsbury
includes fresh food and fresh
vegetables so as to focus on limited
portfolio to make effectiveness in
product portfolio that has prominent
impact over firm’s position based on
customer satisfaction with better
quality.
Price Tesco uses low pricing strategy for
its goods and services in order to
gain more and more customers and
raise profits of firm through
satisfying customer’s needs and
wants. Respective firm uses both
lower prices for large stores and
little higher prices from small stores
due to high overhead costs. This
reflects as effective pricing strategy
of Tesco plc.
On contrary of Tesco plc, Sainsbury
uses competitive pricing strategy in
order to provide customers the value
of money. Competitive pricing helps
to attract new customers as well as
retain older ones. This helps in
getting more customers but have
negative impact in terms of
ineffective management of costs.
Place As per place element of marketing
mix stores based on offline for
instance Tesco Extra, Tesco
Express, Tesco Metro etc. as well
On the other hand Sainsbury has 598
supermarkets and 714 convenience
stores that offer 24*7 hrs services. It
also place order and deliver goods
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online stores such as- official
websites www.tesco.com.
and products online. It had own
distributers since 1970 and after
disputes with drivers it contracted
out its distribution to specialists. For
instance NFT, DHL etc.
Promotion As per promotional element of
marketing mix Tesco plc prefer to
use advertisements to focus on low
pricing. Tesco also uses club cards
services in order to offer customers
additional discounts that have been
mentioned earlier. Easy availability
and accessibility helped company to
get more loyal customers that has
prominent impact over rising market
shares and profits of firm.
While as compared to Tesco,
Sainsbury uses celebrity
endorsements in ads to attract
customers for buying of products.
Sainsbury also uses Nectar reward
cards that help customers to earn
points on every year purchase made
at stores. Thus it has also good
promotional strategies but less
effective as compared to Tesco plc
(Nirschl and Steinberg, 2018).
People When it comes to people marketing
mix of Tesco plc includes use of
effective sales assistance that is
responsible for success of firm.
Employees of Tesco are highly
competent and compensated well
that has prominent contribution in
huge success of firm (Perreault,
2018).
On the contrary of Tesco plc, people
or human resources of Sainsbury are
well trained and by experts and
professionals who are well aware
about sensitivity of behaviours of
customers. Thus it reflects
effectiveness in behaviours and
experience of employees needed
while attaining customers.
Physical evidence Based on physical evidence Tesco
stores are not over elaborate as
compared to Sainsbury rather it
spends more on furnishing stores
and making clean stores to attract
customers and creates healthy and
positive environment. This reflects
more effective strategies for firm
regarding physical stores component
of marketing mix.
While, physical evidence of
Sainsbury ensures the quality of
baskets & trolleys to enhance
shopping experience of customers.
Use of impressive shelves and store
layout makes shopping convenient
for customers based on this element
of marketing mix.
Process It refers as the process of keeping
customers happy through speedy
On contrary Sainsbury makes it
easy, simple and convenient for
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billing services and make easy for
customers to acquire of goods and
products from offline and online as
well. Through employing
competitive staff Tesco plc achieve
effectiveness in process element of
marketing mix.
customers to assess goods and
products without any delay and
wasting of time & money. It also
comes up with new stores formats to
fulfil changing needs of customers
and helps in selecting effective
locations (Pike, 2016).
M3: Evaluate tactics implemented by firm in order to demonstrate how business goals can be
accomplished.
As per above consideration it is evaluated that marketing mix plays significant role in
achieving business objectives. For instance elements of marketing mix are prominent for
implementing effective strategies such as- product, price, place and other elements related
strategies those impacts significantly towards accomplishment of business goals. This reflects
future growth of firm and ensures long terms sustainability through effective application of
components of marketing mix (Piñeiro-Otero and Martínez-Rolán, 2016).
TASK3
P4: Develop and evaluate basic marketing plan for company.
Strategic marketing plan
It reflects as significant impact in any business that makes effective guidance to managers
towards development of effective marketing strategies for projects and business processes (Pride
and et. al., 2017). There are some aspects of marketing plan regarding respective organisation:
Vision: The main vision of Tesco plc is to provide value for customers to serve customers better.
This helps in enhancing customer loyalty that has prominent impact over firm’s position. Vision
may include reason of firm and what are the main function and work of company. This helps to
create awareness and communicate all about business to customers so as to make assure them
offerings of firm.
Mission: The mission of Tesco plc is to provide effective goods and services to customers in
order to make their life better and effective with suitable offerings. It helps to make customers
aware about work and offerings of company. Both vision and mission are important part of any
business that has prominent impact in terms of building brand image and reputation of firm
within market or industry.
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Values: Tesco plc valued customer’s interests and gives priorities to them in order to help them
in fulfilment of their needs and wants so as to better their livings. It is essential to take care about
values and preferences of customers in order to raise market shares and profits of firm.
Customers are main element of any business that plays significant role in growth and success of
firm as it based on buying more will reflects more profits of firm.
Strategic priorities: When it comes to priorities Tesco designs and develop goods and products
in such a way that offer effective satisfaction for customers in order to gain their attention.
Strategic priorities of respective organisation may include reliability, durability and sustainability
for customers. These are important for effective operation of firm and helps in marketing and
promoting of goods and services in effective manner.
Finance: In terms of financial resources requirement may includes marketing research, analysis
on customer expectations and buying behaviours, market demands and trends, distribution
activities etc. in terms of Tesco plc can use internal sources of funds such as- retained earnings,
selling of assets etc. there are several other sources of funds based on external sources for
instance bank loans, public finance etc. both are important for fulfilling financial requirements of
firm that has prominent role in effective and smooth functioning of firm for long term
sustainability (Proctor, 2020).
Financial projection:
Year 2020 2021 2022 2023 2024
£m £m £m £m £m
Sales 25 15 20 30 35
Expenses
Cost of goods sold 5 6 7 8 9
Depreciation 0.5 0.5 0.5 0.5 0.5
Advertisement 1.5 2 2.5 3 3.5
Rent 0.2 0.2 0.2 0.2 0.2
Salaries and wages 1.1 1.2 1.3 1.4 1.5
Furniture and equipment 4
Travel 0.1 0.2 0.3 0.4 0.5
Interest expense 3 3 3 2 3
Total Expenses 15.2 12.7 13.5 14.7 16.5
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Net Income before taxes 4.9 9.2 10.5 10.3 12.6
Income tax expenses 0.98 1.84 2.1 2.06 2.52
Net income after taxes 3.92 7.36 8.4 8.24 10.08
Suppliers: For successful implementation of marketing strategies for effectiveness of firm the
main suppliers for respective organisation will be sellers of vegetables, equipments like blender,
grinder, mixer, backer, clothing material supplier’s etc.
Resources: Based on effective implementation of elements of marketing mix that has prominent
impact over firm’s position. Resources many includes raw material, human resources,
equipments required for manufacturing and producing of goods and products to serve needs and
wants of customers that has prominent impact over business future and sustainability for long
run. Resources are important element for any business ad helps to make successful
implementation of plans and projects.
Monitoring & controlling: The last phase of strategic marketing plan is related to inspection
and estimation of plan for evaluating defects and overcome them for making effectiveness within
marketing function of firm. Monitoring and controlling of elements of marketing mix leads to
effectiveness and efficiency within organisational context. This helps in measuring effectiveness
and efficiency within process so as to satisfy customers effectively.
Risk plan: In order to implement marketing plan effective and successful it is essential for
respective organisation to analyse risks involved within the plans and after evaluation of risk it
needs to overcome the risk with proper effectiveness and efficiency. Risk in marketing plan may
includes risk of unavailability of financial resources, rejection of human resources of firm
towards change and new ideas to be implemented within firm, technology and governmental
limitations etc. all are create barriers in successful application of strategic marketing plan for
business that has prominent impact over business (Rowley, 2016).
CONCLUSION
On the basis of above report it is observed that there are several roles and responsibilities
of marketing function of business that has prominent impact over firm’s position as well as
ensures long terms sustainability of firm. Roles and responsibilities of marketing with wider
organisational context are explained within report. Furthermore comparison between marketing
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mix elements of Tesco plc and Sainsbury are considered within the report. In additional strategic
marketing plan are developed to make effective implementation of estimated plan and project
that has prominent impact in terms of rising successful application of plan. Thus marketing is
important function that has prominent impact at overall functioning and growth of business and
helps to raise market share, customer’s base and profits of firm.
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REFERENCES
Books and Journals
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International Journal
of Contemporary Hospitality Management.
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Chinn, E.R., 2017. Essentials of Branded Event Marketing (Doctoral dissertation, University of
Oregon).
Hanlon, A., 2019. Digital marketing: strategic planning & integration. SAGE Publications
Limited.
Nirschl, M. and Steinberg, L., 2018. Einstieg in das Influencer Marketing. Springer Fachmedien
Wiesbaden.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Pike, S.D., 2016. Destination Marketing Organizations–Research opportunities in an era of
uncertainty. In Book of Abstracts-6th international conference on tourism. International
Association for Tourism Policy (IATOUR).
Piñeiro-Otero, T. and Martínez-Rolán, X., 2016. Understanding digital marketing—basics and
actions. In MBA (pp. 37-74). Springer, Cham.
Pride, W.M. and et. al., 2017. Marketing Principles with Student Resource Access 12 Months.
Cengage AU.
Proctor, T., 2020. Absolute Essentials of Strategic Marketing: A Research Overview. Routledge.
Rowley, J., 2016. Information marketing. Routledge.
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