Marketing Analysis and Strategy Project - Tesco Case Study

This project provides a comprehensive marketing analysis and strategy for Tesco, a multinational retailer. It begins with an executive summary, followed by an organizational overview detailing Tesco's historical background, current marketing strategies, and an analysis of its micro and macro environment, including a PESTLE analysis. The project then presents a literature review that contrasts traditional and contemporary marketing approaches, particularly within the context of the digital world. Market research, including both secondary and primary data (questionnaire responses from Tesco employees), is analyzed to assess market potential and digital marketing impact. The marketing mix (7Ps) is then discussed in detail, examining product, price, promotion, place, people, process, and physical evidence elements specific to Tesco. Finally, the project concludes with recommendations and a reflective statement, summarizing the findings and suggesting potential improvements to Tesco's marketing strategies.

PROJECT

Table of Contents
1.Executive summary.......................................................................................................................1
2.Organisational overview...............................................................................................................2
3.Literature review...........................................................................................................................4
4. Market Research .........................................................................................................................5
5.Marketing Mix .............................................................................................................................7
6. Conclusion ..................................................................................................................................8
7.Recommendations ........................................................................................................................9
8. Reflective statement.....................................................................................................................9
REFERENCES .............................................................................................................................11

1.Executive summary
Marketing is one of the essential function of management as it helps in making consumer
aware of the product and services, also helps in increasing sale and productivity of the company,
this report covers the overview of Tesco company which is taken as the base company, its
historical background with its marketing strategy and analysing micro and macro environment.
Digital marketing plays and important role in today's growing digital era, current thinking on
concept of marketing in digital world in context to the company is considered. Also the
importance and various factors of marketing mix and what all recommendations can be taken by
the company is also considered.
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2.Organisational overview
TESCO is a multinational retailer organisation and is the third largest in retailer sector by
measuring their gross revenue. On the other hand, by measuring them by revenue TESCO hold
ninth position in the world. Headquarter of TESCO is located Welwyn Garden city, England and
United Kingdom. It was established in 1919 in Hackney, London and they have opened their
shop in 1931 and they are operating and expanding their business in different countries. They are
selling diversified good and services which include food as well as non food items such as
books, furniture, clothes and so on. In the current report, they are operating in 7,005 shops across
different countries. The number of employees working in TESCO is 4,23,092 in their stores.
They have divided division and named them as Tesco stores Ltd, Tesco bank, tesco family
dining Ltd and so on. The current marketing strategy of selected organisation is that that they
have to gain traditional competitive advantage so that they can retain the trust of stakeholder.
They are the most stable retailer in market and it is known by all people which help them to
attract customer in retail industry. For current market strategy they have introduced a strap line
which is ' Every little helps' . With the help of this strategy they can create new product lines, use
digital marketing to promote their goods and services, pack their products in proper manner and
so on. This lead to attract customers and can gain trust of their stakeholder (Backaler and
Shankman, 2018).
The analysis of micro and macro environment is that they can analyse the strength and
weakness of Tesco as they can also identify the external factors which affect them either positive
and negative. The micro environment means this can be controlled by organisation. With the
help of this Tesco can easily identify what are the strength and opportunities available so that
they can overcome their weakness in retail industry. The strength of Tesco is that they deal in
diversified product and provide better quality goods and services. The another strength is that
they only focus on adopting the latest technology. On the other hand, weakness is that they will
decrease their operation in overseas market and job cut is the major weakness. Opportunity of
Tesco is that they are multichannel retailer and use artificial intelligence(AI). The other
opportunity available with them is that they engage customers and attract them by using
augmented reality (Baker and Hart, 2016). The last factor of internal environment is weakness as
there are various competitors in market which include Morrisons, Asda, Sainsbury and many
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other competitors. The another weakness is change in need and demand of customer and threat of
cybersecurity.
The macro environment factor can be analysed by using PESTLE analysis where political
factor include the impact of post Brexit period because there are various changes in policies for
industry. The economic factor include is that they is fluctuation in currency rate and global;
exchange rate. The social factor positively impact is that they have strong presence on socila
media because they conduct campaigns and post advertisement on social media such as
Facebook, twitter, Instagram and may other social media. The other factor is technological which
means Tesco is famous for using the RFID technology, online payments which selected
organisation to create better experience for customers. The legal factor is that they are operating
in different countries so they have to follow follow all rules and regulation where they are
operating. The other legal factor is that there is issue of copyright and intellectual property. The
last factor is environmental which Tesco have taken various measures so that they can protect the
environment. They are reducing the use of plastic and adopting the recycled products to pack
their goods (Finotto and Mauracher, 2020).
Tesco is one of the most largest retailer and grocery organisation and is involved in the
Big Four in the United Kingdom. The competitors of Tesco is Asda, sainsbury and Morrisons.
The STP stands for segmentation, targeting and positioning which means that organisation
segment their product on the basis this analysis. Tesco segment their products on the basis of
demographic, behavioural and geographic which include region, age, income and so on. The
targeting is that there are various which is target to different customers such as toys and books
are target to kids, electronics and furniture products are target to all types of customer in market.
The last is positioning which means that where the position on the basis of price, multi segment
and experiential positioning. By using this analysis they can properly segment and target their
market which will help Tesco to achieve their objectives in an appropriate manner (Frost and
Strauss, 2016).
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3.Literature review
According to Dr. Imran Batada (2021), its is analysed that with increasing competition
and attract large customer base widely the use of traditional marketing keeps decreasing, as
majority of customers are available on the digital platforms there are rising need for new
marketing methods and tools to be used by the marketer. The digital marketing is growing
concept in the digital world which helps in attracting large number of customers base easily, also
allows effective buying and selling of goods and services using internet. The digital marketing
includes use of various tools like social media platforms, world wide web, online advertising and
so on. According to author the traditional marketing is almost similar to digital marketing as both
involves making customer aware of product and services in order to increase brand value and
enhance their brand value, but in case of digital media it is more convenient than the traditional
marketing as it allows marketer to easily reach their customers globally using internet also
increase their customer base globally, also marketer can easily interact with their customer's at
any time anywhere. Whereas in case of traditional marketing it still depends of old methods like
newspaper, television advertising, door to door advertising and magazines which are no longer
catchy in the today's world (Giraldo Oliveros and Esparragoza, 2016).
The main focus of digital marketing is to communicate their brand value to the potential
customers and make them aware of the their product and services using tools like social media
analytics tools, content creation, email marketing and online chatting. Social media tools is on of
the most growing tools which allows marketer to interact with their potential customers using
various various social media platform like Twitter, Facebook, Instagram. Where large number of
customers are easily available and allows marketing manager to directly interact and
communicate with them and analyse their taste and preference effectively in order to satisfy their
needs. The most important benefits of digital marketing is that it helps business to increase their
sale more as compared to the traditional marketing which does not allow marketing manger to
directly interact with their customers more effectively. Contemporary marketing is mainly
focuses on the needs and demands of the customers also producing goods and services according
to the needs and wants of the targeted customers as author states the only difference between
traditional marketing and contemporary marketing the medium used to interact with their
customers effectively (Hanaysha, 2017).
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4. Market Research
Market research plays an important role in effective collection of data and information
about the product and services or about the accurate data of the company which will help in
analysing the market potential (Jahnke, 2018). There are mainly two type of market research
namely primary and secondary which are discussed below:
Secondary research
From the secondary market research of above, it is analysed that digital marketing plays
an very important role in today's growing digital world. Digital marketing helps marketing
manger to easily interact and communicate with their customers also allows smooth flow of
buying and selling of goods and services among buyer and sellers using internet. Tesco mainly
focuses on offering low prices to its customers, but with increasing use of internet more and
more customers are shifting towards using digital platforms, so in order to attract the and interact
more customer base company needs to focus more on the using various platforms, company is
using online marketing but effective use of various digital marketing tools like social media
marketing, content creation and also email marketing can help company to gain competitive
advantage in the market and also help in increasing their sale. Effective use of digital marketing
will help company to enhance their productivity and profitability in the competitive market and
will also help in increasing their customer base (Nath, 2017).
Primary Research
In order to conduct the primary research the employees of Tesco is taken into
consideration.
Primary data
The primary data taken into consideration is Questionnaire
Sample size
20 employees of Tesco
Data analysis
Questions
1. Does the adoption of digital marketing will have positive impact on the economy?
a) Yes
b) No
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YES NO
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From the above chart it is analysed that 90% of employees of Tesco thinks that adoption of
digital marketing will have positive impact on the economy, where as 10% of employees doesn't
think there will be any positive impact of digital marketing on the economy.
2. Is digital marketing good for B2B or B2C businesses?
a) Yes
b) No
YES NO
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From the above graph it is analysed that 75% of the employees of tesco thinks that digital
marketing is good for business to business or business to customer businesses, where as the 25%
of the employees don't think that digital marketing is good for business to business or business to
customer businesses.
3. Digital marketing is just limited to posting ads on social media platforms?
a) Yes
b) No
YES NO
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From the above report chart it is analysed that 15% employees of tesco thinks that digital
marketing is just limited to posting ads on social media platforms where are 85% which is
majority of employees think that digital marketing is just limited to posting ads on social media
platforms.
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5.Marketing Mix
The marketing mix is defined the essential marketing tool used by the marketing manger
to promote their product and services among the potential customers and also defines the various
steps marketing manger needs to consider while promoting and brining their product into the
market, simply it helps marketing manger to place the right product at the right place at the right
market using various promotional activities (Marketing in a digital world,2021). In context to
Tesco, which is one of the to multinational retailer having more than 7500 retail outlets globally,
the different elements of marketing mix are discussed below:
Product: This element includes the item or services offered to the customers in order to
satisfy their needs and wants, it is one of the most important element of the of the marketing mix
which allows company differentiate themselves from their competitors. In context to Tesco,
company offers broad variety of products like food, clothing, stationery, cosmetics, electrical
appliances and so on. Company's main focus is satisfying their potential customers by offering
wide range of product line. Company also has their offers their own products under their own
brand like everyday value, Tesco Lotus, F&F Clothing. Tesco is also offers online marketing
services to its customers catering large number of customer base (Nirschl and Steinberg, 2018).
Promotion: The another element of marketing mix is promotion, it includes using various
promotional tools like personal selling, social media marketing, advertising, sales promotion,
direct selling in order to make consumer aware of their product and services and increase their
brand image and value among customer. In respect to Tesco, company has already created strong
brand image among their customers which helps them to carry out their promotional activity for
effectively. Company mainly uses television, newspaper and other media to promote their
product and services. Tesco is also actively involve in online marketing, also company uses
various tools like offering loyalty card, providing buy one get one free benefits to their customers
Price: The price is the value or amount that consumer needs to pay in return to the
product and services. Its is the value of the product and services offered to the consumer. It helps
in considering the demand and supply of the product in the market. In context to Tesco, company
follows cost leadership pricing strategy, company focus on offering their product and services at
low prices maintaining their quality and value effectively. Company also has strong economies
of scale and supply chain which enables them to offer low prices (Prabowo and Sriwidadi,
2019).
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Place: The place is the point where the product and services are sold by the marketing
manager. The main aim of marketing manager is to choose a place where they can be easily
found by the consumers and where they can easily attract large number of customers effectively.
In respect to Tesco, it uses two primary channels of distribution includes online and offline
channels. Company has around more than 7500 retails outlets around the globe. Main offline
outlet of Tesco are Tesco express, Tesco extra, Tesco metro and so on. company also uses their
online distribution channel effectively (Saji, 2020).
People: people are the important element of marketing mix, these are the employees who
are involved in the process of busying and selling of goods and services in the market also the
once who ensure the smooth functioning of marketing activities. In context to Tesco, company
employs more than 4,00,000 people, company also has strong customer assistant. Tesco
effectively focuses on training and development of its employees in order to improve their
performance.
Process: The process element of marketing mix focuses of set of process or activities
performed by the marketing manager in order to achieve its targeted goals and objectives. In case
of Tesco, company effectively manges all their activities and process at all their retail outlets,
under their offline stores there is systematic process for each and every thing making it
convenient for customers to understand (Selman, 2017).
Physical Evidence: The last element of marketing mix is Physical evidence, this includes
all the tangible items of the company like furniture, business cards, menu and so on. In context to
the chosen company, Tesco has strong logo attracting large number of customers also company
has strong physical evidence making customers to easily find them.
From the above discussion, Tesco has strong marketing mix which allows company to
market their product at right place at the right time, company is also using their promotional
activities effectively which helps them in enhancing their sales and attract large number of
customer base (Wirth, 2018).
6. Conclusion
From the above report it can be concluded that with growing use of internet with
increasing demand of the customers the use of digital platforms is increasing. With more and
more customers available on the digital platforms, marketers are also increasingly moving
towards use of digital platforms in order to increasing their customers base, digital marketing
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helps marketing manger to interact and communicate with their customers more easily at
anytime at anywhere and also increase their sale and productivity. This report covers detailed
overview of tesco company with its historical background, current marketing strategy with
analysis of micro and macro environment and its competitor available. In addition to this detailed
literature review and market research is conducted and various factors of marketing mix in
context to the company is also explained in this report.
7.Recommendations
From the above discussion it can be recommended that company needs focus more on
developing their digital marketing more effectively as it is observed that company is actively
focusing on their offline stores, but with growing use of digital platforms among the customers
company needs to develop their digital platforms more stronger as it will help them in interacting
and communicating with their customers using internet and will also help in increasing customer
base. Company can also use content marketing more effectively to attract their customers and
make them aware of product and services.
8. Reflective statement
In context to the above study, while doing the market research on current thinking on the
concept of marketing in a digital world, I got chance to learn about the important of digital
marketing in today's growing digital era, I also learnt about how digital marketing can help in
enhancing the productivity and profitability of Tesco, also with the help of digital marketing
company can attract large number of customers globally easily as digital marketing allows
marketing manger to directly interact and communicate with their potential customers from
anywhere at any time. In addition to this for conducting market research I have chosen the
sample size of 20 employees of Tesco company, which helped to effectively carry out my
primary market research, while doing the research I have faced the problem of not getting the
response on time, but with my effective interaction ability and communication skills I was able
to get the positive response from the employees. Understanding Importance of digital marketing
helped me to understand how customers can be attracted using various platforms like social
media marketing, email marketing, content marketing. Social media marketing is one of the
growing medium of digital marketing because of its growing use of digital platforms among the
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customers, I have analysed that marketing manger of the company can easily find their
customers on social media platforms like Facebook, Twitter, Instagram and can easily interact
and communicate with them. Further more I also learnt about the various elements of marketing
mix in context to the Tesco company, I have analysed that marketing mix factors allows
company to analyse their product and services and how they can be placed at the right place at
the right time using right techniques. Effective use of marketing mix helps in enhancing the
productivity and profitability of the company also it is analysed that use of effective marketing
tools and digital marketing helps company to enhance their performance and also increase their
sale more effectively in the competitive environment. This market research has helped me to
enhance my knowledge on the concept of marketing in the digital world and also various
elements of marketing mix.
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