BA Business Management: Marketing Fundamentals Analysis of Tesco

This report provides a detailed analysis of Tesco's marketing strategies, covering various aspects of the marketing process. It begins with an introduction to marketing fundamentals, followed by an examination of the stages in the marketing process and the application of situational analysis models to Tesco. The report explores the impact of internal and external stakeholders on Tesco's marketing efforts, including owners, employees, customers, and suppliers. It then delves into Tesco's segmentation, targeting, and positioning (STP) strategies, along with an evaluation of its marketing mix, encompassing product, place, price, and promotion. Furthermore, the report examines how Tesco communicates with different stakeholders. The analysis incorporates various marketing models and frameworks to provide a comprehensive understanding of Tesco's approach. The report concludes with a summary of the key findings and insights into Tesco's marketing practices.

Marketing Fundamentals

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Stages in marketing process and application of certain situational analysis models applied to
Tesco............................................................................................................................................4
Impact that internal and external stakeholders have on the marketing........................................5
STP and Marketing mix for Tesco...............................................................................................7
Different internal and external stakeholders and the way Tesco communicates with them......10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing refers to activities which undertakes in advance the buying and selling of
goods and services. It also considers advertising, delivering of products to consumers or to other
businesses and some marketing done on the behalf of company. It is one of primary constituent
of business management and dealings. It can be type of activity which appoint set of
establishment and processes for creating, communicating and exchanging their offers that could
satisfy customer, clients and society (Hanssens and Pauwels, 2016). Tesco is multinational
groceries company and general merchandize retailer with third largest retailer company which
was founded by John Cohen as group of market. It has developed in many countries and listed in
London stock exchange. Company has radiated them into different area including retailing
books, clothing, electronic, furniture, toys, petrol, software, financial services and telecoms along
with internet services. This report discussion the stage in marketing process such as application
of situational analysis models and segmentation, targeting and positioning. Also, explain
marketing mix strategies that what has adopted. This report also examined external and internal
stakeholders that could be identified and explained about communication stakeholders along
with internal and external of marketing with stakeholders. With that implementation of
segmentation, targeting and positioning is also done in this report for analysing and with that
evaluation of different marketing mix approaches for improving companies working capabilities
is also done in this report.
MAIN BODY
Stages in marketing process and application of certain situational analysis models applied to
Tesco.
Marketing is promoting the products or services of the company to attract potential
customers and make them interested for earning profit. It is the process of understanding the
customers and also maintaining relationship with them. This includes customer building and
stimulating the customer to purchase the products. There are five stages of marketing process
which are as follows:
Understanding the market place and needs and wants of customers – Understanding the
marketplace is the first step in marketing process as it is the key to a successful business and this
step also helps Tesco in knowing their customers insights. This helps in increasing the long-term

equity of Tesco. Needs are something which are essential for individuals survival and wants are
the wish or desire to own the products or services that gives satisfaction (Camilleri, 2018). While
undertaking this step situational analysis is done to identify the company's strength, weakness,
opportunity and threats. In this step customers are analysed which are the part of external
situation. Various trend prevailing in the market are captured.
Designing and developing marketing strategy – After determining the needs and wants of
customers the next step in marketing process is to design and develop marketing strategy by
segmenting and targeting the market. Tesco determines the customer segment which they want to
serve and they also determine the level of need for a particular product. The company targets the
customers based on level, timing and nature of demand. Situational analysis which is to be done
in this step are all the external factors like political, economical, social and technological. The
company has various option for designing the marketing strategy which may be based on product
concept, production concept, selling concept, marketing concept or societal concept.
Decision-making related to marketing plan – The third step in marketing process is to take
decision related to marketing plan such as the mix of product, price, place and promotion. Also
in this step budget will be defined and product specification will be determined. Different ways
to promote the product and the expected date for launching the product will also be finalized
(Wood. and Jobber, 2016). Situational analysis will be done in this step by determining their
areas of strengths and the areas in which Tesco is lacking. While taking the decisions legal issues
are also considered.
Plan execution and making profitable relationship – After drafting the marketing plan now
comes the turn to execute the plan and the most feasible plan is selected and also they focus on
delivering high customer value and satisfaction for profitable customer relation. For situation
analysis in step the company can undertake 5C's analysis in which they analyse customers,
company, competitors, collaborations and climate and then plan is executed accordingly.
Delivering the results and capturing value from customers – The last step is launching the
product and taking the feedback after that. Once Tesco has launched the product then it should
be ready to receive any type of response from the customer (Seturi. and Urotadze, 2017). VRIO
analysis is done to know the feedback of the customers in the sense that the values the product
and company serves, the rarity of the product in the market and imitability of the product in the
market.

Impact that internal and external stakeholders have on the marketing
Tesco stakeholders have major impact on the marketing.
Internal stakeholders: the members of the company are the internal stakeholders which include
owners, employees, shareholders, managers, directors. Impact of the internal stakeholders are:
Owners:
Owners plays vital role in the marketing. They are the owner of the company and it can include
shareholders as well (Rashid and et.al., 2020). They are those persons who hold certain share in
the company. Owners are liable for the business activities and are included while making
marketing policies. In Tesco owners often make decisions external and internal both the
stakeholders. They have the voting rights.
Employees:
Employees are the primary stakeholders. Employees carry the marketing activities of the
organisation. In Tesco employees are given finances by the company so that they can plan that
how they will do marketing of the products and services of the company. Employee view are
also taken while making marketing related strategy for the company. Employees do
advertisement, publicity of the products. Marketing team which includes employees of the
company are responsible for the marketing of the products because effective marketing will
increase the sales.
Managers:
Managers plays an important role in the decision making of the organisation. Managers can
communicate to the directors, shareholders etc. they consider the views of the employees over
decisions regarding marketing strategies then choose the best alternate. With the help of their
team they evaluate the market trends and then do innovation according to the market demand.
Managers pass the budget which is required by the employees while doing marketing.
Directors:
Board of directors are very important for the organisation. They take the complex decisions
regarding marketing. In Tesco directors also participate in the marketing activities as they
believe that without proper marketing no business can survive for long run. If big budget has to
pass for the marketing work, then only its permission is given by the board of directors only
(Hastings and de Andrade, 2016).

External stakeholders: external stakeholders are the persons which are outside from the
company. External stakeholders are government, suppliers, society, customers, creditors etc.
Customers:
Company provide goods and services to the customer to satisfy their needs and in return they pay
for that. Tesco make attractive advertisement so that they can attract customers towards their
products. Company also interact with the customers on social media, emails etc so that they can
create good relations with customers to further retain them.
Suppliers:
Suppliers are the other external stakeholders. They fulfil the demand of the company by
providing them raw materials through which final products can be made by the companies.
Tesco do the marketing and then according to the market demand order raw material from the
suppliers.
Government:
Government take tax from the company. For some marketing activities company even have to
take permission from the government before doing that. Tesco run their business under the
guidance which is provided by the government. Government checks that business do not follow
any unethical or unfair practices to run their business.
Society:
Society have a great impact on the business. Society expect from the company to make such
products and services which are beneficial for the society. Tesco make products which are
reasonable and are afford by the society. Society see the marketing of company related to
product and purchase that product from the company (Miles and Ringham, 2018).
STP and Marketing mix for Tesco
Segmentation-
In order to achieve high organizational sales company has to divide the market place into
different categories on the basis of customers requirements, now since Tesco is one of the largest
retailer of UK (Andrew, 2019). Therefore its provide wide range of products on the basis of
customer requirements through which it is able to achieve high organizational sales. In order to
effectively implement this Tesco establish products on the basis psychological segmentation by

which it is able to attract wide range of customers and has achieved high sales and through
geographic segmentation it has increased its customer count by which high sales are achieved.
Targetting-
Tesco provide wide range of products because of which it has developed its advertising
strategy in such a way that it concentrates on the basis requirements of customers rather than
making advertisements regarding a specific targeted audience. Through this way of
advertisement company is able to increase its brand awareness in such a way that wide range of
customer can be attracted towards the company. With that company also uses digital marketing
in which customers are attracted through the means of internet (HR and Aithal, 2020). Thus in
order to develop effective organizational image company make generalised and traditional
advertisements through various platforms by which high sales are achieved.
Positioning-
One the company is able to identify its customers through market segmentation and
through proper targetting it manages to make creative advertisements in such a way that
customers are attracted towards the organization (Lynn, 2019). Thus the main goal of these
activities is to position high brand awareness in the minds of customers through which high sales
are achieved because company is able to develop its image as an best option for achieving high
sales at low pricing by which customer loyalty is achieved and also through this Tesco is able to
reduce the chances of brand switching.
Marketing mix
Product-
Tesco is one of the largest retailer of UK which provide wide range of products to its
customers all across the globe on the basis of their requirements because of which company is
able to achieve high organizational sales. With that Tesco also provide other services as well to
its customers which include Tesco Bank, F&F Clothing, Tesco Lotus and many more by which
company is able to fulfil all the customer requirements by which customer engagement with
company is also increased. This is important for company because if its is not able to provide
products on the basis of customer requirements then in that case it has to face decrement in sales
because chances of brand switching will be decreased (Šomodi, 2017).
Place-

Tesco is having a strong market position in which it provides products to a wide range of
customers on the basis of its geographic reach which it has achieved through more than 6900+
stores in more than 11 countries. Due to these geographical reach company is able to provide
high level of organizational services to its customers all across the globe (Dibb, 2017). Through
this strong geographical reach company is able to advertise itself in such a way that customer's
engagement with the company can be increased and also with that company uses these as an
customer touch points at which customers can make their direct contact with the organization
and utilize its services through which company can advertise its new products or creative
marketing strategies.
Price-
Tesco provide high quality of products at low pricing because of which it is able to attract
wide range of customers and thus resulting in high sales. Thus is analysed thus Tesco uses cost
leadership in which low pricing is set on products because of which high sales can be achieved.
This happens because the small difference in pricing motivates customers to increase their
engagement with the company, therefore by reducing the pricing company is able to maintain its
existing customer count and also is able to attract the customers from other tough supermarket
competitors (De Villiers, Tipgomut and Franklin, 2020). Thus this company is able to get high
sales but the profit margin is reduced because of which it makes a negative impact on company's
economic growth.
Promotion-
Tesco has a strong brand image which is achieved by proving quality products at low
pricing due to which company is able to achieve high brand awareness and also with that
company advertise itself through the means of traditional and digital marketing (Canavan, 2020).
In case of traditional marketing company make its advertisements through TV ads, radio and
pallet paper which is effective but is not effective because of which company has to advertise
itself through the means of social media marketing in which organizational advertisements are
done through social media. This is important because customers are increasing their engagement
in social media because of which company also has to make its advertisements in such a way that
high effectiveness can be achieved.
Physical Evidence-

Physical evidences are the factors through which customer can make contact with the
organization these contain factors like building, company logos etc. Since Tesco is having a
strong geographic reach because of which company is able to utilize this as a medium for
promoting itself in such a way that customers can be attracted towards the organization by which
sales can be increased (Tuten, 2019). Physical evidence is not just limited to tangible products
but instead it is the touch point for customer at which they can make direct contact with the
organization and because of which company website is able considered as an physical evidence
for Tesco through which company advertise itself to maintain customer's loyalty.
People-
Tesco is having a strong geographical reach through which it is able to provide high
quality of organizational services to its customers and because of which Tesco is having more
than 4,60,000 well-trained employees through which it provides its services. This is important
for company because employees come in direct contact with the organization and because of
which customer's efficient relation with company is maintained on the basis of employee
performance (Zafari, 2017). Due to these factors Tesco provide efficient training to its
employees by which it can make sure that employees are able to work as per organizational
requirements.
Process-
Process is the set of actions by which organizational activities are done through this
company make sure that company is able to work as per the requirements and thus in order to
improve company's performance Tesco implement several technological improvements in its
work area by which efficiency can be increased (Dawes, 2016). This is important for Tesco to
implement technological advancements at its work area because company is providing products
to customers through online and offline mediums because which synchronization has to be
established between all the working, by which work efficiency can be increased. These
technological advancements can be of online payment or purchasing products through online
company website, by which customer experience can be increased (Kornykhina, 2020.).
Different internal and external stakeholders and the way Tesco communicates with them.
Stakeholders are the individual, group or organization that have an interest in the
organization and these people can be impacted by the working of the company. There are

basically two types of stakeholders in Tesco which are internal and external. These are the pool
of people that are concerned with the well-being of the company.
Internal stakeholders of Tesco
Internal stakeholders are the people who are within the organization and they have direct interest
in the business.
Employees – Employees are the people who are hire by Tesco to perform a specific job and they
plays an important role in strategy, tactics and the operation that the company carries out. They
are important stakeholders of the company as they directly interact with the customers on a daily
basis. Therefore the employees of Tesco have an interest in the company as they get salary and
other incentives such as health and safety, job security etc (Sedliacikova. and et.al., 2017). Tesco
communicates with their employees by verbal means which is face-to-face and also over the
phone.
Owners – These are the people who decides what happens to the business and they are the only
ones who makes profit in case the business is successful. They have many rights in the company
siuch as they can elect directors, hire managers. They communicate with their owners through
video calls, meetings etc.
Managers – These are the people who are responsible for managing the work at Tesco and are
also responsible to obtain goals, handling conflicts etc. they also coach the employees and also
determine an appropriate schedule for regular performance (Macassa. and et.al., 2020). These
are also an important stakeholders of Tesco as they evaluate the work of staff members
employees in the Tesco stores. The company communicates with the managers through e-mails,
meetings and conferences.
External stakeholders of Tesco
External stakeholders are present outside the organization but are influenced by the functioning
of Teso.
Customers – Customers are the most important stakeholders of Tesco as they plays an important
role in the success of the business. Therefore it is the responsibility of Tesco to deliver good
quality products on time at reasonable price as the customers expects the same from the company
(Christensen. and et.al 2016). Also the customers expects a good after sales service from the
company and also expects discounts and offers from Tesco. Tesco communicates with their

customers through internet and social media platforms. They use highly personal and focused
communication to interact with their customers. They also use verbal communications and
telephone as a source to communicate.
Pressure groups – pressure groups are the people who sort of the issues and problems that the
employee faces in Tesco. They try to benefit the employees and do right thing for them. They
communicate with these pressure groups by conducting meetings with them and conducting
discussions.
Local community – Local community are also stakeholders of the company as they depend
upon the company for employment and also the company operates in the area and also they
contribute in pollution and environment degradation therefore Tesco impacts these stakeholders.
They communicate with the local communities by doing donations and grants.
Government – As the government collects taxes from the organization therefore the profits of
the company do impact the government and therefore the government is also an important
stakeholder of Tesco. The government also implements certain laws and legislations for
companies also. Government benefits to the economy's overall gross domestic product that the
company's contribute in. Tesco communicates with the government through online modes or
through their legal advisors.
Suppliers – Tesco relies on the inventory for their business therefore supplier are an important
stakeholders of the company. They provide resources which are needed by the company to run a
successful business. The suppliers receive revenues from Tesco in exchange of their supplies.
The company uses electronic mail or through telephone also.
CONCLUSION
This Report concluded marketing evaluation that helps in understanding the market place
and needs and desired of customer, developing along with processing marketing strategies in
which designing external factor of company, decision-making related to marketing plan that
support their business development and plan executing make profit relationship. Report analyzed
segmentation for organization in which they help their customer for producing goods and
services, targeting marketing identifying their target audiences in market and positioning
establish about positions of their products among audience. Stakeholder says about internal
factor of marketing government and external factor included customer, suppliers etc. therefore
company has to make sure that it manages proper relationship with its stakeholder I such as way

that working efficiency and productivity of Tesco can be increased with that report has also
concluded that company has to continuously evaluate market conditions by which it can develop
effective growth strategies. STP is used by organization to effectively categorized market place
by which segmentation can be implemented this will allow company better understanding of
customer requirement and thus product can be placed on that basis by which customer loyalty
can be increased.

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