Marketing Essentials: Analyzing Tesco's Marketing Strategies and Plan

This report delves into the core functions of marketing and its interactions with other organizational units, using Tesco as a case study. It begins by defining marketing's role in fulfilling consumer needs and outlines the key functions, including identifying, predicting, and satisfying customer demands, as well as increasing profitability. The report then examines the marketing process, encompassing product, place, promotion, and price strategies, specifically within the context of Tesco. It further explores the interrelationships between the marketing department and other departments, such as finance, human resources, production, customer service, and IT. The report also analyzes Tesco's internal environment using a SWOT analysis and assesses its external environment using Porter's Five Forces. The report concludes by emphasizing the importance of interrelationships among marketing and other organizational functional units. The report offers a comprehensive overview of Tesco's marketing strategies, its marketing mix, and its internal and external environments.

MARKETING ESSENTIALS
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Table of Contents
Introduction......................................................................................................................................3
The function of marketing and its interaction with the organisations' other functional units (P1)
3
Compare methods in which companies use marketing mix (7Ps) components to accomplish
overall company goals...............................................................................................................10
To create and review a basic marketing plan for Tesco (P4).....................................................13
Conclusion.....................................................................................................................................15
Reference List................................................................................................................................16
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Introduction
Marketing could be described as a part of the business activities in which products and services
are shared in order to fulfill the consumer's needs. A marketing plan is generally an overview of
an organization’s marketing strategy. In an organization, marketing has several stages that allow
a business to grow its revenue and also grow its consumer base. The focus of this study is all
about the key functions in marketing and its interaction with the company's other functional
units. The study further represents the numerous aspects of the marketing mix that the
organization employs to accomplish its overall goals. The organization selected for this report is
Tesco. Tesco headquartered in Welwyn Garden City, Hertfordshire, England, UK, is a British
multinational grocery and general goods retailer. It is the third biggest supermarket measured by
sales in the globe as well as the ninth biggest supermarket based on revenue in the market.
Finally, the report contains an overview of a basic marketing strategy for Tesco.
The function of marketing and its interaction with the organisations' other functional units
(P1)
In order to satisfy customer desires, the marketing role is vitally important in the production and
delivery of goods. Marketing's key functions and duties include the distribution of the goods of
that they are needed, storing the goods, processing of demand details to satisfy the client's
requirements (Henríquez, 2018). Marketing roles in the wider sense also include the
identification of customer preferences, the anticipation of client demands, and the identification
of opportunities to improve profitability. The main roles and responsibilities of the marketing
function are defined as follows:
● Identifying the wants of the consumers
The marketing role is important for the understanding of the evolving desires of
customers. It focuses mainly on defining the consumer's needs, preferences, behaviours
and attitudes and on evaluating the data systematically to determine what consumers
really want around the industry.
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● Predicting consumer needs
It is also the responsibility of the marketing department to predict the clients'
specifications. Predicting customer preferences will provide the organisation with the
first-mover benefit that will help firms achieve customer needs and priorities.
● Satisfying the demands of Customers
In order to meet the needs of the customers, that's the primary task of the marketing
function. Marketing should recognize goods that can fulfill consumers ' needs and
provide them with quality and value.
● Increasing Profit
To find new and imaginative ways to sell customers their products, the marketing role is
necessary. It may entail delivering value-added goods to clients that could not only
provide better value to buyers, but also increase the net sales and profit of the company.
Marketing Process
A variety of practices and procedures related to the beginning of the product route to the place of
manufacture and use are included in marketing. The marketing function in organizations to build
is based on connecting suppliers with customers (Blythe and Martin, 2019). In addition, the
marketing method involves creating an appropriate approach for 4 marketing Ps and executing
the campaign to attract and obtain existing consumers from existing customers.
● Product: The marketing department is expected to develop a product that meets
the needs of the customers
● Place: In comparison, the selling process entails putting the goods on the market
in the right location where buyers can quickly be met.
● Promotion: This includes the application and development of effective
advertisement strategies and means of collecting maximum customer figures.
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● Price: In addition to making it cheaper for consumers, the selling process often
depends on pricing the commodity accurately according to the prevailing market price.
Marketing Process of Tesco
Tesco's marketing process requires the selection of an appropriate campaign to achieve the
evolving needs of consumers. Since meeting all pricing expectations and creating a contrast with
the consumer price, it still changes the cost. It evaluates the latest market pattern and
appropriately designs its offering. It chose its sales platform since it is possible to please more
clients. It uses some advertising resources that help recruit clients and raise its consumer base.
Tesco's strategy process often focuses mainly on the marketing methods that could be used to
sell their product in the intended market.
The inter-relationship of marketing with other functional units of the organization were
described in the following:
● Finance and Marketing
The basic expenditure should become the marketing strategies as well as the related
schedules. This involves taking into account the name, product range including product
benefit as well as cost margin, etc. The finance role of Tesco offers a provided budget to
the marketing department, wherein the marketing department can conduct the marketing
plan at the stated cost (Perreault, 2018). Consequently, the finance department presents
the marketing department with either the cost-related information that may only be found
in the marketing activities to be undertaken. In particular, the Tesco marketing team
should be in contact with the finance department as the marketing efforts can be
adequately carried out in order to consider the current financial position of the business.
● Marketing and Human Resource
The primary goal of the HR department will be to act in the best interest of the workers
and to employ the best employee for the appropriate positions in the allotted budget. The
advertisement department of Tesco is also interconnected to the HR department to make
sure that the roles are filled on schedule and that the appropriate applicants have now
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been chosen to join the recruitment team. The marketing department also partners
directly with the HR department to make sure that applicants provide access to sufficient
preparation solutions to support applicants fulfil the most rigorous business criteria.. In
addition, Tesco's HR sends employee achievement reviews to the communications
department to evaluate the outcomes and to assess whether the target was already
accomplished. HR also allows the marketing department to maintain that marketing
department personnel work according to suitable standards and that specific interests are
completely connected to the priorities of the company.
● Marketing and Production Department
The development department is mostly dealing with product innovation as well as
associated activities. In cooperation with the production department and the sales
department, Tesco's marketing department operates to maintain brand development that
would satisfy the consumers' sense of taste. Tesco's consumer and innovation group
works together to study the latest tastes of their current goods that can be created.
● Marketing and Customer Service
The core roles of a company are publicity and customer support, too. Both activities work
together to assess if clients are pleased with the products and services. Tesco's customer
support department is responsible for providing the marketing department with customer
input to aid in the production of new products. In Tesco, both teams work closely to
create good customer partnerships.
● IT and Marketing
Marketing and IT teams collaborate together to make sure that perhaps the marketing and
business mission is done in the best ways possible (Paurva, 2019). The department aims
to ensure, in collaboration with the advertisement department, that certain activities of the
marketing department are in accordance with recent technical developments and that all
activities are also carried out in accordance with the unique needs of the sector.
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The marketing function's duties and responsibilities in the sense of Tesco's marketing
environment (M1)
Impact of Internal Environment
Analysis of Tesco's internal environment will help to build a stronger and more efficient
marketing plan for the organization.
SWOT Analysis
● Strengths
➔ The largest retailer of supermarkets in the UK
Tesco is the UK's biggest food store and the No.1 store. When opposed to other
grocery chains in the United Kingdom, it has greater profits and profitability. As
per its report of 2018. Its annual benefit from operations grew by 28 percent.
➔ The largest stake of the market
It seems to have become popular among the residents of England as a major
supermarket and food retail store throughout the UK. By having the highest
market share of around 27%, TESCO dominates its UK market.
● Weaknesses
➔ Fraud Issue with Accounts
In 2017, in order to escape taxation, the court determined Tesco guilty of
reporting less benefit in its financial ledgers. The credibility of the firm is hurt by
such litigation as well as news.
➔ Financial Mistakes
Because of heavy credit card debt, the revenues of Tesco are severely affected. If
debt decreases their earnings, businesses utilize debt for their benefit by raising
revenues. Then that means that you're not properly using the debt.
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● Opportunities
➔ Some Brands partnership
In pursuit of success, Tesco has teamed up with many other brands. In order to
ensure effective customers, the goal is to come up with better goods and services.
➔ Store for online shopping
For online retailers, Tesco seems to have a smartphone app, which can update the
app and incorporate home delivery features. It would draw more buyers to Tesco.
● Threats
➔ National Financial Problem
In certain parts of the region, national political forces such as taxes, credit,
government legislation, and legislation are a significant challenge to Tesco's
growth and efficiency. To tackle such risks, the firm must be very imaginative.
➔ Supermarket competitors
Some of Tesco's biggest rivals are giant retailers like Walmart, Carrefour, as well
as Aldi, and they are also growing.
Impact on External Environment
There are two models discussed below that could better evaluate Tesco's external environment.
● Porter’s Five Forces
➔ Bargaining power of Tesco's buyers
Tesco serves thousands of consumers per week in its stores and online. The
buying power of shoppers in the UK is poor and they are not organized, and
though they switch to rivals such as Asda and Sainsbury's, they remain uncertain
that they would be handled differently.This helps Tesco to lure the industry.
➔ Bargaining power of Tesco's suppliers
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Tesco works with 2,500 sellers in the United Kingdom, as well as several hundred
more abroad. However, they can not exert any significant control on Tesco
because the manufacturers are in massive numbers (Wilson, 2017). Tesco
arranges very vigorously with the dealers to boost its profitability. This would,
however be recalled that Tesco had been responsible for bullying manufacturers
over cost savings.
➔ Threat of new competitors affecting Tesco
Because of the financial resources, the danger of new competitors entering into
the UK retail industry is quite small. As it experiences efficiency gains and it has
its own competitive advantages, Tesco doesn't have to think about every potential
new entrant.
➔ Threat of alternative products/services impacting Tesco
For its customers, Tesco has a wide range of products. For most pieces, it even
provides substitutes. It is therefore easy to assume that Tesco is completely
irrelevant to the problem of alternative products and services.
➔ Rivalry among the existing Tesco rivals
Tesco tends to have a number of powerful competitors in the UK. These
competitors spend heavily in marketing and other promotional campaigns.
Although Tesco is the largest market leader, the competition from the closest
rivals is severe.
Study of the importance of interrelationships among marketing and other organizational
functional units (M2)
Marketing roles work directly with the operating units of complex organizations. In order to
formulate a marketing plan for the target consumer, the marketing department needs a specific
and updated product summary. The recruiting department partners mostly with HR department to
retain the best candidates in order to help the organisation execute an effective recruiting
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process. It also makes it easier to decide if the business plans and the marketing strategy and
priorities produced are compatible with the strategic goals of the organization.
Core elements of the marketing department and how they communicate with other
organizational divisions of an enterprise are objectively evaluated and measured (D1)
In Tesco, the reliance on a variety of marketing choices requires the engagement of other
organizational functional units in order to make knowledgeable and wise business choices. The
role and participation of other departments in the application and development of marketing
techniques, the preparation and management of marketing techniques, and the application of
marketing techniques are required for the successful and effective operation of business
decisions (Hidayatullah et al.2019). The interrelation of the teams as well as their collaborative
effort contributes to the effective accomplishment of the overarching goals of the company.
Compare methods in which companies use marketing mix (7Ps) components to accomplish
overall company goals
The comparison is with Mark and Spencer which is a multinational retailer operating in
the US (P3)
Company Objectives:
Tesco: Tesco's market objectives are clear and are provided below:
● Low-cost operation and high quality of goods
● Increase revenue and generating revenues.
● Tesco seeks to provide an ordinary family with affordable shopping
● A large variety of nutritious foods and products are being launched by Tesco grocers.
● In order to achieve a strategic edge, Tesco needs to have the world’s best e customer
experience with exceptional delivery.
● Making goods or services more diversified to achieve customer loyalty
Mark and Spencer: M&S 's market targets are listed below:
● Building on our success with the new aim for blogs
● As a special and profitable partnership, benefiting consumers
● Promoting and including the workers
● Build a legacy in the world of M&S innovation and development
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● Help to reduce suppliers and consumers' carbon emissions
● Supporting the removal of the reused packaging process for a healthier atmosphere
Comparison of Tesco with Marks and Spencer (M&S)
A comparative brand study of the two companies in terms of the 7P marketing mix was
described below:
7Ps Tesco M&S
Product: This is the primary
element of the company.
Tesco is a supermarket
industry with 40,000 types of
food, phone, as well as
banking services. Actually, all
combinations of items and
services are included. It could
be divided into three
categories, the main product,
real product, as well as a
product extension.
M&S has merchandise
varieties, like clothes,
household decor, and food.
Price: It is a quantity of
market-rate against the good
or service
In a changing environment,
Tesco is quite mindful of
pricing. To have more clients
involved, Tesco uses Tesco
club cards.
In certain goods, M&S is not
any more costly than Tesco.
Even so, more than 21 million
people are visiting M&S
stores worldwide each week.
Place: Accessing new
markets and attracting
consumers is very critical
Throughout the UK market,
Tesco seems to have more
outlets than M&S. Different
kinds of Tesco stores are
available, such as Tesco
Extra, Tesco Express, Tesco
metro, etc.
M&S has much more than
700 outlets in the UK, and
there are also outlets in
several overseas countries,
such as China as well as the
USA.
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Promotion: This is known to
be product information
provided to the consumer. It
could be used to raise
awareness of products, the
distribution network as well
as value, as well as provide
consumers with product
details.
Tesco uses distinct marketing
techniques, such as B2B and
B2C, for promotion. In fact,
Tesco also uses TV ads,
newspapers, and club passes,
often with discounts.
M&S uses different forms of
retail campaign tactics, like
gift cards, seasonal sales, buy
one receive one half off, etc.
Furthermore, M&S often uses
ads from local newspapers.
People: Customers, clients, as
well as staff are included.
Tesco has a significant
number of staff worldwide. It
has concentrated on
consumers using B2C as well
as E2C phase marketing to
carry in the shops.
M&S has huge numbers of
staff across the world, too.
New customs have also been
stressed to maximize the
amount of benefit.
Process: It is a means to
maximize the number of
company revenue in order to
achieve a competitive edge.
Tesco uses the business
operations of online, home
delivery, offline, and
supermarket self-service.
In the market process, M&S
has web, offline, as well as
home distribution services.
But in the local market, Tesco
has many more shops.
Physical Evidence: It is
discussed as the place of
business as well as the place
in which it is worked.
Tesco runs more shops than
M&S. And there are
relatively smaller Tesco tyres
than M&S.
M&S outlets are mainly
clothes outlets, though most
shops are smaller than Tesco.
M&S shops are more fun than
Tesco and more beautiful.
To illustrate how corporate priorities can be accomplished, analyze multiple strategies
applied by companies (Tesco's and Marks & Spencer) (M3).
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The marketing plan for Tesco is to have the trust of the brand. "In order to improve its
conventional key strategic advantages in the industry, the company is continuing to focus
towards the strip of every little support. Any of the variables use to convey this message to the
delivery chain were elements like printing and newspaper ads, product marketing, activities and
interactions, and public relations juggling.
As a verified medium for delivering marketing messages to existing and prospective clients, the
Tesco Marketing Plan combines print as well as television commercials (Rudden, 2016). It is
vital to know that although, as a result of its major cost-saving programme, Tesco lowered its
marketing budget in 2015 relative to the previous year, the influence of advertising sales as well
as expanded media has been diminished. By applying marketing segregation, this is done.
For companies that are in the dynamic world of today, marketing strategies are an essential
instrument. The new commercial strategy of Marx and Spencer would include an effective
example throughout this context. Not only will the British department store reach the Australian
market through 13 billion Marks & Spencer's, preparing, knowing a well-designed campaign
strategy not only help organizations but also contribute substantially by introducing certain
colleges to the quantity of knowledge. It would also lead to a creative idea in the area of players
as well as spencer goods by evaluating analysts as well as other circumstances in the recent
market easily and quickly.
So there should be a vision and also a well-planned strategic plan which should demonstrate the
company's benefits and weaknesses since Marx and Spencer begin its service.
To create and review a basic marketing plan for Tesco (P4)
The Marketing Plan is termed by market research and product offering, i.e. the degree to which
the relevant consumer, fashion, seasonal, scale and importance are taken into accountTesco
decided that 'national' exclusive items would be delivered to Europe in an environmentally
friendly manner on the global scale, such that local buyers would get another alternative.
However a comprehensive business study is carried out before determining the marketing plan to
evaluate the idea of an existing brand, prices, stance toward Tesco, new collaborations with
associates, customer purchasing patterns. A simple Tesco marketing plan framework is given as
follows:
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The key phases of the marketing plan are described below:
● Situational analysis
● Target market
● Marketing Implementation
● Marketing strategy
● Market control
Role and Significance of the Marketing Plan (M4)
It is not necessary to over-emphasize the value of comprehensive marketing plans. Products or
facilities for selling are as essential as delivering them. Consumers and clients can not recognize
what they have without ads. They will not be likely to purchase from Tesco if they don’t know
about Tesco, and it will not give Tesco Silver. Marketing would do what benefits the good or
service in such a targeted market.
Market Penetration
Tesco involves a three-way business growth approach like low-cost high reliable, good customer
service because it can be an effective policy of using certain ads and promotions or even other
marketing strategies. For Tesco, the penetration marketing approach is really important since the
current holders become easier than a draw.
Market Development
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Outside its existing business climate, Tesco aims to increase the number of innovative goods,
sales platforms, and develop new markets for the primary intention of enticing clients for
assistance to come among other tactics.
Product Development
Tesco has a plan to create its own identity and to achieve a strategic edge. Product, model, box,
cost, quantity including standardization are covered.
Diversification
Investment in innovative technologies, services, and new markets is focused on diversification.
This covers Tesco Finance, Tesco Telephone, etc., for instance.
Marketing Goals: To improve the acceptance of the market
Marketing Strategies: an introduction to new sectors of the market.
Marketing plan: Labeling the promotional strategy that evolves and works on this unique
portion.
The aim of marketing becomes an abstract fantasy despite tactics in place. Similarly, without
tactics, the purpose is like playing games without even an image of what winning entails. A
beneficial and successful publicity strategy to each other in its conduct to create each other. Both
marketing teams work closely so that the aim and approach can be followed. The executive team
should be able to simply and sustainably translate the priorities (Kornegay and Ursiny, 2020).
The perception of their workers is not how these steps are implemented by administrators.
Surely, the executive management team need to see the meaning and strategy of meeting the
goals.
Conclusion
The aim of this research is to provide a concise overview of how a customer-level strategy is
used by the Tesco retail industry to mix messaging and its goals. Next it discusses the need to
extend the value of the service industry and the knowledge of marketing. Second, a review of the
influence of Tesco's marketing mix on its performance. Thirdly, a vision of future challenges and
foresight is explored. Tesco is probably among the best examples of the a marketing-oriented
approach to reward a good organisation.
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