Marketing Essentials Report: Tesco, ALDI, and Marketing Mix Analysis

This report delves into the marketing essentials of Tesco, a prominent UK brand with a global presence. It begins by outlining the roles and responsibilities of the marketing function, emphasizing brand management, product design, and customer needs identification. The report then explores the interrelation between marketing and other departments within an organization, such as research and development, production, human resources, IT, and finance, illustrating how these departments collaborate to achieve organizational goals. A key section of the report compares the marketing mix elements of Tesco with those of ALDI, analyzing product, price, place, and promotion strategies. Finally, the report evaluates a marketing plan, including a proposed budget, providing a practical application of marketing principles.

Marketing Essentials

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1 Explain roles and responsibilities of marketing function.......................................................1
P2 Role and responsibilities of marketing in the context of organisation...................................3
P3 Compare the elements of marketing mix of several organisations.........................................5
P4 Evaluate a marketing plan of an organisation........................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is the process of buying and selling of goods and services which is designed to
discover the needs of customers and produce goods in accordance of their requirements and
made them feel delighted (Andaleeb, 2016). In other words, it involves exchange between two
parties so as to meet the requirements of the customer. This report is made on Tesco which is a
known brand in UK. It deals with wide range of products such as groceries, food, clothing, and
various financial services like insurance, banking facilities and many more and also it has 6800
stores worldwide approximately running in 18 countries. This report comprises of Role and
responsibilities of marketing function and interrelation between marketing and other
departments. Various elements of marketing mix are also discussed in this report. At last, this
report also covers a marketing plan with an appropriate budget.
LO1
P1 Explain roles and responsibilities of marketing function
In today’s modern era, marketing is regarded as core function of any business as it
involves the process of buying and selling of goods and services through pricing, promotion, and
distribution of goods or services that create exchange that will satisfy individual and
organisational objectives (Baker and Magnini, 2016). In other words, it is considered as sum
total of activities including communicating and adds value for customers, clients and society at
large. Various strategies are adopted by the marketers to facilitate exchange and identifying the
needs and wants of customers across the globe. There are several marketing concepts or
philosophies that aids in successful planning for accomplishment of task in a respective time
period. These aspects are considered by marketing manager of Tesco relate to following aspects:
Production concept: This concept emphasises the company to produce goods or services
in such a manner that minimise the overall cost of production and increase the profitability of
business entity. It is essential to understand the demand and taste of consumers and produce
merchandise by using new and innovative technology so as to facilitate smooth operations of a
business.
Selling concept: This concept emphasises on selling more and more goods to the
customer as the main motive is to boost sales which in turn increase the productivity of a
1

company (Schlegelmilch, 2016). This could be possible by aggressive use of promotion and
effective communication strategy which persuade customers to buy the product.
Marketing concept: this is a broader term which provide assistance of selling goods or
services specially to target customers by delivering fast and efficiency of services (Boddy and
Croft, 2016). This ensure maximum customer satisfaction and as it produce goods according to
the requirements that increase sales and profitability.
Societal concept: This emphasise on needs and requirements of customers and provide
the interlinkage between society and business. This make optimum utilisation of resources and
improve the quality of life as company provide excellent services so as to generate positive
reputation across the globe.
Product concept: This concept depends on several characteristics such as quality, nature
of product, size, colour and many more as quality is given more preference to gain large access
of customers from different parts of the country.
Roles and responsibilities of marketing function are prescribed below:
Marketing function can be understood as several roles and responsibilities that identify
customer needs and involve various market research, product plan, promotion (Campbell, Martin
and Fabos, 2018). These functions are responsible as each have different departments such as
human resource, marketing, finance and so on and prepare an appropriate strategy so that task is
achieved in a short span of time. The manager of Tesco provides excellent quality products or
services by rendering fast and efficient services to gain large access of customers. In the context
of Tesco, various roles and responsibilities of marketing function are given beneath:
Brand management: this is one of the important functions of marketing as it involves
several factors such as reputation, position of company and many more. Tesco is one the leading
company in UK as it emphasises on quality specifications which generate giant number of
customers and also it deals with other operations such as Tesco stores, Tesco mobile and Tesco
bank. The itself brand image of a firm accelerate the sales operation and increase the
profitability.
Product design and development: This function emphasise the production department to
produce goods in a new and unique manner that fulfil the requirements of customers (Rowley,
2016). The manager of Tesco creates a monopoly in the market as it delivers new and innovative
products which ensure maximum customers from different parts of the country.
2

Identify the needs of customers: It is essential to determine the priorities and demand of
customers and then produce them accordingly to meet the criteria of success and this provide an
opportunity to the respective firm to gain competitive advantage at a global level.
Understanding the competitive environment: The competitiveness of firm can be
improved with the help of evaluating proper strategy and market research. The manager of Tesco
evaluates future trends by analysing current and past data and gather information so as to achieve
objectives.
Role and responsibilities of marketing in the context of marketing environment
Marketing management is understood as the process of planning and executing the
conception of several activities such as promotion, distribution, pricing and many more among
the group of target audience (Festa and et.al., 2016). These are explained below:
Segmentation: This is the process of dividing the market on the basis of several segments
by taking into various factors into consideration such as income group, gender, age group and
many more. The manager of Tesco has a large diverse market in different locations and provide
large number of offering to their client and thus increase the market share.
Brand equity: The customer is very much habitual of particular brand as a result
switching cost of brand is low. The marketing department of Tesco ensure quality specification
and also it has built strong brand image across the globe.
Marketing Information system: This assist the firm in making an appropriate strategy as
it gathers information regarding merchandise and its competitors as well as it also monitors
several marketing activities so as to achieve rivalry edge across the globe (Harrison and et.al.,
2016). the respective firm use such to identify threats and opportunities arise in future which aids
in meeting the expectations of customers.
Making product awareness: The manager of Tesco makes product awareness by several
marketing campaigns as it induces customers to purchase the products. Also, it uses several
modes such as print media, online platforms etc. to generate maximum clients from several
locations. This boost the sales and provide an enormous growth opportunity in future which
ensure maximum customer satisfaction.
P2 Role and responsibilities of marketing in the context of organisation
In a competitive environment, marketing play an essential role as it ensure proper
coordination and cooperation in a workplace and also it help in proper accomplishment of task
3

and is connected with other departments within a workplace which provide growth success.
There is several department working in an organisation as each have different purposes and
unique style of working and facilitate smooth operations of business (Hill and et.al., 2017). The
senior manager of Tesco control and monitor the overall activities of several departments by
maintaining proper code of conduct and also the objectives are clearly stated as it avoids
confusion and misunderstandings. In the context of Tesco, the relationship of marketing with
other functional departments are presented as follows:
Marketing and research and development: The role of research and development is to
generate new and unique ideas and conduct market research to identify customer needs, to
determine upcoming new technology, nature of competitors and many more and improve the
existing working requirements. Through this, the manager produces the goods or services by
looking the market demand and customer requirements and thus gain large access of clients.
Marketing and research and department are interrelated towards each other as aids the manager
of Tesco to focus on launch of new products by conducting full market research and gain
potential information and satisfy the needs of customers and it also improve the overall
operations of a company.
Marketing and Production department: The production department ensure that goods
are produced of best quality at right time and at right place. It includes several operational
activities such as warehousing, packaging and distribution which are taken place in marketing
after the merchandise are ready for consumption (Koo and et.al., 2016). The marketing manager
of Tesco aims to satisfy the needs of customer by using an appropriate channel of distribution
such as through wholesalers, retailers in an effective and efficient manner. These two
departments are integrated in a respective firm as the marketing manager render a valuable
information regarding the products while the production manager produce goods with new and
additional feature in a changing business environment and also emphasise on judicious use of
resources by satisfying the needs and requirements of customers from different parts of the
country as ensure positive reputation.
Marketing and Human Resources: Human resource is broader term that includes
recruitment, selection, training and development, performance management and many more.
This involve hiring and recruiting the potential candidates and assigning them with
responsibilities in such a manner matches their talent and skills so that they could work with
4

greater zeal and potential. In relation to this, the marketing manager of Tesco would assist the
HR manager to fill up the vacancy position for a respective post by hiring a potential candidate
who come up with new ideas and achieving targets and thus improve the effectiveness of an
organisation.
Marketing and Information Technology: in an era of digital economy, IT play an
important role in an organisation as it not only simplifies the overall working procedure but also
ensure proper accuracy of transactions and also provide data protection through several
intellectual rights (Rowley, 2016). These two departments are interlinked towards each other as
the manager of Tesco emphasise on this aspect as it helps in maintaining customer relationship
management and handle customer complaints and grievances within fiction of seconds which
create brand loyalty and ensure maximum customer satisfaction across the globe.
Marketing and Finance: The finance manager play a crucial role in in organisation as it
determines the availability of funds and preparation of cash flow, financial statement and balance
sheet which depict a true picture of financial soundness of company (Kühn and Pasquier, 2016).
With reference to Tesco, the finance department is considered as the blood of business while
marketing department is regarded as the backbone of economy and both are dependent towards
each other if there is more profitable situation or enormous availability of funds then the
marketing manager would plan to expand its operation by opening several branches at different
parts of country and thus gain competitive position across the globe.
LO2
P3 Compare the elements of marketing mix of several organisations
Marketing mix is a strategy that consist of several elements of marketing such as product,
price, place, promotion, physical evidence and so on as it assists the manager to consider these
elements while launching of any product as it helps to gain competitive position across the globe
(La Rocca, and et.al., 2016). In addition to this, the role of marketing manager is to determine the
availability of resources and funds and make an appropriate planning so as to gain maximum
exposure at a global level. The main motive of Tesco is to emphasise on generating more profits
and to create a strong brand position across the globe as it ensures maximum customer
satisfaction.
The marketing mix elements of Tesco along with ALDI is presented as follows:
Basis Meaning Tesco ALDI
5

Product This refers to physical
items that are
available to customers
and is regarded as the
core element of
marketing mix.
Tesco has huge
product offerings for
different segments of
customers such as
bakery products,
home essentials,
clothing and beauty
products, jewellery,
books and so on and
also it offer various
banking services such
as loans, mortgages,
credit cards and
insurances.
ALDI deal with range
of products of similar
attributes such as
fruits, vegetables,
electronics and other
soft tools at an
affordable prices in
order to gain
maximum exposure.
Price This refers to cost or
sum of money which
is to be paid by
customers in
exchange of product
as it emphasises on
generating maximum
value from clients
(Mishra and Modi,
2016).
The respective firm
opted the cost
leadership strategy as
it emphasises on
selling goods at low
cost and at good
quality which enjoy
greater economy of
scale and thus
increase the sales and
productivity within
the market.
The respective firm
opted for competitive
pricing and market
penetration by
keeping the prices low
and thus to capture
large market and also
it ensures maximum
customer satisfaction
across the globe.
Place This involve
distribution of goods
from one place to
another through
Tesco has more than
6900 stores in 11
countries and has long
distribution channels
ALDI has more than
8000 stores that are
operated in 18
countries and its
6

various channels such
as retailers,
wholesalers till the
customers.
such as manufacturing
to wholesalers and
then to retailers and
finally to consumers.
Also, it has one stop
shopping that provide
an ease of
convenience to its
customers.
major focus is on
minimum disposal of
waste and keep good
quality of products so
as to maintain large
base of customers.
Promotion This involve use of
several marketing
strategies in order to
persuade customers to
buy the product such
as advertising on
television, print
media, word of
mouth, publicity and
so on to boost the sale
and increase the
profitability.
Being one of the
renowned companies,
Tesco use several
promotional efforts
such as televisions,
charitable events and
has loyalty card,
namely, Tesco
Clubcard so as to
attract giant number
of users from different
locations.
The respective firm
uses cost saving
strategy to promote
their products such as
Super Buys offer,
print media and online
platforms such as
Facebook, Instagram
and so on to persuade
customers to buy the
product.
Process This involve a
sequence of activities
that are taken place in
an organisation which
involve multiple steps
and it emphasise on
smooth flow of
activities in a
workplace (Solimun
and Fernandes, 2018).
The senior authority
emphasises on
designing such
products or services in
such a manner so as to
minimise the
possibility of
deviations as it
facilitates smooth
operation of activities
The process used by
ALDI is sheer layout
that assist customer to
find the product easily
as it saves lot of time
and provide greater
ease of comfort to
their clients.
7

in a concise manner.
People The term people
include all
subordinates who are
rendering the services
or handling
manufacturing
operation in a
business enterprise.
The HR manager of
Tesco has maintained
proper policies and
procedures regarding
recruitment and
selection which
provide greater value
to the company as
diversity is highly
prioritised as it
provides greater
growth in future.
ALDI renders on the
job training to new
employees and also it
recruits very a smaller
number of staff due to
its store layout
structure which
minimise the
requirements of them
as a result it save cost.
Physical Evidence It is considered as an
environment in which
there is physical
presence of goods and
its appearance in
stores can be seen as
it covers physical
environment and
allow customers to
make judgements.
This element of
marketing mix stands
as a proof of relevant
stock that are
delivered to
customers. Tesco use
distinct colour and
logos which help
customer to easily
recognise the brand as
it is one of the popular
companies that create
trust and brand
loyalty.
ALDI sell its stock at
a cheaper price as
compared to its
competitors which
simplify the overall
working procedure
and maintain proper
standards and code of
conduct to be
followed which
generate positive
brand image.
Tactics used by Tesco
The manager of Tesco uses several tactics in order to achieve business objectives in a
short span of time. The concerned firm uses several promotional strategies such as television, its
8

respective websites, print media and so on in order to attract large number of users and also it
makes use of cost leadership and reduce the prices of goods or services to capture large market
share across the globe. In addition to this, benchmarking indices are used by the firm to gain
competitive advantage as it improve the overall performance and increase the efficiency within
the confines of retailing industry.
LO3
P4 Evaluate a marketing plan of an organisation
Marketing plan is a written document that assist the marketer to prepare a strategy for
accomplishment of business objectives in a respective time period (Nirschl and Steinberg, 2018).
The marketing plan of Tesco is presented as follows:
Overview of company: Tesco is one of the popular companies that is headquarter in
United Kingdom as it deals with range of products such as clothes, accessories, books,
electronics, furniture, toys, petrol, financial services and telecoms (Perreault, 2018). It provides
services worldwide by using low cost strategy. The company is planning to launch chemical free
sanitisers without water.
Executive summary: The main purpose of company is to increase its market share at a
global level by selling its existing and new products. So, the firm is planning to launch sanitiser
which is pocket friendly as everyone is aware of their health. In today’s era, this is regarded as an
essential product as this provide an ease of convenience among the group of customers and thus
increase the productivity.
Vision and mission: The vision is to generate more profitability and sustainability by
completing the task within a limited period of time as it emphasises on increasing the sales in
different locations so as to gain maximum exposure of customers (Purvis, 2016). This also
improve the brand image and enhance the productivity across the globe.
SMART objectives:
 To increase the sales by 10% within six months so as to generate more profitability.
 To emphasise on excellent communication skills within 3 months in order to avoid
confusions and misunderstandings.
SWOT analysis: this is performed on the basis of new product that is launched by firm which is
presented below:
Strength Weakness
9

 Tesco is a popular brand and has strong
brand image which would persuade
customers to buy sanitisers that is
chemical free in nature.
 The concerned firm has strong
distribution of network and has built
customer loyalty by providing excellent
offerings.
 Also, it would provide product at a low
cost which ensure maximum customer
satisfaction at a global level.
 The firm is emphasised on selling its
product by using low cost strategy
which reduce the overall profit of
Tesco.
 Sanitisers are not being purchased by
customers in some specific market
which decline the overall operational
performance of Tesco.
Opportunities Threats
 The product that is being launched by
company would provide an enormous
opportunity to capture large market
share as these are high in demanding.
 The concerned firm would use online
platforms and render fast and efficient
services to their clients.
 There is cut throat competition which
possess a big threat within the confines
of retailing industry.
 Due to this, there are several price wars
that indulge company to reduce prices
and decrease the overall profit margin.
Targeting Approaches: The marketing manager of Tesco use several strategies such as
segmentation, targeting and positioning while launching a new product which are prescribed
below:
Segmentation This emphasises on dividing the market on the
basis of similar characteristics that are
possessed by a firm. The manager of Tesco has
divided the market on the basis of income,
social class, family size and many more.
Targeting The product that is launched by Tesco target to
all aged of individual and its low cost strategy
10

would gain large access of customers from
different locations.
Positioning The company is going to use market
penetration strategy so as to capture large
market share and thus enhance the brand image
by using distinct products.
Marketing budget:
Particulars 1st year 2nd year 3rd year 4th year
Initial
money
10000 5000 5000 5000
Investment 10000 10000 6000 5000
Total 20000 15000 11000 10000
Marketing
outlay
15000 1000 3000 5000
Promotion 4000 1000 5000 2000
Sales
publicity
2000 2000 1000 1000
Direct
selling
4000 3000 1000 1000
Total 25000 7000 10000 9000
From the above evaluated marketing budget of Tesco, the total investment in first year
that is incurred by company is 20000£ and then it is declined in fourth year which remains
10000£. In addition to this, the cost of total promotional campaign in first year is 25000£ and
finally it is reduced to 9000£ as it has gain maximum exposure across the globe. Tesco is one of
the renowned brands which deal with varieties of offering and in last year it requires less cost in
marketing campaigns as it become very popular brand.
CONCLUSION
From the above information, it can be summarised that marketing is considered as sum of
business activities and processes including creating and delivering and exchanging offerings by
providing value to large group of individuals in a society. It has been analysed that several role
11

and responsibilities of marketing function is also determined in this report. Also, various roles of
marketing and interrelation of marketing and several other departments is also included in this
report. The marketing plan by using several approaches such as segmentation, targeting and
positioning are also done and various elements of marketing mix such as promotion, pricing,
product and place id covered in this report.
REFERENCES
Books and Journals
Andaleeb, S.S., 2016. Market segmentation, targeting, and positioning. Strategic Marketing
Management in Asia, pp.179-207.
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.
Boddy, C.R. and Croft, R., 2016. Marketing in a time of toxic leadership. Qualitative Market
Research: An International Journal.
12

Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Festa, G., and et.al., A., 2016. The (r) evolution of wine marketing mix: From the 4Ps to the
4Es. Journal of Business Research. 69(5). pp.1550-1555.
Harrison, J.P. and et.al., 2016. Essentials of strategic planning in healthcare (Vol. 1). Chicago,
IL: Health Administration Press.
Hill, L., and et.al., 2017. Creative arts marketing. Routledge.
Koo, K.R., and et.al., 2016. The effects of internal marketing capability on export marketing
strategy, B2B marketing mix and export performance. Journal of Global Scholars of
Marketing Science. 26(1). pp.51-65.
Kühn, R. and Pasquier, M., 2016. Marketing: analyse et stratégie. Schulthess.
La Rocca, A., and et.al., 2016. Customer involvement in new product development in B2B: The
role of sales. Industrial Marketing Management. 58. pp.45-57.
Mishra, S. and Modi, S.B., 2016. Corporate social responsibility and shareholder wealth: The
role of marketing capability. Journal of Marketing. 80(1). pp.26-46.
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.
Purvis, J., 2016. Human resources marketing and recruiting: Essentials of digital recruiting.
Rowley, J., 2016. Information marketing. Routledge.
Schlegelmilch, B.B., 2016. Segmenting targeting and positioning in global markets. In Global
marketing strategy (pp. 63-82). Springer, Cham.
Solimun, S. and Fernandes, A.A.R., 2018. The mediation effect of customer satisfaction in the
relationship between service quality, service orientation, and marketing mix strategy to
customer loyalty. Journal of Management Development.
13