Marketing Management Report: Strategies and Analysis for Tesco Company

This report provides a comprehensive analysis of Tesco's marketing management strategies. It begins with an executive summary and introduces the company's background, highlighting its international presence and market share in the retail industry. The report then delves into the crucial role of data in improving relationship marketing, emphasizing how Tesco leverages data on customer preferences, demographics, and purchasing behavior to enhance customer satisfaction and loyalty. The concepts of Segmentation, Targeting, and Positioning (STP) are thoroughly examined, illustrating how Tesco uses these strategies to effectively target specific customer segments. Furthermore, the report explores the rationale behind innovation in product and service decisions, underscoring the importance of the company's research and development efforts in creating new offerings. Finally, the report discusses the development of viable solutions within a specific target group and reviews the effectiveness of Tesco's marketing strategies in meeting customer needs, culminating in a conclusion that summarizes the key findings and insights.

MARKETING
MANAGEMENT

Executive Summary
Marketing management is very necessary aspect for a business or venture in market
place. This report is all about the marketing management of Tesco company. Currently with the
support of marketing management, this business is gaining very large customer base in market
place. This report includes some key marketing strategies of Tesco as well.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Background of the company........................................................................................................4
Role of data in improving relationship marketing.......................................................................4
The concepts of STP (Segmentation, Targeting, Positioning)....................................................5
Rationale for innovation in service and product decision...........................................................7
Development of viable solutions within a specific target group.................................................9
Review effectiveness in meeting needs of customers................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term marketing management basically refers to the different management strategies
and tactics that are adopted by the managers of an organisation in order to improve the overall
marketing strategy of the company. Tesco is an international retailer that deals in groceries,
home décor, organic foods, durables etc. and operates in a multiple number of countries. The
current report will evaluate the importance that data and its analysis has in the overall
improvement of the customer expectation as well as the marketing relationships. The concepts of
segmentation, targeting and positioning i.e. STP will also be analysed in the report and further,
the rationale behind creation of innovation in the products and services will also be discussed.
Lastly, the development of viable solutions will be portrayed in the report followed by a
conclusion summarising the key points.
MAIN BODY
Background of the company
Tesco is an international retailer that deals in groceries, home décor, organic foods, durables
etc. and operates in a multiple number of countries. Tesco is one of the leading companies in UK
and share almost 27% of market share in retail industry. By analysis different data company
Tesco form its strategy hence increases quality, efficiency and productivity. UK government
provides subsidies to new organisations which effected the growth of organisation (Arthur,
2013). However, by analysing weaknesses of new competitors company provide fluctuation in
price and discount so old customer remain loyal and can attract new customers. Data can also
extract from customers feedback and satisfaction level to the particular product and service
hence any form deviation can be minimized.
Role of data in improving relationship marketing
Marketing data plays a significant role in the growth of the organisation. It consists of
various kinds of information related to price of product, customer satisfaction, customer demand,
taste and trend, tech changes etc which helps marketing team to deliver best services and product
on the time. Online platform of Tesco again attracts large number of customer and by collecting
data at online platform and research on it helps in improving growth of the organisation as well
as build strong relationship with the customer. Company can distribute data according to age and
gender so that customer taste and trend can be easily understand and hence any lapse in shortage
and demand can maintained. Customer location data can be useful for the organisation by
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checking in which part of the company in loses or not growing well, another advantage is
building strong relation with the customer by sending greeting on festival and birthday so that
customer remain loyal to the organisation (Wedel and Kannan, 2016). Marketers are the main
person in touch with customers as well as observer of different company’s process and
competition and they send their data to R&D and other form of department for process and
product changes (Shah and Murthi, 2020). Company also perform various digital surveys to
analyse customer expectation related to product quality, taste and trend so as to increase the
customer satisfaction level. There are various kind of services provided by Tesco include online
as well as in the store for proper management and quick deliveries (Mandelli, 2017). Company
analyses different tasks time and methods of delivery to the customer through sales agents and
marker, Company make changes quickly in case find any disturbance in the organised structure.
There are various teams in the organisation which collects data and analyse it and after analysing
data can be restored for checking yearly growth, market trends, quality and productivity. At the
end of year company check which product is less valued by the customer or higher and according
to company removes and adds products for customer satisfaction and improvement in services
(Jabbar, Akhtar, and Dani, 2019). Tesco has training and development team which use this data
for employees as well as marketers to improve skills as well as talent. Data also helps in
organisation growth and checking customer loyalty on the other hand by publishing this data
organisation attracts large number of customers.
The concepts of STP (Segmentation, Targeting, Positioning)
Top-level management of Tesco should be followed the concept of Segmentation,
Targeting, Positioning (STP). There are STP is generally a model that contribute to a company
for effectively increasing its sales ratio in the market. In this dynamic world, currently there are
lots of companies or venture in the market are taking lots of advantages by this STP model, so
that there are top-level management of Tesco also needs to be adopted and use this model in own
marketing operations for gaining very appropriate market outcomes in the market (Cacciolatti
and Lee, 2016). There are Segmentation, Targeting and Positioning mainly three key stages of
STP model which every Tesco should be completely followed within its workplace. These all
three stages of STP model has been discussed below;
Segmentation
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Segmentation is very necessary and the first stage in the STP model that mostly affect to
top-level management of different companies for turning their whole market into small segments
of market. In this situation, this segmentation is the key stage o Tesco as well. There are upper
management of this retail company also has highly required to follow this segmentation stage
within its workplace. Mainly by using segmentation stage of STP model, Tesco will be able to
turn its whole large market into small segments of market. It is basically a dividing process of
market where top-level management of this company has highly required to divide its whole
large retail market into small segments of on the basis of geographical, demographical and
physiological background. This stage is very helpful to this company in the terms of deeply
understanding the actual demands and wants of different markets. Currently most companies are
putting their great efforts for analysing the actual demand of the market, in which the
segmentation stage of STP model is one of the finest stages for any type of companies for
systematically analysing the demands and wants of people within different segments of market
(Wang and Dass, 2017). This is the main reason that, segmentation stage can play very
appropriate role for this retail company.
Targeting
Targeting is another key stage in the STP model, in this stage there are upper
management of Tesco has required to target various customers and markets on the basis of
different factors. A company can’t conduct target its various customers or markets without
conducting the segmentation stage of STP model (Andaleeb, 2016). So before conducting
targeting stage, there are company has always required to conduct the segmentation stage. After
segmenting the market this next important stage has come, in which top-level management of
Tesco has required to take various actions towards developing targeting different people,
customers or markets on the basis of their ethnicity, caste, attitude, religion, interest etc. It is very
necessary task to this retail company for considering these all basis while targeting different
customers and segments of the market. This targeting stage of STP model is the most important
stage in the STP model, because by consisting this stage any company can simply achieve great
profit in the market by fulfilling the customers’ needs and demands. With the support of this
stage, this company will be able to produce its various products and services according to
customers’ actual demands and wants (Camilleri, 2018).
Positioning
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Positing the last and also a very important stage in the STP model where upper
management of Tesco will be required to make its distribution channel more and more effective
(Lindgreen and Di Benedetto, 2018). By making own distribution channel strong, this company
can simply deliver its various products and services to different customers on time. This stage is
very important to company in the terms of making excellent relations with different customers as
well. In this stage, there are marketing manager of Tesco has highly required to go into different
segments of market for maintaining a effective relationship with various customers. There are
upper management of company responsible to give appropriate order to its marketing manager
for adopting and implementing various innovative and productive strategies of marketing. With
the support of these all strategies, this company can simply attract thousands of people in the
market. Currently key competitors of Tesco also conducting these all activities, so that Tesco’s
upper management is completely required to consider these all stages of STP model for gaining
higher profit than its competitors (Wuryandani, Ismoyowati and Nugrahini, 2018).
These all are key stages of STP model Segmentation, positioning and targeting, in which
upper management of Tesco always need to consider these all activities and stages of STP model
for gaining very appropriate outcomes in the market. Currently there are very high competition
in the retail sector of UK, so that by adopting these all stages of STP model, this company can
easily gain very high profit in the different segments of market.
Rationale for innovation in service and product decision
There are innovation plays very specific role to any type of businesses for gaining very
appropriate results in various segments of market (Rahman, Rodríguez-Serrano and Lambkin,
2017). For many of businesses of companies the innovation is everything to them in the terms of
designing a new product or service. In this dynamic world, the Tesco is one of the leading retail
companies in all around the world. This company has gained very high success in the market just
because of because of its wide range of retail products and service. This factor shows the
importance of innovation in Tesco’ business environment. Top-level management of this
company has succeeded in designing wide range of products and services just because of its
excellent innovation aspect. This company is working in the international market for the very
long time period, in which the innovation is the only way to upper management of Tesco for
maintaining this position of company at the international level. This retail generally invests very
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high fund on its innovation aspect, because aspect is the key way to Tesco for designing and
launching different range of products and services in the own business environment.
Currently Tesco has an effective research and development (R&D) team which always be
focused on innovating many new product and services to attracts lots of new customers towards
own brand. This R&D team includes various experts who has mostly analyse the actual demands
and want of different customers. It is very necessary to this team for producing its various
products and services on the basis of customers’ demands and wants only. Top-level
management of this company has always focused on innovate different exclusive range of
products and services (Mouzas and Ford, 2018). It is really necessary step to the company’s
upper management, because by innovating exclusive range of products, Tesco can simply gain
huge profit in its home country and also in the many other countries as well. Reason, there are
most people within the UK always ready to invest their fund for purchasing some exclusive
range of products and services. This is the main reason; different competitors of Tesco also
always be focused on the and innovation and development of various exclusive range of services
and items.
From establishment to date, upper management of this company mostly has focused on
the innovating more and more new range of products, because currently if any country has wide
range of products, then it can simply attract large number of customers in the market in this
dynamic world. According to many of business experts, innovation is one of the best keys for
different businesses of companies for gaining high success in the market (Zhang, Cao and Doll,
2019). This retail mainly follows the entrepreneurial business strategy as well which generally
motivates to upper management of Tesco for innovating different new products and services.
Currently without considering innovation, this company can’t simply survive in the market.
Basically, innovation provides a specific framework to Tesco for producing that type of products
which provides excellent results and outcomes to company in its selected market segments
(Palmer and Truong, 2019). There are different customers exists within the market which always
has different type of demands and wants, in which companies which has succeeded in offering
products and services on the basis of customer’ demands and wants, that can gain large base of
customers in its operation areas.
While innovating new products and services, there are strong market research plays an
excellent role. Basically, a company always takes steps towards innovating new products and
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services after having the proper knowledge of market trends, in which market research is the
main way to different companies or businesses for deeply analysing the current market situations
(Haucap, 2017). Nowadays, those businesses are fully able to innovate new products and
services in productive manner which has an effective market research. Currently, this strong
market research enables to company for innovating such products and services in the market
which are customers highly demanding in various segments of market. For continuously
innovating different new products and services, there are upper management Tesco should be
hired some employees within its workplace who has excellent skills of innovation (Polonsky,
2017). Of course, existing management of Tesco is very innovative and creative, but it still needs
to develop its innovation skills for preparing to innovate various productive services and
products in the future as well.
Development of viable solutions within a specific target group
Tesco generally targets all type of customers in the market but the people who come from
the middle-income group is the main target group of Tesco. Generally, products and services
which has offered by this retail company are simply afforded by people who come from middle-
income group. Company’s research and development team always tries to produce such products
and services which middle income group people easily consume in their daily life. The Tesco
mainly targets this customer group only, because most people within the UK comes from the
middle-income group. This is the main reason that, currently this company has very large
customer base in the UK (Keszey and Biemans, 2016). By targeting this particular group, this
company become the largest retail company of the United Kingdom. It has the largest and
strongest distribution channel and supply chain as well. Due to innovating and producing
different products and services on the basis of customers’ needs and wants, this company has
generated very huge revenue every. Of course, this company targets people who comes from the
higher-income group as well by offering premium range of products and services, but the main
target customers of this company are still those people only who comes from the middle-income
groups. In company’s target customers, there are most customers like Tesco just because its
quality products and services with favourable price. In this situation, this company should
continue to provide or offer quality products its target group.
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Review effectiveness in meeting needs of customers
The Tesco is very brand in the terms of fulfilling customers’ needs. Currently it has very
wide range of products and services which completely relates with needs of different customers,
so that most people within the market can simply fulfil their needs and wants in the supermarkets
of Tesco. Company’s marketing team is very active in its daily operations, so that this team is
fully efficient to fulfil customers’ needs. Basically, in every certain time period, the marketing
team of company has conducted the market research campaign for analysing the actual demands
and wants of people in the existing market. After analysing these factors of market, Tesco will be
able to innovate and produce different products and services on the basis of customers’ needs
and wants (Palacios-Marqués and et.al., 2019). Many of customers within the UK very much like
to buy the quality services and goods, in which Tesco’s top-level management should continue to
innovate and develop different quality products and services to attract many of customers within
its home country towards own brand. On the other side, most customers like to buy services and
products on very favourable price in the UK, so that this company responsible to provide its
various products on very appropriate or favourable price (Rajala and et.al., 2019).
CONCLUSION
The research conducted in the report above indicates the importance that marketing
management activities collectively have on the strategies and activities of the organisation. It was
identified that the data collection and analysis improve the overall decision making and
customers’ expectations can be improved simultaneously. The report also concluded that the STP
analysis was relevant in order to identify the key market and positioning strategies of the
products of Tesco. The report further illustrated the importance that innovation has in the overall
identification of the customer needs and their satisfaction as well and lastly, the viable solutions
were presented in the report according to the target group identified for the company.
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Zhang, Q., Cao, M. and Doll, W., 2019. Fuzzy front end of innovation: a dual theoretical
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