Marketing Report: Introduction to Marketing and Market Analysis

This marketing report provides an in-depth analysis of Tesco and Sainsbury's, two major players in the UK retail industry. The report begins with an introduction to marketing, emphasizing its importance in organizational success. It then delves into market segmentation, a key marketing function, explaining how Tesco segments its market based on socio-demographic, psychographic, and behavioral variables. A comparison of Tesco and Sainsbury's is presented, focusing on their marketing mix, including product, price, place, promotion, brand image, and retail distribution. The report also discusses the Ansoff Matrix, a tool used for strategic growth planning. Finally, the report concludes with recommendations for Tesco to further develop its marketing strategies in a competitive market. The report highlights the importance of adapting to market changes and employing modern marketing techniques.

Introduction to Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................2
Market Segmentation...................................................................................................................2
Task 2...............................................................................................................................................6
Ansoff Matrix...............................................................................................................................6
Task 3...............................................................................................................................................9
Marketing Campaign...................................................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is a very important function of the any organization. This is providing
facilities to the companies to promote their brand in the local, regional, national, and
international market. Top-level management of the businesses are using some useful strategies in
the marketing process to gain effective and productive results from it. Without marketing any
business can not achieve their target in the specific time period. Many of the successful
businesses hire some highly qualified marketers or people into the business environment which
has extra ordinary knowledge of marketing functions. These marketers try to develop some
innovative marking strategies which make able to the businesses to gain high competitive
advantage in the all market segments. There are many ways are available for the companies to
run their marketing activities in the market, like; Digital marketing, TV advertising, Banner ads
etc. Companies are choosing the ways of marketing according to their suitability. Most of the
businesses has their own marketing team or department, which always focuses on the covering
all functions or activities which are comes under the marketing. This is discusses the marketing
environment of the Tesco.
Tesco
Tesco plc is a British general merchandise and groceries retailer, Headquartered in
England, United Kingdom. Company is too successful in expand their business worldwide. It
currently operates their business in many countries like; Ireland, Malaysia, Hungary, Thailand,
etc. It has great brand value in the in international market (Raza and Turiac, 2016). Tesco is also
the top and leading retail company in the home country United Kingdom, and on the basis of
gross revenues, it holds third position in the worldwide retail industry. The company gained large
customer base from establishment to date in the global market, and specially in the UK. People
are really satisfied with the products and services of the Tesco.
Sainsbury's
Sainsbury's plc is one of the major competitors of the Tesco. Both companies are
smoothly running their operations in the United Kingdom. It is holding the third position in the
retail industry of the UK. This company has less market share than Tesco, but in the many
market segments of the United Kingdom the Sainsbury's is challenging for the company. In
many segments customers prefer this company to buy retail products than Tesco. It is only
focusing on expand their business in each area of the United Kingdom (Chen, Tu and Wang,
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2016). This is still now enter the international market, and from establishment to date it is only
serve their products and services only to the home country. It also has huge goodwill in the retail
industry of the United Kingdom.
Task 1
Market Segmentation
Market segmentation is one of the major functions within the marketing process.
Businesses are divide a large market into the small market segments to deep focus on the
customers need in the markets. Segmentation provide facility to the companies to produce only
such products and services which customers in the marker are actual needed. It also helps to
analyse the market conditions for improve business performance through increase sales. With the
help of segmentation companies are able to increase their sales, Tesco also use segmentation in
their market marketing process (Peštek, Agic and Cinjarevic, 2018). It divided people according
to their income, interest, attitude, and age etc. to understand their basis and ground level need.
Then it tries to provide that products to the people which they are actually expecting from the
Tesco.
Segmentation variables in the Tesco
Socio-demographic: In this variable of the segmentation, Tesco divide their people on the basis
of their income and their standard. This step helps to the company produce different products for
the different income group people. Socio-demographic is too productive for the company,
because it saves lots of important cost and time of the business. According to this Tesco is able
to focus on production of that products which people can easily afford in the market. In which
marketing department of the company run some surveys also to analyse the demographic
situation of the market. It is very helpful for the company to analyse the buying efficiency of the
population in the market (Ma, 2018]). There are company also need to divide people into
different basis, like age, income, motivation, standard, etc. This will help to the company to fulfil
every customer's need in the market, and once the company satisfied customers with their quality
products and services. Then they become loyal customers of the Tesco. At the final result it put
large contribution in the growth of the company.
Psychographic: This is also an important term for the company to analyse the people in the
market on the basis of their attitude, wants, and interest. There are different people in the market
which are comes from different background. In this situation the marketing team of the Tesco
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need to deep study about market. Company also need to research about what people's attitude
towards company. This is major duty of the management to know people are satisfied with
company's products or not. In the production process, the company need produce each product
according to the people need, otherwise company face some challenges in selling that products
(Berndt, 2016). Psychographic term is also helpful for the company growth, because it is
providing some major idea to the management to focus on production of highly demand
products.
Behavioural: This indicates the experience of the people, means every customer in the market
have their own experiences and view towards brand. In which the company need to study abuot
what people feel after buying Tesco's products. This task is necessary for the company to build
effective relationship with people in the market. Customers are always uses their experiences to
buy products in the future. In which this is the major responsibility of the Tesco to always
provide best of the best and quality products to the customers. Company also need set the perfect
and reasonable pricing of the products, because these all factors make great and positive
experience of the customers towards brand (Kumar, P. 2018). In this case if customers will
impress by the company's products, then they buy that same products of the company in the
future too. This variable of the segmentation is helpful to the Tesco in making loyal customer
base in the global market, and then it will contribute in growth of the company.
Comparison between Tesco and Sainsbury's
It included the comparison between Tesco and Sainsbury's on the basis of marketing
strategy called; Marketing Mix.
Marketing Mix Tesco Sainsbury's
Product Tesco currently providing
different retail products to the
customers worldwide. It is
now selling same range of the
products in the different
markets. It believes in provide
products according to local
need. Basically it offers
products, like; clothing,
Sainsbury's also has wide
range of products, but much
wider than Tesco. It is
maintaining separate lines for
all different products to serve
them properly to the
customers. It mainly offers
products like; fruits and
vegetables, meat and fish,
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groceries, food, electronics,
and financial services also to
the customer (Balci and Cetin,
2017). Company's achieved
great brand value on the basis
of their quality products. It had
wide range of products,
because company provides
almost that all products to the
customers which comes under
the retail industry. Every range
of the products is always
available in their stores.
dairy, health and beauty, beer
and wines, bakery, and baby
care goods etc. ton the
customers of the United
Kingdom. It not provides
products like Tesco in the
international market.
Sainsabury's only focus on
produce products according to
UK's market needs. It has great
reputation of its products,
because of their high quality. It
also focuses on development
of that products which comes
under their ownership.
Price Company always try to
provide their products on the
lowest price as possible.
Company also popular on the
basis of their reasonable
product pricing method.
Customers are easily able to
purchase company's products.
Most of the products are
affordable for different income
groups. With the help of
effective pricing strategy, the
Tesco holds first position in
retail industry of the United
Kingdom.
Currently the Sainsbury's
following competitive based
strategy of pricing. In which
the company set their products
prices according to the market
competition. Company analyse
the products prices of the
competitors in the market, and
then try set their products
prices less than competitors as
possible. In other hand many
times company set pricing of
products on the basis of
products features as well.
Company high charge with
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high quality products.
Place Tesco currently operating their
business activities in the
different countries in the world
with 6900+ stores. It has
different types of stores called;
Tesco Superstore, Tesco
Express, Tesco Metro, Tesco
Extra. These all stores indicate
the actual size of the stores.
For example: Tesco Superstore
is a large supermarket which
spread in large area and sell
groceries, electronics, clothing,
etc. Company open these
different size stores according
to number of population.
Marketplace of the Sainsbury's
is only their home country
United Kingdom. Company
has 1423 shops or stores
within the UK. Company offer
products according to the
people of United Kingdom
needs in these stores (Schawel
and Billing, 2018). The major
market places where company
deeply focuses are; South-East
London, Redhill, Swindon,
Enfield, Torquay, and
Wolverhampton, etc.
Promotion Low pricing factor giving
great advantages to the Tesco.
Company mainly promoted by
mouth-to-mouth publicity,
because people are talking
about company's low pricing
products with their relatives,
friends, etc. They refer Tesco
to buy grocery products to
other people (CAMPOS
PIRES, 2019). So, it will
contribute in promotional
process of company. It also
Sainsbury's run some
marketing campaigns through
newspaper, television,
holdings, banners, radio, social
media, billboards to promote
their products and services.
The main purpose behind
Sainsbury's promotional
activities is to aware people
about their brand in the United
Kingdom. Company also show
exclusive products to the
customers in promotion
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uses some advertising models
to promote their brand in the
global market.
process to gain their huge
attention towards brand.
Brand Image Tesco has the highest brand
value or image in their home
country United Kingdom.
That's why the company
currently leading the retail
industry of the UK. It has good
brand image in the
international market too.
It also has great brand image in
the United Kingdom. With this
reputation of the company, it
has currently third leading
company in the UK's retail
industry. Company gained this
brand value by its quality
products.
Retail Distribution It has large and effective
distribution chain in the global
market (Saarni, 2017).
Company send products from
manufacturing plant to the
customer's hand in systematic
manner, without any defect. It
is maintaining proper channel
of products distribution in each
market segment.
This company also has
effective and systematic
products' distribution channel.
With the help of this
distribution channel the
company able to provide
products to the customers
without any defect.
Recommendations
Current marketing mix strategy of Tesco is so productive, but company still need to more
develop it. The main reason behind development of strategy is, there are market competition is
rising day by day in the retail industry. In which company need use latest and modern marketing
techniques in their business environment to gain huge competitive advantage in the present
market and also in the future market too.
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Task 2
Ansoff Matrix
Ansoff matrix is a tool used by firms to analyse and plan up their internal strategies for
growth in market by analysing their working properties well, working on market growth with
newer up-gradation, strong marketing techniques and affordable range of prices.
The matrix shows the four strategies that can be used for help in a firm grow and also analyses
the further risks associated with each strategy so the company always keeps a backup plan for
efficient working patterns.
It enables the managers in company, employees to summarize potential growth strategies
and areas to work, the new arenas to explore for growth and products to be launched, risk of
competitive prices and products by other companies in the market, risk associated so that
strategies to combat them can be easily formed with proper constructional planning (Naughton,
2016). Tesco as a company uses a rang of methods to collect data and evaluate progress against
targets, with online platforms to keep a check on the company's online customers reach, targets
to reach and services to offer at online panels globally.
Existing Products New Products
Existing
markets
Market Penetration
 A company pushes its existing
products to already existent
market for growth of market
share into people, by bringing
out more effective working
patterns, policies with new
pricing tools, and technology
up-gradation constantly.
 In case of Tesco, it started off by
selling groceries in the U.K. The
consumers were already aware
of the products and since there
Product development
 Long- term business success is
focused by Tesco through a core
vision which remains constant with
the business strategies to keep
innovating in new products, by
launching them as per new age
groups and catering to their
demands.
 In a global competitive
environment, where new brands are
launching every year Tesco's clear
vision is ‘To be the most highly
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was not much competition, the
company quickly saturated the
U.K. Market (Martinet, 2016).
The company already has high
goodwill, with planned
penetration it upgrades its
selling. It creates new
opportunities for millions of
young people around the world.
valued business company, with
high-tech products and best
services.
New
markets
Market development:
 is where a company seeks out
new markets for already existent
products and thus expanding its
parameters. Tesco has been
successful in this strategy
whereby it has penetrated and
opened markets for its products
in the richest economies such as
U.S., China and Japan.
 The customer Tesco serves, the
communities in which it
operates are loyal and
committed, though with
increasing technology and new
brands coming up every year
Tesco keeps a goal for its
contestant market development.
Keeping vision and mission of
 Diversification
is where company looks for growing
business opportunities with newer, modern
and innovative ideas to maintain a
prominent place among the competitive
players in market.
 Tesco has earned trust and loyalty
in world from customers with time,
always by offering good quality
services and satisfactory products.
 Diversification leads to newer
opportunities for customers by
offering new offers and products to
choose from.
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company in mind.
Recommendations
There are great opportunities for the Tesco to grow their market share with the help of
Ansoff matrix model. Its four elements give facility to the company to develop their exiting
products to gain huge competitive advantage in the market. The company need to highly use this
model within their business environment to grow their business in the all segments of the market.
One element called market penetration give help to the Tesco to use their present low pricing
products to sell them into present or existing market. The main objective of this matrix model is
to increase market share of the Tesco. Currently company holds high market share in the
worldwide retail industry, but there great opportunity for the company to more increase their
market share in the global market. The diversification term of this framework is most effective
tool for the Tesco to innovate or develop new and exclusive range of products to enter the new
market. Exclusiveness in products is very necessary to gain huge attention from the people in the
new market. Marketing department of the company need to be more skilful and productive to
always achieve positive results from the marketing operations. Tesco able to gain high profit in
the international market by implement this marketing strategy within their business environment.
Task 3
Marketing Campaign
It included an effective marketing campaign for the Tesco which will help to the
company to aware customers about its products and services. This campaigns also help to the
company to improve their brand value in the market (Galpin, 2019). There are various ways are
available for the company which it needs to use in this marketing campaigns, like; digital
marketing, affiliate marketing, television advertising, etc. These all tools are helpful in spread all
brand information in the market, and then people understand what company is offering.
Marketing campaign also help to the company to promote their brand in the different local,
national, and international market. It gives facility to the company to aware their target audience
about company's products and services. A specific budget also needed for the marketing
campaign to conduct different activities within campaign, which mentioned below;
Plan for Marketing Campaign
Jan Feb March April May June July Aug £
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Social
media
advertis
ing
£2000
Review
s of
Agency
£1850
Televisi
on
advertis
ing
£7000
Affiliate
marketi
ng
£2400
App
launchi
ng
£1900
Banner
advertis
ing
£2250
Email
advertis
ing
£1500
Holding
advertis
ing
£2100
Sponsor
ship
£2900
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