Strategic Marketing: Processes, Planning & Tesco, Aldi, Sainsbury

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This report provides an overview of marketing processes and planning, focusing on a case study of Tesco and comparisons with Aldi and Sainsbury. It begins by defining the concepts and roles of marketing, highlighting its function and relationship with other business functions, and examining the macro factors influencing marketing activities. The report then compares the marketing mix strategies of Tesco, Aldi, and Sainsbury, analyzing their tactical approaches in achieving business objectives. A detailed marketing plan is presented, including SMART objectives, SWOT analysis, and marketing tactics. Finally, the report discusses the development of an integrated multimedia plan to support marketing campaigns, considering both offline and online media, and outlines quantitative and qualitative criteria for evaluation. The study uses Tesco as a primary example, drawing on real-world marketing practices and strategic planning approaches.
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MARKETING PROCESS AND PLANNING
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART A...........................................................................................................................................3
The concepts and roles of Marketing..........................................................................................3
Marketing function and its association with the wider business context....................................4
Interrelationship between marketing and other functions of the business..................................4
Macro factors of the business environment in which marketing activities operates...................5
PART B............................................................................................................................................5
The comparisons of the marketing mix based on Tesco, Aldi, Sainsbury..................................5
Incorporate the strategies and tactical approaches that the businesses have applied to the
marketing mix in terms of achieving business objectives...........................................................7
PART C............................................................................................................................................8
Marketing plan............................................................................................................................8
PART D.........................................................................................................................................13
Media plan.................................................................................................................................13
Media budget.............................................................................................................................13
Recommendation......................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Marketing is related to all the activities which are undertake the promoting service
buying and selling of services and product. All the professional are working in the corporation’s
promotion and marketing department seeking for getting attention key audiences with the help of
advertising. Marketing process are related to all the activities which are help to communicating,
creating, delivering and exchanging offer for value of customer, partners, society etc. Also,
strategic marketing planning refers to the process which are creating the marketing strategy
which complete the objectives (Alexander, 2020). This is also responsible for metrics which are
help for achieving goals. There are some of the steps that strategic planning process for
determining strategic position, prioritize your objectives, develop a strategic, etc. The chosen
company is Tesco for the study that is well known brands of UK. The report consist three part in
which part A discuss roles of marketing and its function, also it is the interrelationship between
marketing and other function of the business by considering macro factors in the business
environment. Further, part B related to comparison of marketing mix with the help of two
organisation, incorporate the strategies and tactical approaches that are need in business
organisation for achieving its objectives. Moreover, part C will explain the marketing plan with
marketing tactical, planning and strategic marketing planning. Lastly, part D supporting
marketing campaign for the organisation in order to develop integrated multimedia plan which
includes offline, suitable, social media etc. Also, explain the quantitative and qualitative criteria
fort preparing integrated multimedia plan.
MAIN BODY
PART A
The concepts and roles of Marketing
Marketing refers to the managerial function that are includes primarily economic that
consist of all the activities such as demand or market forecasting, pricing, product planning,
advertisement and distribution which are organised in the system of the interdependencies and
are directed at the yielding of profits to enterprises in order to provide satisfaction (Amin, 2021).
The concept of marketing are related to the production, selling, product, societal etc. The main
role of marketing is related to meet consumer needs and wants in order to identify the need of
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consume for the related products an strategies accordingly. It influence the wants the are shaped
for individual and cultural personalities. Also marketing ensures for survival of organisation
related to expansion and growth. The objective of the marketing are help the company to for
achieving the objective just because of customer- centric, it also help to satisfying the need of the
customers beyond the expectation. This is help in widen the market for using mass
communication such as sales, advertisement, event marketing etc. all these factors are help to
protect the image of the organisation. Along with this Sarika business houses limited is are
offering better services so that it help to attract the customer.
Marketing function and its association with the wider business context.
According to the wider business context it has been analysed that there are several
marketing functions which are as product development function in which the organisations
supposed to create the product by considering all the factors that are help in development of
business such as demand and want of customer (Deffner, Metaxas and Sirakoulis, 2020.). To
identify all these factors there are importance of marketing team to survey, retailer data, focus
group etc. After developing the product the next step is belongs to pricing strategy in which the
firm decided to set the price by considering the cost profit etc. Further, the place of sale function
it is important to decide that place where consumer can easily buy the product. It can be in the
form of online as well ass offline stores. Th team of marketing are help to analyse the buying
habit of customers and what kind of place are most convenient for the consumer. Then another
function is related to the promotion that is the most important factor because it help to attract
customer as well as it increases the reach of advertisement, mobile, internet, print, broad etc.
Interrelationship between marketing and other functions of the business
All the functions are inter related to each other such as follows
Marketing and operation- Both the department are inter linked because it helps to
identify adequate research for developing the plan for satisfy future and current need of the
customer (Dumon, McDonald and Schmitz, 2021). It helps to promote design and quality that are
desired by customer. The volume order with the help of marketing which can be met within the
schedule.
Marketing and finance- All the department are work closely in order to need adequate
budget, promotion, research, distribution etc. All these activities are need particular amount so
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that they can proceed further. The markets share or sales are also related to the finance because it
helps to identify all the graph of the company.
Marketing and human resource management- The marketing department are need for
HR department in order to Tesco research and development department are help in new product
idea. It helps to meet the production stages as well as HRM hire candidate for marketing team by
analysing all the factors that can help for considering.
Macro factors of the business environment in which marketing activities operates
The macro factors of business environment are refers to the external factors that are
related to the demographic, economic, natural, technology, political and cultural factors. In
marketing demographic factor are help to identify the need and want of the customer according
to the age, gender, occupation etc. In Tesco the female are more buy the groceries product as
compared to man. Economic factor are need to consider in the marketing which are related to
level of income, resources etc (Kar, Bansal and Mishra, 2021). Marketing function are need to
consider the income of people Tesco has offered the product at large level it is necessary to
identify the income of people at that places and provide product accordingly. Further, the
marketers or business management are closely pay the attention and that is why political forces
are help tos judge the government actions that can affect the company. The cultural factors are
responsible for leading the living style, religion of the consumer.
PART B
The comparisons of the marketing mix based on Tesco, Aldi, Sainsbury
Marketing Mix Tesco Aldi Sainsbury
Product Product and services
offer by Tesco are
groceries, clothing,
electronics, books,
furniture, financial
services, telecom and
communication
services etc.
The main products
provided by Aldi are
cereal, baked beans,
bars, salty snack, salad
bar, cookies, frozen
product, dips etc
(Merritt and Zhao,
2021).
Sainsbury offer wide
variety of products
such as vegetable,
fruits, nectar, sweets,
alcohol, milk, ready
made meals, cakes,
crisps etc.
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Price Pricing strategy
followed by Tesco is
price skimming in
which it can help to
generate more
revenue.
Aldi uses price
penetration strategy.
Pricing strategy
followed by Tesco is
price skimming in
which it can help for
making profit.
Place Tesco established in
UK as well as 5000
stores internationally.
At more than 20
countries Aldi stores
are available (Naseri
and Noruzi, 2018).
Sainsbury established
only in UK by more
than 600 stores.
Promotion The promotion
strategy used by
company is digital as
well as offline such as
road side
advertisement.
Aldi, uses offline as
well as online strategy
for promotion.
Digital marketing for
promotion as well as
traditional method of
promoting the product.
Process There are smooth
process followed by
the company in order
to maintaining the
staff.
It creates easy
communication
process for
management.
Employees have right
to give their opinion.
Th process followed
for satisfying the need
of the consumer.
People There are more than
25 thousand people are
working in Tesco
(Njeru, 2018).
People are related to
representative,
consumer, supplier,
personnel etc.
Delivery of services
are occurs during the
interaction with
customer and
employees.
Physical evidence Th physical evidence
are related to the
offline and online
Along with this,
Customer can buy the
product online as well
On the other hand, Its
physical stores are
more convenient for
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stores. as from stores. customer.
Incorporate the strategies and tactical approaches that the businesses have applied to the
marketing mix in terms of achieving business objectives.
Marketing strategy are help for defining the priority of market, product and audiences
also it can be includes segmentations, targeting and positioning. On the other hand the tactics are
related to the strategy which are uses by organisation in order to provide best audience or market.
Establishing the goals, visions an mission- Strategies for which are help to achieving
business objectives are related to developing the marketing strategy in order to establishing the
goals, visions an missions of the Tesco used the approach for identifying the major goals of the
company. These goals are helped ins further completing the objective which are need to be
consider for the employees etc (Soegoto, 2021). Also, it will help the company to identifying the
strength and weakness of the company which are importance to measure. According to this the
feedback from the customer are depend on the ability of customer that can be better than
competitor. Along with this the tactics are different for all the people of the organisations such
ass Tesco's customer are measure delight, employer of choice are measuring satisfaction level.
Also shareholder are help to gain the capital pus dividend.
Measure the progress- After measuring the goal and objective it is important to
establishing the primary goal which are need for developing the strategies which are help in the
metrics. Tesco measure the process with the help of past data that can be help for identifying by
KPI tool. The current performance matrix are related to employee retention by 76%.
Turn long-term strategies into short term tactics- This stage is related to when
company decided to changes the long term strategy into short one so that employees can
understand the value of the organisation in order to complete the goal. This contribute by
establishing career paths and incorporate career planning that are help to review the performance
(Tesco Plc, 2021). It can maintain the field service by including engineer staff that are enable to
guidance in career. Tesco has provided different types of training which are need improve the
performance of employees in order to provide betters services tos the customer. This will
increase the customer satisfaction that directly help to retain the best employee among all of
them.
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Get every one on board- In this stage there are different types of tactical plan which are
important to manage so that it called time span of control. The leader of Tesco must focus on
management team that are deliver 4 more good quarter in order to achieve annual objective of
organisation to increase the sales by 30 percent. Also, the management team has to deliver the 4
month to the employees so that can get their focus on completion of objective.
PART C
Marketing plan
It is the document which lay out the marketing efforts of business in up coming year that
are usually completed in year. This covers promotional, marketing, advertisement strategy got
upcoming year.
SMART objectives-
To increase the customer base by 30%.
For increasing sales by 20%
To focus more on consumer goods.
To increase productivity by 20%.
To complete the objective within 1 year.
SWOT analysis-
Strength- The biggest strength of Tesco is related to market share because it increases by
25% in last year that improve the stability of the company. Also, the performance of company is
improving at the pandemic time because the online sales are increasing from last 2 years that
help in generating more revenue (Thiersa, 2019).
Weakness- In last year their were many customer who has complaint about the quality
issue relate to the product but at the same it affect the position in market. Tesco improve the
performance by producing different types product with high quality. Also, inventory
management are comparatively typical for Tesco because expiry products are store by the
company in large amount that is why the space is very less.
Opportunity- It has the opportunity of expand the business in those countries where there
is not presence of Tesco such as China, South Korea, etc. This will help to generate more and
more revenue from all the stores. Also, Tesco has the opportunity of growing online grocery
sales with the help of providing good amount of discount.
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Threats- Tesco's biggest threat is related to the competitor that are increasing day by day
by coping the idea of selling product online. The major competitors are Aldi and Sainsbury
because there products are easy to buy from the stores in UK.
PESTLE analysis-
Political factors- Tesco sell its products at global level so it has faced different types of
political issue related to the change in taxation policy. The financial instability are also affect the
company by operating different type of services in the world. Europe has increase on the other
hand it can impacted in negative way. But political factor are helps in increasing the rate of
employment which are increased by the organisation. Large number of employees are connected
with Tesco in order to work opportunity. This is the great opportunity for generating income
level of Tesco.
Economic factor- All these factors are related to diversification and internationalisation
are affect the country by using different types of strategies. In the global market Tesco has
suffered due to it affects the revenue of company. On other hand, the licensing are help to
expand the business in online services etc. Also, it helps to focus more on luxury products which
are increased the level of customer base and in UK people are more demand for the that kind of
products.
Social factor- Due to variety of social change it has been analysed that there are some of
the problems which are faced by the company. Trends are changed according to the time which
affects the organisation by collecting old stocks at stores (Tian, 2019). It has been critically
analysed at that kind of situations the firm start online sale of festive seasons discount which are
attract more and more customer. As compared to Sainsbury people are more wait for the end of
season sale of Tesco.
Technological factor-The technology advancement are increase day by day so that Tesco
also focus on adopting those technology which are help to increasing productivity of the
organisations. It has been contradicted that technology factor are needed high costings for
purchasing as well as installation cost. At the same time the high technology are helps for
providing more opportunity which are attracting investors towards the company.
Legal factor- The legislation and government policies are impacted the performance of
Tesco. The laws regarding food and safety of consumer are important to follow by the company.
That needs to consider because it affect the practice which are related to employment laws and
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regulations. For facilitating different types of products are help to attract more and more
regulation which are need to followed by the company.
Environment factor- There are some of the environment factors that help for made the
recycle products in order to achieve the target of environmental safety. Also, from last 3 years
the carbon footprint are reduces by 50%. It attract the more and more customer with the help of
good brand image.
STP analysis-
Segmentation- Tesco has more focus according to demographic or geographic region
because the large number of customer are increase due to target the area which are related to UK
and near by countries. Also, the brand image of the company is already good in the market so it
has the opportunity of increase the customer base easily. The income of the consume are depend
on the sell of the product in order to offer the product at lower price (Verasophon, 2021). The
psychological factor are impact on determined personality of the product. There are easy going
clothes are available in the markets which helps to create more and more opportunities for
increasings the revenue of Tesco.
Targeting- The target market of Tesco are related to the all age group because there are
all kind of products are offered by the company such as clothing are available for all the
category whether men, women and kinds. Also, it also target the kids for attractive toys an books
which are importance for kids to make fun. All kind of electronic devices are available in the
Tesco's stores which are beneficial for the person who can get all the products at one store.
Further, it has been analysed that there are some of the market in UK that are targeted by the
company.
Positioning- The position of the Tesco is already good in the market because it has
provided wide range of products with the best quality it helps to attract more and more customer
in the same place. The there are online and offline presence if the Tesco that help to attract large
number of customer by offering good amount of discount at online stores. Also, Tesco is one of
the biggest store in UK that has generate highest revenue.
Marketing mix
Product- The product offered by Tesco are very large in variety such as Product and
services offer by Tesco are groceries, clothing, electronics, books, furniture, financial services,
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telecom and communication services etc (Zhao, 2021). The main products provided by company
are cereal, baked beans, bars, salty snack, salad bar, cookies, frozen product, dips etc. It offer
wide variety of products such as vegetable, fruits, nectar, sweets, alcohol, milk, ready made
meals, cakes, crisps etc.
Price- The pricing strategy used by organisation is price skimming so that it attract large
number of customer which are help to sell the product at high price with best quality. The most
of the people are believe on the quality of product not much focus on the price.
Promotion- There are different types of advertisement strategy used by the company
because such as roadside banner are help to attract more and more customer so that it help the to
provide information related to discount. Also, online advertisement strategy is used by Tesco is
social media technique, SEO (search engine optimisation) for increasing the reach of the
customer by creating traffic.
Place- Tesco established more than 8000 stores in UK and outside the country almost at
every place Tesco’s product bought by customer, it is easy for the customer to buy all category
of products at same place. In south countries Tesco groceries are very popular because the
quality used by company is high. Also, all the stores are in the central market so that it can be
convenient for the customer.
Physical evidence- There is online as well as offline stores are available for the customer
both the evidence are help to the customer according to their need. There are different types of
online sites are used by Tesco because it has wide range of products which are expected to buy
by the consumer. More than 3lakh people are every buy product from Tesco.
Process- The process used by Tesco is top to bottom management and it helps to perform
all the function according to the sequence. Also, organisation support to the local supplier or
manufacturer in order to get more chance of productivity. Directly buy from manufacturers are
help to collect more revenue.
People- It has been identified that’s there are more than 2 lakh people are working in
Tesco it helps the organisation to get more success and growth. This growth is help to increases
the customer base that directly increasing the sales. Along with this there is chance to the
employees to corporate with company in positive manner.
Budget
Expenses Amount (pound)
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Advertisement 200000
Marketing campaign 300000
Digital marketing campaign 100000
SEO (search engine
optimisation)
400000
Total 1000000
Competitive analysis
Basis Tesco Walmart ASDA
Product Product and services
offer by Tesco are
groceries, clothing,
electronics, books,
furniture, financial
services, telecom and
communication
services etc.
The main products
provided by Walmart
are nectar, groceries,
sweets, alcohol, milk,
ready-made meals,
cakes, crisps, frozen
product, dips etc.
ASDA offer wide
variety of products
such as vegetable,
fruits, cereal, baked
beans, bars, salty
snack, salad bar,
cookies etc.
Organisational
structure
Functional org
structure followed by
the company
Functional org
structure followed by
the company.
Hierarchical org
structure followed by
Walmart.
ASDA also use
hierarchical org.
structure.
Promotion strategy The promotion
strategy used by
organisation is online
as well as offline.
Traditional method of
promotion strategy.
Modern method of
promotion strategy.
USP High quality products
and services.
More focus on price. Low costs product.
Revenue More than 40 billion
revenues.
10 billion a year 15 billion a year
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