Marketing Process and Planning: Tesco and Sainsbury Comparison Report

This report delves into the marketing processes and planning of Tesco, a British multinational retail company, providing a comprehensive analysis of its marketing strategies. It begins with an introduction to marketing concepts, roles, and operations, followed by an examination of the interrelation between marketing and organizational functions. The report then analyzes the marketing environment, both internal and external, and compares the marketing mix of Tesco and Sainsbury. It reviews their strategic and tactical approaches, focusing on how organizational goals are achieved. Furthermore, it develops a detailed marketing plan incorporating the extended marketing mix and a media plan with recommendations and rationale for chosen media activities. The report concludes with a summary of findings and references.

Marketing Process
and Planning

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Elaborate the concept of marketing and marketing operations which included various roles
and areas of marketing................................................................................................................3
Explain the interrelation of marketing functions with organisational functions along with its
significances................................................................................................................................5
Analyse role of marketing with reference to marketing environment analyse external and
internal environment in which marketing function operates.......................................................6
Compare marketing mix to the marketing planning process......................................................6
Review and analyse the strategies and tactical approaches applied by the company in
determining how organisational goals can be attained...............................................................8
Develop a marketing plan which involves key elements of marketing that integrates the
extended marketing mix for organisation in attaining its objectives of marketing and measure
its achievements..........................................................................................................................8
Make a media plan which includes recommendation and rationale for chosen media activities
that meet budgetary requirements and objective of marketing campaign.................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
Books and Journals...................................................................................................................14

INTRODUCTION
Marketing refers the action performed by the organisations to boost trading of
product or service (Ketter, 2018). It involves merchandising, advertising and supplying of goods
to end user or to other business units. Marketing starts form identifying the needs and wants of
the customers, approaching them, selling products to them, providing after sales services and
finally ended with converting them into the repeated customers. This report is prepared in
context to Tesco, it's a British MNC, dealing in retail industry. It was founded in 1919, by Jack
Cohen. It's headquarter is in England, UK. The Chief executive officer of the company is Ken
Murphy. This file includes the concept and role of marketing. The interrelationship between the
functions of marketing. Difference between the marketing mix of Tesco and Sainsbury. Marking
and media plan of the company which helps them in achieve the goals of the organisation.
MAIN BODY
Elaborate the concept of marketing and marketing operations which included various roles
and areas of marketing.
Marketing refers to the act of activities performed by the organisations related to buying
and selling of goods or services. Marketing development process is the strategy used by the
business, with the aim of identifying new buyers to convert them into the potential customers.
The scenario behind performing this activity is that the company wants to expand their business
so, they are wants to acquire more customer base. Marking concepts means the companies are
initially identifying the needs and wants of the customers and then designing products according
to it.
Current market trend
 Production concept – This concept states that before delivering the products to the
customers, the companies should produce the product repeatedly and try to cut down its
cost occurring at the time of production (Meng, Mu, Sun and Garcia-Vaquero, 2021).
This will help the companies in acquiring large base of customers, as the product is
available to them at low prices.
 Product concept – The consumer prefers the product which is of high performance and
quality, along with reasonable price. The customers also wants innovation and additional
features in the existing products.

 Marketing concept – As per marketing concept customer satisfaction is the main priority
of the business. That's why needs and wants of the customers are identified before
producing the products.
 Sales concept – This concept focuses only on sales of the product, no matter that the
customer requires it or not. If the companies only follows this concept then they can't
survive for the long run. Societal marketing concept – Along with following the concepts of marketing, this
concepts emphasises on overall development of the customer and society. Like this
include – adopting eco – friendly methods of producing goods.
Future market trend
 Voice marketing – The rise in the trend of voice assistants has opened a new door for
voice marketing in front of the marketers. As per the research the voice advertisement
could reach $19 billion by the end of 2022 (Du and Zhang, 2018).
 AI- first approach – For collecting accurate and real- time analytical data along with
improvement in the customer experience AI and machine learning will acts as a most
powerful tools in the coming time. It raise customer experience by 10%.
 Virtual reality – The companies will try to connect the customers emotionally by
engaging them into storytelling, with the help of virtual reality. Smartphone and
automobile manufactures has already started providing 360 degree real life virtual
experience to their customers. Improvement in Blockchain – With the help of blockchain the data of the customers
will be stored in it. It is not easy to access the data stored in blockchain. This will
enhance the privacy of the customer and customer loyalty will also increase.
Role of marketing
 Market research – To identify the needs of the customer and to know about the current
and future market trend market research is performed (Kim and Lee, 2020).
 Advertisement – For acquiring the focus of the customer towards the companies product
and services advertisement is done.
 Direct marketing – The direct interaction of the companies representative and the
customers is considered as direct marketing.

 Integrated communication – Combination of all the marketing communication tools in
order to gain large customer base is termed as integrated marketing communication.
 Public relation – Public relation helps in building and maintain positive image of the
company in front of the public.
Explain the interrelation of marketing functions with organisational functions along with
its significances.
Functions of marketing
The work performed by the professionals of marketing are considered as marketing
functions (Maslova, Bozhuk and Smirnova, 2019). The important functions of marketing are
states below -
 Market analysis – It helps in getting information about firm, industry, business,
consumer, market, competitors and other importance variables of market.
 Market segmentation – It helps in identifying our target and potential customers easily.
 Pricing – Pricing helps in determining either the value of the product is worth for the
customers and for the company.
 Distribution – The distribution channels acts as the mediator among the company and
the consumer. The company can deliver their message through distributors to the
customers. After sales services – After sales services are provided after the delivery of goods and
services. The satisfaction level of customer increases by getting after sales services.
Interrelation of marketing with organisational functions and its significance
 Marketing and finance – The marketing team has to coordinate with the finance team
for preparing an adequate budget (Yayla, Yeniyurt, Uslay and Cavusgil, 2018). The
proper allocation of budget will help the marketing team in determining where they had
to spend more or less.
 Marketing and operational management – The marketing team works with operational
or production team to decide the design and quality of the product. It also helps in
determining the volume.
 Marketing and human resource management – The human resource department
provides the required training to the staff required for performing functions of marketing.

Analyse role of marketing with reference to marketing environment analyse external and
internal environment in which marketing function operates
The internal and external component which directly or indirectly affects the operations
or functioning of the organisation is termed as marketing environment.
Factors affecting externally
 Political factor – Political factors are factors which are related to government policies or
the power of the government (Nurmi and Niemelä, 2018).
 Economic factor – Economic factor are those factors that affects the working of the
organisation by the purchasing pattern of the customers.
 Social factor – Social factors refers to the behaviour, culture and lifestyle of the social
well-being.
 Technological factor – Technological factors are the innovation done in the existing
technology and development of the new technological product.
 Environmental factor – Environmental factors includes ecological or eco factors that
affects the living organisms. Along with this it included occurrence of natural calamity. Legal factor – Legal factor implies the legal forces enforced on the companies by the
governing legislative body.
Factors affecting internally
 Corporate culture – The corporate culture refers to the values, culture, beliefs and
principles made by the top authorities and followed by the employees and management of
the organisation.
 Organisational structure – Organisational structure refers to the mode in which the flow
of the information takes place within the organisation.
Compare marketing mix to the marketing planning process
Tesco and Sainsbury is the chosen company. They both are dealing in retail industry.
Sainsbury is a public limited company, founded in 1869 by John James Sainsbury. It's
headquarter is in London, England, UK. It's objective is to provide great food at reasonable or
fair price. The objective of Tesco is to provide premium quality of products and services at low
cost that they can grab competitive advantage.
Marketing mix refers to set of several ideas prepared by the marketing representative in
order to promote their brand or product and achieve organisational goals.

Marketing Mix Tesco Sainsbury
Product Tesco renders a wide variety
of products to the customers,
along with it they also offers
international cuisine so that
focus of international visitors
can be acquired.
Sainsbury also offers a wide
range of products but their
most of the products are
similar, due to supply of
product from the same
suppliers.
Price Tesco is selling it's products
through out the world, so they
have achieved a economies of
scale. By achieving it they are
able to sell products at low
prices.
The company focus on
customer retention, that's why
they maintain the quality of
goods and services along with
the nominal price range.
Place Due to supply of products
outside the nation the company
has a large distribution
channel. They have number of
outlets and also sell their
products online.
They have more than 700
stores and 500+ supermarkets,
out of which some stores
remains open 24*7.
Promotion The products of the products
have low prices. This is how
the company has developed its
brand image. Apart from this
they provide attractive offer to
the customers.
With the use of 'Nectar reward
card' the customers get reward
points at the time of shopping
for the next time.
People The work force of the
company is very responsible.
They know how to treat their
customers.
They employed high qualified
workforce at each and every
level of management.

Process The process for acquiring the
products are very simple. The
customers can prefer online as
well as offline both mode of
purchase.
They provide facilities like
placing orders over phone call
and free home delivery. This is
make the process easy and
durable for the customers.
Physical evidence The store of the company don't
looks very luxurious as they
belief this is wastage of
money, in-spite this they focus
on keeping everything clean
and simple, which is easy to
operate.
The outlets of the company is
well furnished and had modern
infrastructure model is used
for preparing it's outlets.
Review and analyse the strategies and tactical approaches applied by the company in
determining how organisational goals can be attained.
The marketing mix helps in determining the strategies which can the Tesco and
Sainsbury uses. By keeping the prices of the products low both the companies are able to acquire
more number of customers. The promotional strategy used by Sainsbury helps in brand
promotion along with increasing in sale because the reward points can only be redeemed at the
time of purchasing done by the customer. Tesco, don't spend much on the infrastructure this
helps in saving it's fixed cost.
Develop a marketing plan which involves key elements of marketing that integrates the
extended marketing mix for organisation in attaining its objectives of marketing and
measure its achievements
Market planning is the process of defining and implementing the marketing aims of a
company which helps in reaching the potential customer and market. It also helps in generating
fresh leads.
Importance of Marketing planning
 Reducing future uncertainty – The current and future trends are already decided in
advance.

 Determine objectives – The objective of the organisation will be clear at the time of
planning.
 Consumer satisfaction – The products are produced by identifying the needs and wants
of the customers so more satisfaction among the customer. Increases efficiency – Proper and effective allocation of resources are done at the time of
determining the organisational plan.
Situational Analysis
Strength Weakness
Tesco is dealing worldwide so they have
achieved the economies of scale and achieved
to sell its product at low price, this is how they
can expand their business quickly (Diaz Ruiz
and Kjellberg, 2020).
Tesco has faced many legal issues that affects
the image of the company and has high
chances of loosing customers.
Opportunity Threat
The trend of digitalisation is increasing very
rapidly. The company gain the competitive
advantage by adopting the technology timely.
Their are large number of competitors of Tesco
so they had to add some uniqueness and
innovation in their existing products.
Marketing objective
The objective of the Tesco are mentioned below -
 To increase the market share of the company by 5%. To increase the sale of the company by 20%.
STP analysis
Segmentation, targeting and positioning helps the companies in positioning its goods and
services among the different target group of consumers (T.M.I.L., 2020).
 Segmentation – The company will segment it's customer on the basis of their
characteristics and pitch the product according to it.
 Targeting – The company will mainly target the household women's. They will provide
attractive discount offers to attain their focus.

 Positioning – The company will try to lower down the price of the products in order to
increase the sale of the company. This will help them in achieving competitive
advantage.
Marketing tactics
 Product – The company will continue to offer the same wide variety of products.
 Price – For the purpose of increasing it's market share the company will cut down the
cost of the product.
 Place – The company will increase the count of online outlets and focuses on online
sales.
 Promotion – By providing different discount offer and by doing publicity on social
media the company will try to acquire the focus of the customer.
 Process – The company will start home delivery services to make the process easy and
convenient for the customers.
 People – The company will start providing training to the staff. Physical evidence – The company will focus on making sustainable infrastructure of the
stores.
Action plan
Cost and budget

Monitoring and evaluation process
Key performance indicator – The key performance indicator is the tool used by the companies
in order to measure the performance of the organisation.
Make a media plan which includes recommendation and rationale for chosen media
activities that meet budgetary requirements and objective of marketing campaign
Media plan is the process of determining when, how and where the message to be
delivered to the audience (Diaz Ruiz and Kjellberg, 2020).
Various types of media plan in context of Tesco are mentioned below -
 Objective – The Tesco aims to increase it's market share by 5% by increasing it's sales
by 25%.
 Running time – The time set by the Tesco is 6 months, as this will motives the consumer
for the long run.
 Campaign type – The type used by Tesco to start it's campaign is social media markting
through Instagram and Facebook.
 Target audience – The target of the company is household women's of lower and middle
income group.
 Content – This will include the mission and vision of the company, along with the
message that the company wants to deliver.
 Recommendation – The Tesco should analyse all the internal and external factor of
environment before launching the media plan.
 Justification – Tesco, should involve proper feedback and evaluate the process.
 Media budget – This includes the factors related to finance allocated to the organisation.
The media plan of Tesco of all the expenses is mentioned below in the tabular form.
Particulars Amount
Equipment 160000
Advertisement 40000
Promotional tool 10000
Media house 10000

Total 220000
CONCLUSION
From the above report it can be concluded that, the marketing plan helps in determine all
the factors in advance and unnecessary mistakes can be avoided. The interrelation between
marketing and organisational functions helps in smooth functioning. The 7P's of marketing mix
helps in promotion the brand image of company in front of the customer.

REFERENCES
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