An Analysis of Tesco's Marketing Research and Strategies

This report provides a comprehensive analysis of Tesco's marketing operations, focusing on the importance of marketing research in identifying and meeting customer needs. It delves into the core concepts of marketing, highlighting the shift from traditional to digital marketing channels. The report examines Tesco's global presence, its diverse product offerings, and its position as a market leader in the UK retail industry. The main body of the report explores the need for marketing research, emphasizing its role in identifying business opportunities, minimizing risk, creating relevant promotional material, identifying effective promotion mediums, gaining competitive advantages, driving better goals, and improving decision-making. Furthermore, the report details various primary research methods that Tesco employs to gather customer data and understand their preferences. The report concludes by summarizing the key findings and emphasizing the significance of continuous marketing research for Tesco's sustained success.

Marketing

Table of Content
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................5
Need of marketing research.........................................................................................................5
Ways Through Which Tesco researches upon its Customer's Needs and Requirements............8
Sampling techniques....................................................................................................................9
Role of MR agency....................................................................................................................10
MKIS information system..........................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is the strategic business function through which a business
organisation advertises and promotes its goods and services to the public in order to
generate and increase their interest in the business organisation's operations and its
manufactured goods and services and convert them into making a financial transaction
with the business organisation adding to its customer base, productivity and profitability.
Marketing is an essential business function for the sustained successful operations of
the business organisation within the consumer markets. Business organisations have
the choice to make use of mainly two marketing channels for their promotional and
advertisement operations, with these being traditional marketing channels and digital
marketing channels (Chaffey, 2019). Traditional marketing channels make use of
traditional marketing tools such as newspapers, magazines, TV and radio commercials,
billboards etc., in order to promote and advertise their manufactured goods and services
to the public. While digital marketing channels allow for the marketers of business
organisations to make use of digital marketing tools such as online websites, social
media applications, smart phone applications, SEO etc., allowing for business to market
their goods and products online through to a large base of audience at significantly less
costs attached, through the use of the internet. In order for the marketing operations of
any business organisation to be successful within their operational industries, the
business and its marketers are required to thoroughly identify, assess and research the
needs, requirements and preferences of their customers in order to be able to
effectively satisfy them.
This report assesses the marketing operations of Tesco, a global retail business
organisation that specialises in selling general merchandises and groceries to their
consumers within the customer markets of UK. Tesco was founded in 1919, an
astonishing 101 years ago by Mr. Jack Cohen as a small group of market stalls in
London, England. Due to its long and sustained successful operations within the retail
industries of UK, Tesco has had ample opportunities to grow and expand their business
operations to international markets in an effort to diversify their business operations and
increase their overall customer base, market share, productivity and profitability in the
consumer markets. Currently Tesco operates from its headquarters in Hertfordshire

England and functions within the retail industries of UK. Tesco has been successfully
able to grow and expand its operations to different countries across the European and
Asian continents and currently operates around in around 11 distinct countries through
its various retail establishments. In these 11 countries, Tesco currently operates around
6,800 different retail establishments in an effort to effectively be able to satisfy the
varying needs, preferences and requirements of their customers. In addition to the
expansion of the number of countries in which Tesco effectively operates in, Tesco has
also diversified its operations in ever increasing areas, with currently Tesco, through its
retail establishments also retailing to the customers additional goods and services such
as books, electronics, toys, software, clothing, furniture, home appliances, financial
services, telecom and internet services, in addition to a host of other goods and
services in an effort to effectively satisfy all of the varying needs, requirements and
preferences of their diverse customers within their establishments (Kotler and et.al.,
2017). Such diversifications of Tesco both in terms of operational countries and retailing
goods and services has allowed for Tesco to become the third largest retailer in the
entire world on the basis of gross revenues generated and the ninth largest retail
business organisation in the entire world on the basis of total revenue generated. In the
UK, where Tesco's headquarters are located and the primary operational country of
Tesco since its inception, Tesco has been able to capture a total market share that
consists of around 28.4% of the entire retail industries, making Tesco the market leader
in the entire retail industries of UK. By being the market leader in UK, Tesco has
observed immense success as is evident by revenue, net income and operating income
all increasing for the fiscal year of 2019. In 2019, Tesco was able to generate revenues
that totalled up to £63.911 billion Pounds sterling, in addition to generating around
£1.320 billion sterling pounds worth of net income. For all its varied and diverse
operations, Tesco employs around half a million distinct individual at various
organisational positions within its hierarchical chain of command.
In addition to the retail business of Tesco, it also incorporates multiple individual
subsidiaries and that further expand and diversify the operations of Tesco and the
markets it operates in. Tesco's subsidiaries include Booker Group which is a food
wholesaler, Tesco Bank which provides financial services to customers, Tesco Mobile

which is a virtual mobile network operator, Dunnhumby which is a data science
business, in addition to various other operational subsidiaries. The distinct operations of
these diverse subsidiaries allows for Tesco to operate in even diverse markets in order
to satisfy the needs and requirements of their customers.
MAIN BODY
Need of marketing research
Marketing research is a set of actions conducted between producers, customers
and end users. The aim of the marketing research is to identify the opportunities
available for the organisation. Marketing research is all about collecting facts that can
support company in dealing with all different marketing challenges and issues currently
Tesco Company is dealing with. Following points can demonstrate the needs and
requirements attached with marketing research.
Easily spot business opportunities: Marketing research support in identifying all key
business opportunities available for the organisation. The aim behind the marketing
research is to assess the set of opportunities company can entertain by delivering an
effective marketing campaign. Marketing research do not just based on conducting
research about different promotional mediums to improve the brand presence rather it is
more vast tool (Arora and Sanni, 2019). It involves all effective promotional models
along with the market needs, potential customer segments, future needs and
requirements and other key aspects that can support Tesco Company in identifying all
opportunities company can entertain while driving the marketing campaign. Tesco
Company is good known for its social media marketing campaigns which also more like
a reflection of effective marketing research conducted by company that allowed them to
deliver campaigns and strategies in right direction.
Lower business risk: Marketing research conducted by company allows them to
minimise the risk involve in business. Risk is always a part of the business as it needed
financial resources and time to carry out business activities. Involvement of all different
kinds of resources available for company improve the risk of loosing such resources in
doing business functions. Marketing research allows company to identify all key areas
that serves effective growth opportunities in market (Hair, Harrison and Risher, 2018).

Tesco Company channelises and functions all its marketing campaigns in the direction
associated with the needs and requirements of retail market across the globe which
also resulted into minimising risk in conducting the marketing campaigns of company.
Getting right direction for marketing campaigns drives to get lower risk for channelising
different marketing strategies. Marketing campaigns run by company based on the
marketing research allowed Tesco Company to gain strategic advantages that further
drives to gain effective sales in market. All such aspects related to marketing research
give potential opportunities to Tesco Company to minimise its business risk.
Create relevant promotional material: Marketing research enables company to
prepare relevant content for conducting different marketing campaigns of company.
Content has become one of the key demand behind channelising an effective marketing
campaigns of company. Content is the tool involves in marketing activities that support
company in attracting potential customers towards buying company's products.
Marketing research involves assessment about all key fundamentals involves in
conducting the promotions for company's products. It drives company to identify all
different growth opportunities currently company is a part off (Kubacki, and Rundle-
Thiele, 2016). ON the basis of the marketing opportunities identifies by company in its
marketing research marketing team of Tesco Company prepare its promotional material
to attract such opportunities. Promotional material is also diversified in nature. It not just
involve content for marketing but it covers all sides of campaigning editing, controlling
and monitoring, communication and other fundamentals related to company's marketing
campaigns. Marketing research includes all dimensions related to marketing activities of
company.
Identify effective promotion mediums: Promotional mediums are identified as all
such modes of promotions that can be channelises by Tesco Company to entertain all
opportunities projected by marketing research. This can be specify as among the main
objectives behind the marketing research. Tesco Company try to identify all effective
promotional mediums company can use for channelising its marketing campaigns.
Promotions mediums needs to be productive so that full advantages of the marketing
strategies company can entertain. Right proportional mediums provides right audience
for company's products (Meyerding and Mehlhose, 2020). In order to gain an effective

success for company's marketing campaigns it is essential to choose the right
promotion mediums. Marketing research allowed Tesco Company to channelise its
marketing strategies at all social media channels, You tube and other promotional
mediums to deliver the growth objectives of company.
Competitive advantages: Marketing research play huge role in taking competitive
advantages in the market. This is among the most significant aspect related to
marketing research. It can be projected as the key advantages associated with the
marketing researches. IN order to conduct the marketing research company try to
assess different sides of business. Competitors analysis is also a part of marketing
research. Competitor analysis in marketing research focuses on marketing and
promotional strategies other key competitors of Tesco Company like Marks and
Spencer, Asda and other competitors are using to run their marketing campaigns. IT
becomes important for the companies in market to deliver more attractive marketing
strategies to engage potential customers with products of company else company will
start to loose its market share. This can be stated as among the potential requirements
behind marketing research.
Drive better goals: Marketing research significantly allowed Tesco Company to drive
better goals for its marketing campaigns. Business environment is volatile in nature.
Due to volatility of business environment new elements and ideas also become part of
the corporate sector. IT is important fro the company to meet such changing trends
behind the marketing campaigns. Marketing research allows company to identify all
such changing trends currently a part of the organisation (Rindfleisch and Malter, 2019).
IT allows company to drive its marketing campaigns based on the needs and
requirements of such changing trends of market. For example in past few years Tesco
Company switched to online marketing and started giving main focus to channelise
online marketing more aggressively to entertain competitive advantages and growth in
market.
Improve decision making: Marketing research also improves the decision making of
the company related to its marketing strategies and campaigning. It has significantly
improved the decision making of marketing team in Tesco Company. Marketing
research supported company in all dimensions related to marketing campaigns of

company which significantly improves the decision making related to marketing
activities of company.
The above points projected about all key needs related to marketing research
conducts by Tesco Company before channelising its marketing campaigns.
Ways Through Which Tesco researches upon its Customer's Needs and Requirements
There are several ways and methods through which the marketers of Tesco can
identify, assess and research upon the varying and mercurial needs, preferences and
requirements of their customers. This is a significantly important function of the Tesco
marketers based on the various advantages that customer data can provide towards the
success of their marketing strategy, as is discussed priorly in the report (Cateora and
et.al., 2020). The various ways through which Tesco's marketers can research and
record data about their customer's needs, requirements and preferences are as follows:
Primary Research: Tesco can gather and research data relating to the diverse needs
and requirements of their customers within the retail industries of UK by conducting
thorough primary research. Primary research relates to all the research that is
conducted by the employees or marketers of Tesco themselves with the sole purpose of
the research being to identify and analyse the needs, preferences and requirements of
Tesco's customers (Philip, 2017). This research yields relevant, valid, reliable and
accurate results as the purpose of the research is aligned to the objectives and
purposes for which the researched data is going to be used. Primary research involves
Tesco's marketers going directly to their customers and asking them for their opinions,
views, needs, preferences and requirements through various means of information
gathering. For the purposes of conducting primary research, Tesco's marketers can
make use of various means of information gathering such as interviews, surveys,
feedbacks, questionnaires, focus groups etc., in order to effectively be able to collect a
lot of valid, accurate, reliable and relevant data for their operational needs (Armstrong
and et.al., 2018). The exact chosen means of gathering information for the purposes of
primary research depends greatly on the capabilities of Tesco, with all the different
means being capable of effectively gathering a lot of relevant data.

Secondary Research: Tesco can also make use of secondary research approach in
order to identify, assess and research the needs, requirements and preferences of their
customers within the retail industries of UK. Secondary research relates to the use of
research that has already been conducted by different researchers for their own
personal reasons and purposes, with their recorded and researched data now being
applied and used for quite different purposes than for which it was initially recorded
(Hollensen, 2019). This data is considered to be less accurate, valid, relevant and
reliable than the data collected by primary research as this data was researched for
completely different purposes than for which it is now being applied to by Tesco.
Nevertheless, secondary research approach is an effective method for Tesco to gather
information about their customer's needs, requirements and preferences. Huge amounts
of secondary data is typically available online for the purposes of Tesco, but Tesco's
marketers are needed to verify the accuracy, reliability and relevance of the data that
they use from secondary research.
Sampling techniques
It is method that is used to collect sample form large amount of data or population so
that specific outcome or information can be gathered. Marketing manager of TESCO
uses different sample techniques in order to identify needs and preference of varied
customer’s that are living in particular society (Leguijt, 2017.). Lot of time and efforts
spend by marketing manager of Tesco to effectively analysis data so that better
strategies can be formulated for growth and expansion of enterprise. There are two
types of sampling techniques such as probability and non probability such as:
Probability Sampling: It is types of sampling that state each member of large
population should have equal level of participation or chance to be selected. This is one
of the best techniques that is used by marketing manager Tesco to identify needs of
maximum number of individual. Simple random sampling is part of probability sampling
that states random individual or sample is taken for large amount of data so that final
decision can be taken. It is easiest and effectively method that helps in identifying needs
of different individual so that company can manufacture as per their requirements and
earn profitability.

Non probability: On the other hand it does not provide equal chance to all individual to
take part in selection or sampling process. It only select particular group that have
specific taste and preference therefore it is mostly based on subjective judgement of
researcher and limited in scope (Malik, Kumar and Smarandache, 2016). Therefore,
Marketing manager of Tesco have not use non probability method for sampling
information about needs and wants of customers.
Role of MR agency
Marketing researcher agency plays an important role in growth and success of Tesco by
providing various essential and necessary information about different customers that live in
specific society (Ismail, 2017). It performed different roles so that sales volume and profit
margin of enterprise can be enhanced through meeting needs of customer’s beyond their
expectancy. Various key roles that are played by MR agency can be illustrated as follows:
To collect data: Marketing researcher agency helps in providing important information about
recent trend and customer’s preference or unsatisfied needs so that overall objectives can be
achieved. It also finds out various technologies or marketing tool that are used by organization to
gathered crucial information so that company can gain competitive advantages in retail industry.
Diagnostic function: It also helps in finding various appropriate action need to be taken so
needs of specific groups need to be fulfilled so that Tesco can enhance its sales volume and
profitability. Thus, helps Tesco to easily launch products for target customers to earn more
profitability and market shares.
Predictive function: MR agency predict about various changes or demand of customers in
future circumstance so that company can formulate effectively strategies to accept these changes
and gain differentiate positioning in industry. Thus, it helps company in facing various external
challenged and find new and innovative method to make optimum utilization of available
opportunities (Verhoef, Kooge and Walk, 2016). Therefore, MR agency has effectively
contributed in growth and expansion of Tesco across worldwide and helps in establishment of
strong brand image.

MKIS information system
The marketing information system is one of the most innovative marketing
information system to bring on best marketing decisions which not only increase work
efficiency and gather stronger work force which further enables to disseminate useful
information within employees. Marketing data is formally gathered, stored , analysed
and distributed to top management where managers work in accordance with
information needs on regular basis. The MKIS is one of the most important innovation
coming within information technology in business scenario where Tesco aims to be
productive for bringing on best paradigms and factors of higher effective working
patterns with changing pace of time. Tesco being one of the biggest retail company in
UK and global industry having wide operations and keen innovation within working
fundamentals to achieve higher growth factors where data is stored and actively
formulated to bring on more profitable working paradigms (Sushenko and Matthnai,
2019).
 MKIS information system has been productively coming on with innovation and
technical advancement within business scenario which has brought huge
effective transformation to working operations. Tesco bieng one of the biggest
retail store within UK industry has dynamic working structures within all
operational factors through which it has been building higher dynamic functional
structure and effective forming of all functional patterns.
 The MKIS is one of the most used IT model which keeps all information
regulated within company to be actively worked on and the technical
advancement has also been actively developed with complete focus on keeping
all relative information within the viable metrics and to pertain onto more rational
usage and developed functional strategic presentation of data. Tesco focuses to
bring best working standards and higher information structured operations to be
advanced in all operations and keenly focused to keep all data within the safe
paradigms (Buccieri, Javalgi and Cavusgil, 2020).

 The information is disseminated by the MKIS at Tesco as the system not only
functions with best working standards but there has been functional effective
growth seen among company operations. Tesco working structural operations
are operated with MKIS, where all data is distributed among employees to bring
on more active decisions where the functional paradigms are not only sorted
effectively but also worked on with higher dynamic stricture which keeps
information distributed effectively among all operations, marketing teams and
employees.
 It has been evaluated that MKIS keeps all information disseminated and factored
with complete quested synergy of higher factored potentialities. Tesco being one
of the biggest company of retail UK industry has wide operations of data
management, marketing factors which enforces the viable usage of MKIS which
keeps all department units developed and factored in productive growth
paradigms but also increases functional efficiency.
Effective and efficient MKIS is the need of competitive business world
where there is huge demand for innovation and advancement within international
operational structural patterns to bring on positive synergy of higher growth
factors (Shukla and Gupta, 2018). Tesco aims to be one of the most innovative
brand within competitive business world which can be achieved with higher
business structure advancement and functional operations efficiency to bring on
rapid profitability within consumer market share and higher goodwill among
consumer market share. The Business world globally has been reconsigning
high potential factors of technology usage and data management, innovation
within business functional structure which is not only need of the era but has
triple impact on profitably.Tesco is one of the biggest retail brand having wide
operations and business departments catering to huge progression on the best
paradigms of factors working within management. An effective and efficient MIS
works as an asset for company as it not only brings departments under one
parameter of working operations but also there is higher inclusion of motivation
among employees to keenly develop new working patterns. Teso for productively
gaining larger profits within revenue factors need to invest further for building on