Tesco Marketing Plan: A Comparative Analysis of Marketing Strategies

This report provides a comprehensive analysis of Tesco's marketing strategies, focusing on the application of the marketing mix (7Ps) and a detailed marketing plan. It begins with an introduction to marketing and an overview of Tesco, highlighting its position as a multinational retailer. The report compares Tesco's marketing mix elements (product, place, price, promotion, people, process, and physical evidence) with those of a competitor, ASDA, to identify key differences and strategic approaches. A significant portion of the report is dedicated to developing a basic marketing plan for Tesco, including a SWOT analysis, PEST analysis, segmentation, targeting, and positioning strategies. The plan also outlines specific tactics related to product, place, price, and promotion, along with a budget allocation and a plan for controlling and monitoring the marketing strategies. The conclusion summarizes the key findings and emphasizes the importance of customer relations and effective marketing strategies for achieving competitive advantage.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Covered in PPT...........................................................................................................................3
LO 2.................................................................................................................................................3
Comparison of ways in which marketing-mix is applied by different companies......................3
LO 3.................................................................................................................................................5
Basic marketing plan for organisation........................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is a business process which is used in order to maintain exchange relationships
with the customers. It is related to creating and maintaining relations with customers so that the
products and services of the company can be profitably offered to them. It includes all the
processes which helps the company to create, communicate, deliver and exchange its products to
customers so that value can be created for them (Bai and Chang, 2015). The following project is
based on Tesco which was founded in 1919 and has its headquarters in Hertfordshire, England,
UK and has become a multinational groceries and general merchandise retailer. It is the third
largest retailer in the world in terms of gross revenue and ranks ninth in terms of revenue. In this
report a comparison of 7Ps of marketing-mix will be done along with formation of a marketing
plan which will help the company to grow and develop in the competitive marketplace.
LO 1
Covered in PPT
LO 2
Ways in which marketing-mix is applied by different companies
Marketing-mix comprises of set of actions or tactics that a company applies in
determining various elements so that the customers needs and wants can be satisfied in a
profitable manner. 7Ps of marketing helps the managers in taking efficient marketing decisions
so that the sales of company can be increased. A comparison of ways in which marketing-mix is
applied by Tesco and its competitor is given below :
Basis Definition Tesco ASDA
Product These are the tangible
items that are offered by
the company to its
customers so as to satisfy
their needs (Baker,
2016).
The company deals in huge
range of products including
food, clothing, electronics
etc. so that every possible
needs of customers can be
catered.
It is one of the leading
retailer which deals in a
variety of products which
helps in improving the
standard of living of
customers.
Place It is the area where The company offers its The headquarter of ASDA

customers make
purchases and the
transactions are made in
exchange of goods and
services.
products through its stores
that are located in different
countries so that customers
can be efficiently reached.
is in Yorkshire, UK and has
its presence in a large
number of countries from
where customers can
purchase products.
Price It is the monetary value
that the customers are
ready to pay in exchange
of the products or
services they receive
(Chernev, 2015).
The company offer its
products at as low prices as
possible by following cost
leadership policy so that it
can gain a competitive
advantage in the market.
The company offer its
products at cheap and
reasonable rates by
adopting promotional
pricing policy and also
offers several incentives
and discounts on special
days so as to increase bulk
sales.
Promotion It is the way in which
customers are attracted
towards company
products which help in
increasing its sales.
The company uses various
strategies so that customers
can be attracted like
offering discounts and
providing offers. It
advertise extensively
through print, social and
other media to promote its
products.
The company uses various
media channels such as TV,
newspapers, radio, social
media etc. so as to promote
its products and also it
promote its sales by special
offers like buy one get one
free, cost reduction etc.
People These are the staff
members and employees
of the company who help
in building long-term
relations with customers
(Festa and et. al., 2016).
The company has an
excellent sales staff that
helps the company in
achieving its targets and
also in building good
relations with customers.
A large work force forms
the part of company's staff
whose efficiency is
enhanced by the company
by on-the-job and off-the-
job training etc. so that
better customer relations

can be maintained.
Process It is the way in which
products and services are
made available to
customers so that their
experience can be
enhanced.
The company gives
convenience to customers
by speedy billing services
and easy display of
products both offline and
online so that their
shopping experience can be
enhanced.
The company provide
customers with services
that are available for 24
hours so that experience of
customers can be enhanced
and their convenience can
be increased.
Physical
evidence
These are the visual
proofs of exchange of
transaction between
customers and company.
The stores of the company,
shopping bags, bills, gift
hampers etc. provides the
physical evidence of
transactions with
customers.
The company brochures,
logo, website, stores etc.
forms the part of company's
physical evidence in the
competitive environment.
Tesco Plc can use various tactics that can help it in attracting its target customers by
using 7Ps, STP etc. in an efficient manner so that the needs and wants of customers can be
effectively fulfilled by providing them with products and services as per their demands. These
can help Tesco in becoming highly competitive in market so that high profits in market can be
achieved.
LO 3
Basic marketing plan for organisation
Company overview : Tesco plc is a British international company which deals in
consumer goods and general merchandise and is the third largest retailer in the world in terms of
gross revenue. The company is headquartered in Hertfordshire, England, UK and is located in
different parts of the world through its 6,800 shops. The company offers a variety of products to
the customers so that their demands related to consumer goods can be efficiently satisfied
(Hayhurst and Wills, 2018). The company now aims at manufacturing some of the products such

as clothing so that customers can be provided with high quality of clothes at reasonable prices for
which following marketing plan is made :
SWOT analysis
Strengths Weaknesses
 The company has a leading market
share which will help it in easily
reaching to customers and offering
them with their new products.
 The company is present in a large
number of countries which makes it
easy to enter in the market
(Homburg, Jozić and Kuehnl, 2017).
 The company has faced certain
accounting scandals and frauds in the
company due to increasing corruption.
 The company also faced poor
operational performance in specific
markets due to inefficient market
research.
Opportunities Threats
 The demand of fashionable clothing
from famous brands is increasing
which will help the company to
promote its new products.
 There are a large number of untapped
markets in which the company can
expand its business.
 Rise in inflation and economic crises
affect the operational efficiency and
performance of the company.
 With Brexit the company might face
problems in trade deals and cost matters
which might affect the company in
negative manner (Lamb and Crompton,
2017).
PEST analysis :
Political Factors Due to Brexit the company might face problems in trade policies
and importing raw materials required for manufacturing clothing.
However, increase in subsidies to the manufacturing sector by
government can benefit the company.
Economic Factors The unemployment is high which will help the company in getting
cheap labour however growing GDP can help the company in
efficiently entering in the manufacturing sector (Perreault, 2018).
Social Factors The increasing demand of fashionable clothing at lower prices can

help the company to manufacture clothing. However changing
customer needs can be a threat for the company.
Technological Factors UK is technologically advanced which will help the company in
using new techniques to manufacture high quality clothes at low
prices.
Marketing strategies :
Segmentation Tesco can segment its market on the basis of demographic, geographic and
psycho graphic factors so that a large market can be divided into small
segments which will help in efficiently marketing company products.
Targeting It refers to selecting a target market where the company will focus its
marketing strategy and offers so as to influence customers to make
purchases.
Positioning It means emphasizing on the key features of company products so that the
products offered by it can help it in achieving a competitive advantage in the
market (Stead and Hastings, 2018).
Tactics of Tesco :
Product The company is planning to launch clothing that will be manufactured by the
company itself under its brand.
Place The company will sale its products in its stores that are located at various
locations all across the world so that all the customers can be efficiently
reached.
Price The company is planning to offer fashionable clothing for both men and women
between the age of 20-40 at reasonable rates so that fashion can be made
available to customers at lower costs.
Promotion The company will promote its new products through advertising on various
media and also by providing offers and discount to customers.
Action plan

Budget allocation : Budget is a statement which helps the company in anticipating the
revenues and expenses in launching new products so that appropriate funds can be apportioned to
all the departments that are involved in manufacturing the new products. It helps the company in
monitoring its expenses while launching the new products in market so that the goals and
objectives can be achieved by the company (Marketing Plan. 2019). The estimated budget of
Tesco for manufacturing the fashionable clothing is given below :
Particulars Amount (£)
Marketing 1900
Human resources 9000
Equipments 200000
Place 40000
From the above it can be analysed that Tesco will have to spend a lot of funds in
acquiring the equipments required for manufacturing fashionable cloths. They spend less on
marketing as the company has a high brand image.
Controlling and monitoring : It is important to control and monitor the marketing
strategies and policies implemented by the company so that it can achieve its goals and
objectives on time in an efficient manner. This will also help the company in improving its
performance so that efficient results are obtained and the activities can take place within the
determined cost and time.

CONCLUSION
From the above report it can be concluded that for building a brand image the company
needs to build strong relations with their customers by timely analysing their changing needs and
wants so that value for customers can be created by providing them with products and services
they desire. It is also important that all the functional departments of the company coordinate and
interrelate with each other so that company can achieve its goals on time and within budget. Also
various marketing strategies like STP, 7Ps of marketing mix etc. are important for the company
to achieve competitive advantage in the market which will help it in increasing its sales by
maximising customer satisfaction.

REFERENCES
Books and Journals
Bai, X. and Chang, J., 2015. Corporate social responsibility and firm performance: The
mediating role of marketing competence and the moderating role of market
environment. Asia Pacific Journal of Management .32(2). pp.505-530.
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Chernev, A., 2015. The marketing plan handbook. Cerebellum Press.
Festa, G and et. al., 2016. The (r) evolution of wine marketing mix: From the 4Ps to the 4Es.
Journal of Business Research .69(5). pp.1550-1555.
Hayhurst, R. and Wills, G., 2018. Organizational design for marketing futures. Routledge.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science .45(3). pp.377-401.
Lamb, C.W. and Crompton, J.L., 2017. Analyzing marketing performance. In Marketing the
Public Sector (pp. 173-184). Routledge.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing(pp. 29-43). Psychology Press.
Online
Marketing Plan. 2019. [Online] Available
through :<https://www.investopedia.com/terms/m/marketing-plan.asp>