Marketing Essentials: A Comparative Analysis of Tesco and Aldi

This report provides a comprehensive analysis of marketing essentials, focusing on the strategies of Tesco and its competitor, Aldi. The introduction defines marketing and its functions, highlighting the importance of customer satisfaction and sustainable development. Task A delves into the key responsibilities and roles within marketing, including the marketing process, trends, and the application of marketing concepts within Tesco. Task B explores the marketing mix (7Ps) applied to both Tesco and Aldi, comparing their approaches to product, price, place, promotion, physical evidence, people, and process. Task C evaluates a basic market plan in an organization. The report also examines the interrelation of marketing with other departments like finance, production, and HR. It utilizes this information to evaluate the success of these organizations in the retail market. The report concludes by summarizing the key findings and the effectiveness of the strategies.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................3
Important responsibilities and roles in marketing......................................................................3
Roles and responsibilities of or marketing relating to organisation on a wider context............5
TASK B...........................................................................................................................................6
Marketing mix applied on different organisations to achieve business objectives....................6
TASK C...........................................................................................................................................8
Evaluation of a basic market plan in an organisation ...............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing refers to all those activities which result in consumers receiving satisfaction
through goods and services that is produced by an organisation. There are a number of different
functions which are included in marketing such as communication of goods and services, selling
as well as delivering them. It is also one of the functions of marketing to retain customers in
organisation for a longer period of time in order to make sure that company is developing
sustainably. In the following report is continued in context with TESCO which is a retailing
giant headquartered in UK. Various roles and responsibilities of marketing along with its
interrelation with other functions in organisation is discussed. A discussion on marketing mix or
TESCO and its competitor will also be conducted through the help of which marketing plan will
be derived. Marketing plan provides organisation with a pre determined path following which
organisations can effectively fulfil their goals (Perreault, 2018).
TASK A
Important responsibilities and roles in marketing
Marketing process refers to the procedure in which an organisation takes a number of
steps regarding identification customers problems, analysation of customers problems as well as
creation of various marketing materials in order to capture the target market.
Concept of Marketing: Concept of marketing explains that it is necessary for organisations to
analyse various needs, requirements and demands for their customers so that decisions regarding
satisfaction of their needs can be taken.
Trends in marketing: There a number of new opportunities arising in marketing
environment. Organisations are dynamically changing their values and functions in order to cope
up with changing needs of consumers ( Purvis, 2016). TESCO have successfully changed their
promotional style in order to make sure that with the changing market environment the
communication of information about their products and services is done in the best way possible.
They are issuing various loyalty cards to their regular customers. It is necessary to enhance
relationship with customers and also increase customer engagement. This is necessary to retain
the loyal customers and also gain new customers from competitive market.

Marketing process: Below mentioned are four steps that are followed by TESCO in their
marketing process:
 The first step include conduction of surveys in market place by team. All the external
threats and opportunities are analysed which can either bring them profits of save them
from losses.
 Once the survey is finished TESCO gains insight of market and categorises the
customers demand according to their various needs and requirements.
 After identification of customers and categorisation of market a marketing plan to
achieve the vision of organisation is developed in TESCO (Faßmannand Moss, 2016).
 At the end the plan prepared by marketing team is brought into action. It is made sure
that the execution of plan is done accurately to avoid any deviation from required
objectives.
The business of TESCO have drastically grown resulting in the company to be one of the
greatest retailer throughout the globe which employees around 460000 people and have 6800
operating stores. Million of people are served by TESCO every week with the help of offline as
well as online services they are providing to their customers. Even though it has maximum stores
in United Kingdom but company have great market shares in foreign markets including India,
Ireland, China and so on (Nirschl and Steinberg, 2018). The marketing function of company is
one of the major reason behind development and growth of company. Below mentioned are a
number of functions that are fulfilled by marketing department at TESCO:
Finance:Finance is essentially required to carry out any task in an organisation. In marketing
also finance is required. They need to create an estimated budget which will be used by them in
order to carry out all the activities. Major budget is allotted to promotional activities and market
research. It is necessary for marketing department to choose such options which is affordable by
organisation as well as bringing good results for it.
Market Information:The major function of marketing team at TESCO is to study the market fro
information regarding trends, needs and requirements of consumers, competition in market,
strategies of competitors and so on. All the tasks in organisation are dependent upon the
information that is collected by marketing team and then communicated to all other departments
in organisation.

Market Planning: The businesses are required to understand the relationship between cost and
its effectiveness. They need to derive a plan as per the needs of consumers. Marketing team of
TESCO develops a plan which works as a guide for them.
Designing and development of product: The designing and development of product should be as
per the needs of consumers. It is therefore required by marketing team of TESCO to understand
the needs of consumers and help production department in packaging and designing. Location of
products in stores is also designed by marketing department (Chernev, 2019).
Exchange Function: It is duty of marketing team in TESCO to look after the function of
exchange various ways in which customer satisfaction can be increased while providing goods
and services to consumers. Marketing team or TESCO is responsible for execution of exchange
and is also required to provide consumers with maximum satisfaction while exchange process is
taking place.
Channel of distribution: Logistics is one of the major factor that have to be taken care of by
marketing department as well. While deciding on various target market they are required to take
decision on how the products and services will reach to those potential customers. TESCO is
effectively using offline as well as online medium in order to reach all their customers. They
have set up their physical stores and are also selling through their own website.
Roles and responsibilities of or marketing relating to organisation on a wider context
There are ample of companies in which functional unit of marketing is considered as an
important factor that assists gaining its goal. It is needed in every company to improve functional
unit of marketing which can perform work in cooperation with various units of business
organisation to appropriately satisfy the need and wants of company ( Rowley, 2016). It is
important for organisation to improve functional unit of marketing that assists organisation to
compete at marketplace, satisfy need of user and bring profit margin of organisation. There are
different department of marketing in relation to TESCO that is given below:
Marketing And Research:
Research department is considered as a group of individual person inside the organisation
in addition with institutional expenditures that assess economic matter and also organisations.
Hence, it is significant for organisation to get innovative ideas from research sector for future
perspectives. In reference of TESCO, research department helps organisation to gather
necessary information that assists them in increasing products and services in the market. By

gathering necessary information, the organisation is capable to get actual need of individual
person and they can also pay penalties on those actions which offers then advantages and profit
. Therefore, marketing department of organisation requires discussion before implementation of
innovative action plan. It shows superior relationship among research department as well as
marketing department.
Marketing and Finance:
The finance department identifies different activates that is connected to banking, capital,
investment and many more. It also covers study of money, liabilities and also financial system.
In respect of TESCO, financial team always focuses on generating superior action plan for
marketing department for superior quality of goods and services along with low cost. In
addition to this, they sets appropriate budget for organisation in order to implement on costing
tool. The management team can contact with financial sector to accomplish goal.
Marketing and Production:
Production department signifies to produce products and services in an effective manner.
There are different functions performed by manufacturing department like machining, grouping
and finishing. In reference of TESCO, it is important concern of them. For satisfying market
need, production as well as marketing team inter-connect with one another. It helps them in
accomplishing objectives and increasing productivity at workplace (Campbell, Martin and
Fabos, 2018).
Marking and Human resource:
Human resource department is very important for every business organisation. The role
of HR team is to recruit, hire and provide training that helps in enhancing growth and
development of organisation. In reference of TESCO, there are various kinds of person perform
their work for goal and they emphasis on performance that helps in achieving target in timely
manner. Hence, HR professional of company give their views or opinions with marketing
department for accomplishing objectives.
Through description in respect of inter-connection of different department of TESCO, it
has been analysed that it is important for marketing team to perform work in cooperation with
another department. It is important that communication among these departments for
completing task in an appropriate manner. It assists subordinates to perform work together for
offering superior goods and services to its end user.

TASK B
Marketing mix applied on different organisations to achieve business objectives
Marketing Mix 7P's
Marketing department is integration of 7 factors of marketing that helps in accomplishing
goal connected to strategy of marketing. The comparison of TESCO and its competitive firm
ALDI that is given beneath:
Elements TESCO ALDI
Product TESCO deal with large number of
goods and services such as
electronics, foods and many more.
It assists in satisfying need of its
user by offering required goods to
its user.
They are specifically connected with
retail goods. The main purpose is to
offer superior quality goods and
different luxurious things to its end
user. They also provide alcohols and
vegetarian as well as non-vegetarian
products to its customer as per need
of its user.
Price There are ample of benefits that is
achieved by TESCO for offering
user with less cost goods with
superior quality products (Brychkov
and Domegan, 2016).
They emphasised on economic price
and also offer average quality goods
according to low costs. They
emphasised on competitive pricing,
unit pricing and so on.
Place The headquarter of TESCO is
located in England. There are large
number of outlets of TESCO who
focuses on meeting the need of its
user. There are different facilities of
TESCO involves TESCO Extra and
TESCO Metro and so on.
There are nearly 8000 outlets of
organisation in 18 countries. There
are large number of outlets of ALDI
that prevailed their operation online
and it permits user to check inventory
prevailed in nearby outlets.
Promotion TESCO adopting different online
and offline techniques in order to
They adopts superior communication
approach in stores for promoting

promote goods and services. They
adopt online facilities in order to
reach to a large number of user at
same time.
products and services. They are
emphasising on different type of
campaign for maintaining brand
image like SWAP and many more.
Physical evidence TESCO emphasis on putting all
their outlets hygienic and manage
favourable atmosphere in it.
Outlets includes goods from different
renowned brands and also from their
own brand. They also emphasis on
managing same costs in their outlets
globally.
People TESCO offers talented sales person
at outlets to meet need of its user.
They also offer different
programmes such as colleagues
privileged card for sustaining talent
with organisation.
They focuses on paying their
subordinates more than its
competitors for sustaining them and
also provide regular training to them.
They emphasis on layout to meet the
need or wants of user and employees.
Process The primal purpose is to manage
procedure for getting user happy.
They offer goods and services in
order to gain satisfaction and goal
must be accomplished.
The layout of outlets make it simple
for its user to get goods and also
eliminates need of employees. Billing
is also made simple sue to bigger
barcodes.
TASK C
Evaluation of a basic market plan in an organisation
Marketing plan is considered as a blueprint and written document of organisation that
provides strategies in relation to marketing within organisation. And it also provide information
regarding how organisations attract ample of user at marketplace. It is also determined as future
directed document that assists organisations to accomplish goals and that results in
accomplishing them in timely manner. A marketing plan is determined as a competitive strategy
or tactics of company that assists in compete with its target market (Kotoua and Ilkan, 2017).

Overview of Firm
TESCO is international brand that deals in retailing company and it is considered as a
largest private company located in Europe. It was given by Jack Cohen in the year of 1919 as a
largest grocery selling organisation in London. This organisation listed their business in London
Stock Exchange named as TESCO outlets limited and it is the biggest supermarket of UK. It was
started their grocery business as well as now it become biggest food retailer around the globe in
which around 2,318 outlets (Stephens, 2016).
Mission
TO offer superior quality products as well as services to its user for satisfying their need
or wants at marketplace.
Vision
The vision of TESCO is to be extremely valued organisation in front of its user,
colleagues and communities and so on.
Marketing Objectives:
 To offer advantages to its stakeholder and gain trust level in respect of different types of
brand.
 To emphasis on market trends and launch innovative goods to increase shares in market. To enhance profit margin and sales of company by 8% and 16% in upcoming 7 months.
STP Approach:
Segmentation, targeting and positioning is considered as a strategic techniques that assists
in assessing user for organisation and it assists in providing guidance to organisation for
improving and executing proper strategies. Therefore, TESCO adopts STP strategy that is given
beneath:
Segmentation: TESCO adopts the geographical segmentation in which they operate their
business in 12 countries and they deal with their good in both urban as well as semi urban areas
of different nations it based upon population of specific country. Segmentation assists in sub
grouping of whole market (Dioko, 2016)
Targeting: This tactics considers target customer of business organisation. It assists in
assessing whole target target market of organisation. TESCO adopts strategy which is named as
mass media marketing in order to target its user in which they operate their organisation.

Positioning: Positioning is considered as a strategy that assists in generating brand and
goodwill in front of customer at marketplace. TESCO focuses on building effective relationship
with its user and offer them superior quality goods which satisfies their wants and demands.

SWOT Analysis
Strength Weakness
 When taking other supermarkets into
context TESCO have developed itself
to be one of the largest retailers in
Great Britain
 The market share of TESCO is far
better than other retailers in United
Kingdom.
 The market share of TESCO in Ireland
is also at peak.
 There are a number of other brands
related to TESCO which include
TESCO Metro, TESCO Extra and
many more .
 There were negative effect of BREXIT
seen on TESCO. The shares of TESCO
faced huge downfall in the year 2018.
 Due to introduction of debit and credit
cards financial performance of TESCO
have been affected a lot.
 The profit margins are falling due to
introduction of various low price
policies by company (Mohamed and et.
al., 2019).
Opportunities Threats
 There are a number of new ventures
introduced by TESCO. There are new
discounted stores of Jack opened by
company which provides it better
opportunities than that of their
competitors such as ALDI and LIDL.
 TESCO can also go for forming joint
ventures which will help them to get
knowledge of various new markets and
they can perform well at local level as
well.
 There are a number of legal as well as
taxation matters that are to be handled
by TESCO in different countries they
are venturing. They may face problem
due to various legal crisis.
 A number of competitors for TESCO
are also resulting to be a threat for the
company. Sainsbury, ALDI and LIDL
are their major competitors.

Marketing budget
Particulars 1st year 2nd year 3rd year 4th year
Investment 10000 10000 6000 5000
Initial money 10000 5000 5000 5000
Total 20000 15000 11000 10000
Marketing
outlay
15000 1000 3000 5000
Sales
publicity
2000 2000 1000 1000
Direct selling 4000 3000 1000 1000
Promotion 4000 1000 5000 2000
Total 25000 7000 10000 9000
Monitoring and Controlling
It is the duty of marketing manager at TESCO to monitor as well as control all the
employees working as per the marketing plan so created (Burgess and Burgess, 2020). It is
necessary that all the task is performed in accordance with the budget that is created and
deviation from budget is ignored. It is necessary to keep a check and take care of the fact that
maximum benefits are brought in by the manager with the help of marketing plan so created.
There is a schedule created by manager and all the tasks have to be completed based upon that
schedule itself. Delay in completion of task may result in losses for company.
CONCLUSION
The importance of marketing function in an organisation can be clearly depicted with the
help of above report. Marketing is a huge concept which includes a number of different functions
and roles. Also all other departments in an organisation is affected due to activities of marketing
directly or indirectly. Marketing department working together with all other departments can
effectively help an organisation to achieve all its objectives. On the other hand marketing plan
provides organisation with a pre determined path following which organisations can effectively
fulfil their goals. Various roles and responsibilities of marketing along with its interrelation with
other functions in organisation is discussed. A discussion on marketing mix or TESCO and its
competitor will also be conducted through the help of which marketing plan will be derived.