Marketing Strategies: Tesco and Competitor Analysis Report

This report provides a detailed analysis of marketing principles, focusing on the operations of Tesco, a British multinational grocery store. The report begins by defining marketing concepts, including the production, product, selling, marketing, and societal marketing concepts, and outlines the different marketing processes such as market analysis, target market selection, and marketing mix development. It then explores the roles and responsibilities of a marketing manager, including strategy development, environmental monitoring, and market research, emphasizing the interrelation of the marketing department with other functional departments like production, finance, and HR. The report highlights the importance of the marketing role within Tesco, discussing its impact on product development, pricing, distribution, and customer satisfaction. Finally, the report compares two organizations using the 7Ps of marketing and provides a marketing plan to meet marketing goals and objectives, including SWOT analysis and an analysis of Tesco's organic product line, concluding with a discussion on effective interdepartmental relationships and their impact on the success of Tesco.

Marketing essential

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Part 1................................................................................................................................................3
Concept of marketing.............................................................................................................3
Different marketing process...................................................................................................4
Roles and responsibilities of marketing manager...................................................................5
Interrelation with other functional departments.....................................................................6
Importance of marketing role in Tesco..................................................................................6
Conclusion on effective interrelationship...............................................................................7
Part 2................................................................................................................................................7
Comparing two organisation with the help of 7p's of marketing...........................................7
Marketing plan to meet the marketing goals and objectives................................................10
Objectives.............................................................................................................................11
SWOT...................................................................................................................................11
4p's of Tesco organic product...............................................................................................11
Monitor and controlling........................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing can be termed out as activity that aids to promote the buying and selling the
product and services to individuals. It can be undertaken with help of advertising, sales
techniques and publicity. However, this is defined as set of institution that aids to conduct the
services as to create, communicate and deliver services to consumer and other business as a
whole.
The study is based on business activities of Tesco, it is a British multinational grocery store
and its headquarter is located in Welwyn garden city, Hertfordshire, England, United Kingdom.
The founder of Tesco is Jack Cohen and it was founded in 1919, 100 years ago. It deals in
product and services as grocery commodities.
However, report will outline the activities as to determine the roles and responsibilities of
marketing managers. Thus, interrelation between the various department of marketing has been
defined to evaluate its functions. Lastky, report has conducted marketing plan to launch organic
product to full fill the need of health conscious customers.
MAIN BODY
Part 1
Concept of marketing
It is defined as philosophies that assist the enterprise to study the need and wants of the
customer’s. Henceforth, enterprise need to take the decision that can lead up to satisfy the need
of consumers. There are 5 essential concepts of marketing and current and future trends in it
which are:
1. The production concept- This is the basic concept of marketing. This concept of
marketing shows the condition of customers who mostly preferred cheap quality
products. Almost every manager has focused on high efficiency of production, low costs
and mass distribution. Customers take interest in product availability and low prices, to
increase in supply producer have to cut the cost of production as output will increase and
manufacture quality of goods efficiently (Baltes, 2015).
2. The product concept- According to this concept they believed that the high quality of
products. Focus of managers is on producing high quality products and then improve
them with overtime. The assumption is that customers mostly choose well made products.

They can judge quality. Managers don't approve their success on product and then they
will forget to make improvements in its quality.
3. The selling concept- Organization and consumers, if they left on their own then company
will not purchase enough goods for selling for the firm. Sales and promotion must be
taking out because users show hesitation in purchasing the products. This business has
habit rather they have to sell what they have than manufacture wanted products The
organization have to grab allocated tactics and tools of selling.
4. The marketing concept- This concept is different from all other concepts. The aim of this
principle is to cross their competitors or beat them in producing quality of products,
communication way with the customers, availability of products and their prices.
Consumer is the king here. This concept is based on 4 pillars which are needs of clients,
target market, integrated marketing and profitability.
5. The societal marketing concept- Finds the needs, wants and interest in target markets and
according to them it delivers the satisfaction in more efficient way and more in
comparison with their competitors. Production is also completed with the customers'
wellbeing in mind (Saura and et.al., 2017).
Different marketing process
It is a series of steps that allows the company to find out the problems of customers,
analyzing opportunities in the market, and create material for marketing to reach the targeted
audience. There are the 4 steps of marketing which includes find and target the right customers
in the market.
 Analysis the opportunities in the market- The basic process of this component is to
analyze the market and find the opportunities which are available because these needs
and wants are related to the customers who are not completely satisfied with the
competitors in the market.
 Selection of target market- This is the most important step in the marketing process in
which they have to select the customers which are going to be targeted. For this company
carefully analysis the targeted market to choose the final audience.
 Development of marketing mix – Demand of the product is affected by using various
activities of marketing mix. This mix has four p's.
1. product- It refers to offering goods and services to market by company.

2. price- refers to money given by customers to purchase the product.
3. place- It means, efforts which assure the availability of product in the market.
4. promotion- It is the way to give information about the product in unique way to customers in
order to attract them.
 Marketing efforts- it is just a developing the program for marketing and the four
functions are adopted which are: analysis of market, then plan for market, them
implement the plan and at last control the market (Ryan., 2016).
Roles and responsibilities of marketing manager
Marketing manager have so many roles and responsibilities in TESCO and what are they is
mentioned below:
Become the company expert and work closely with remote and local teams to authorise
campaigns. For understanding the potential opportunities, the daily interaction with the
marketing team is necessary. Give training to the new users of the system. At first cover all the
email marketing, this role will extend with the time to cover whole area of multiple channels.
There are some responsibilities also which are mentioned below:Roles of marketing manager
 Developing marketing strategies and plans- manager of the company has to find the
needs of customers and wants, deliver them and communicate premium value. Planning
is managerial process for developing and maintaining balance between organizations
which are skills, objectives and its changing marketing opportunities. Strategic planning
has four levels: division, corporate, business unit and product.
 Monitoring marketing environment- Managers have to look for the trends which are
running in the market and change them into opportunities and with the change in global
scenario, marketers have all focus on six main environmental forces which are economic,
demographic, socio-cultural, technological, political and legal forces.
 Research in Marketing- At the time of seeing the environment in market, managers also
have the knowledge of the company. This particular knowledge is related to their
company's, their product, team of targeted consumers and response to their
communication efforts.
Responsibilities of manager

marketing manager have to manage all the the activities in the company and also in the market
department also. They have to Establish a price strategies which helps to maximize profits.
Identifying new customers in the market. With the help of advertising managers create
promotions. Developing and Understanding budgets, including expenses, research and
development allowance and projection on profit loss. Manage and develop advertising
campaigns. Plan for conferences for the company, shows and major events also. Building
awareness of brands and positioning. Maintain and evaluate a strategy for market. Communicate
the plan for marketing. Research for the demand of products and services which is necessary for
the organisation.
Interrelation with other functional departments
Marketing is to learn about customer’s needs that what they want, then inform to Tesco to
do the delivery of that product and services. Marketing has a great relation with every
department and how they interrelate with other functional departments is mentioned below:
 Production management- department of marketing will have to work nearly with the
department of production to just assure that development and research is planned to fulfill
the present and future needs of customers. The quantity of orders will generate through
marketing and they will met with the schedule which is required for delivery. It is like
that department of marketing will put deadlines which will stretch the capability of the
production department.
 Department of Finance- Department of marketing have to also work nearly with the
department of finance to ensure that there is enough budget to meet the needs for
promotion, research and distribution. The marketing department have to focus on volume
of sales and creating a market share, where finance department have to be focused on
covering cost, cash flow and paying back investment as soon as possible.
 HR department- The department of marketing have to build strong relations with the HR
department to assure that suitable skills and staffing are in place to develop and research
new ideas for product. Meeting with the targets of production and create a competent
sales team. The HRM department have so many demands and training for recruitment
but they have to balance its responsibilities to marketing with other departments.

Importance of marketing role Tesco
The important objective of Tesco is to develop and maintain the satisfied relationship with
both customer and company to get the benefits. At the Tesco level, marketing is essential
function of business which is necessary in all industries whether Tesco operates as for profit or
for non profit. Marketing role is important for the Tesco because it develops products which
satisfy needs. It helps in creating aggressive environment which helps in lowering the prices of
products. By developing distribution system of product that offer approach the products to a
large number of customers and other geographic regions. In extending the demands for products
that helps Tesco to expand their force of labor. Identify customers and able to understand the
needs and wants of customers. It is important because it identify that whom to target and how
Tesco reach to them. Satisfying customers through making the right product and make it
available to the right people at the right time. It is important because it retain customers for
Tesco. Tesco have to focus on their customers and provide a reason through which they come
back. Offer techniques that acquire the ability to send text that will change the behavior of
societal in a positive way (Tatlow-Golden and et.al., 2017).
Conclusion on effective interrelationship
Success of Tesco or any other organization begins with the success of marketing team. All
the departments are interlinked with each other if one department is facing problem then it is sure
that it will affect other department too. The finance department has a great impact on every
organization because it provides funds for other departments and company knows that money is
the essential factor for their organisation. By supporting the department of marketing it will
provide a lot of information which is helpful and effective in maintaining the relation of finance
department with the marketing. Surveys will create impact on production department because
through this organisation get to know that what are the things which is unlike by the customers
about the product and also helps in doing effective marketing for organisation. (Chaffey and
Smith., 2017).
Part 2
Comparing two organisation with the help of 7p's of marketing.
Marketing mix is actions or it can be tactics, which is used by company to promote its
brand or its product in the market. The marketing has its 4p's which are extended to the 7p's

which are price, product, promotion and place and extended ones are people, process and
physical evidence (Stephen., 2016).Comparison between Tesco and Sainsbury according to the
7P's
Basis Tesco Sainsbury
Product Tesco is a huge brand and it
has large range of products at
its different stores. The
products available in the Tesco
are food, beverages, pet care
products, frozen food, bakery
products, gaming products,
technology.
Sainsbury also has large
offering for its customers
under strategy of marketing
mix. They are offering 30,000
products and 20% are from its
own brand. Some products
which are ready to eat meals
and bakery products, food
products, home collection and
furnishings etc.
Price Tesco adopts the strategy in its
pricing. By maintaining quality
they also provides low priced
goods at the same time. Tesco
use best channels for
acquisitions to maintain low
prices. Tesco cuts promotional
expense after receiving
feedback from customers.
Tesco recently launched some
new products at low prices.
The pricing strategy of
Sainsbury is depends upon
customers which are value for
money. Sainsbury uses good
discrimination of price policy
as per the product positioning,
thus usually access a premium
price. Sainsbury basic range of
products of kids are low and
also with excellent quality
which is value for money.
Place Tesco has more than 6900
stores in 11 countries. Tesco
has these kinds of stores which
are Tesco Metro, Tesco extra,
Tesco express and Tesco
Sainsbury has total 598
supermarkets and 714
convenience stores and out of
them 45 stores runs 24/7 and
the rest ones are open on

superstore. . Fridays till midnight. They
offer home delivery and online
website option also. .
Promotion Promotion strategies in Tesco
are that they have a strong
image of their brand. Tesco use
Hoardings, advertisement on
television, charitable events as
promotional channel. They
provide huge discounts and
offers like buy one get one.
Tesco has 'Tesco Clubcard'
which provides different offers.
Tesco sells its product online
for promoting.
The strategy for promotion is
that sainsbury use promotional
strategies to attract the
attention of customer and to
create its brand name. Using
david beckham for advertising
and to highlight its sponsorship
in London paralympic games.
Use of television and radio in
ATL and sales promotion and
packaging under BTL.
People Tesco is a leading brand and
giving work to lot of people.
These are the employees of the
company which are selected
through selection process held
by company. There are
4,80,000 employees in 11
markets. Employees of Tesco
are supportive and help each
other.
Sainsbury has well trained
experts and professionals who
knows the sensitivity of
consumer behaviour. First
preference is always given to
customer by sainsbury, giving
trainings to employees to
satisfy the needs of consumers.
They introduced level 2 craft
skills for bakers.
Process The process which Tesco
follows is that Tesco will attain
market task and kept in mind. It
was designed in that manner
that made changes from the
Sainsbury provide online
shopping option for its
customers. Just click and
services of groceries will come
in front of you. Also makes

policies of the company which
were kept as minimum. Other
factors which are considering
the service feature,
accessibility and capacity level
of production.
changes in its pricing and
allocation of slots of delivery
which increase number of
orders and customer loyalty.
Physical evidence It is a proof of real products
which are given to the
consumers included logos,
labels, colours and equipment
are the physical evidence used
by Tesco. The stores are also
example of physical evidence
because it is a place of that
brand.
Sainsbury has excellent
strategy to market its products
through physical evidence. It
has various layouts and
designs of stores. The quality
of trolleys and baskets assure
well shopping experience. The
layouts of shelves in the stores
are impressive and makes
shopping convenient.
Tesco is a huge brand name and through marketing mix they are promoting their products
through various methods and by implementing the proper plan which is done through proper
planning and after that they are working on their team to be more effective and increasing their
distribution channel is also helping them to achieve their objective. Sainsbury is using broadcast
media to promote and through setting up stores in the center of the market is helping them to
attract the attention of the people and at last the effective plan which they are implementing to
achieve objective is providing home delivery of their product.
Marketing planning to meet the marketing goals.
Marketing plan
Executive summary
After analyzing the changed habits of UK consumers, it seems that consumers begin to shape

the company in the sense of health consciousness and awareness of product quality. Starting
from this report aims to suggest new segment for Tesco which gathers all its organic and health
related products under the one brand or label called Tesco Wellness.
Mission-
for creating value for customers, to earn their loyalty for lifetime.
Vision-
Tesco wants be the most high value business by: the consumers they serve, the communities in
which Tesco is operating and their loyal colleagues and at last their shareholders”
Objectives
 Awareness for the organisation to achieve the goals organisation.
 increase market, share by 25% till the end of year 2021.
 enhance customer experience by 11% in upcoming 4 months.
 increase profits by 23% till the end of year 2021..
SWOT
Strength-
 Tesco has not allowed any competitor to come any close to them. No one has ever dared
to challenge them.
 There is a high revenue of Tesco because of Huge brand name and this is the advantage
for the chosen organisation they don't need more promotion because of huge brand
name their stores are already known by everyone.
Weaknesses-
 The weakness of Tesco is that it is not being able to provide privacy to its customers.
 Because of growth in competition with Walmart, sainsbury has to face lose in the
market share.
Threats-
 Other stores are finding and implementing new things for distribution of their product
and this will lead to less revenue for the organisation.
 The two competitors that Tesco is feeling a threat from are Walmart and miller. They
are growing so rapidly that Tesco is scared to lose its spotlight.

Opportunities-
 Tesco prepared to be marketed which could become a boost for Tesco to progress and
develop.
 Chosen organisation needs to find innovative things for their product and this will be the
best opportunity for organisation to attain growth in the market.
STP process
 Segmentation- The market is segmented in four dimensions which are demography,
psychography, geography and behaviour.
 The relevant variable of demographic dimensions are age and income, which permit to
distinguish, among children, young, adult and old age people and on other hand it is
among lower, middle and upper class.
 Geographic dimension is relevant because various places may be associate to different
states ans shopping habits.
 Psychographic dimension is more concerned about health and well being or it is
interested in new flavours, new channels or innovation in normal.
Targeting-
Tesco is adapting an everything to everyone approach which lead to covering almost all
possible segments of the market. Tesco products are for special diet requirements and different
special things according to regional preferences. Tesco has also different stores which helps to
meet the dissimilar needs and shopping habits of customers.
Positioning-
The performance is associated to the Tesco wide availability and great online service. It also
shows the unintelligibility of its brand perception and its brand communication. Tesco states on
its website that customers wants great products at a great value which they can purchase easily
and its organisation job to deliver this in the right way to customers.
4p's of Tesco organic product
Product- The company is coming out with a new device or product which is Tesco organic
product to compete with the competitors. The herbal products are good for health of the
customers and the its organic natural ingredients also (Todor., 2016).
Price- Using market skimming price strategy for Setting price of the organic products and the
pricing strategy which we will going to use is that we will set a high cost for our new product

which will lead in high profit quickly and also because they did not entered in this market
before so they need to establish the market first so that they can get in more customers.
(Yasmin, Tasneem and Fatema., 2015).
Place- The product will be sold first in UK first to see if they can sell this product world wide
and will be accepted by the people. Tesco herbal product once becomes good enough selling
product then it will be launched all over the world.
Promotion- The company is not promoting it fully because the brand name is already too
strong. But Tesco is still putting its advertisements everywhere so that they can establish the
market in herbal product field too.
Budget allocation
Key resources Price(dollar)
Raw material $200
Labour $270
Technical advancement $300
Promotion $110
Total budget $880
Hence the marketing budget for the product and services will be this.
Monitor and controlling
The price is kept low so that more and more customers want to try this new product. This
product is not make for any specific race, culture, gender, etc. This product is made for all kind
of people and for satisfying them as much as possible without damaging them. The product is
safe and satisfying according to the survey which Tesco had done with the employees and
outside people to take a feedback from them .
The quality of the product is unbeatable with the price they have put it for. Even if, the other
company's try beating this product they will not be able to (Yadav, Joshi and Rahman., 2015).

CONCLUSION
This brief describe about how marketing essential is important for organizations. Through
this all project we get to know about that how marketing concepts and marketing process helps in
achieving the desired goal for the organisation. It shows that how roles and responsibilities of
marketing manager manages all the activities within the organization. by interlinked with other
department it will result in showing benefits which comes from interlinked with other functional
departments. Explanation how role of marketing is important for organisation. With the help of
marketing mix we can see where the company is lacking and where they can do more growth.
The plan of marketing is essential ton know the vision and mission of the company. In the end it
shows that how company can do their growth by adopting various marketing plans.

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