Marketing Analysis: SWOT, 5 Forces, Segmentation of Tesco Corporation

This report provides a comprehensive analysis of Tesco Corporation's marketing strategies. It begins with an introduction to marketing concepts, followed by a detailed SWOT analysis of Tesco, examining its strengths, weaknesses, opportunities, and threats. The report then applies Porter's Five Forces model to assess the competitive environment, evaluating factors such as competitive rivalry, supplier power, the threat of new entrants, the bargaining power of customers, and the threat of substitute products. Further, the report delves into Tesco's market segmentation approach, outlining how the company classifies its customer base to tailor its products and services. Finally, the report examines Tesco's marketing mix and strategy, including product, price, place, promotion, process, physical evidence, and people, and how these elements are utilized to achieve marketing objectives. The report concludes by summarizing the key findings and emphasizing the importance of marketing in the success of the corporation. References to academic journals and books are provided.

Introduction to
marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Swot analysis...............................................................................................................................1
Porter's five forces.......................................................................................................................3
Market segmentation...................................................................................................................4
Marketing mix and strategy........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing includes the buying, selling or promotion of he product and services. It also
involve the advertising, delivering of products to the customers or another enterprise. It also
involve the P factor which includes the place, promotion, price and product (Dobscha, 2019).
This report takes the Tesco corporation, its a British multinational company, it deals with
groceries items and general merchandise. Tesco headquarters situated in united kingdom ,
Hertfordshire, England and Welwyn garden city. It was founded by jack Cohen in 1919. In this
report give the brief content about Tesco which includes the swot analysis, porter five forces
model, market segmentation and marketing mix strategy.
MAIN BODY
Swot analysis
Strength Weakness
 Tesco built its significant recovery, in
the context of financial turnaround, tesco
acquire or regained annual loss
approximately6.4 billion in yearly report
of 2015. and net income profit is around
1.9 billion in yearly report of 2020
(Tesco SWOT Analysis, 2020).
 in addition of market share, Tesco
grocery market share is approximately
26.9% in England. Strong performance
during the pandemic, the growth of
Tesco is increasing on online platform. It
also register around 10.5% growth rate
since last three months. Also looking
forward for hiring the candidates
(Deepak and Jeyakumar, 2019).
 In term of adaptability tesco faced all the
 It involves the failure in US and japan
market . The organisation about to
closed all the stores in the US and
japan market. Because tesco unable to
do export production. And identify its
plan significantly.
 The major weaknesses of tesco is club
card switching. It changed the club
card with give any information to the
consumers, in which consumer got
angry about the business, and they
move forward to other brand.
 Weak production performance, in
some of the countries tesco always
perform low. Which directly impact to
the marketing department, it shows
there is no reliable research on coming
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difficulties, due to this pandemic, tesco
capable to do its delivery capacity
around 1.5 million slots.
stores.
 Tesco also face less operational profit,
it affecting the performance of the
company, its generating minimum
profit because price of market share is
decreased approximately 9% which is
negative impact for the company.
Opportunity Threats
 Tesco has an opportunity to open the
new store and finally did it. The name of
the store is jack and its doing well,
company decided to invest the money
for the future growth of the organisation.
 Tesco already expanded the business
approximately in 14 countries but there
are few rising market place like: turkey,
south Korea and Indonesia. These
market have courage to grow fast.
 Tesco build the mobile application for
the user and also upgraded with fastest
services along home delivery. This
things make attention towards the
consumer.
 Joint ventures partners also looking
forward to learn the knowledge about
local market place. After that
performance will increase which shows
graph up to the mark.
 The major threat of tesco is national
economic crisis which includes
governments terms and condition,
taxes, credits these things decreased
the growth rate of tesco in other
countries.
 Tesco did the some advertisement of
of its food product by the name of
wood side farms, but there were no
this type of brand name in stock list.
 Supermarket competition: There are
massive supermarkets to compete the
tesco, and the name of those giant
markers are: Walmart, carrefour and
Aldi. Which create difficulties for the
organisation (Armstrong and et. al.,
2018).
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Porter's five forces
Porter's five forces model is tool in which identify the organisation environment which
shows the rivals of the firm and threats of the organisation, providers, consumers and substitute
goods which convenience the company's profit making. In the addition of tesco its includes all
the factor which analysing the corporation atmosphere is given below:
competitive rivalry: this terms includes number of strength of the competitors, where
company attracts the consumer with high cost cutting and high affect on market drive. In the
context of Tesco, these rivals are moderate for the organisation because there are so many
competitor which willing to compete with tesco and make the hype in the market (Boyd, and
Koles, 2019).
Supplier power: supplier power is high because the buying company no secondary are
accessible so in which providers are in high position. Tesco is multinational company which is
high in competition, if there is high competition supplier will come automatically in powerful
position.
Threats of new entry in the market: If new organisation is looking forward to start up
in the market for generate the revenue and profit In the context of competition company which is
tesco so, it is not possible because new entrants have to investment higher amount of cost so,
can compete with the business. Second thing is that is new terms and conditions, product
differentiation with branding, price of the particular product. All these factor creates a lot of
barriers enter into the market or compete with high reputed brand. Tesco also looking forward to
gain more, so not easy for new arrival make a competition with them.
Bargaining power of customers : In this customer are not willing to do bargaining
because in the relation of tesco, This organisation is multinational company also known as high
reputed organisation this company have excellent footfall of the customer which generates high
probability so, in this there is no bargaining power of customers (Perreault, 2018).
Threat of substitute product: This means substitution of products are available in the
market which influences the number of customers to make buying decision. In context to Tesco,
there is moderate threat of substitution as there is less substitute products are available in market
which might be affected the business negatively.
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Market segmentation
Market segmentation is the activity which uses by organization to classified the groups of
people in to different aspects which can help to provide the products and services accordingly. If
all activities and functions are properly managed then it will be opportunity for organization to
grow their business and attain the profitability (Chaffey, 2019). In context to Tesco, market is
segmented in to different groups such as:
Segmentation: In this management of Tesco is focusing on demographic level where it
understand the needs of their customers according to different age group that can help to attracts
the number of customers.
Targeting: Herein, Tesco is targeting to all ages of people who wants to fill their basic
needs and wants in certain period of time (Sozen and Devrani, 2020).
Positioning: Tesco wants to maintain a higher position in supermarket by offering the
variety of products and services that helps to increase organizational performance.
Marketing mix and strategy
Marketing mix is the foundation model that uses by organization to introduce regarding
products and services. Tesco is using different marketing mix that are as explained:
Products: Tesco is larger size super market that provides the different retailing products
such as grocery, cosmetic, and daily needs items that attracts number of customers (Zeithaml,
Bitner and Gremler, 2018.).
Price: By using this strategy, retailing pricing strategy is uses by Tesco which helps to
increase the sales and profitability in changing environment.
Place: Tesco is various online and offline stores which can help to reach the targeted
audience and develop their business effectively.
Promotion: The management of Tesco uses print media, social media, newspapers and
others channel for the purpose of selling their products and services that can help to attain the
higher profitability.
Process: The chosen organization is using digital and online process for managing their
products and services effective manner and increase the performance.
Physical evidence: The structure of Tesco is attractive and very recognised which uses a
brand and logo to increase the awareness of people that helps to increase the sales and
profitability (Singleton and et. al., 2019).
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People: In Tesco, number of employees are working as sales management, marketing,
HRM, IT, customer care and cleaning people who performs their roles and responsibilities
effectively and maintain higher competitive advantages.
CONCLUSION
From the report it can be concluded that marketing is important activity which uses by all
organisation to introduce their products and services in challenging market and attain the higher
performance. Porter's five force model uses to take the competitive advantages and SWOT
analysis uses to know the strength and weakness of their business which can help to increase the
sales. Marketing mix is the effective strategy that involves different element to run the business
and manage the all activities effectively that provides the higher competitive benefits.
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REFERENCES
Books and Journals
Armstrong, G. M. and et. al., 2018. Marketing: an introduction. Pearson UK.
Perreault, W. D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Boyd, D. E. and Koles, B., 2019. An introduction to the special issue “virtual reality in
marketing”: definition, theory and practice.
Deepak, R. K. A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Chaffey, D., 2019. Digital marketing. Pearson UK.
Zeithaml, V. A., Bitner, M. J. and Gremler, D. D., 2018. Services marketing: Integrating
customer focus across the firm. McGraw-Hill Education,.
Singleton, C. R. and et. al., 2019. Change in Food and Beverage Availability and Marketing
Following the Introduction of a Healthy Food Financing Initiative–Supported
Supermarket. American Journal of Health Promotion. 33(4). pp.525-533.
Sozen, C. and Devrani, T. K., 2020. Introduction of a new method for retailing and marketing
research: the case of shopping malls. Property Management.
Dobscha, S., 2019. Introduction to the Handbook of Research on Gender and Marketing.
In Handbook of Research on Gender and Marketing. Edward Elgar Publishing.
Online
Tesco SWOT Analysis. 2020. [Online] Available through:
<https://pestleanalysis.com/tesco-swot-analysis/>./
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