Marketing Essentials: Analysis of Tesco's Marketing Strategies

This report provides a comprehensive analysis of marketing essentials, using Tesco as a case study. It begins with an introduction to marketing and then delves into the roles and responsibilities of the marketing function within Tesco, including its impact on the company's growth, customer relationships, and management of demand. The report then explores the interrelationships between the marketing department and other functional units such as finance, human resources, production, and research and development, highlighting their significance. A key section of the report focuses on the marketing mix (7Ps) as applied by Tesco, comparing its strategies with those of its competitor, Sainsbury's. The report includes detailed analysis of product, price, place, and promotion strategies. Finally, the report concludes with a marketing plan tailored for Tesco, aiming to achieve its future goals.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
P1-Roles and Responsibilities of marketing function .................................................................3
M1- Roles and responsibilities in marketing ..............................................................................5
P2- Roles and responsibilities of marketing in relation to wider organization perspectives.......5
M2- Significance of interrelationship between Marketing and other functional unit..................6
D1 Critically evaluating key elements of marketing functions...................................................7
LO2..................................................................................................................................................7
P3- Marketing mix ......................................................................................................................7
M3- Different tactics applied by company to achieve its goals-.................................................9
LO4................................................................................................................................................10
P4- Marketing Plan for Tesco....................................................................................................10
M4- Detail management plan.....................................................................................................13
D2-Marketing Mix-....................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Martketing essentials refers to actions on end of business to promote and sell its services
and products. It refers to set of activities, which relates to process to create, deliver,
communicate and exchange offerings that derives values for its partners, clients, customers and
for society. Tesco is multinational chain of general merchandise and groceries which is based
out of United Kingdom which provides diversified products in range of clothing, food, toys,
furniture and various others. Present report will address to various roles and responsibilities of
marketing and how they are interrelaetd. It will compare and brief on elements of marketing mix
to achieve overall objective of company and lastly will provide with detailed marketing plan of
company to be followed to achieve its future goals.
MAIN BODY
LO1
P1-Roles and Responsibilities of marketing function
Roles and responsibilities of marketing serves as an important criteria in facilitating
success of company. It helps in derving how products and services of Tesco reaches to its end
customers and helps in satisfying there needs and wants. Marketing functions refers to act of
operation in linking ultimate customers with original producer.
Roles of Marketing – It includes
Identifying &Meeting wants and needs of Customer's- It states that basic role of marketing in
Tesco is to identify needs and wants of its consumer and then deliver products which helps in
satisfying there needs and wants. Marketers at Tesco identify needs of customers and make
strategies accordingly. It is done by company through proper research where it collects data
from customer and try and find out what is being actually demanded and deliver products
accordingly which helps company in getting competitive advantage and establish its position in
marketplace (Hall, 2019).
Ensuring survival, growth and reputaion- The biggest role of marketing at Tesco is it helps in
ensuring growth, survival and building reputation which serves as foundation for company as

through marketing it ensures customer retention and helps in increasing market share which
helps Tesco in achieving its goals of customer centric and helps in satisfying customers beyond
there laid expectation.
Management of demand- Marketing at Tesco helps in management of demand which can be in
various form as it takes inton consideration what is being done by company in future which helps
in ensuring goals of company are meet efficiently and effectively which helps in increasing
visibility of brand to customers and helps in ensuring lasting relationships with its target
audience.
Better product offerings- Marketing at Tesco helps in ensuring that its products are well packed
and labelled where marketing plays an active role in managing and designing product offering
which attract and satisfy its customers
Responsibilities of marketing- It includes
Monitoring competition and tracking trends- Primary responsibility of marketing at Tesco is
identify what strategies are adopted by its competitor |& trends prevailing in market and to
review in own's company and to assess areas where the company is lacking and make
improvements upon same to beat competition and deliver product and services accordingly
which makes easy for its customers to buy the product.
Assist in incresing sales process & Customers – The biggest repsonsibility of Marketing at
Tesco is to know and undertstand its Users/ customers as building large customer base helps in
ensuring company of increased sales and profitability through increased demand of its product
and services and by coordinating efforts of all other departments that are directly related with
customers which in turn helps in getting more information about customers and delivering
products accordingly (Weinstein, 2018.).
Setting marketing strategy- This strategies prepared by marketing department of Tesco suggest
to enter into new market, or can be by acquiring new distribution channels where it assist in
creation of products that guide to achievement of business goals.
Supporting sales team- By cooperating with sales team and providing them with high quality
leads, presentation and supplying promotional stocks material for customers marketing of Tesco
ensures increased performance level and fast growth of business.
Marketing of company needs to abide by this all and various others to ensure smooth
functioning of business operation otherwise non focus to this may lead company to face heavy

loss, high rate of customer turnover where competitors may take full advantage and dominate
through there business operations.
M1- Roles and responsibilities in marketing
Creating utility- Tesco helps in ensuring that marketing of its products and services create
utility in minds of its customers where it defines the ability of its products and services to satisy
wants and needs of customers which in turn help company in creating and sustaining loyalty and
trust from its customers (Strydom,2017).
Innovate new things – It ensures that marketing department of Tesco should constantly work on
innovating new things be it in terms of promotions, customer retention techniques, affiliated
programs and various others which helps company in creating new and improved products at
prices which its customers are ready to pay (Contreras, Ramos,2016).
P2- Roles and responsibilities of marketing in relation to wider organization perspectives
Interreationship between marketing and other functional unit at Tesco serves as important
as it helps in maintaining and coordinating efforts of various departments such as Human
resource, finance and others to achieve common desired goal of company. Marketing at Tesco
closely work with all other function as it needs to ensure its business operation in most
productive ways.
Interrelationship between Marketing and Finance
Finance department serves the brief of whole company in terms of financial capabilities
of how business needs to operate with given budget. They ensure that there is adequate budget
for marketing to meet up with the various criteria, be it in terms of promotion and distribution,
research and many others. Finance department is more focused on covering cost, paying
investments as soon as possible, accounting cash flows which in turn help marketing at Tesco to
highly concentrate on increasing sales volume and buliding up relevant market share. Finance
department is interrelated with marketing department as it provides allocated budget which
ensures marketing of company product and services reach efficientlty to end user.
Interreationship between Marketing and Human resource
Human resource management helps company in ensuring approproate skills & staffing
level are in place to meet production target, research and develop for new product ideas, create
an amitious team of sales and many others which in turn helps marketing to perform its functions

more efficiently by having and getting employees in there teams who are focused to perform task
to capture huge market share. They both are interrelated as Human resource function provides
with workforce which helps marketing of Tesco to create brand value to its customers. Human
resource helps in attracting right employees for right job which in turn help to promote and sell
company products more productively.
Interreationship between Marketing and Production
Marketing department at Tesco closely work with production to ensure that there is
adequate research and development planning to satisfy and meet future and current needs of
customers. Effective production helps Marketing to capture target audience by ensuring high
quality and design standards as demanded by its customers (Pearce,2016). This both are
interrelated as it reflect volumes of orders generated by marketing can be met by production
department within time scheduled to deliver. Production of company helps to get product as soon
as possible which helps in building competitive advantage where it ensures to deliver products to
marketing departments without any repairs/ defects/ replacements and which are in accordance
with needs of its customers
Interrelationship between Marketing and Research and development
Research and development of Tesco is focused on acting and understanding on needs and
wants of its customers and preparing product/ service that satisfy the same. They both are
interreated as R&D department prepares product and services on basis of data being provided by
its marketing department (Liu, Wang,2019). It is very essential on part of marketing to research
the market very carefully and deliver information required by R&D where it prepares products
and services which marketing team can use to influence decision of consumer towards its
products and services.
M2- Significance of interrelationship between Marketing and other functional unit
Interrelationship between Marketing and Procurement
Procurement department in Tesco is concerned with purchasing right material form
different suppliers where marketing helps in ensuring and bridging the gap between its customers
and suppliers. It helps in ensuring purchase of material at right price from right suppliers where
marketing department works closely to ensure that they get best quality products at price which
is reasonable and which helps in satisfying needs and wants of customers. It is concerned with
ways of reducing cost and finding best supplier where it ensures marketing to meet up with

demands of its customers as and when required which will help in having huge benefit towards
finding vendors which will help in meeting procurement and marketing objectives
D1 Critically evaluating key elements of marketing functions
Marketing needs to closely work with all other functional units described above and
others as all units are interreated which ensures co-ordination of various business activities, but
when it fails to co-ordinate it leads company with misunderstanding, conflicts at workplace
where focus of achieving goals shift to unnecessary things which decreases productivity of
business operations.
LO2
P3- Marketing mix
It can be defined as set of marketing tools that is being used by Tesco to pursue its
marketing objectives in its target market. It can be better understood by analysis between Tesco
and Sainsbury which is its major competition in marketplace.
7P's Tesco Sainsbury
Product Tesco provides wide range of
products that include clothing,
electronics, food, household and
various others and provides various
financial services. To add up value it
provides customer with free parking,
support services, baby room and
various others. Tesco provides wide
variety of choices ranging from local
or regional produce, branded
products and various others which
dont leave lacking when it comes to
choosing several products
On other hand Sainsbury provides diversified
product range that includes, food, beverages,
household, beauty products and various
others where it doesnot compromises on
quality and takes into full consideration of
innovation where it looks to develop new
product/ services and enhaving existing one
to survive in market and match up with
competiton.
Price Tesco believes and maintain in low
prices to attract customers without
In contrast to same Sainsbury offers value for
money where it keeps different prices for

decreasing quality of its product/
services and running its operation in
loss (Ibrahim,Alkhawlani, Al-
shaghdari, 2017). This strategy of
low price helps company in way
overcome barriers and surpass
expectation & become leading
supermarket in UK leaving all its
competitors behind
different set of products which ensures its
customers loyalty, As it faces high
competition it adopts to competitive pricing
strategy to be in market and which are
affordable for its customers.
Place Tesco has two different channels of
distribution- online and offline where
offline channels comprises of various
stores all across world and online
channel relates to company websites
where customer can order products
sitting at home and other places
On the other hand Sainsbury has huge
number of supermarket and various stores
which runs all across world. The company is
also focused and offers home delivery where
it enables its customers to place orders
through websites, phone call and various
other means.
Promotio
n
Tesco uses various promotional
channel to make its product available
to end customers such as
advertisement, sales promotion &
public relation to maintain brand
image consistently in minds of
customers where it offers
samples,coupouns, organis contest to
accomplish its objectives.
Advertisements in Tesco is through
newspaper, tv and various other
means to generate awareness
In contrast to same Sainsbury has adopted
above and below line strategies to promote its
product in consumer market. It also promotes
through various campaigns on TV,
newspaper, radios and various other means. It
also implement promotional techniques such
as Nectar reward card which helps customers
to earn points on every purchase they made n
stores (Marketing mix of Sainsbury’s,2019).
Phsyical
Evidence
The stores of Tesco are clean and
attractive where it is easy to navigate
On other hand Sainsbury has different store
design and interesting layouts which address

products as they are well categorized
which helps customers to buy
products which they want.
to varied needs of customers and ensures
excellent shopping experience for its
customers (Do,Vu,2020).
People Tesco employs excellent staff who
are greatly responsible for its success
where it implement various programs
to gain loyalty of highly competent
workforce (Efanny,2018).
In contratry Company employs well trained
experts who are aware of behaviours of
consumer behaviour which are given high
preference and provides on the job training to
emloyees to meet up with needs of its
customers
Process Processs of Tesco are well designed
to keeep its customers happy by
speedy billing procedure and others.
It also addresses and pay due
attention to customer grievances and
find appropriate soution for the same.
On other hand process of Sainsbury is to
smooth which ensures cutomer satisafaction
level and generate loyalty. It is also coming
up with new changes to address needs of
customers.
M3- Different tactics applied by company to achieve its goals-
Tesco implement various tactics to achieve its goals where it sets mission, vision
statements to achieve goals of company, implement programs to measures performances where
its product, price, place, promotion, people and other things are aligned with its business targets.
LO4
P4- Marketing Plan for Tesco
Exclusive Summary-
Marketing plan is used for developing organizational strategies for achieving its targets.
Marketing plan for Tesco is analysed in this report. Effect of Tesco's micro and macro
environment on company's performance is also evaluated in this plan.
SMART-
1. Increase organizational sales by 5% within 2 working years by opening 2 new branches.
2. Improve employee's working efficiency by 10% within 1.5 years by providing efficient
training.
PESTLE-

Political-
Political instabilities of UK will make direct impact on Tesco's performance, this was
seen at Brexit when UK's decision of leaving EU has established taxes on areas which were free
before this increased company's expenses (Eletxigerra, Barrutia and Echebarria, 2018).
Economical-
In the present time due to COVID-19 has affected country's economic condition and
many customers have lost their jobs, this increases the chances of brand switching which is a risk
for organization.
Social-
Due to busy lifestyle customers prefer one stop shopping and bulk-buying of products
because of which Tesco has to change its organizational structure as per customer requirement.
Technological-
With improvement technology customers prefer to buy products from the comforts of
their home and because of that reason only Tesco has implemented online website and
application for attracting new buyers toward organization.
Legal-
New governmental laws have a direct impact on company's performance. For example
company should provide equal wages to its employees, this policy will reduce company's
economic growth.
Environmental-
Tesco has implemented several steps for reducing carbon footprint and many other
environment related activities. Through this company develop a positive image for customers but
this will also increase organizational expenses.
SWOT-
Strength-
Tesco is one of the biggest multinational retailer of UK which is capable to attracting
wide range of customers through its geographical diversity (Fill and Turnbull, 2019). Tesco
implement several technological developments like contact less payment for attracting
customers.
Weakness-

Tesco uses low pricing strategy for attracting customers and because of which it has very
small profit margin. Company has failed to understand international market and faces shut down
in different countries.
Opportunities-
Tesco can expand Jack's business for attracting new customers towards organization and
it can also make joint ventures with other organizations for attracting new customers. Company
must increase its involvement in social media advertisement.
Threat-
Due to COVID-19 Tesco has to face drastic decrement in its sales. Brexit has increased
company's internal expenditures and with that high market competition with other supermarket
giants has become a threat for Tesco.
Marketing Mix-
Product-
Tesco provide wide variety of groceries and general merchandise items, on the basis of
customer requirement. With the products of other popular brands Tesco also showcases products
developed by itself like Tesco Lotus, F&F clothing, etc.
Price-
Tesco uses cost leadership in which low pricing is established on products, because of
which it is able to attract customers. Tesco also provide loyalty cards, in which customers will
get loyalty points on their purchase, through this it maintains customer loyalty.
Promotion-
Tesco mainly focuses on itself through traditional means like, TV advertisement,
newspaper, and radio advertisement (Plant and et.al, 2019). But with the increasing popularity of
social media company is also using online advertisement for its products.
Place-
Tesco sell its products through two main channels such as Online and Offline. For offline
distribution it has more than 6900+stores in more than 11 countries and in case of online store it
has Tesco direct.
People-

Tesco provide high training to its employees so their working and goals achieving
capabilities can be improved. It is important because employee will represent organization to
customers and good behaviour of employee will attract customers.
Process-
To maintain product availability Tesco has established RFID tags for continuously
measuring product availability. Organization has integrated online and offline products so
customers can choose between store and home delivery option for product.
Physical Evidence
Tesco's stores are the physical evidence for the customers. Tesco's stores are well
furnished and equipped with several facilities. With that company also provide products in
different colour packaging for attracting customers.
Budget-
Particulars Cost
Building expenditures £ 7500/-
Organizational furnitures £4450/-
Product transportation cost £500/-
Employee training fees £2500/-
Overheads £50/-
Total £15,000/-
Monitoring & Evaluation-
Bench marking-
Benchmarking is the tool which is used by organizations for doing competitor research.
For achieving this competitor performance is compared with Tesco's working then organizational
planning is done in such a way that Tesco is able to improve its working capabilities. It provides
benefits like, understanding differences between organizational working, adapt better ideas for
improvement and give better control over organizational working.
M4- Detail management plan
Key Performance Indicator-

These are the reference points which are taken by organization for evaluating its progress
towards achieving organizational goals. In case of improving organizational sales Tesco can
evaluate revenue per client and compare profit margins (Zackariasson and Dymek, 2016). In
order to increase organizational sales company has to evaluate its revenue count so it can analyse
its performance towards achieving organizational goals.
D2-Marketing Mix-
Product-
Tesco provide wide variety of groceries and general merchandise items, on the basis of
customer requirement. With the products of other popular brands Tesco also showcases products
developed by itself like Tesco Lotus, F&F clothing, etc.
Price-
Tesco uses cost leadership in which low pricing is established on products, because of
which it is able to attract customers. Tesco also provide loyalty cards, in which customers will
get loyalty points on their purchase, through this it maintains customer loyalty.
Promotion-
Tesco mainly focuses on itself through traditional means like, TV advertisement,
newspaper, and radio advertisement (Plant and et.al, 2019). But with the increasing popularity of
social media company is also using online advertisement for its products.
Place-
Tesco sell its products through two main channels such as Online and Offline. For offline
distribution it has more than 6900+stores in more than 11 countries and in case of online store it
has Tesco direct.
People-
Tesco provide high training to its employees so their working and goals achieving
capabilities can be improved. It is important because employee will represent organization to
customers and good behaviour of employee will attract customers.
Process-
To maintain product availability Tesco has established RFID tags for continuously
measuring product availability. Organization has integrated online and offline products so
customers can choose between store and home delivery option for product.
Physical Evidence

Tesco's stores are the physical evidence for the customers. Tesco's stores are well
furnished and equipped with several facilities. With that company also provide products in
different colour packaging for attracting customers.
CONCLUSION
From the analysis of above report it is concluded that marketing functional is responsible
for implementing several organizational changes within organization. Through these activities
department tries to improve organizational working and goal achieving capabilities. Comparison
of marketing plan was done in this report and with that marketing plan for Tesco was also
evaluated in this report.

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Online
Marketing mix of Sainsbury’s.2019[Online]. Available
through<https://www.marketing91.com/marketing-mix-of-sainsburys/>