BTEC HND Business: Marketing Process, Planning and Strategy for Tesco

This report provides a comprehensive analysis of Tesco's marketing strategies, encompassing the marketing concept, roles, and responsibilities within the marketing function, and its interrelation with other departments. It includes a process benchmarking exercise comparing Tesco with its competitors, along with recommendations for a new "luxury" product line. The report further develops a detailed marketing plan for Tesco, incorporating frameworks like SWOT and PESTEL analysis, marketing mix strategies, and a media plan to support a marketing campaign. The report examines marketing in the 21st century, the importance of customer satisfaction and retention, and the significance of competitive analysis in formulating successful strategies. The report also provides insights into budgeting and ROI within the marketing department.

BTEC HND in Business
Marketing Process and Planing
Session: February 2022
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Table of Contents
Introduction ...............................................................................................................................2
Overview of Tesco.....................................................................................................................3
Task A: The marketing Concept Webinar .................................................................................3
The concept and role of marketing in the 21st century..........................................................3
The roles and responsibilities in marketing, and the competencies required to succeed.......5
Marketing function interrelates with another department of an organisation........................7
Task B Process Benchmarking...................................................................................................8
Compare ways in which organisations use elements of the marketing mix to achieve
overall business objectives.....................................................................................................8
Recommendations for the new “luxury” product line..........................................................11
Task C Marketing Planning .....................................................................................................12
Producing a marketing plan for Tesco ................................................................................12
Developing a media plan to support a marketing campaign ...............................................15
Conclusion ...............................................................................................................................16
References................................................................................................................................17
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Introduction
There are different departments within an organisation, collaboratively which are
working for attaining overall objective of the organisation. Among them, the Marketing
department has a significant impact on the profitability and productivity of the business. The
Marketing department is the unit that directly and indirectly deals with potential consumers.
They are responsible for generating marketing plans, budget plans, media budgets, and some
other activities that relate to enhancing sales growth (Armstrong, 2016). They can build
strong and effective interactions between consumers, and always keep them up to date about
their products and brand. This report is prepared to give a proper understanding of the
marketing process, planning and development of strategies. The roles and responsibilities of
the marketing function are discussed here with process benchmarking and Marketing
Planning including various frameworks like SWOT analysis, PESTEL analysis, Marketing
Mix strategies, SMART marketing objectives, 5 C analysis, Competitive analysis and
controlling measures etc. Further, a marketing plan along with a media plan including budget
has been provided in this report for supporting the marketing campaign.
Overview of Tesco
Tesco is a well-known retailing company having its headquarters in the UK. It serves
not only in the UK but has operations in retail sectors in other countries as well on a global
basis. The company leads the market for over 100 years and employs a gigantic number of
employees for its diversified stores (Tesco, 2021). Aldi, Lidl, Sainsbury's, and Morrisons’ are
some of its core competitors. Though the competition is getting very high because of the
substitutes of the rivals. The company is now decided to introduce a new food staff named
“Black Diamond ice cream”, which is healthy and full in nutrition.
Task A: The marketing Concept Webinar
The concept and role of marketing in the 21st century
Marketing concepts
 Production: This is one of the earliest marketing concepts. Throughout this initial
phase of business, marketers found that making products accessible to the users would
be the most effective approach to the link between customers as well as build brand
loyalty (Drummond & Ensor, 2006). However, this method is less beneficial when the
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market structure is already successful in the market. This leads to a decrease in
consumer satisfaction and a scarcity of commodities variations.
 Product: This is one of the vital concepts in marketing. Without this concept, it will
be quite impossible for any organisation to operate its business successfully. It is
mainly based on the demands of consumers. Focusing on consumers’ expectations the
development team of an organisation plans for its products (Sarin, 2013). The product
concept of Tesco started to implement while they are trying to deal with the entire
industry in terms of attaining business growth and competing with its competitors.
 Selling: This marketing strategy is intended towards achieving the company's short-
term goals in terms of increased sales and profitability. Seasonal sales, promotional
campaigns, and sales events are some of the ways to engage the selling strategy
(Hoffman & E.G. Bateson, 2016). This promotes the growth of sales by offering
subsidies, discounts, a low-cost strategy, etc. However, maintaining long-term
connections with customers may be impossible and unproductive if customers’ are not
satisfied with their products or services.
 Marketing: Product, pricing, location, and advertising are the four components of the
marketing concept. Within the twenty-first century, marketers are grown extremely
efficient and effective in fulfilling the requirements of potential customers. Besides
this, increasing profitability and proficiency is another key concern of theirs.
 Societal: Organisations are working for making sales, and earn more revenue as well
as give more effort to ensure sustainability in the competitive market. To do so they
have to deal with lots of operations and functionalities. Among them identifying
consumers' needs, and working for meeting their expectations should be given more
concern (Information Resources, 2012). Tesco produces market standard products
with innovation for satisfying societal expectations. The company gives an effort in a
long-term relationship with its potential consumers.
Marketing in the 21st Century
In the twenty-first century, marketing has gained much more importance in
developing a positive user experience. It may vary with age, region, and status (Andreasen,
2006). Besides this new generations have more sources of income, limited time, far more
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options, and their purchasing behaviours keep on changing according to the marketing trends.
Some of the roles of marketing in the 21st century are mentioned below -
 Identify customers: Organisations are focused on continuous development, and
innovation, although they do not follow any strategy for aligning their product along
with customers' demands. A secret to increasing a sustainable situation is to recognise
customers with their requirements and attempt for meeting those (Andreasen, 2006).
Knowing about the target market helps to recognise their purchasing habits and
behaviours. TESCO has identified its customers by analysing its target market i.e.
cost conscious individuals who are interested in bargains and sakes and value the
quality products as well.
 Satisfy customers: In the market there are so many substitutes available just because
of the good number of competitors’ presence. The key focus for any marketer is to
know about consumers' needs, and try to satisfy them as much as possible
(Armstrong, 2019). Ensuring customer satisfaction helps the organisation in adding
value to customers' experience and thereby in increasing the customer base by
ensuring increased brand value as well. TESCO ensures customer satisfaction by
providing quality products and convenient services through its mobile app as well as
website. It also provided easiness to customers in resolving their feedbacks regarding
the product reviews obtained.
 Retain customers: Customer loyalty relates highly to the company's objective of
returning customers to repeat customers. The main concern of any organisation is to
prevent their customers from moving forward to competitors (Baines, et al., 2013). By
offering quality products at low prices with good promotions and by an increased
investment in TESCO clubcard, TESCO has achieved customer loyalty that facilitate
the company in retaining the customers and in attracting the prospective customers as
well.
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The roles and responsibilities in marketing, and the competencies required to
succeed
Role and responsibilities of marketing
Marketing department plays a crucial role in oruoduct development and promotins. It
is its essential reponsibility to manage the brand and conducting camplaig managemnet for
marketing initiatives. (Dibb, et al., 2019). This department is also required to manage and
monitor the social media handles of company. In context with TESCO, the roles and
responsibilities in marketing s explained hereunder -
 Product development and design: The marketing department is responsible for
providing customers with the best products, which they are desired for. To know
about the demands and expectations of the consumers as well as attract consumers
towards the business they have to bring development innovation in products. For
example, marketing department of TESCO has developed the strategy of selling the
existing products into new markets by expanding the business from UK to other
countries by including may products division like Food, clothes telecom etc. from
groceries initially.
 Working on brand values: To uplift the brand value and increase the brand image
marketing department should always stay on the right track (Westwood, 2002). The
more they work for enhancing brand value the more they can create a good position in
the eye of consumers. Tesco has a strong brand value toward its consumers, which
makes it famous to the world.
 Market research: Considering the requirements and desires of customers is an
another role of marketing department. In context with TESCO, Survey questionnaires,
interviews, and findings are widely used tactics (Tesco, 2021). The marketing team of
TESCO has expanded its business by identifying the potential customers worldwide ,
generating customer insights, and designing an effective marketing strategy.
 Competitive analysis: Another role of marketing department is to identify customer
needs and core rivals. The presence of rivals, market shares, growth opportunities, and
threats from new entrants, are some of the evaluations of market research (Stapleton
& Thomas, 1998). Tesco could develop an effective marketing strategy for their
business in terms of retaining consumers towards their products and services. For
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example, Aldi, Morrison, and Sainsbury's are the major competitors of TESCO that
provide similar products and operate in the similar market and share the market share
of industry with TESCO as well.
 Achieve marketing budgets & ROI: The marketing department can effectively
determine the proper balance of traditional and digital marketing activities by
evaluating the influence of specific initiatives on total sales growth (Sarin, 2013).
Furthermore, assessing ROI regularly enables businesses to set a benchmark against
which they can immediately measure their accomplishment and alter their efforts to
maximum effectiveness.
 Budget: The marketing budget has been allotted to the marketing department because
they are responsible for handling it (Information Resources, 2012). To adequately
support the marketing approach, marketing managers ought to get funding mostly in
budgets. To generate more profit, expand the business into a new market, and attract
potential customers, the marketing team needs to prepare a significant budget plan.
For example, TESCO has invested around 80 million in advertising for its products in
UK by using effective budget criteria prepared by its marketing team.
Marketing function interrelates with another department of an organisation
The role of marketing is to attract the customers and develop their interests in the
products. The function of marketing interrelates with other departments of an organisation ,
mainly sales department as the sales increases directly with the increase in marketing
activities. In context with TESCO, the interrelation of marketing function with other
departments is as follows -
 Marketing and Production: Consumers' requirements and desires are detected by the
marketing team, and then products are developed and designed appropriately
according to the expectations to satisfy consumers (McDaniel, et al., 2012). It is the
reprehensibility of marketing department to analyse the customers' demand and
facilitate the production department in producing the products according to those
demands. To achieve this, the production department has to generate significant
number of quality products while considering their standards, availability and
accessibility to the market. The marketing unit of Tesco provides adequate data, and
others support to the production team to successfully operate the production and sales.
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 Marketing and Operations Management: The marketing department is accountable
for fostering loyal consumers, increasing revenue, and attracting new ones. It
conducts research and establishes the business strategy (McDaniel, et al., 2012). The
Plan explains the current position based on consumers, competitiveness, internal
strength and weaknesses, environmental factors, etc. The Operation Department
increases productivity by managing inventory, transportation, deliveries, logistics,
etc. The department must take measures for the physical changes, manufacturing, and
distribution of goods to successfully imply the plan for attaining the goal.
 Marketing and finance: The Marketing department of Tesco collaborates with the
Finance department for developing, and designing the plan, as well as budget for the
company's numerous purposes. For example, market analysis, competitive analysis,
promotion, advertising, distribution, and more (Kapoor, 2011). In addition, both units
try to ensure that sufficient funding is available for conducting those procedures. The
marketing department focuses on boosting sales and market share, whereas the
Finance departments concentrate on maintaining cash flow, expenses, fund
management, etc.
 Marketing and HRM: The HRM department is one of the key resources for any kind
of organisation. Because they have to conduct a wide range of pivotal activities for
the development of the company (Dibb, et al., 2019). HRM department recruit
employees’ for the company, take major decisions, provide a training program to
develop the skills and knowledge of the employees, etc. With the support of the
department, the marketing department places the potential and trained employees in
the sales unit who are capable of generating sales and earning profit. The HRM unit
also works efficiently for attaining production targets. In Context with TESCO, its HR
and marketing are working together to create the brand of organisation. The
marketing department communicates brand of company to the customers and the HR
with marketing communicates brand of organisation to the employees to manage
talent development and retention.
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Task B Process Benchmarking
Compare ways in which organisations use elements of the marketing mix to
achieve overall business objectives
A marketing mix strategy is an essential part of marketing practices. The business
organisation has to analyse and compare the marketing mix strategy between different
organisations to have a valid conclusion about what Tesco has and what other competitors
have. The marketing mix strategy is known as the principles of marketing (Bradley, 2005).
The marketing mix has four basic elements for a product-oriented organisation called
product, price, place, and promotion. However, it extended three marketing principles for the
service-oriented organisation. Extended marketing mix elements are process, people, and
physical evidence.
 Product: The product would be the units through which every marketer will be able
to meet the demands and preferences of their potential consumer (Baines, et al.,
2013). Quality control, wrapping, leveling down the products, product development,
etc. are some of the very basic strategies that product mix consists of.
 Price: The price is set by the marketers considering the products price that is offered
by the rivals. Most marketers follow the price minimising strategy for attracting more
consumers alongside retaining the potential users (Sarin, 2013). Economics, special,
competitive, emotional, and other pricing techniques are available in the market.
 Place: The location is considered one of the vital aspects, as customers may prefer to
choose the product from a prime location that is convenient for them. Besides,
marketers offer a range of placement tactics, such as physical and digital marketplaces
(Sarin, 2013). Here, an online marketplace assists customers in engaging through the
internet, and various social media platforms, whereas offline marketplaces serve them
directly, with and physical presence.
 Promotion: Developing a connection between marketers and consumers is very
challenging. Tesco uses advertisement, public affairs, generating leads, interactive
marketing, and online branding tactics to stay connected with their consumers.
 Peoples: Before planning for a product marketers should have a clear concept of their
potential consumers (Paley, 2000). Without targeting the segment it will not be able to
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achieve success. Besides, employees should be given the scope for developing their
skills, perfectly serving the consumers, and generating sales.
 Process: The process seems to be the method, which is implied by the marketers in
terms of delivering products. The marketers of Tesco are concerned about each of the
consumers to get their best product (Bradley, 2005). This could include the
manufacturing, payment policy, taking orders, delivery processes, and more.
 Physical evidence: It is significant to confirm the brand's reputation and the loyalty
of the products. Stores, online presence, branding, statement, email communication,
design, etc. can be easily implied by the marketers in terms of established physical
evidence (Stapleton & Thomas, 1998).
Marketing
mix
Tesco Aldi
Product Tesco has a huge number of product
lines, which makes it popular in the
retail industry (Westwood, 2002).
The company produces foods, and
non-food items also for pets,
groceries kinds of stuff, electronics,
household fittings, sports items,
skincare products, jewelry, etc. By
maintaining a vast number of
products Tesco has already cut a
huge segment of the market and
created opportunities for consumers
to choose product items.
Aldi is another competitor of Tesco.
This belongs to the retail industry.
The product line of Aldi is not that
much huge as Tesco's. But the thing
is that they offer a reasonable price
for some of the frequently used
products (Dibb & Simkin, 2013). It
produces, foods, and beverages,
organic food, fruits, and vegetables, a
wide range of grocery items, health
and skincare products, clothes,
electronic equipment, accessories,
and so more.
Price As a giant retailer Tesco consists of a
huge number of product lines. And
for each of the product categories,
the company set an affordable price
range, which can be avail by any
consumer. The research and
development team of Tesco has gone
through deep market research, and
then they set their product price
based on consumer demand, and
rivals offering the same range of
products (Westwood, 2002). The
company takes their raw materials
from different suppliers so that the
bargaining power of suppliers is very
low, and this makes them able to
reduce the manufacturing cost as
well. The company offers the best
Aldi has set a commercial price
range for its products. The company
produces its brand products, which
they are offering at a very affordable
price. And the company challenges
its consumers that they will not get
such quality products anywhere in
the market at a lower price (Sarin,
2013). The company applies a
market penetration strategy for the
newly launched products in terms of
attracting more consumers to their
business. The company implies the
discount and offers for their product
so that they can reach more
consumers and convince them with
such kind of offerings.
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quality product at a very reasonable
for the concern of their consumers.
Place Tesco is the largest retail brand,
which has its headquarters in the UK.
The company has a remarkable
presence worldwide. It has now
around 7000+ stores in different
countries. The company established a
vast number of the store just to gain
consumers' loyalty, by presenting
their physical existence in the market
(Paley, 2000). Tesco is the brand that
offers one-stop shopping for its
consumers. And the size of the stores
is not same in size. The supply chain
management of Tesco is highly
appreciable. The company is
concerned about up-to-date company
websites to provide current updates
about their brand, offerings, new
products, and services.
Aldi is a brand that was founded in
the UK in 1990. During that time it
has been able to expand its business
in a significant aspect. It holds its
headquarters in a prime location in
the country. Moreover, it distributes
almost 70% of areas inside the UK.
The company has expanded its stores
in around 20 countries worldwide.
Now the company has 11000
physical stores which are gigantic in
number (Aldi, 2021). It also collects
its raw materials from different
suppliers. All of the materials and
products are stored in the local
warehouse. It does have a specific
design and brands its stores
accordingly. This also offers a well-
organised website whereby
consumers can place orders, submit
problems, make a comment, and
receive customer service.
Promotion In the very beginning, Tesco uses
offline advertising for promoting its
business. But now, people are getting
dependent on the internet, as well as
various social media platforms very
frequently (Tesco, 2021). The
company is now promoting its
business and brands by taking
support of Facebook, YouTube,
Instagram, etc. Besides, they use
billboards, leaflets, TV, and radio to
attract a new segment of consumers.
Various types of offers regarding
promotion are frequently done by the
company in terms of attracting
consumers.
Like other giant competitors, Aldi
also uses different platforms of social
media for promotional strategy. The
expert team of Aldi generates
innovative promotional offers and
discounts for attracting far more
consumers to the business (Aldi,
2021). One of the common
promotional campaigns of the
company is buying one get one free.
Which is offered by the company all
over the year. The company also uses
Facebook, LinkedIn, YouTube,
Newsletter, TV, Twitter, billboard,
and banners for advertising their new
products or offerings.
Process Tesco uses a process strategy for
successfully conducting their
manufacturing, as well as operational
processes. It maintains the process
very strictly in terms of purchasing
grocery items, and dairy products
from other companies (Tesco, 2021).
By applying this they can strongest
position in the various country of the
world. Tesco was built to minimise
Aldi is applying a cost mimimising
process by reducing employees’
from their stores, and allocating the
products in a well organise form so
that consumers can find products,
and pick those very easily. To help
consumers in deciding on purchasing
products Aldi keeps various ranges
of the product of various brands
(Aldi, 2021). It assists consumers to
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breaches against workplace policies.
Availability, service policies, and
production capabilities are some of
their regularly used tactics of them.
make a purchase based on their
affordability. Customers can also
buy products online with a home
delivery service.
Physical
evidence
As a giant retailer company, Tesco
has decorated all of its stores with an
eye-catching interior, and with high
technology in the shopping system
(Armstrong, 2019). To establish its
physical presence it uses a brand logo
while packaging products.
All over its products, Aldi applies the
company logo so that the brand gets
recognised by more consumers, and
proves its physical presence. Aldi
not only works for their physical
stores but also in online channels too.
Peoples Tesco consists of a gigantic number
of employees. The company is
always concerned about retaining
potential employees' for the business
as well hire the most talented and
experienced employees too (Baines,
et al., 2013). To satisfy the
consumers, Tesco always provides
training to the employees so that they
will develop their skills in
convincing consumers, and dealing
with them very smartly.
In comparison to Tesco, Aldi is less
interested in engaging consumers in
their physical stores. As the company
prefers an online presence rather than
visiting stores (McDaniel, et al.,
2012). For this reason, it uses
advanced technology to properly
maintain the system and serve the
consumers'. It helps them in
minimising labour costs. To make
purchasing easier for the consumers
they categorise the products in a well
organised way so that, they can
easily pick the products from the
shelf.
Recommendations for the new “luxury” product line
As Tesco has already held a strong market position worldwide. For their newly
launched food product item, the company needs to apply a specific marketing strategy so that
they will be able to cut a big market and generate more sales. The company has a vast
product line, which should be taken care of. Because consumers can anytime switch the brand
as there are so many substitutes products offered by the rivals. In that case, Tesco should go
for a cost minimising process, for attracting more consumers with the best quality product at
an affordable price. The newly launched product needs to be placed in all of their stores so
that consumers can avail of it at any time. As 93% of UK people are using social media
platforms, therefore, Tesco should use those channels for promoting their new items (Baker,
2016). To smoothly operate the business employees’ should provide adequate training, which
will help them to deal with consumers, and bring awareness regarding the new foodstuffs.
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Task C Marketing Planning
Producing a marketing plan for Tesco
Executive summary
As a Junior Marketing Analyst, the marketing plan is produced to get an appropriate
understanding of the newly launched luxurious product. The product line is being
differentiated that is attractive enough. To provide consumers the luxurious food item, which
creates exceptional value, and flavour. SWOT analysis, strategic planning, marketing mix,
and a budget-friendly media plan have comprised the marketing plan. Here, Tesco has
proposed a £30 million budget for implementing such a marketing strategy between June 1,
2022, to June 30, 2023, where "Black Diamond Ice cream" is a super luxury food product.
Objectives
This marketing strategy contains several specific goals. Nevertheless, the marketing
plan's ultimate goal is to maximise the performance of the company as well as employees',
sales growth, and earn more revenue during the Covid-19 outbreak. Tesco has set SMART
goals for themselves, which are the following:
 Launching "Black Diamond Ice-cream," a super-luxury foodstuff
 The goal is to enhance 20% sales growth by the next year
 Increasing client awareness regarding the new ice cream has already cut 5% sales
while promoting the luxury food
 When consumers are getting more focused then more leads and sales generation may
help in attaining the target
 By June 30, 2023, it will meet the target to be fulfilled
Vision – To become the highly valued business in UK and worldwide by ensuring
implementation of effective marketing strategies to increase sales and effective value
proposition to the customers and ensure customer loyalty.
Mission – To increase the customer base worldwide by launching a new product i.e.
Black Diamond Ice cream that is a super luxury food product. Marketing mission of
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company includes to provide promotional messages to the existing as well as potential
customers to retain them by using print and media advertising as tested channels.
Situational Analysis of TESCO
 SWOT analysis
Strengths Opportunity
 One of the largest retail companies
in the UK
 High market share in the retail
industry of UK.
 Skilled employees can give the best
customer service.
 Lead the market for more than 100
years.
 Offering wide range of products.
 Strong brand recognition worldwide.
 Maintains a strong bonding with the
customer.
 Offers premium quality of products
at affordable prices.
 Opportunity to expand business in
new emerging markets like
Indonesia, South Korea, Turkey etc.
 Using advanced technology and
online presence can attract more
consumers to the world.
 Taking orders online and providing
home delivery services can engage a
new segment of consumers (Tesco,
2021).
 The huge number of product lines
helps customers to pick their desired
product worldwide.
 Operate the business with a
partnership venture for ensuring
economic growth.
Weaknesses Threats
 After the Brexit situation, the
company had to go through frequent
turnover and disrupted operations.
 Fewer uses of technology may lose
potential consumers’ of online
platforms (Tesco, 2021).
 Food safety issues of urgent food
recalls after discovering safety issues
and defects that endangered the
customers.
 Failure in US and Japan market due
to ineffective export operations.
 Low operational profit due to Brexit
and other political restrictions like
lockdown due to Covid19.
 The national economic factors like
taxations, credit, government rules
and regulations, due to current
pandemic pose a threat to the
company in terms of disrupted
operations and profitability as well.
 The competition level is very high
that includes the major competitors
of company operating in then same
industry like Marks and Spencer,
Sainsbury's, Asda, Morrison's etc.
 The excessive cost of raw materials
may affect the production cost and
sales.
 The main challenge for a retailer is
managing raw ingredients and
producing healthy and high-quality
grocery products during the
COVID-19 outbreak (Kotler, et al.,
2019).
+
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PESTEL Analysis
PESTEL analysis provides a framework for the companies to analyse their external
environment to measure the impact of positive or negative external factors on the business in
order to take suitable and corrective measures to improve its performance and reduce the
negative impact of those factors (Jain, Tambuskar and Narwane, 2022). In context with
TESCO, the PESTEL analysis is explained hereunder -
 Political – These factors include the impact of governmental policies like the foreign
trade restrictions, political instability, import duty etc. In context with TESCO, its
operations got affected by Brexit due to disassociation of Europe with UK. Also, its
operations were affected by the lock-down restrictions which affected its offline sales
and gave boost to the online sales.
 Economical – The factors like interest rates, inflation rates, foreign exchange rates,
disposable income of people etc. are included in the economic factors. In context with
TESCO, the price of its products gets affected by the change in inflation rates. Apart
from this, the cost of payment to the employees also gets affected due to the changes
in inflation rates.
 Social – It includes the shopping trends of customers including the marketing trends.
The demand of products and services is associated wit the customers' beliefs and
attitudes that the company must take into consideration. In context with TESCO, due
to the high demands, it has started to sell branded halal meat to its Muslim customers
and has developed some independent meat counters in UK stores.
 Technological – These factors include the impact of new and innovative technology in
the business that include artificial intelligence, automation processes, digital
marketing etc.(WAHYUNI, 2021). In context with TESCO, it had a positive and
effective impact of emerging technology in meting its marketing objectives by the use
of digital marketing so as to attract potential customers. It has also introduced RFID
technology to increase in-store experience of customers and thereby adds value to
their experience. Apart from this, it has also developed its online mobile payment
system i.e. PayQwid.
 Environmental – These factors include the concerns of company for the external
environment. The company is required to follow the environment protection laws so
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as to ensure sustainability regarding raising the concerns for food waste management
etc. In context with TESCO, the company's van drivers do not only use fuel saving
routes but also gather unwanted plastic bags from the customers for the purpose of
recycling and ensure sustainability thereby.
 Legal – These factors include the impact of applicable laws on the company that the
company must comply with. The factors include company laws, rules and regulations
of each country that the company has operations in such as health and safety laws,
consumer protection laws, payment of wages act etc. In context with TESCO, it had
to face the negative impact if these factors due to accounting fraud. The company
must conduct its food operations in accordance with Food retailing commission.
Competitive analysis of TESCO using porter's five forces model
It is a framework that helps the company in analysing its competitive landscape and
the degree of competition in the industry that the company is operating in. It facilitates the
company in identifying the competition level from current as well as new competitors in the
market (Swazan and Das, 2021). This model was developed by Michael E. porter. The
competitive analysis of TESCO using porter's 5 forces model is being explained hereunder -
 Competition from existing rivals – It includes the competitive pressure from the
existing competitors in the industry that the company has intense competition with
(Durbić, 2021). In context with TESCO, it existing and major competitors include
Sainsbury's ASDA, Carrefour, Walmart , Marks & Spencer etc. that the company
faces intense competition with in terms of customers',sharing, market sharing etc. this
is because they all deal in the same king of products with the same prices.
 Threat of new entrants – TESCO is a well established company in the retail industry
with other renowned companies and is of the largest multinational retailer of UK. So,
for any new entrant, setting up the business by entering this market and conducting
operations will demand huge capital requirements. So, the company has a low
competitive pressure from the new entrants.
 Bargaining power of suppliers – TESCO is a multinational company that has a strong
connection with wide network of suppliers across many countries. So, the company
has low competitive pressure from the bargaining power of suppliers as they have low
bargaining power with the company due to its wide supplier chain.
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 Bargaining power of buyers - Although TESCO is operating in the retail industry that
has many other similar companies offering the same products with almost similar
prices providing alternatives to the customers to switch to different company's
products, but the customers will get the same quality and same price products in this
industry that make their bargaining power low in context with TESCO.
 Substitute products of other similar companies – TESCO does not sell only groceries,
clothing, home and food products that have many substitutes in the market but the
company also offers fresh milk, condensed milk, powder milk and the related
products that makes the company less concerned about the competitive pressure from
the substitutive products of other companies i.e. it has low pressure from the
substitutes.
Value proposition of TESCO
TESCO actively communicates with its customers through social networking
platforms to address their feedbacks and resolve other issues regarding the product quality.
Apart from this, it also uses various other channels like in-store advertising, media and direct
mail to communicate with the customers for marketing purposes. The efforts of the company
add value to customers' experience and ensure effective value proposition of TESCO (Tesco's
Value Proposition, 2022). The value proposition of TESCO involves to provide the
customers with those products that they desire at a low price by adopting the cost leadership
strategy and while not compromising with the product quality. TESCO has its own website
that provide the convenient and smooth services to the customers to place online orders and
getting the fast delivery. The company has also developed a mobile app for the conviniency
of its customers that facilitates online payment. Through these services, TESCO ensures
effective value proposition for its customers.
5 C of Marketing Analysis of TESCO
This technique facilitates the marketers in making informed business decisions (Qian, 2021).
 Company – TESCO is a multinational company having 27% share in the UK grocery
industry. The stores of company include TESCO express, TESCO metro, TESCO
superstores etc. The company has a strong online presence and has two broad
committees i.e. Board committee and Executive Committee.
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 Collaborators – TESCO has a large base of suppliers and strategic partners on a global
basis. Some of the braided suppliers of TESCO include Coca cola, general mills,
Kellogg, Nestle, Pepsico, princes and Unilever. Due to the strong connection with
suppliers and collaborators, it is able to get competitive advantage over Aldi and Lidl
as well.
 Competitors – TESCO faces an intense competition with its major competitors like
ASDA, Sainsbury's, Morrison's, Walmart, Lidl, Aldi etc. so, it has implemented
effective marketing strategies and is launching a new food product as well to increase
sales so as to overcome the competitors. Walmart, carrefour and SPAR are its major
international competitors (5C analysis of Tesco (5C’s of Tesco), 2017).
 Customers – TESCO considers its customers very crucial to deliver the best service to
them. It communicates with the customers through direct advertising and through
digital channels as well. It sends almost 15 million mails to them to effectively market
its products. But the company has low customer satisfaction rate in UK as compared
to its competitors.
 Climate – It refers to the external environment impact on the company such as
TESCO was penalised with approx £7.5 million for selling out of date food in its
stores in UK that was the negative impact of legal factors on the company.
Market Segmentation, Targeting, and Positioning
Segmenting Tesco divides the luxury food product market into three categories:
geographic, demographics, and behavioural.
Targeting Tesco targets a good number of segmented consumers for this new
foodstuff. From children to elder people, who do not like to take dairy
milk can easily consume this ice cream as it is produced with lots of
vitamins, and others nutrient ingredients that are healthy for them.
People living in the UK are the first phase consumers of this luxury
food product.
Positioning The promotion for this product needs to be more lucrative, which will
help to create awareness among consumers about this healthy and
nutritional food item i.e. Black Diamond icecream.
Marketing mix strategy development
Product As the newly launched food product of TESCO is a luxury item, the
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manufacturing should be maintained properly. The new Black Diamond
Ice cream must have quality, safety, and hygiene factors to be taken into
consideration. The legal power must approve laboratory testings.
Besides, the bottle should be eye-catching in design, and the packaging
must be covered with adequate information about the nutrition and
ingredients.
Price As the product to be launched is a luxury product having high quality, it
must be offered at premium prices by the company and the target
market for this product must be high income group people primarily as
this is the luxurious product.
Promotion TESCO must put more emphasis on online marketing as well as
advertising. It should use the most used social media platforms like
Facebook, Youtube, Instagram, TV, Newsletters, etc. for reaching to the
target customers of its newly launched food product.
Place Due to Covid19, people are preferring online shopping and the
company has also observed an increase in its online sales due to this
reason. So, for promoting and selling its new product, company must
use online platforms such as its website, mobile app etc. and ensure
faster and on time delivery of this product so as to provide nice
experience to the customer and increase customer base.
Budget
Particulars Amounts
Formula development £7 million
Market research and analysis £4 million
Training program for employees’ £5 million
Online campaigns £6 million
Sales, and discounts £3 million
Observing market £5 million
Total £30 million
Controlling and monitoring measures
 Benchmarking
It is a monitoring tool used by the companies to monitor the performance by
comparing it with the standard performance metrics of the respective industry or by
comparing the best practices of own company with other companies. TESCO can use this
tool to measure marketing performance of products, services and processes to its competitors
and identify the gaps so as to take corrective measures to improve it.
 Return of Marketing Investment: The return on marketing investment (ROMI) tool
will track the product's total growth and productivity. This will be compared to the
marketing plan's spending and the revenue created as a result of such a marketing
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strategy. Tesco is already working hard to expand sales by 10% (Kotler, et al., 2019).
If it fits the expectations, it will be considered for an integrated marketing strategy,
that measures development.
 Customer Lifetime Value (CLV): The average sales value, median purchase rate,
and the number of customers lifespan of Tesco are multiplied for getting the
Customer Lifetime Value. It's a crucial indicator for figuring out who are the potential
consumers. It was the prediction of worth a client relationship can offer to a company
(Dima & Constantin, 2013). Tesco can use this strategy to demonstrate the long-term
benefit of its promotional campaigns. For example, suppose a customer visits monthly
once and spends for Black Diamond Ice-cream £15 per visit over an average lifetime
of 1 year. The CLV would be considered as: £15 x 12 x 1 = £180.
Developing a media plan to support a marketing campaign
Media budget
Particulars Budget
SEO, email marketing, newsletters, and creative content
marketing.
£5 million
SMM over Facebook, Instagram, and YouTube £3 million
Billboard, leaflet, and banner £2 million
Total £10 million
Channels for communication
 Facebook: Nowadays people are spending 70% time on Facebook. Around 2.92
billion people are monthly using these gigantic platforms for maintaining social
interaction. To make this a scope Tesco should promote the Black Diamond Ice cream
via Facebook marketing. To do so, they should prepare relevant content, and short
videos about the product, and share them live for Facebook posts.
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 YouTube: This is another media, which is used by approximately 240 million UK
followers. Tesco needs to promote their product video either long or short and make
video content for attracting a huge segment of people for its newly launched product
(Kotler, et al., 2019). Besides, Google also stimulates the appropriate advertisements
on YouTube. Therefore, the suggestion for Black Diamond Ice cream will appear on
their account.
 Search Engine Optimisation: The significance of digital marketing is vast in
gigantic organisations like Tesco. SEO will help Tesco to identify the accurate
number of users, google ads, Website links clicked, etc. for increasing the engagement
of users towards the newly launched foodstuffs.
Recommendations and rationale for selected and integrated multi-media
activities
Luxury Black Diamond Ice Cream is the emphasis of this marketing strategy. During
the Covid-19 outbreak, the entire world is getting stuck and unable to interact with each
other. This is why the economic growth has declined severely. After that, with the help of
digital marketing, many marketers have overcome the situation and started to continue their
business online. In the UK, more than 90% of people are using the internet and spending
60% time on various social media platforms (Baines, et al., 2013). Therefore, Tesco should
promote their newly launched ice cream on Facebook, one of the vastly used channels,
YouTube, Newsletters, Instagram, etc. It must also demonstrate the products essentials like
ingredients, health related concerns, prices etc. on its website. It is a smart way to attract
more consumers to the business not only in the UK but also in the whole world. Besides this,
Tesco should go for offline marketing like a billboard, leaflets, banners, etc. By taking
support of SEO, SMM, and creative content marketing it can have an actual understanding of
the target market.
Conclusion
The importance of Marketing is undoutable in any kind of business. From the
beginning to the end of launching a new product or service the department has to go over lots
of activities. The unit is working with other departments of the company for achieving the
same share of the goal. The marketing function, directly and indirectly, create an impact on
the profitability and productivity of the business. Tesco is the largest retailer in the UK and
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has led the industry for more than 100 years (Tesco, 2021). The company is now decided to
expand its product line by introducing Black Diamond Ice Cream into the market. To do so
they create a strategic plan for the proper execution of the plan. In this report, a marketing
plan is discussed with the media, and a budget plan. The external environment analysis has
also been discussed using PESTEL and competitive analysis frameworks. Moreover, the most
effective social media platforms are also suggested for Tesco in terms of successfully
implementing the plan into action and attaining organisational success.
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