Marketing Essentials: Tesco and Morrison Marketing Analysis Report

This report provides a comprehensive analysis of marketing essentials, using Tesco and Morrison as case studies. It begins by outlining the roles and responsibilities of the marketing function within an organization, emphasizing market research, planning, product development, and promotional strategies. The report then delves into the 7Ps of the marketing mix (Product, Price, Place, Promotion, Process, People, and Physical Evidence) for both Tesco and Morrison, offering a comparative analysis of their approaches. Finally, the report constructs a marketing plan for Tesco, focusing on product promotion and launch, demonstrating a practical application of marketing principles. The report also examines the inter-relationship of the marketing function with other departments like operations, finance, and human resources.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASL 1.............................................................................................................................................3
Roles and responsibilities of marketing function........................................................................3
Planning:.....................................................................................................................................4
TASK 2............................................................................................................................................5
The 7p's of marketing mix of Tesco and Morrison.....................................................................5
TASK 3............................................................................................................................................9
Marketing plan............................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing refers to a process or set of activities by which it identifies the needs of the
customers and provide them goods and services which can meet customers expectations.
Marketing essentials are those important elements including marketing mix, marketing strategies,
marketing function etc. that helps an organization grow. The chosen firm for this report is Tesco.
The study will shed a light upon the marketing function of Tesco and its inter-relation with other
functional units. It will also present basic key elements of marketing and 7p's of Tesco with
comparison to Morrison. At last, it will provide a marketing plan of Tesco in promotion and
launch of new product.
TASL 1
Roles and responsibilities of marketing function
Marketing function is an important part of an organisation. Marketing process is one of
the complex function of an organisation that includes various aspects. Marketing is providing
such quality goods and services that can satisfy the needs and requirement of the customer.
Every organisation focus on controlling and managing its marketing activities in order to attract
more customers so that it can generate higher sales and revenue. Tesco is a multinational retail
firm that provides services worldwide and it acquires goods from different countries and have a
good marketing team to lead the business (Ozanne and et.al., 2020). The marketing team of
Tesco has various roles and responsibilities such as-
Gathering and analysing market information: The marketers tries to collect and
analysis the market information. It seek out customers needs and requirements. Marketing team
of Tesco also analysis the necessity of the products and then accordingly design of the product is
finalized, further its labelling and packaging is determined.
Marketing plans: The marketing function also plan the marketing strategies to enhance
the no. of sales and also make strategies for promotion of the product. It prepares a proper plan
of how it will achieve the organisational objectives using strategies. Also, if a product becomes
popular in a particular area it plans how it will widen the area product influence.
Product designing and development: It the responsibility of the marketing function to
design the product in such a way that it could target a large no. of audience. Product designing
includes shape, size, quantity and quality of the product. Tesco's marketing function before

launching of a product analysis the competitors strategy and the quality of their products (Roles
and responsibilities of marketing function, 2021). Then it plans the product design in such a
unique way that it could exceed customer expectation and its products beat the quality and
pricing of the competitors.
Packaging and labelling: Packaging refers to putting labels on the product. This not
only protect the product but also helps the customers to analysis the product quality. The
packaging and labelling of the product is done in such a way that it attracts more customers.
Tesco has used packaging and labelling as a tool of promotion.
Promotion: It is the tool used to provide information about the product regarding its use,
benefits, price, features etc. a marketer have to decide the promotional budget of the product. It
also uses the main tools like advertising, sales promotion, publicity etc. to promote the product.
In context with Tesco it regularly plans it product promotion also give discounts and offers at
regular intervals in order to attract the customers.
The key element of marketing function and its inter-relation with other functional units:
There are various key elements of marketing function, few are mentioned below-
Research:
It is the key element of marketing function which helps to analyse the target audience
before planning or making a strategy (Brzustewicz and Escher 2016). It is important to research
about the target audience in details. Such research includes demographic factors such as age,
education, income, gender etc. not only this it also needs to research about the physiographic
factor of the target audience such as the values, lifestyle, attitude etc. This includes research of
such communication mediums that helps in reaching out to the audience.
Tactics:
Tactics refers to the tricks and strategies that will help Tesco to offer unique products
from their competitors. Once the target audience is defined one can easily focus on the
development of the product. Using various tactics in development of unique product and
promotional strategies will help the firm to target large no. customers and that is why, this is
considered as a key element of marketing function.
Planning:
This is the stage where the marketing team comes together and plan their course of action
and strategies. It collaborates with its research, unique ideas and perspective in order to create

better product-services. The marketing team of Tesco makes effective strategies. The planning
element allows the marketers to utilize the 4p's of marketing and create such products and
services that can match to customers requirement and expectations.
The marketing function have close relation to the operations management and production
department. As the design and development of the product is planned by marketing function
based on the research of the requirements of customers needs. The product development plan is
then executed by the manufacturing team. Both are linked to each other as the deadline for the
product development will be set by marketing. Further, it would expect the product to launch in
market as soon as possible whereas the production department needs to ensure the quality and
safety of the product so that it could meet the requirement of the consumers (Cheung, Pires and
Rosenberger, 2020).
Finance department of Tesco also have inter-relation with the marketing function such as
it provide the adequate budget for the research, production, promotion and distribution of the
product. The budget needed for such activities will be carried out by the finance department then
further the process of creation of new product will be carried out. The marketing function need to
work closely with human resource department in order to ensure the appropriate staffing of
employees. So that it can lead the research, planning and development of the new product. The
HRM department of Tesco has helped in creating an effective and competent sales team that
have benefited the marketing function to carry out its strategies and plans in proper way. The
HRM has to look after the training demands within the different functions of the organisation. It
has to maintain its obligation to marketing and such other functional units working in the
organisation.
TASK 2
The 7p's of marketing mix of Tesco and Morrison
Marketing mix is a strategy used by the firm to promote its products, brands and services. There
are total 7 elements of marketing mix. It evaluates and cover the whole process from
development of a product to its pricing, distribution, promotion and customer use.
7p's of Marketing Tesco Morrison
Product Tesco provides wide range of
products from food, clothing,
Morrison is a grocery retail firm. That
provides fresh food. Morrison have

electronics, beauty and health, baby
care, stationary etc. it has almost
everything for everyone.
Its has its own production and various
brands such as Tesco lotus, Tesco
value, Everyday value, F&F clothing
etc. Also, there are different types of
Tesco stores such as Metros, Express,
Superstores, Extras etc. providing
different products.
its own manufacturing and
production, its ensure the quality and
freshness of the product by its own. It
has different brands like Morrison
cellar, NuMe, just for kids, M
signature. The brand also look after
the quality, packaging, features and
appearance of the food products.
Morrison sells it products at its shops
and factories.
Price Tesco has a low price strategy along
with vast ranges of product. It has
reduced its price as much as possible
without compromising with the
quality. Also, it continuously works
on building good relationship with
the supplier chain so that it can
reduce the price. Competitors like
Aldi and Lidl that are leading market
in UK such also impact its pricing
strategy. But Tesco with its strategies
tackle the situation very well.
Morrison uses low price strategy to
sell its products. It understands price
is that factor that affects customer
behaviour. It provides fresh quality
food products at reasonable price. It
ensures that price should never
become a reason for customer to shop
somewhere else. Thus, price is that
factor that attract customers to shop at
Morrison (Loo and Leung 2018).
Place Like other retailers it also uses online
and offline channels to sell its
products and services. It has around
7000 Tesco stores worldwide and
also 6 different types of stores
providing different ranges of product
such as Tesco extra, Tesco
supermarket, Tesco compact, Tesco
Morrison has around 660 stores
around UK. Morrison stands at no. 2
in terms of manufactures in UK. It
also sells it products both online and
offline. It has 1 national and 7
regional centres. The firm owns
around 1606 trailers and 545 tractors
that helps in the distribution and

metro etc. the online business
channelled by Tesco is known as
direct.
delivery process.
Promotion Tesco has a big brand image that
helps it promotional activities. The
company uses various mediums to
promote its products such as
television ads, newspapers, internet
and other media outlet etc. company
use lower price to promote its
products. It also gives offer and
discounts such as buy 1 get 1 free. It
started some schemes to increase the
sales of the products such as clubcard
scheme. It gives customer some
points when every time they buy the
products which they can use to cut
down the price of the product and
purchase it in discount. Tesco also
gives personalized discounts.
According to a report it spends
around £80.8m in 2019 in promotion
and advertising of products
(Marketing mix of Tesco (7P's of
Tesco), 2017).
Morrison in terms to keep British
farming program effective and
sustainable. It continuously works
with its suppliers to enhance the
quality of Morrison farming program.
It provides low cost, quality product
to earn greater benefit. It focuses on
making its stores a pleasant place
where customers can have happy
experience in such direction it
provides customer rewarding
schemes using match & more cards.
It gives quality products at cheap
price such is its promotional strategy.
It also gives special offers online and
offline at regular intervals to
promotes its products.
Process Process refers to the set of activities
used to carry out a task. Such as
processing of customers order or the
process by which a customer make
payments such as in Tesco offline
Morrison offers convenience and
multi-channel experience in their
online stores. Morrison aims in
making its stores a pleasant place
where the customers can have a good

stores customers make payments to
the customer assistant. They can also
make payments using self-service
machines etc.
shopping experience. It has wide
ranges of food product. Thus, it
manages the showcasing and keep the
product at appropriate place so that
customers could easily find the
product and can choose the right
products at good price.
People There are approximately 420,000
people working with Tesco all over.
It has a number of customer assistant
that have played significant role in
the growth of the firm. Tesco has
rewarding scheme for employees.
Tesco also invest a huge amount in
organizing training and development
programs for the employees.
However, it is evaluated that Tesco
have failed in motivating the young
workers.
Morrison provides a large opportunity
to the local people to work with it. It
has employed experience and
quantified bakers, greengrocers,
butchers and fishmongers such that
customers can have quantities of
preferences. There are around 12
million people running through the
stores every week (Abedi, G and et.al
2019). Also, the various brands has
117000 employees working with the
supermarket chain.
Physical
evidence
Physical evidence or environment
represents the furniture, business
cards, reports, brochures, aprons,
menus, equipments etc. There is no
doubt that it have a good logo and
also there is effective use of colours.
The online and offline stores are well
categorized and it is convenient for
the customers to find Tesco products.
The Tesco website is also designed in
such a way that it is easy to operate
Morrison has approx 600 offline
stores. 1 national distribution centre
and 7 regional. The company website
showcase all its ranges of products
and it is easy to assess and buy
online.

and looks fantastic.
TASK 3
Marketing plan
Mission: TESCO mission is to bring on varied range of new scale innovative products variety
and services for competitive scale marketing, profound synergies for larger scale efficacy within
consumers goodwill.
Vision : TESCO vision within long term marketing plan is to bring on enhanced expanded scale
on consumers products, services within digital networks and also to potentially bring on new
functional attributes to evolve on new horizons at global level.
SMART marketing objectives
Specific: Tesco aims to bring on new organic food grocery range within its supermarkets range,
where fresh food supplies will be resourced for generating competitive demands ascertained
widely.
Measurable: The revenue targets achieved within marketing will be used on for competitive
functional scale perspectives and vivid range of analytics, to evolve on larger work goal
targets.
Attainable: Tesco goals will be attainable by focusing towards innovative diverse range of
marketing aspects for organic healthy food products into supplies, which will enhance
goodwill domains imperatively.
Relevant: The relevance of goals to market new range of organic groceries will be focused
towards functional scale growth, larger scale innovative keen domains and bringing on best
advanced digital marketing to reach larger group of consumers.
Time Bound : The goals will be attained in specific time period of 6 months, which will be
enough to strategically market out organic food supplies range and also deliver efficacy on
long term business goals profoundly (Appel, Grewal and Stephen, 2020).
SWOT analysis
Internal analysis business framework can be understood as widely crucial for stringent
vision oriented growth goals and also for larger scale functional aspects.

 Strengths: TESCO has strength of strong consumer goodwill due to its best quality range
within products and services where there is also informative focus strengthening its new
scale efficacy domains of best marketing outputs. The strengths of new range of working
supplies has enhanced revenue targets widely and also up scale new aspects of quality
services vividly.
 Weaknesses: The brand has been facing weakness within internal aspects of technology
production parameters where there has been also raising factors of dynamic consumers
preferences, impacting work strengths within company resourceful domains. TESO has
been also facing losses due to internal weak structure within production aspects, on which
competitive strength cannot be explored.
 Opportunities: Tesco has wide scale marketing opportunities, business production
expansion opportunities for wider consumers market and new profound training of
employees for generating target revenue. There is also vivid opportunity to evolve on
new aspects of profound scale connective horizons and enhance productive diversity for
bringing on larger vision oriented growth domains.
 Threats: TESO faces external business environment as threat as there are various new
brands coming on within global retail industry, also there is threat of varied changing
external factors such as economic varying policies and also fluctuating new work
functional domains. There is threat of new keen domains of digital marketing where
strategic investment and vision oriented growth needs to be adopted in, also to bring on
competitive targets in frame there is threat of new larger perspectives (Dwivedi and et.al
2020).
Pestle analysis of Tesco
Pestle analysis refers to the political, economical, social, technological, legal and environmental
factors that affect an organisation.
Political factor:
Tesco is a British retail firm working in a number of countries. It has its headquarter
situated in UK. It is working in a politically stable environment and also, the other countries
where it is operating its business are politically stable. It has proved by its performance in a

number of years that it is capable enough to manage the current and future change in legislation
with its clever marketing policies.
Economical factor:
Due to the Covid-19 pandemic it has affected the lifestyle and standard of many people.
Such as low wages and loss of job, in such conditions customers are switching their needs to
cheaper brands to save money. This has affected Tesco.
Social factor:
Tesco works with the change in social factors as it operates in various countries the
cultural factor affect the needs and requirements of the customer (Perera, 2017). For example,
the shift of customers attitude towards organic food have asserted the firm to promote organic
food.
Technological factor:
Advancement of technology have helped in the growth of Tesco. Such as they
introduced RFID technology to enhance customers offline shopping experience. It has also
developed its own payment system known as PayQwid by using this mobile payment system
customers can pay as they want.
Legal factor:
Tesco is multinational company so it has to follow the national and international laws.
Due to the changes made in the laws it needs to adjust its business policies. It has to follow the
national international policies made regarding the quality, standard and wages etc. such as it
cannot give wages less than minimum wages set by the government.
Environmental factors:
Companies around the world are facing great amount of pressure in regard to the
environmental concern. The pressure is not just only by the side of government but also from the
local public. But looking at the environmental concern Tesco has taken various preventive
measures such as it has reduced carbon emission up-to 21% and it has a goal to achieve of 30%
until 2021. Also, it has reduced 1billion pieces of plastic packaging in 2020.
Target market
Segmentation:
In this process of segmentation the target market will be divided into smaller sections by
the people having similar interest. It is mainly divided into 4 parts such as Geographic,

Demographic, Behavioural and physiographic. Tesco can use demographic and physiographic
segmentation to promote its new organic product.
Target:
By using demographic segmentation the target audience for organic products will be
targeted on the factor of age such as youth and elderly people, also one that earn higher income.
With the use of physiographic segmentation Tesco will focus on the customers who are health
conscious the one that are interested and urge on buying healthy organic products.
Position:
Position refers to the ability of the firm to influence the customer with its market position
and brand (Kohne 2019). Tesco already is enjoying the position of leading market. In such
situation it will easily assess the innovation of new organic product to influence the target
audience with its position.
Marketing mix
The 4p's of marketing will eventually help Tesco to reach out to the target audience in the best
way and will also help it to develop a good marketing strategic plan such as-
Product:
Tesco can here focus on developing quality organic product, it can improve the
manufacturing process such that the British farming process in order to get fresh organic food
that can attract greater number of people. To make the product unique it can work on the
packaging and labelling quality of the product.
Price:
Tesco while here introducing a new organic product can use penetration pricing strategy
in order to attract more customer (Resnick and et.al 2016). It is a low price strategy used by the
firms to attract customer to new products it also helps in beating the competitive price for
instance. Such will help Tesco to occupy a marketplace for organic products.
Place:
Tesco is going to launch a new organic food product. It should first focus on the home-
market .i.e. carrying out of such operations in UK itself and once the operations gets successful.
It can expand the place of distribution of product in other countries.
Promotion: