Marketing Essentials: Unit 2 Report on Tesco Marketing Strategies

This report provides a comprehensive analysis of Tesco's marketing strategies, addressing key aspects such as the key roles and responsibilities of the marketing function, the relationship between marketing and the wider organizational context, and the comparison of the marketing mix to marketing planning in achieving business objectives. The report delves into Tesco's approach to understanding customer needs, tracking market trends, and managing its brand. It explores the integration of the marketing department with other departments like R&D, production, finance, and HR. Furthermore, the report compares Tesco's marketing mix elements (product, place, price, promotion, people) with those of ASDA, highlighting the strategies employed by Tesco to achieve its business goals. The report concludes with the development and evaluation of a basic marketing plan for Tesco, offering insights into its promotional activities and overall marketing approach.

MARKETING ESSENTIALS

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Key roles and responsibilities of marketing function............................................................3
P 2 Role and responsibilities of marketing relate to the wider organizational context...............5
LO 2.................................................................................................................................................7
P 3 Compare the marketing mix to marketing planning to achieve the objectives of the
business........................................................................................................................................7
LO 3...............................................................................................................................................10
P 4 Produce and evaluate a basic plan of marketing for the company......................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Mostly, advertising, publicity and sales techniques are considered as marketing. This is based on
the belief that marketing begins after the product or service is designed, produced and is ready
for sales and delivery. Advertising, publicity and selling are all some parts of marketing. Tesco,
is a British multinational groceries and general merchandise retailer with headquarters in
Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third-largest retailer in
the world measured by gross revenues and the ninth-largest retailer in the world measured by
revenues. This report contains issues such as Key roles and responsibilities of marketing
function. Role and responsibilities of marketing relate to the wider organizational context.
Compare the marketing mix to marketing planning to achieve the objectives of the business and
Produce and evaluate a basic plan of marketing for the company (Henríquez, 2018).
LO 1
P 1 Key roles and responsibilities of marketing function
Listening to the needs of the customer-
It is important that companies such as Tesco needs to listen to their clients so that they
can understand their needs and wants and establish the strategy of marketing. It’s the
responsibility of marketing department to collect the feedback from customers so that necessary
changes can be made.
 Company internal channels-
They need to create survey in order to capture the information from the team of
sales and the department that works for the support of customers.
 Channels outside the company-
It is necessary that Tesco search and find out that take place in social networks as
they will be able to understand the demand made by customers and convert that
demand into a finished product (Nirschl and Steinberg, 2018).
Track trends and monitor competition-

It is necessary that companies such as Tesco must focus on the current position of the
company which relates to the market and competition. It is necessary that company analyzes the
forces of competition in the market so that they can make changes in the mistakes they have
committed in the past and avoid the chances of meeting with failure.
Work and values of brand-
Brand of the company represents the feelings of the services and products offered by the
companies such as Tesco. The role of marketing department is to be responsible for the forming
and creating images with the drafting of idea so that it can be communicated with the values of
the brand. Tesco also needs to make sure that department of the company send this in a manner
which is unified.
Searching for tools that are new-
It is necessary that company remains updated in the area of marketing. This is the reason
why marketers of Tesco is aware about the new tools (Haywood, 2019), methods which are
coming up with time. There are three tools for marketing such as
Tools for product management-
There are many tools under this aspect such as tracking of project, feedback of users,
perfect for competing with impressions of customers and tools for analytics such as Google
Analytics that are important as they help to assess the success and level of interaction on web.
 Marketing automation tools-
There are platforms which are considered to be all in ones for managing and controlling
the strategy and processes of digital marketing. Content can be created with it, pages can
be worked on, marketing on email, CRM will help them to maintain the flow of work.
 Product Information Management Tools-
This aspect of digital solution helps to collect store, distribute and analyze the content of
the product on places which are in the market and channels where it is available and
published. It is necessary to update and keep up with the materials of sales, listings of
price, catalogs etc. the possibilities and ratio from it do not seems real but it gives many
advantages to the team of marketing.

 Coordinate efforts with those of the marketing partners-
There are many contributors such as designers, journalists, consultants, publishers etc for
the marketing of business. The area of work they do contributes in achieving the
objectives of Tesco.
Innovate-
The activities of marketing must be used in such a way that customer feels surprised
every time they go through it. The department of marketing must work on the promotions that
are new, programs that are affiliated and techniques of retention for the customer and improve
the rate of conversion. Small details can also be introduced as innovations and keep the
improvement continuous (Purvis, 2016).
Communicate with others-
Chain of members who works on achieving a common goal that is known as company
and it is done so that they can increase their level of profits and achieve their mission. This is
done by working on the basis of ethics of business that are derived by the company. If the
department of marketing does not succeed then they will fail as all the other departments rely on
it. This is the reason why other objectives are aligned with the achievement of objectives of the
company (Steven, 2016).
P 2 Role and responsibilities of marketing relate to the wider organizational context
Marketing department of the company has to work with other departments in coordination with
other department that stands in the organization. Functions of marketing interact with other
department so that they can keep up with them. The success of the department of marketing
relies on their ability to work in coordination with others (Lanier and Lanier, 2017).
Marketing with Research and Department-
Every company such as Tesco that is operating on a huge scale will have both of the
departments. The department of R & D believes that they are the ones that makes and the
department of marketing takes. If they want to be successful then they need to work in
coordination. There are a lot of reasons behind that R & D would have no knowledge of area if
they have no data from the team of marketing about the persona of buyers, trends in the market

opportunities, challenges and threat in the environment to begin with. Other than this department
of marketing also comes up with commercialization and the aspect for testing of product which
is developed by the department of R & D. In favor of R & D till they come up with the ideas that
are new there is nothing that the team of marketing can do on their own.
Marketing with Production and Operation Department-
The department of production involves dealing with production and technical people in
order to manufacture goods. They do not put their focus on the area of promoting or marketing
the product. There are many differences in both the departments because of their different
demand and needs. For instance production department will not make changes as per the wants
of department of marketing because of the technical issues but the department of marketing will
keep forcing them to make modifications in the product on a frequent basis. Other than this
department of production will want that quality of product maintained must be average but in the
case of marketing they want it high so that they can present it in a better way. Still they cooperate
on the major issues of Tesco (Perreault, 2018).
Marketing with Finance and Credit Department-
The aspect of finance looks after the expenses, budget and sales of Tesco. They try to
make these aspects of the company more tight and complex in order to reduce the wastage of
money in the company. Other than it this is also done so that cycle of credit can be reduced. The
department of marketing faces difficulties if the budget set by the company is tight as they need
money to carry out their activities and for that they demand that the budget must be flexible. The
department of finance states that the price must cover all the areas whereas marketing department
states that budget must help them to work on development of market. it is necessary that
managers of Tesco who look after these aspects analyze both the area and then make the
expenses to carry out the activities and develop the market.
Marketing with HR Department-
The department of marketing of Tesco relies mostly on the department of HR for the
supply of component marketing and people of sales. The department of HR has to keep up with
the responsibility of providing training to their employees and the people who are employed in

the area of marketing. There are some differences but it is the marketing department that helps to
find the eligible and right candidate for the job and it is the department of HR who trains them
and make them fit for the culture of the company. So both of these departments are interrelated
with each other and works in coordination so that company can achieve their objectives (Larson
and Draper, 2018).
LO 2
P 3 Compare the marketing mix to marketing planning to achieve the objectives of the business
Basis Tesco ASDA
Product Tesco offers different range of
products which helps them to
meet the needs and wants of
consumer which are of the
different segment. The
products offered are party and
gift products, groceries,
electrical and gardening
products, clothing and
jewellery etc. They have
different stores of brand for
different types of products.
The products that are offered
by the company are food
cupboard, groceries, chilled
food, bakery and fresh food,
items of laundry and
household etc (Cooper, 2016).
Place The company has more than
7,000 stores in 11 countries.
The supermarkets that are
offered by the company are
large with average size of
1,000 square metres which is
situated in the centre and the
main point of attraction. There
are many brands under Tesco
The headquarters of the
company is established in
Leeds in West Yorkshire.
Currently the company has
their stores in almost every
part of UK. There merger with
Wal-Mart has helped them to
make their store bigger than
20 per cent which is more than

and some of them are
classified on the basis of their
place.
the competitors of the
company dealing in this
sector.
Price The strategy followed by the
company is cost leadership. it
helps them to offer goods at
the least price possible.
Company focuses on
economies of scale so that
they can offer them least
prices. Other than this
company offers Brand
Guarantee that states that
buying goods in bulk can not
be cheaper than the rate of
Tesco. The product team of
the company has been
restructure just for the benefit
of the customers.
The strategy that is
implemented by the company
for pricing is cheap and
reasonable so that they can
attract no. of consumers on a
large scale. The revenue
generated by the company
21,666 million Pounds.
Promotion The promotional activity of
the company is based on their
strategy of pricing. Other than
this they also use the
traditional and modern
medium of channels such as
hoardings to online platforms.
Other than this they have
introduce their club card
which is for their targeted
customers as this gets them
discounts on the basis of
The promotion strategy that is
used by the company is
marketing aggressively. The
commercials that is used for
the brand is very attractive and
influences the mind of the
target audience. There are
many aspects which is used by
the company such as You
Tube, Facebook and equity of
the brand. With the traditional
and updated methods they also

purchase they have made
(Pricilla, 2019).
value the power of celebrity
endorsements and taglines as
it helps them to attract many
people.
People There are more than 4,80,000
employees in the company in
all of their markets. Company
encourage the level of
diversity so that they can
perform better as they will
have more knowledge of the
market.
The company has more than
1,80,000 employees which is
less than Tesco. But the
training provided by ASDA is
better than Tesco which helps
them to serve their customers
better.
Process The process of the company
was to attain more share with
keeping out the deviations at
their least as possible.
The company entered into the
business of retail late but now
they have gained substantial
amount of profits.
Physical evidence It stands as the proof of the
existence of the company.
stores, colors, logos, labels
etc. are the physical evidence
of the company.
Strength of the company lies
in the no of stores they have
and their location. There are
many groups for different
services which prove the
physical evidence of the
brand. Other than this they
have stores for merchandise
and other coffee shops. Still
the main base of operations
maintained by the company is
their products which are sold
in the retail such as
homewares, health and
products of beauty,

electronics, clothing and toys.
LO 3
P 4 Produce and evaluate a basic plan of marketing for the company
Mission-
Mission of the company is to make things that matter better together.
Vision-
Vision of the company is to be the most valuable business by the customers they serve to and in
the communities in which the company maintains their operations. Benefit of our colleagues and
the shareholders of the company.
Core values-
The values of the company focus on three areas that is main to them such as make strategies that
are customer focused, care for all of them and work on making a difference (Bünte, 2018).
Objectives-
 Increase the sales of the company by 15 per cent till next year.
 Increase the share of market for products that are newly launched in order to set the base.
 Increase the rate of customers who are satisfied by the service provided by the company.
SWOT Analysis-
Strength-
 Biggest store of grocery is under the name of Tesco in Britain.
 The raw materials that are ordered from the suppliers have network that is efficient.
 The share of market that is attained by the company is at highest position as compared to
their competitors.
Weakness-

 The company was not successful in setting up their base in US and Japan.
 The company has been involved in the errors that are made financially and scandal made
in accounting.
Opportunities-
 They have the scope to expand their new venture that is Jack Store.
 Company has the scope to enter in the markets that are emerging and that is not tapped by
them (Stanford, 2017).
Threats-
 The deal of Brexit and the situation of Covid-19 has been a threat for the company
because it has hit the economy harder than expected and recovery from it will take time.
 They are facing immense amount of competition from other companies such as ASDA,
Aldi and Wal-Mart etc.
Evaluation and Control-
KPI-
This tool helps the company to monitor their own performance so that they can make the
changes in the structure when required and take out the factors which is needed and it can help
Tesco to know where there performance is lacking so that more attention can be given to that
area. There are many types of key performance indicators which are used by the company which
are specific to the details of monitoring of different areas and help to take out deviations so that
performance can be improve. If factors are properly monitored and successfully evaluated then
they will be able to improve the sales and serve more no of customers in the market.
Benchmarking-
This aspect helps the company to compare their performance and attributes of their
products by the products that are offered by the competitors so that they can match the level of
their products with them and highlight the changes that are offered to them. This will help Tesco
to make the necessary changes in their structure and form the strategies that helps them to fight
their competition and survive in the market (Berkowitz, 2016).

Budget-
Activities Budget ($) Actual ($)
Market research 60 40
Recruitment 160 160
Rent 150 200
Social media advertising 40 30
Total 410 430
CONCLUSION
From the above studies it has been concluded that Tesco has been able to achieve their goals and
objectives in the market and they are the no one retailer in supermarket sector over the world.
The share in the market obtained by them is at the highest position that is the reason why they
are looking to explore other areas such as attention on Jack Store and make their presence
available on online markets. It is necessary in order to remain in competition as they are facing
an immense amount of competition which is affecting the business of the company. There are
factors which is limiting the growth such as the deal of Brexit and the crisis of Covid-19. It is
necessary that Tesco prepares there measures against these measures so that they can sustain on
the market for long and keep satisfying the needs and wants of their target audience. One of the
reasons of the success of the company is the strategy of pricing that is cost leadership used by the
company. It is because it helps them to sell their products at low cost so that more customers can
be served and sales can be maximized.