Strategic Marketing Report: Tesco Plc Market Analysis and Strategy

This report provides a comprehensive strategic marketing analysis of Tesco Plc, examining its market size, competitor landscape (Sainsbury's, ASDA, Morrison's), and stakeholder relationships. It includes a SWOT and PEST analysis to evaluate internal and external influences. The report details customer analysis, identifies key strategic marketing objectives, and proposes a campaign strategy, including target audience and messaging. It further outlines a strategic implementation plan using the marketing and communication mix (product, price, place, promotion, people, process, physical evidence, advertising, personal selling, sales promotion, and public relations). The report concludes with recommendations for Tesco's marketing efforts.

Strategic Marketing

Contents
INTRODUCTION...........................................................................................................................3
TASKS.............................................................................................................................................3
Market analysis including competitors analysis, stakeholder analysis, customer analysis,
macro and micro economic forces which affects the company...................................................3
Strategic implementation.............................................................................................................6
Gantt chart...................................................................................................................................9
Budget........................................................................................................................................10
KPI.............................................................................................................................................11
Recommendations..........................................................................................................................11
Conclusion.....................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Market analysis assists a corporation in determining the ongoing and prospective demand for a
commodity. The firm should consider a market's future attractiveness by analysing opportunities,
strengths, and weaknesses. This project will discuss the many aspects of market research,
including such competition analysis, market size, stakeholder engagement, and customer
analysis, all of which aid in the identification of important strategic marketing goals
(Säynäväjärvi, 2019).
TASKS
Market analysis
a) Market Size: It essentially refers to the quantity of possible consumers for the products or
services. It's critical to comprehend your target market. Whereas all big retailers boosted their
revenues, Tesco maintained its share of the market, representing for 27.9% of the market. Tesco
is one of the biggest grocery merchants, with over 2,318 locations and over 326,000 employees.
Tesco.com, a division of Tesco, offers internet services.
b) Competitors analysis: Competitive analysis aids in the improvement of a product or service
in order to best represent the intended people and generate income. Customer base, rivals,
environment, client testimonials, unique selling proposition, advantages and shortcomings should
all be included (Shirasaki, Kobayashi and Aoyama, 2019). Tesco is a prominent grocery store
and distributor in the United Kingdom. Its main rivals are Sainsbury's, ASDA, and Morrison's,
known as the "Big Four" in the UK.
c) Macro and Micro economic factors – Internally and externally influences have varying
impacts on the business.
SWOT Analysis of Tesco Plc
Strengths
 Tesco Plc's goods are now more
pleased with the product due to
technological advances, which has
allowed the corporation to move data in
response to customer needs.
 Tesco Plc has formed a powerful
Weaknesses
 Controlling the budget is inefficient
and counterproductive. The liquid
assets percentage and availability ratio
have an influence on the company's
ability to utilise its funds more

supply chain over the years that allow it
to access the bulk of its growing
audience.
 Trustworthy raw material providers the
firm has a solid base of dependable
supply chain members, allowing it to
handle potential supply management
obstacles.
 Product innovation is a good long
history of creating new products
(Eskerod and Larsen, 2018).
effectively than it was before.
 Tesco Plc has a greater staff turnover in
its personnel than other companies in
the sector, requiring it to actually spend
mostly on talent management than its
competition.
 Because the organisational
management is only consistent with the
current corporate strategy, growth into
neighbouring market sectors is limited.
Opportunities
 Creating new opportunities as a result
of a government subsidy - Tesco Plc
has been given the chance to join a
rapidly evolving marketplace of the
introduction of a particular
technological benchmark and a
governmental trading relationship.
 Reduced shipping costs as a result of
decreased freight costs can cut the cost
of Tesco Plc's goods, giving the
corporation the option from either
maximizing revenue or passing on the
savings to clients to win customer base.
 The proposed tax regime has the
potential to have a considerable
influence on company practises and to
provide new opportunities for
incumbent companies including such
Tesco Plc to boost their revenue
Threats
 No consistent supply of creative items
— The firm has produced various types
of products, since they are frequently in
response to the growing of other
companies. Second, the influx of
available items is irregular, resulting in
greater and moderate fluctuations in
sales numbers over time.
 Tesco Plc's revenue may be jeopardised
by increasing prices of raw materials.
 Tesco Plc's goods is also threatened by
counterfeit and reduced imitations,
particularly in the emerging and lower
elevations.

(Ewerhart and Quartieri, 2020).
PEST Analysis
Political: Since the company operates in several locations, this must keep records of changing
political situations in each of them. The govt's long-term viability is critical. The more stable the
legislative environment, the more likely it is to do businesses.
Social: Tesco has maintained its existing customers through modifying its marketing plan to
healthy goods in order to delight its customers, as their sentiments towards fruits and vegetables
have altered. Tesco believes in helping the community through engaging locals, and as a
consequence, it has generated employment in several countries (Vanbrabant and et.al, 2019).
Economical: Please keep in mind that the value of a commodity has an effect on the market at
Tesco. Daily essentials must be priced correctly whether the firm appears being under strain or
even if inflation exists. A decline in overall sales will indeed come from an increase in price
paired with a reduction in available funds.
Technology: Tesco has experimented with a variety of product marketing and has some
expertise with a few. Clients can be influenced by giving big technical benefits such as online
purchasing, social media marketing, and so on.
d) Customer analysis: It assists in identifying target consumers, determining their requirements,
and afterwards determining how the item is available to delivering services. It also entails
determining who the clients are and determining their requirements. When it comes to Tesco Plc
brand recognition, the campaign is most likely to hit women.
e) Stakeholder analysis: Stakeholder analysis is a strategy for identifying and analysing
stakeholder demands that is used as part of corporate governance. It's being used to discover
those important parties having a strong interest in the problems discussed by the project. It aids
in the collection and analysis of data essential to establish the outcome (Yolcu and et.al, 2020).
• Individuals with a lot of power and a lot of interest - Supervise carefully, the firm must involve
the employees so that they may create the ultimate use of their efforts to serve the consumers.
• High power, low interest people- Maintain satisfaction, the firm must work harmoniously that
consumers are happy with its services and goods to a certain extent.
• Low-power, high-interest people- Stay informed. Remind clients on a regular basis by
resolving their difficulties and thoroughly explaining the product to ensure no problems arise.

• Low-power, uninterested individuals: Customers must be monitored by the firm, but they must
not be overburdened with global communication (Eskerod and Larsen, 2018)
Identification of Key strategic marketing objectives of Tesco Plc for the campaign-
A campaign is an element of brand consciousness used to advertise a new line of
products or services by raising customer knowledge of the product's or service's features. It will
aid in raising brand awareness and product portfolio awareness among the intended audience. It
may be done by utilising the influential marketplace, since individuals like receiving suggestions
from others, particularly those who have been professionals in their respective professions. It is
one of the simplest and most successful ways to communicate with a big group of people.
The key strategic marketing objectives of the company is
Campaign Strategy-
f) Reason for the campaign- The major objective of this program is to attract clients' interest by
various means such as social media, broadcast, billboards, newspaper ads, email campaigns, and
promotional. This will assist the organisation in promoting itself and enhancing its market
position (Harwood and Murray, 2019).
g) Market opportunity- Only with support of a latest campaign, a corporation may grow into a
new industry through focusing on new clients in an established market to offer new items. To
acquire customer base, it may be obtained by creating the offering more desirable.
h) Target audience- The purchasers who have the financial means to acquire the goods and
administrations will be the target market. Those may be men, women, youths, or children who all
have a common passion in shopping. The campaign will most likely target women who are much
more budget cautious then males while shopping (Susmanschi and Ruse, 2018).
I) General campaign message-- The ad offers a clear concept of Tesco Plc brand knowledge so
that customers may learn regarding new goods or services that are unfamiliar to them, such as if
a product or idea emerges in a new nation.
Strategic implementation
The marketing and communication mix is used by the management of Tesco Plc in the
firm's management to create successful marketing strategies that help them accomplish the work
more effectively. Through the same mixtures, an appropriate structural alignment will be
achieved, assisting in the attainment of business goals.
Marketing mix

Product: Tesco offers a wide range of products, including food, clothing, electronics, and
financial sectors. Such range of products is constantly responsive to most of its clients' demands,
and as a consequence, it has expanded into the sphere of internet advertising! It offers special
music and food broadcasting downloads in addition to the 40,000 or so market segments
displayed in its retail stores (Robles, 2018).
Price: It provides the most cost-effective items while maintaining a high standard of satisfaction.
Tesco keeps prices low by taking advantage of economics of scale and the most efficient
sourcing channels. Tesco works with its vendors to improve and simplify abilities so order to
minimize costs. As a consequence of customer feedback, Tesco keeps its pricing modest and
predictable. Tesco cut back on marketing in order to reduce costs still further.
Place: Tesco operates approximately 7000 outlets worldwide. Tesco Extra features are massive
superstores with a range of merchandise, particularly groceries and retail locations, together
under one roof, allowing customers to complete all of their regular grocery shopping in one visit
including under one ceiling. Single Stopping is a Tesco store with a different name. All those are
teeny-tiny stores with higher pricing than in any other Tesco (Sahaf, 2019).
Promotion: Tesco is a very well company with such a brand recognition reputation built on low
prices. Tesco's advertising activities are centred on this. Tesco advertises itself through
billboards, television commercials, or through humanitarian efforts. It also makes great use of
promotional offers such as buy one, have one complimentary. Tesco's 'Tesco Clubcard'
membership card allows the retailer to segment and target its consumers. Clubcard holders get
rewards that may be used for benefits (Susmanschi and Ruse, 2018).
People: Tesco is such a well retail company that employs a big number of people. Individuals
are employees of the company that have been through the company's recruitment process.
Detailed personnel and policy evaluation is required to find the proper people for the
organisation and the project. The corporation employs approximately 400,000 individuals in over
100 different countries. Tesco is a firm that places a premium on diversification. In terms of
enhancing the team's growth, staffs are paid more.
Process: Tesco's strategy was created with the purpose of achieving the market destination in
mind. It was designed with the intention of reducing non-compliance with corporate rules.
Additional factors to take into account are accessibility, unique features, and total production
ratios.

Physical evidence: The physical proof acts as proof that the consumer obtained real items.
Brands, colours, labels, and technologies are only a few instances of Tesco's evidence to its
consumers. Clients see the stores as a literal representation of the company and a source of
information. Tesco's promotion mix and commercial plan are now complete.
Communication mix
The communication mix involves using a variety of methods to communicate with
clients. The following are among some of the methods that the provided firm helps to convey
with prospective clients (Vahlne and Johanson, 2020).
• Advertising: The Company employs a variety of platforms to notify its customers about the
new, including social television commercials, television advertisements, and messaging
marketing, all of which establish a direct relationship with the clients.
• Personal selling- The manufacturer sells directly to clients through its storefronts, which create
a relationship between staff and customer. For every company, facial expression marketing is
one of the most dependable messaging services.
• Sales promotion- Various incentives were made by corporate managers, such as a one-for-one
plan, a reduction on branded products, and so on, in order to attract more customers with their
activities.
• Public relations: The firm utilizes internet and print periodicals to generate good publicity for
their products. By employing such strategies, customers' minds may be manipulated, resulting in
increased interaction and revenues.
• Direct marketing- Management of a specific firm employ a variety of methods, including
email, texting, and other messaging applications, to facilitate the formation of an omni - channel
approach between them. As a consequence, it succeeds in attracting loyal clients by delivering
high-quality services.
Race Model
The race model is a strategy that managers employ to target clients through digital
marketing efforts. Through pattern occurs, the managers of a specific company use that medium
to expand their consumer base (Cartwright, Liu and Raddats, 2021).
• Plan: Managers of a specific organisation design a strategy to track client actions and generate
campaign goals that assist them expand their productivity. Everyday business activities use
SMART to define represents the desires that are measured through the many filters.

• Reach- The spread of a certain firm's services and goods in both the online and offline markets
is generated by the firm's managers. Stage managers will be able to test the effect of their
promotion on clients using this method.
• Act- The stage managers of a specific organisation utilise these staging managers to generate
leads for their commercial enterprises. This procedure aids in the capturing of leads and the
development of high-quality relationships. As a result of these technologies, the organisation has
been able to collect a big number of potential customers.
• Convert- The above-mentioned company's managers convert prospects into purchasing
consumers, resulting in profit. The successful prospects are converted with the support of CTA
managers for their successful advancement.
• Engage- Utilizing email campaigns, a company's managers established long-term relationships
with its consumers. It assists in engaging first-time buyers in order to encourage subsequent
purchases (Liebl, 2018).
Gantt chart

Budget
KPI
The acronym KPI stands for critical success factors, which are used to assess how well a
set of goals is being met. Managers of a certain corporation may make better decisions for their
organisation using the offered indicators. The following are some major factors that help in
determining the effectiveness of the marketing plan (Chandra and Sharma, 2018). ;
• At the conclusion of the month, the assessed value increased by 20%.
• A 25% increase in revenues at the conclusion of the fiscal year.
• The helps us better understand should be increased by 15%.
• At the conclusion of each year, the offer rate of exchange ought to be 70%.
• Each lead costs $2.