Strategic Marketing Report: Analyzing Tesco's Environment and Strategy

This report presents a strategic marketing analysis of Tesco, a British multinational retailer. It begins with an introduction to strategic marketing and its importance, followed by an analysis of Tesco's internal and external environments. The external environment is examined using PESTEL analysis, covering political, economic, social, technological, environmental, and legal factors. The internal environment is assessed through a SWOT analysis, highlighting Tesco's strengths, weaknesses, opportunities, and threats. The report then outlines a strategic marketing plan, including objectives, vision, mission, and the STP (Segmentation, Targeting, Positioning) model. It also discusses various market entry modes, such as exporting and joint ventures, that Tesco can use to expand its business. Finally, the report covers resource management and the marketing mix to deliver the strategic marketing plan, and it concludes with a summary of the key findings and recommendations. The report aims to provide a comprehensive understanding of Tesco's marketing strategies and their effectiveness in the competitive market.

Strategic marketing

INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1 To analyze organization current internal and external environment.....................................................3
2 Create a strategic marketing plan..........................................................................................................6
3. Manage resources to deliver the strategic marketing plan...................................................................8
4. Monitor, measure and adapt the marketing plan for continuous improvement....................................9
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13
BOOKS & JOURNALS........................................................................................................................13

INTRODUCTION
Marketing refers to a process in which product and service developed by an organization are being
promoted by them at the marketplace. It is very essential to create awareness about the products among
customers so that they can enhance their customer base in an effective manner Kasabov, 2015). Strategic
marketing hasbeen implemented within various marketing as well as business careers in order to assist
organizations by identifying the requirements of customers. In the present report, TESCO is chosen as the
base company which is a British multinational groceries as well as general merchandise retailer.
Theheadquarter of the company was established in Welwyn Garden, Hertfordshire UK. Tesco was
founded in the year 1919 and deals in clothing, food products, furniture, electronic, toys and many more.
In this report, different sections are going to be discussed where internal as well as external environment
analysis so that the business entity can develop marketing strategies accordingly. Apart from this, STP
approach and market entry mode are going to be discussed so that the company can expand their business
functions in an effective manner.
MAIN BODY
1 To analyze organization current internal and external environment
External Environment
The external environment refers to the elements and factors existing outside the business firm.
The external factors are, large and beyond the control of the organization. the external factors
such as the social factors, economic factors, legal and government factors, demographic factors,
geo-physical factors are the generally regard as uncontrollable factors. A PESTEL analysis is an
effective marketing tool use to analyze and examine the external marketing environment that
affect the organization. Tesco done PESTEL analysis in order to examine the external factors –
PESTEL of Tesco
Political Factor – There are various political factors such as Corruption level, and regulations,
Trade control, Government rules, Tax policy etc. have huge impact on the organizations. Tesco
operates their business in various countries including Asia and Europe and Tesco’s operation
affected by many political factors like variations in tax rates, government policies and economic
condition of those countries in which Tesco operates their business.

Economic Factor - Economic factors have an impact on how the organizations does business
and also how profitable their business is. Factors include – economic growth, interest rates,
exchange rates, inflation, income of consumers etc. there are many economic factors that affects
the Tesco like inflation in countries, changes in interest rates, cost and profit. Diversification and
presence in the international market are the two important reasons for the success of the Tesco
company.
Social Factor – Social-cultural factors this involves the area of shared belief, ethics, values and
attitude of the people. Social factors include- population growth, age distribution, health
consciousness, career attitudes, Emphasis on safety, Buying habits, Religion and beliefs of
individuals. Buying behavior of consumers change according to the market trends and this
affect’s the Tesco and they try to fulfill needs of their customers (Hernández, . and Nieto, 2015)..
Technology Factors – Technological factors include - Basic infrastructure level, Rate of
technological change, Technology incentives, Technology level in the industry, Access to newest
technology, Internet infrastructure and penetration. Tesco is always ready to adopt new
technology in order to increase the productivity and profitability of the company.
Environmental Factors - Also known as ecological factors is refers to the variable regarding
physical factors like increasing scarcity of raw materials, pollution targets, climate change and
availability of energy etc. Tesco is adopting a number of measures with the motive to protect the
environment.
Legal Factor – Legal factors are changes in law can affect the business. There are various laws
which affect the Tesco engaged in financial services products like credit cards, savings, loans
and mortgages and there are various laws regarding these services but Tesco give their best to
fulfill all the legal formalities.
Internal Environment
Internal environment refers to the factor and elements which is available within the firm. These
factors generally regard as controllable factors because the company have control over these
factors. Companies can modify these factors as its personnel, physical facility, such as marketing
mix these factors are eligible to controlling the factors of an organizations (Ang, Benischke, H.
and Doh, 2015). SWOT analysis is done to analyze internal factors of the company

SWOT analysis of Tesco
Strengths Weaknesses
 They also maintain good relation with
their customers. Always try to fulfill
the demand.
 Tesco good at customer relationship
management which increase level of
customer satisfaction. Maintain skilled
and intelligent workforce.
 TESCO has won many awards for its
retail excellence, customer service,
and overall shopping experience.
 Tesco use technology throughout its
operations, creating cost efficiencies
and inflated service experiences.
 Ineffective and improper financial
planning of Tesco is also their
weakness.
 Tesco need to develop or plan
strategies for expansion of the
business.
 Tesco spend more on workforce,
training and development which
increase their cost.
 Tesco’s subsidiaries are not operating
well as they are more unsafe for
external factors.
In some countries their retail formats are not
working well.
Opportunities Threats
 Tesco increase competitiveness in the
competitive market. There simple and
easy policies help in creating new
opportunities for them.
 Company increasing the number of
customers through their online
platform.
 Also focus on expansion and growth
of the business by adopting new
technologies.
 Create opportunities to get entered in
the new market to be in competition.
 Increase in the number of competitors
could be a threat for the company.
 Development of new technologies.
Laws of countries affect the expansion
of the business.
 Increase in the product prices in some
countries create threat for the
company.

2 Create a strategic marketing plan
Executive Summary
Tesco is the British multinational groceries and general retail company from England UK. Tesco
was established in 1919 by Jack Cohen. Tesco is the market leader in the country UK and it has
also shops in 7 countries covering Europe and Asia. Originally Tesco deals in grocery but now
company also provide financial services such as banking and insurance service along with this
company also deals in electronic goods and telephone equipment.
Strategic Marketing Plan
Strategic marketing plan is the plan which is develop and create by the companies in order to
develop the marketing strategies and plan for the target market. The strategic plan consists the
objectives, vision, mission and goals of the company and the ways how they can be achieved by
the company. Tesco develop effective marketing strategic plan to achieve the competitive
advantage.
Objective
Tesco’s objective is to be a responsible and trustful retailer in the market. There main focus is on
their customers and objective is to build strong and good relationship with their customers. They
develop business strategies for company’s continuous success and increase competition in the
market. Tesco’s objective is to improve customer loyalty and its business in countries to develop
the customer shopping experience.
Vision and Mission
Tesco want to enjoy long term success in the market and for this they create company’s vision
and mission. Their vision is to be stable and constant in the market by developing market
strategies and plans according to the changes taking place in the market. Tesco have a clear
vision to survive and to get high success in the market. Tesco vision is to expanding business
with full of the opportunities. Their mission is to get long term success by fulfilling the needs

and wants of customers when ever the customer wants. Their vision and mission inspire their
employees and stakeholders to achieve the company’s objectives.
STP model
STP stands for Segmentation, Targeting, Positioning this model is used by companies while
developing or creating the marketing strategies and plans. Marketer do segmentation to prepare
separate programs or strategies to all segments of the market then targeting to identify group of
consumers and then the final step positioning of the product and service in the market. Tesco use
STP model to attract their customers –
Segmentation
Market segmentation means breaking down the total market into self-contained and relatively
homogenous sub-groups of customers, each have its own special requirements and features. By
doing proper segmentation of the market Tesco is able to modify their output, advertising
message, and promotional methods. Accurate segmentation helps Tesco to pinpoint their selling
opportunities and to tailor their marketing activities to satisfy their consumer needs.
Targeting
Market targeting is the broad term that is used to describe the process of identifying groups of
consumers who are highly likely to purchase a specific products and service (Kühn, and
Pasquier2016). In market targeting product is already established and decisions must be made as
to which market is most appropriate for companies’ products. Tesco carefully understand
consumer needs and wants, as well as having a good grasp on how their product and service can
meet their consumer desire.
Positioning
Positioning is the platform for product and service. Positioning facilitates the brand to get
through to the target consumer. Positioning is the act of fixing the locus of the product offer in
the minds of the target consumer. In positioning Tesco decides how and around what parameter,
the products offer has to be placed before the target consumers. Product differentiation and
positioning is the key parts of the Tesco’s marketing strategies and is important to keep ahead
their competitors.

Market entry modes
There are various international market entry modes are available for the companies. Tesco want
to expand their business more in the international market for this they choose few market entry
modes like –
Exporting
Tesco want to grow and expand their business and for this exporting is the easiest way to get
enter in the international market (Noori, 2015). They sell their products and services in the
foreign countries. Tesco deals in groceries, retail merchandise and financial services their
products have more demand in the market so it is easy for them to export their products in other
countries. Tesco have a way to distribute and market their products in the new country, which
they can easily do by making contractual agreements with the distributor.
Joint Venture
Tesco use various modes to get enter in the foreign market joint venture is one of them.
Tesco enter in international market by sharing ownership joining hands and management with
other company. They join their hands with those companies who have goals similar like Tesco
and want to expand their business internationally. Common objectives are risk sharing, reward
sharing, technology sharing, joint product development etc.
3. Manage resources to deliver the strategic marketing plan
Strategic planning is important in business in this competitive world it is essential that to
survive in market it is necessary to be more advanced & competitive. Market is changing at rapid
level and business sector is becoming tough as well as difficult for small & medium size
businesses (Hueske, A., Endrikat, J. and Guenther, 2015). In relation with TESCO, HR manager
of the firm is responsible for developing and implementing strategies as well as tactics so that
market situations & trends are analyses in appropriate manner. There are many competitors of
TESCO such ASDA Group, Sainsbury, Virgin Group etc. So, to face rivals & competitors it
becomes important to develop strategic marketing plan. In entity, to carry out the functions as
well as operations effectively it is needed to be kept in mind that resources should be used only
when needed so that rest are used in future perspective. To go through this, chosen enterprise
adopts resource management so that manager and employees in company manages as well as use

resources effectively. So, to manage resources marketing mix has been used by the organisation
and which are discussed below-
Marketing mix- It is marketing concept in which companies with help strategies and
tactics advertise and develop their brand as well product in market. It includes various elements
which are discussed below-
Product- A product is item or something which is meant to be sold in market. TESCO deals in
variety of products such as groceries, fashion and accessories etc. A product is made with help of
resources. So, selected firm use their resources such natural and or man-made effectively. For
example- books in entity are only re-stocked when the current stock gets empty or demand is
there for the product (Zhang, ., Cui, . and Zheng, 2016). So, resources are used when needed in
the firm. This also helps them developing strategic marketing plan.
Price- It is a value which is put on product so that it purchased as well as sold. Without
price, it is not possible for seller to sell a product in the market. In context to TESCO, they adopt
prising strategies so that resources are managed because using of resources for product depends
upon pricing and income of customers. Also, strategic marketing plan is developed by using
effective strategies of pricing.
Place- It refers to location where the selling and purchasing of product as well as
managing of resources is done in proper manner. So, TESCO has its branches where the
customer easily access and purchase the products. Also, resources will be available or not helps
in developing of strategic planning.
Promotion- Every product promote their product in market by use of promoting tools such as
radio/television, newspapers etc. TESCO, use these tools effectively so that resources are used
rarely & and strategic marketing planning is done accordingly (Santner, 2018)
(Daniel, S., Midha, V., Bhattacherhjee,. and Singh, S2018).
After a brief analysis of above matter it is analysed that resources need to manage in
proper manner so the firm are able to develop their strategic marketing plan. With use of
strategies it becomes easy for entities to enhance their productivity level. Thus marketing mix
has been used as process through which goals and objectives are achieved properly.

4. Monitor, measure and adapt the marketing plan for continuous improvement
Continuous improvement is needed in organisation so that firm is able to deal
with difficult situations and problems whenever they occur. So, plan-do-check-act is a model
which is used by TESCO for continuous improvement and it assist firm to focus on changes that
are done on regular basis with CI strategy. It is continuous process because it is a cycle which
runs continuously again & again. Thus, model has been described below-
Plan- In this first aspect, planning is done weather the change is needed or not and if
require than proper scale is measured. In context to TESCO, they use this step with help of
market research team and superiors. Without plan, it is not possible to identify where the change
is needed and continuous improvement cannot be done (Yoo, ., Sawyerrand Tan, 2015).
Do- Further comes the doing stage in which planning which was done at first phase is
analysed and tracked. In this, process where changes are required need training and actual
implementation, as well as awareness about the change is created so that management and
employees are well about changes and improvement.
Check- Then come the stage in which earlier changes and current adopted changes are
compared with each other so that comparison is done is appropriate manner. This step also
determines whether changes acquired are beneficial for future perspective or not.
Act- Last phase is action in which changes which has been done in the organisation are
adopted as well as it is decided that changes can be used in firm or not as continuous strategy. In
relevance with TESCO, decisions about such changes are made by departmental heads &
manager of the company.
Monitoring & measuring marketing plan
In business sector, it is important to monitor & measure as well as adapt marketing plan
so that strategies which are used are managed as well as maintained properly. So, marketing plan
is plan where tactics are made to achieve the competitive advantage in market. It includes several
elements which are mentioned below-

Objective-Organization should need to analyse their objectives which states what they
want to achieve within long or short period of time. So, TESCO main objective is to access both
international and national level market.
Strategy- It is crucial for entity to adopt and implement strategy so that they are able to
gain competitive advantage. Thus, TESCO use pricing strategies and adopt the most suitable to
acquire and attract more customers.
Plan- It is essential to develop a plan so that market awareness is known to the company.
In relevance with TESCO, they target and open their branches after a deep market research and
planning so that right product is sold o right people.
Thus, after a brief analysis of above matter it is stated that continuous improvement and
marketing plan are important part of business without which firm cannot operate their activities
in appropriate manner. Hence, high level skills and expertise is required to understand
monitoring & measuring of marketing plan.

CONCLUSION
With the assistance of above mentioned report, it has been concluded that strategic marketing
plays very essential role in the attainment of organizational goals and objectives of the company in an
appropriate manner. In addition to this, PESTLE analysis help marketing team in order to develop
effective strategies and policies according to the changing requirements of external environment which as
a result assist them in modifying their strategies and policies as per the needs of customers. Apart from
this, SWOT analysis help in identifying the internal strength as well as weakness of the company which
they can modify in order to grab future opportunities available at the competitive marketplace.
Furthermore, an effective strategic marketing plan help in identifying the objective of business
organization for this they operates their functions in marketplace.