Strategic Marketing Report: TESCO Market Audit and Analysis

This report presents a comprehensive market audit of TESCO, a leading multinational grocery retailer. It begins with an introduction to market audits and then delves into TESCO's market size and trends, highlighting its significant market share and growth, especially during the COVID-19 pandemic due to increased online sales. The report employs Porter's Five Forces model to analyze TESCO's competitive landscape, assessing the threats of new entrants and substitutes, the intensity of competition, the power of suppliers, and the power of buyers. Furthermore, a PESTLE analysis evaluates the macro-environmental factors influencing TESCO, including political, economic, technological, environmental, and legal aspects. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Customer and stakeholder analyses are conducted to understand TESCO's customer-centric approach and the influence of various stakeholders. Finally, the report outlines strategic objectives for TESCO's marketing plan, emphasizing the need to enhance its digital presence and offer competitive discounts. The report concludes with a summary of the analysis and strategic recommendations, supported by references to relevant marketing literature.

Strategic
Marketing

Table of Content
INTRODUCTION
MAIN BODY
CONCLUSION

Market Audit is examination, analysis and review of marketing objectives, activities and
goals. This is done to check which area is working and which is not working to know the
areas of improvement and make the changes as required. TESCO is a British
multinational groceries and gen retailer which has headquarters in Hertfordshire,
England, United Kingdom. It is third largest retailer in world if measured in gross
revenue. In this report a market audit of TESCO is done to find out its strategic
objectives for the marketing plan.
Introduction

• TESCO is one of the largest grocery retailer in the world having 2318 stores and over 326000
employees. TESCO and Sainsbury’s are the biggest players and hold around 41.9% market
share together. TESCO has 27% share in the market as checked on August 2019.
• The company being biggest in the market is growing at a good rate. Due to COVID 19 the
grocery business has shown more profitability as people are only stepping out to buy
essentials and TESCO also provides online platform to buy its goods and services.
Market Size and trend data

For doing the competitor analysis Porter Five Forces Model is used which is as follows:
• Threat of new entrants: The threat of new entrants is low as TESCO has achieved a position
that no new comer can easily build and it requires a lot of capital to enter in the market and
will take a lot of time to grow as to compete the company like TESCO. The company has its
own competencies and economy of scale.
• Threat of substitutes :TESCO offers a Wide range of products so it does not have threat of
substitute for its products and services. A variety of products give the customer’s choice to
select among them and they don’t switch.
• Competition within industry :The competition within the industry is high as there are major
competitors of TESCO like Aisda, Sainsbury’s because of which TESCO has lost some of its
profitability. There is price-wars within the industry as some of the competitors provide at
cheap prices, the company should take measures to gain competitive advantage.
Competitor Analysis

• Power of Suppliers :There are so many suppliers within the industry and if one supplier don’t provide goods and service
on time, the company can switch. So the power of suppliers is low in this industry. TESCO, negotiates hard with these
suppliers.
• Power of buyers: As TESCO has many competitors offering slightly differentiated products, the customers can easily
switch as they have options. Tis shows power of buyers is high in case of TESCO.

To analyze the macro environment of TESCO the PESTLE analysis is as
discussed below:
• Political: Due to free flow of foreign trade, TESCO, is becoming more
profitable this is because of China’s accession to WTO.
• Economic: The needs of customers is changing and that changes the
demand so the company has to forecast the demand and provide the same
to customers. They have to deal with the situation in recession.
Macro and Micro economic factors

• Technological: TESCO have come up online and launched its mobile app which is needed by customers, this shows they are using
technology wisely. Technical advancement is directly related with the success of company.
• Environmental: It is equally important to serve the environment while fulfilling the needs of customers, TESCO uses recyclable bags
and spread the information about greener living to customers.
• Legal: Fulfilling the requirements of law is important for every company and TESCO understands this and abides the law.

SWOT Analysis
Strengths
TESCO is one of the
biggest and
profitable
supermarket in the
world which has won
many awards for
customer service and
retail excellence.
Weakness
There are some major
competitors of
TESCO, with whom
there is price war and
the company losses
some of its
profitability because
of them.
Opportunities
The online platform is
opportunity for
TESCO and also
providing home
delivery can be taken
as opportunity by
them.
Threats
Economic rescission in
the world could be
threat for TESCO.

• Serving the customers is the main aim of TESCO. The needs and wants of customers are
changing and the company focus on providing them the quality they want. TESCO has achieved
award for serving the customers, they try to gain loyalty and fulfil all their needs by providing
wide range of products among which they can choose and select according to their preference.
• They take charge of the products that are going good and which are not to serve better. They
always value customer feedback and use the feedbacks for making the improvements required.
Customers Analysis

• High power, high interest: The people who have invested money in the organisation are highly
interested and have high power in decision making in the company.
• High power, less interest: The second in the list are employees as they have high power in the
organisation but they need some information that keep them satisfied.
• Low power, high interest: The customers have high interest in company’s information but have low
power.
• Low power, low interest: The last in the grid comes government, who have less interest and low
power in the company.
Stakeholder Analysis

• TESCO, should grow its digital presence as everything is getting online nowadays and people don’t
prefer to go out, they order online while sitting at their homes.
• They should focus on providing better discounts then competitors to gain competitive advantage.
Strategic objectives for Marketing Plan are as follows: