Comparative Analysis: Tesco and ASDA Marketing Mix Strategies

This report offers a comprehensive comparative analysis of the marketing strategies employed by Tesco and ASDA, two leading retailers in the UK. The assignment begins with an introduction to marketing and its application in the retail sector, focusing specifically on Tesco. Part A compares the marketing mix (7Ps) of both Tesco and ASDA, examining their approaches to product, price, place, people, process, promotion, and physical evidence. Part B focuses on the development and evaluation of Tesco's marketing plan, utilizing the SOSTAC model to analyze the company's situation, objectives, strategies, tactics, and control measures. The analysis includes a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report concludes by summarizing the key findings and emphasizing the importance of a well-defined marketing plan for achieving business goals. The report references academic sources to support the analysis.

MARKETING
ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART-A...........................................................................................................................................3
Compare ways in which TESCO and ASDA apply marketing mix...........................................3
PART -B..........................................................................................................................................5
Development and evaluation of marketing plan of Tesco...........................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing refer to activities and action of a organization associated with advertising,
purchasing, selling and distributing a specific product or service to target market. The current
study is based on TESCO, which is one of the leading retailers in the UK. This assignment will
explain comparison based on ways in which chosen and other company apply marketing mix to
achieve their business objectives and evaluation of varied tactics they apply for objectives that
have been achieved. Furthermore, this report at last will describe strategic marketing plan that
tactically applies utilize of 7Ps to gain whole marketing objectives of Tesco.
PART-A
Compare ways in which TESCO and ASDA apply marketing mix
7Ps of marketing mix TESCO ASDA
Product Tesco as compare to Asda
more focus on variety of
products and its quality as
well. They sell goods with a
lot of variety accessible in UK
retail market, which permit
consumers to chose different
products that best suits them.
On the other hand, Asda
maintained high quality of
existing products by adding
more value in them instead of
developing the new one during
different phases of value chain.
Price As compare to Asda pricing
strategy, Tesco use cost
leadership as their pricing
tactic which make them able to
gain attention of buyers
(Alamdari and Fagan, 2017).
ASDA use premium pricing
strategy to sell their products,
it includes setting goods price
higher than similar items that
may not work effectively.
Place To reach at target market
Tesco established their outlets
at more populated area where
number of visitors is high.
Firm has over 6,900 outlets in
ASDA instead of opening new
stores like TESCO, maintain
existing one by management
of company in all markets.

more than 11 nations.
People Tesco is leading retail brand
employing a lot of individual
while operating their business
nationally or internationally.
They focus on skills and
knowledge to people as it help
to cater better services.
Despite of hiring applicants,
Asda create training plan for
existing workers which is one
of the cost effective methods
that save time and money of
company.
Process Tesco designed such that
deviations from firm policies
were kept minimum. Other
elements that are considered
are service feature, quality and
ability level of production
department.
On the other side, in ASDA all
operations are clearly
communicated and defined to
workers that drive them
towards achieving set
objectives of company.
Promotion To promote their products or
business, Tesco uses television
ads, organize charitable events
and utilize hoardings as
promotional channels. It help
to achieve business objective
that is to generate brand
awareness.
It is quite beneficial for ASDA
to utilize digital marketing
tools as promotional activities
(Chaffey and Smith, 2017).
Firm advertise their items by
using social media platforms
that is now in trend.
Physical evidence Equipment, attractive logos,
labels and colours are a few of
proof that used by firm as a
evidence to their consumers.
Despite of focusing on logos,
Asda create their websites
where they provide all
information related to products
and other things. It can be said
that it is one of the best
company use to achieve their

objectives.
PART -B
Development and evaluation of marketing plan of Tesco
Marketing plan helps in formulating different strategies in advance so that various
challenges can be effective faced for growth and success of enterprise. Marketing plan of Tesco
can be evaluated or developed by use of SOSTAC model so that company can retained its market
share in retail industry (Shah, 2018).
Marketing plan of Tesco
Situational analysis
It is first stage at which existing strength and weakness or internal and external factors that
affects organisation need to be identified so that effective strategies can be formulated by firm to
gain competitive advantages. Swot helps in identifying various key areas that need to be
improved so that it can make optimum utilisation of available opportunities. Therefore
Situational analysis or Swot of firm is as follows:
Strength: Strong brand image in terms of rendering qualitative products and services is one of
the biggest strength that contributed in effective expansion of business across worldwide. Tesco
covers 28% market share of UK thus create competition for number of enterprise that operates in
retail sectors.
Weakness: Tesco has involved in misrepresentation of profit that have adversely impacted on
brand image of enterprise at the same time it is unable to handle various stores that operates
across worldwide (Kanten and Darma, 2017).
Threat: Company is facing challenges of increasing competition form firm such as high
discount provider name ASDA and ALDI. Customers taste and preference are also changing on
continuous basis so Tesco need to adapt to external changes for survival.
Opportunities: There are several opportunities for Tesco such as expansion of business through
increasing presence in social sites or it can easily enter into new market segment by use of strong

brand image.
Objectives:
 To launch range of organic products for satisfaction of needs of people that are highly
concerned about their health.
 To take steps in CSR and protection of natural resources for retention of customer
satisfaction and loyalty.
 To increase market share by 10% till 2021.
 To enter into new market segment so that need of various individual can be fulfilled.
Strategies: Marketing manager of Tesco have planned different strategies for organisation so
that overall objectives can be achieved. It have used segmentation, targeting and positioning
strategies to attract existing as well as new customers to make purchase of products.
Segment: It has classified people on basis of age, demographic, geographical location and
psychological need so that manager can easily understand requirements of each segment and
provide better services.
Targeting: Company have targeted people that belong to high and middle class family or are
young and adult, or highly concerned about their health and well being.
Positioning: There are million of people that are aware about products and services that are
render by Tesco so it can be stated that it have strong positioning in market.
Tactics: Marketing mix is the best tactics that is used by Tesco marketing manager to influence
maximum individual to select Tesco over other competitors in retail sectors.
Products: Company is planning to launch organic food products so that people are ready to
make purchase for satisfaction of their requirements.
Prices: Tesco have set affordable and valuable price for its different products.
Place: Its stores are located at different places across worldwide and also offer online shopping
to customers so that they can order while staying at home.
Promotion: Firm have use both online and offline means to promote products and services to

different customers for growth of enterprise (Verhoef, Kooge and Walk, 2016).
Physical distribution: Strong supply chain and various warehouse helps in delivery of products
within limited time and cost.
People: Tesco have highly skilled and qualified employees that are ready to work for company
and rendering better services to end users.
Process: Standard process and procedure is followed by employees to minimise chance of error
and mistake so that maximum benefit can be gained.
Action: Company has effective planed action that need to be taken to promote organic food so
that no delay can be caused in operation and achievement of goals. Strict rules and regulation or
standard policies helps in maintain quality of products and better customer’s satisfaction.
Control: It is last step that have been taken by Tesco marketing manager in order to minimise
associated risk with marketing strategies. It continuously supervise, monitor performance of each
individual and take corrective action within limited time for expansion of business.
CONCLUSION
It can be concluded that different firm have different marketing mix strategies to
influence more customers and earn sufficient amount of profitability. At last it can be stated that
marketing plan helps in achievement of company goals by planning effective strategies to cope
up with different challenges of external environment.

REFERENCES
Book and Journals
Alamdari, F. and Fagan, S., 2017. Impact of the adherence to the original low-cost model on the
profitability of low-cost airlines. Low Cost Carriers. pp.73-88.
Chaffey, D. and Smith, P.R., 2017. Digital marketing excellence: planning, optimizing and
integrating online marketing. Taylor & Francis.
Kanten, I. K. and Darma, G. S., 2017. Consumer Behaviour, Marketing Strategy, Customer
Satisfaction, and Business Performance. Jurnal Manajemen Bisnis, 14(2). pp.143-165.
Shah, J. M., 2018. Impact of digital marketing in business and politics. International Journal of
Scientific and Engineering Research, 9(2). pp.10-14299.
Verhoef, P., Kooge, E. and Walk, N., 2016. Creating value with big data analytics: Making
smarter marketing decisions. Routledge.