Marketing Plan for Tesco Bank: Analysis and Strategies

This report presents a marketing plan for Tesco Bank, a leading retail bank in the UK, aiming to increase market share by 10% and annual profits by 15%. The plan begins with a situational analysis, including market, competitor, and company analysis using STP, Porter's Five Forces, and TOWS models. It then defines SMART objectives and outlines strategies based on the Ansoff matrix (market penetration, product development, market development, and diversification). Tactics for implementation cover product/service launches (mobile app for money transfer), pricing strategies, distribution (online marketplace), promotion, and staffing. The report also details the processes and control mechanisms to ensure the plan's success, with a focus on adapting to the competitive UK banking landscape and meeting customer needs. The report highlights the importance of execution and control in achieving the bank's financial goals.

Marketing: Tesco Bank

Executive Summary
Marketing plans are made for attaining objective of company. Tesco
bank is a leading company in banking sector and they are offer variety of
services to their clients. Increasing profit is and market share is desire of
every company, they try to attaining these goals by resolving identifying and
resolving problems of customers. Situational analysis is done for
understanding internal and external environment of an enterprise. Setting
objectives is crucial because they are small target whose role is crucial at the
time of forwarding toward vision. Strategy can be made by checking
resources and position of a firm, they generation is done for attaining
objectives. Tactics are different from strategies because they are used at the
time of execution like choosing a Marketing mix. Taking action and
controlling is related to checking whether plans are followed according to
company's expectation of not.

Table of Contents
INTRODUCTION................................................................................................1
MARKETING PLAN.............................................................................................1
Stage 1: Situational Analysis....................................................................1
Stage 2: Objectives..................................................................................4
Stage 3: Strategy.....................................................................................5
Stage 4: Tactics or Implementation..........................................................6
Stage 5: Action.........................................................................................8
Stage 6: Control........................................................................................9
CONCLUSION..................................................................................................10
REFERENCES..................................................................................................11

INTRODUCTION
Marketing plan is considered as a document of business and its main
aim is to describe current position of market. Basically, it is formulated for
almost one to five years (Hollensen, 2015). Along with this, it consists those
objectives which need to be accomplished by firm within certain period of
time effectually. Present assignment is based on Tesco Bank which is a
British retail bank. There are many kinds of services offered by them, such as
loans, insurance, mortgage, savings and many more. This report is going to
highlight marketing plan of Tesco Bank which is developed for a year.
Therefore, they can attain their objectives appropriately within limited time
duration. It is must for them to create some strategies; therefore, they can
easily enhance their market share by 10% and along with an increment in
their annual profits by 15%.
MARKETING PLAN
Stage 1: Situational Analysis
It is fundamental for an organisation to examine their intrinsic as well
as extrinsic environment so that they can run their business in a proper
manner (Clarke, Friese and Washburn, 2015). Basically, it is done to evaluate
the current market situation of nation. For this, it can be classified into three
parts which are stated as beneath:
Market analysis: It can be assessed in both terms i.e. qualitative or
quantitative. This depends on the size of company and market. With
assistance of this, manager will determine their rivals, clients, rules and
regulations. For this, association will conduct STP analysis: Segmentation: Personal financial services for British people as they are
much interested. Target Group: Requirement of financial services by British persons like
insurance, loan and so on. Positioning: Tesco Bank is providing the best banking items which help
them to earn loyalty and trust of numerous individuals.
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Competitor analysis: This has to be analysed by company so that they will
formulate effective strategies for their business which is much appropriate in
comparison to their rivals (Smith, 2015). For the above stated purpose, they
will use Porter's five forces model: Threat of new entrants: It is very low as if any person wants to open a
bank then it is essential for him to accomplish all banking rules and
regulations as well as acquire approval from Bank of England. Threat of new substitute: It is high because there are lots of substitutes
in the marketplace. For example: securities of government, mutual
funds and so on. Competitive rivalry: In the banking sector, it is very high as there are
lots of private, corporate, public and foreign banks in the nation. Bargaining power of suppliers: There is less power for bargaining of
suppliers as it is necessary for bank to accomplish regulatory criteria
which is set by the Bank of England.
 Bargaining power of customers: There are various options in the
market which are accessible for clients and therefore, there is high
bargaining power of users (Hammond, Keeney and Raiffa, 2015). For
example: If Tesco Bank is providing loan to them at high interest rate
then, people will go for some other option.
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 Company analysis: It has to be done so that manager will take
decision for future which is beneficial for the organisation. To know it
better, TOWS analysis will be done by the superior which is given as
below:
 Threats  There are many local banks in the United Kingdom.
 Continuous enhancement in micro finance
 Requirements as well as needs of clients are modified
on regular basis.
 Opport
unities
 Tesco Bank will expand their business in some other
nations which will help to improve their customer base
and in addition, market share.
 Bank is going to provide services of current account to
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Illustration 1: Porter's five forces
(Source: Porter's five forces model)

their customers which will help them to accomplish
their desires.
 Weakn
esses
 Outlets of Tesco Bank are few in the UK which will
affect their customer base in an adverse manner.
 There is lack of investment.
 Strengt
hs
 Customer base of company is strong and they are
recently providing their services to more than five
million clients.
 They are giving a facility to their clients, i.e., online
services.
 Diversified portfolio
Stage 2: Objectives
To attain growth and development, it is essential for an organisation to
set some targets which they need to attain (Wolf and Akkaraju, 2014). This
will assist them to accomplish their work effectively and efficiently. For the
above stated purpose, they need to set SMART objectives as this will aid
them to take benefits from their competitors in competitive world. Manager
of Tesco Bank needs to set specific goals for business like they want to
increase their revenue by 15% along with improving the market share by
10%. This can be easily measured by them with past results. Recently, they
registered annual profits of 13% and therefore, it is not difficult for them to
increase it by 2% point. They are going to launch a new mobile application
for people so that they can easily transfer fund to other individuals. This will
help them to improve their profits and market share in an effective manner.
Additionally, it is not fictitious and will be achieved within limited time span.
For this, they decide a time limit i.e. one year.
As a result, they will improve their goodwill and in addition customer
base. If they attain their targets within limited time duration then this will
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help them to gain trust as well as loyalty of people which is helpful for the
future growth and advancement (Schmidt, Spann and Zeithammer, 2014).
Stage 3: Strategy
Strategy is basically a plan which assist company in moving correctly
direction so they can attain their set objectives. Tesco bank has two SMART
objectives, first is to increase profit by 15% and second is to enhance market
share by 10%. Ansoff matrix is marketing strategy framework which focuses
on four main areas which are as follows:
Market penetration – This tactics is related to increase sale of an
existing product in an existing market by using various promotion tools. An
organisation can also reduce price of their product in order to attract
customers. Charging comparatively less price for a product or service will
increase market share of this company (Gummesson, Kuusela and Närvänen,
2014).
Product Development – Launching a new product in existing market
can support an organisation in increasing their overall revenue. Most of the
companies introduce new services or products in market because they
understand that their commodities need necessary modifications by in
regular interval of time.
Market Development – When an existing product of a company is sold
in new marketplace then this mean that they are try to develop a new
market for their old products. This is a good strategy for expansion of
organisation and it ultimately support in increasing revenue of enterprise.
Diversification – This strategy focuses on development of new product
in a completely new market. This is a bold tactics because it can result in
huge amount of loss if things do not work according plans of organisation.
Strategy for increasing profit by 15% - Diversification would be
best strategy for achieving this goal. By launching a mobile application for
instant transfer of money, they can enter in new market and village areas
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where currently they are not present. This will be a new service in many new
location (Mummalaneni, 2014).
Strategy for enhancing market share by 10% - Product
development will assist this organisation in increasing their market share.
Most of their permanent customers want this bank to introduce some new
services and launching facility of instant transfer of money through mobile
can help them organisation in increasing number of their customers.
Stage 4: Tactics or Implementation
Implementation is a crucial process because simply making plans does
not assure success, its proper execution is very important. Below are some
areas and steps which Tesco bank have to consider at the time of
implementing their plan:
Product and services – This company should launch a product or
services which has high demand in the market (Holliman and Rowley, 2014).
This will assist them in attaining both objectives i.e. enhance market share
along with profit. Instead of introducing new products, they can improve
present one because it will reduce overall cost of business and ultimately
make a positive impact on their revenue. This step is very important, if
people will feel that services of Tesco bank has not improved that they may
leave them for a better option. Launching a mobile application for instant
transfer of money is can be a services which this organisation can start for
individual customers.
Price – Adopting an appropriate pricing strategy is crucial at the time
of implementing a plan. This company can use strategies like setting low
price of products and services for attracting more customer. If number of
service user will increase then registering more profit would not be a hard
task. Importance of this step (Setting price) is high because it decides target
market of a product. Mobile application for on line transfer of money should
be sold without any cost. If they will not charge any amount for this service
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then may easily get many customers without spending any money on
promotion of this app (Bingham, 2015).
Place – New products and services should be sold or introduce at a
location which is in reach of most of the clients of company. Tesco bank is
present in various part of UK but the mobile application, which they will
introduce, will be available on online marketplace. Market share of this
organisation will enhance because of using this tool. Interest is present in all
over UK so any person who want to use this service can buy mobile
application an use it. This will automatically enhance number of customers of
Tesco bank and positively affect their market share.
Promotion – Their are various kind of promotional tools which this
firm can use for promotion of their new service. Company can choose think
about door to door marketing or advertising. But for this new money
transferring service, Tesco bank can choose online advertising and
promotion (Siguaw and Simpson, 2015). This would not cost them much and
their cost of business will not increase, this will ultimately increase profit of
this corporation.
People – If right employees are chosen for development and
marketing of a product or service then annual profit of the enterprise can be
enhanced in decided period of time. This section also cover all the other
people who are either directly or indirectly related to business. They can be
costumers also. Making mobile application requires technical experts.
Worker who would be selected for implementation of this plan, should have
complete knowledge about technology and banking system also.
Process – Importance of selecting right procedure has increased in
recent time because if wrong process is adopting for execution or making
plan then attaining SMART objectives is not possible. Fund transferring
application will be launched focusing on strategy of “one step at a time”.
Instead of increasing profit by 5% point in one month, they can concentrate
on enhancing this amount by 2% in every month (Sakas, Vlachos and
Nasiopoulos, 2014).
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Physical evidence – Tesco bank has building in different part UK.
They also organise various events on regular basis, these two point are fine
proof of their physical existence. The product which they will launch would
be available of IOS and play stores. Customers can download it if they have
want to experience it or use it. Physical existence develop confidence in
service user and it increases their faith in company which is very important
in banking sector.
Stage 5: Action
For attaining aggressive but attaining marketing goals, this company
need to focus on some key parts of their business and tactics. They have to
launch a new product or service so they can increase their profit and market
share. Starting a mobile application, which will provide special facility of
instant transfer of money, will play crucial role in moving forwards towards
SMART objectives. If Tesco bank will not do something new then they cannot
achieve these targets. Knowing own strengths and weaknesses is crucial for
every organisation, mentioned enterprise is has millions of customers, they
cannot introduce a new facility for particular number of client so starting fast
transferring of money in ''One touch'' is significant for capturing new market
(Hollensen, 2015). More people with specialised knowledge is required for
execution of plans and marketing of new services is essential for making
people aware about new facility which company is providing to their
customers. Requirement of finance for attaining this goals would be high
because Tesco bank has to spend money of promotion of mobile application
and recruiting more people for successful expansion of plan.
Task Name Duration Start Finish Predecessors
Setting smart objectives 5 days Wed 1/3/18 Tue 1/9/18
Decision of launching new
product 4 days Wed
1/10/18
Mon
1/15/18 1
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Setting price of product 2 days Tue 1/16/18 Wed
1/17/18 1,2
Select workplace for product 6 days Thu 1/18/18 Thu 1/25/18 2,3
Finding need of human resource 4 days Fri 1/26/18 Wed
1/31/18 4
Implementation and control 5 days Thu 2/1/18 Wed 2/7/18 5
Stage 6: Control
Company needs to measure the performance of their staff members so
that they can make control over same. For this, there are many tools and
techniques which can be utilized by organisations such as Key Performance
Indicator, Benchmarking and so on. In this context, Tesco Bank will use KPI
as it is an effective and efficient technique (Clarke, Friese and Washburn,
2015). With assistance of this, they can easily measure their SMART targets.
As per their set objectives, it is fundamental for the firm to improve their
profits in each month by almost 1.5%. Therefore, they can easily reach to
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15% within one year. Similar to this, it will assist them to enhance their
market share which will increase their goodwill.
Instead of all this, it is required for them to measure their number of
customers in every month. Additionally, to have control over business, it is
necessary for them to compare their performance with rivals. Thus, they can
easily formulate strategies and policies for their business in an appropriate
manner. To maintain the standard of their products and services, they can
utilize the method of benchmarking. This will aid them to provide qualitative
items to people which will automatically help them to increase their profits
and market share (Smith, 2015).
Association will use rules and policies which come under the financial
governance. Fundamental point into it is internal audit. It can be conducted
by the manager so that they will know about their intrinsic working
performance. This will assist to control the business operations in an
effective manner. Along with this, firm will make control over their cost and
other expenditures. Additionally, company will accomplish their targets
within budget; as a result, wastage will get reduced (Hammond, Keeney and
Raiffa, 2015).
CONCLUSION
From above mentioned assignment it has been comprehended that,
company needs to develop a marketing plan for their business. It is like a
blueprint for manager which provide direction to them; thus, they will attain
coveted targets within limited time duration. In this assignment, there is a
description about various stages of marketing plan. Superior formulate it for
a year to improve their profits and along with market share. For this, they
will launch a new product for people which aid to attract more individuals
towards them. An action plan is developed to complete entire activities in an
effective way.
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REFERENCES
Books and Journals:
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Clarke, A. E., Friese, C. and Washburn, R. eds., 2015. Situational analysis in
practice: Mapping research with grounded theory (Vol. 1). Left Coast
Press.
Gummesson, E., Kuusela, H. and Närvänen, E., 2014. Reinventing marketing
strategy by recasting supplier/customer roles. Journal of Service
Management. 25(2). pp.228-240.
Hammond, J. S., Keeney, R. L. and Raiffa, H., 2015. Smart choices: A practical
guide to making better decisions. Harvard Business Review Press.
Hollensen, S., 2015. Marketing management: A relationship approach.
Pearson Education.
Holliman, G. and Rowley, J., 2014. Business to business digital content
marketing: marketers’ perceptions of best practice. Journal of research
in interactive marketing. 8(4). pp.269-293.
Mummalaneni, V., 2014. Reflective essay and e-portfolio to promote and
assess student learning in a capstone marketing course. Marketing
Education Review. 24(1). pp.43-46.
Sakas, D., Vlachos, D. and Nasiopoulos, D., 2014. Modelling strategic
management for the development of competitive advantage, based on
technology. Journal of Systems and Information Technology. 16(3).
pp.187-209.
Schmidt, K. M., Spann, M. and Zeithammer, R., 2014. Pay what you want as a
marketing strategy in monopolistic and competitive
markets. Management Science. 61(6). pp.1217-1236.
Siguaw, J. A. and Simpson, P. M., 2015. A marketing plan for marketing
instruction: A satirical look at student comments. In Creating and
Delivering Value in Marketing. pp. 129-133. Springer, Cham.
Smith, J. A. ed., 2015. Qualitative psychology: A practical guide to research
methods. Sage.
Wolf, A. and Akkaraju, S., 2014. Teaching Evolution: From SMART Objectives
to Threshold Experience. Journal of Effective Teaching. 14(2). pp.35-48.
Online:
Porter's Five forces model. 2012. [Online]. Available through:
<http://crackmba.com/porters-five-forces-model/>.
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