Detailed Examination of Tesco's Marketing Mix and Business Strategies

This report provides a comprehensive analysis of Tesco's marketing mix, examining the company's strategies across the 5Ps: Product, Price, Place, Promotion, and People. The introduction highlights the significance of the marketing mix in business planning, particularly for launching new products or modifying existing ones. The report then delves into Tesco's operations, positioning it as a market leader in the multinational grocery store sector, detailing its global presence and diverse product offerings, including food, clothing, electronics, and more. The analysis explores Tesco's product strategy, emphasizing its wide range of goods, own-brand products, and online and physical store presence. The price section discusses Tesco's cost leadership pricing strategy and its ability to leverage economies of scale. The place aspect covers Tesco's extensive network of stores and distribution channels. The promotion section examines Tesco's advertising, promotional discounts, and loyalty programs like the Clubcard. Finally, the people aspect highlights Tesco's commitment to employee training and development. The report concludes by emphasizing the importance of the marketing mix in achieving business objectives.

Academic Skills

Table of Contents
INTRODUCTION...........................................................................................................................3
Overview on Tesco.....................................................................................................................3
Marketing Mix for Tesco............................................................................................................3
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Marketing Mix refer to manufacturing right product, at right place and price with right
promotional strategy (Alex, 2012). It consider multiple area such as product, price, place and
promotion which is an essential part of comprehensive business plan. In order to launch new
product or to conduct any modification on existing product business emphasize on marketing
mix to make effective strategic decision in favour of company (Kotler and Armstrong, 2015). For
the better understanding of the report Tesco company has been selected which is a multinational
grocery store whose headquarter is in UK. It terms of worldwide gross revenue it is third largest
retailer that deals in all basic necessity item, clothing, books, electronic and so on are offered
under one roof. This report makes the deep discussion about the 5P's of marketing mix that is
Product, Price, Place, Promotion as well as People for respective company.
Overview on Tesco
Tesco is a market leader of multinational grocery store that sell wide variety of goods
under one roof due to which it earn huge revenue as it provide convenience to the customer by
allocating wide range of products at reasonable range. It has been operating for more than ninety
years in approximately thirteen countries and has more than seven thousand stores all around the
world. Thus, due to expansion and renowned image it has strong base of loyal customers that
generate huge profit for the company like in 2018 its revenue was around £57,000 million.
Moreover, to gain competitive advantage or overpower competitors Tesco has taken patent over
various technology which are valuable for the core business this strategy helps respective
company in attracting various projects and clients. Furthermore, to maintain its position selected
company should constantly bring technology and do innovation to maintain as well as attract
new clients. Hence, Tesco has fulfilled the need of customer by provide high quality product at
cheapest price to maintain the brand image of reliable product by gaining the loyalty of the
customer for respective brand.
Marketing Mix for Tesco
Product: Product refer to the goods or services designed by company to satisfy the need
of customer (Menegaki, 2012). In order to differentiate product from competitor's product,
company must design its product in such a manner it carries unique features and have supreme
quality. This helps the company to reducing the numbers of choices or alternative for the

ultimate consumer. Along with that company should brand its new or existing product in such as
manner it retain in the mind of customer. So that they will consider the company's product while
making the choice among the alternatives. Therefore, marketer need to offer the product to the
customer by making the critical decision related to features, competition, USP and value of
product (Tapp and Spotswood, 2013).
In context to Tesco provide wide range of goods for various segment which are available
in various stores to fulfil the need and demand of customers. It include wide range of products
such as food item, bakery product, technology, beverages, books, electronic item, home product,
beauty and health related product. They provide huge brand within their space along with that
selected company has their own brand such as Tesco Lotus, Everyday Value, Choice, Tesco
Bank etc. They sell their product from both online as well as from their physical stores.
Moreover, they also provide easy and quick delivery facility at the place of customer which has
increase the reach and demand of the Tesco. Within each category of the product company
provide huge range of the choices for the customer by displaying various alternative of the item
that differ from brand to brand. Furthermore, as selected company perform its operation globally
due to which the category of their product changed based on the preferences of people living in
various geographical location.
Price: Price refer to the amount which the customer is willing to pay for the particular
product (Rosenbloom, 2012). This is the value which the company gets in exchange of the
product. It needs to be decided in such a manner customer find it worth paying or right price is
set for the product. If the price is too low then even if the quality is good most of the customer
would not buy it because they will think that they are sacrificing on the quality part. Similarly, if
the price of the product is too high then ultimate consumer can go for the alternatives options
available in market which carries same features but at lesser cost (Smith, 2012). So this part
needs to be appropriately decided by the consumer. Thus, marketer should consider the cost
incurred on research and development, distribution, marketing and manufacturing of related
product accordingly the decision can be made. Moreover, price of the product is primarily based
upon the perception of customer regarding quality and value of the product. Furthermore, the
option of different payment mode such as credit card or debit card should be available for the
customer otherwise it can act as a constraint for the customer to buy the product from the
specific place (Strauss, Frost, and Sinha, 2014).

Herein, Tesco which is a market leader has adopted cost leadership pricing strategy
which offer quality product to the customer at lowest prices. They even have got the advantage
of economies of scale due to which they are diversifying their brand quickly and offering
customer best suited pricing of the product. Moreover, they have build good supplier relationship
to improve their supply chain along with that they have cut down promotional expenses to
further reduce the prices. For instance, they have made an innovative programme known as
Brand Guarantee, in which if any individual at any place gets the branded product at lower price
that the price offered by Tesco. In such case selected company will match that price this depict
the effective programme run by Tesco whose purpose is to inform customer that people can get
best deal or price in selected company only.
Place: Place means the area where the company can display their product like in physical
or brick or mortar retail store as well as they can display the catalogue of the product at online
platform. While determining the place various distribution channel are considered by the
company like direct or indirect distribution channel (Luca and Suggs, 2013). Making decision
related to distribution channel helps the company to minimize the chances of delay while
transferring the product to the customer. Thus, geographical location is decided in such a manner
so that the company can cover wide area by transporting the product within the stipulated time
period due to which market look for warehouse in storing surplus goods. For instance, marketer
provide premium product within selected store whereas daily utility product for consumer are
available in various stores (Horner and Swarbrooke, 2012).
In relation to Tesco operate around eleven countries and has more than six thousand store
operating in various countries. It has various types of stores such as Tesco Metro which operates
in town as well as in city whose size is approximately one thousand square metre. Tesco
Superstore includes supermarkets that sell large range of grocery item but small segment of non
food product. Tesco Extra includes hyper market or stores that offer wide variety of groceries,
day to day necessity item that helps the customer to conduct routine shopping. Tesco Express are
the small stores which includes those product on which the company gets high margin here the
prices of the product are higher in comparison to other stores of Tesco. Therefore, all the
dealings are either done from above mentioned store or from online channel.
Promotion: Promotion are the part of marketing campaign that include sales promotion,
personal selling, public relation, advertisement and so on which is basically used to spread the

brand awareness about the product (Baker, 2016). Promotion tools contains a message that
defined the attribute of the product and appeal the interest of target audience. Thus, marketing
should not only make the decision related how to position the product but also they should
choose right channel or medium in delivering the message to the customer. Moreover, marketer
should have the knowledge about the specific time intervals on which they have to communicate
the information so that the customer remain familiar with the existence of product (Abuznaid,
2012).
Herein, Tesco has enhanced its brand image by providing product at reasonable prices
and is constantly making efforts to maintain its brand image. They have extensively promoting
its product through television advertisement, charitable events, hoarding, print media and so on
to gain maximum profit. Their promotional discount method as well as loyalty card which is
known as Clubcard has enhanced the customer base for the company. Clubcard loyalty card
contains the point which customer can redeem at any time to get additional discount on the final
amount of the product. Their all advertisement channel focus on single thing that is it provide
supreme quality of product at low prices that have attracted huge customers in their stores. Along
with that they provide unique offers such as one plus one offer, half price, loyalty card etc. which
act as a stimulus for the customer to respond positively. One of the reasons of the growth of
Tesco is its easy availability as well as accessibility that has helped the organisation to maintain
its goodwill. For instance, its payment procedure includes different mode of transaction such as
credit card which is simple and favourable for customer.
People: People are the part of organisation that helps to run business smoothly thus
appointing right people for business helps company to flourish as they are responsible for the
sales and building essential marketing strategy (Stead and Hastings, 2018). Thus, company
should provide proper training and development skill to its employee as well as they should
provide them fair remuneration to achieve the objective of business (Christopher, Payne and
Ballantyne, 2013).
In context to above mentioned company which is a leading company that has provided
employment to various employees. Like, there are more than four lac employee employed in
various countries. They conduct the recruitment or selection process carefully as it is a reputed
brand that will definitely look for talented workforce. Moreover, selected company value their
people or internal staff a lot because they are the supportive system of company that remain

encouraged to fulfil the objective of organisation. Furthermore, Tesco provide session related to
training and development programme for its existing as well as new employee to gain long term
success of their internal staff as well as company. In addition to it selected company conduct
various programme such as Save as you earn, colleague privilege card, buy as you earn and so on
so that the employee will gain the loyalty and makes the maximum contribution for achieving
success for Tesco.
CONCLUSION
From the above report it has been determined that marketing mix plays a significant role
while building up effective strategy for the company. When a business bring new product or
diversify the same product in new market as well as they make revising in existing product such
strategy is considered. Moreover, it basically helps in promoting as well as selling the product
from the company to the customer by considering all the essential P's. Therefore, adoption of
appropriate marketing strategy can help the business to flourish, capitalise its strength, minimise
the marketing cost and attain the organisational objective.

REFRENCES
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