Sales and Marketing Report: Tesco's Strategies and Customer Focus

This report provides a comprehensive analysis of Tesco's sales and marketing strategies, focusing on segmentation, targeting, and positioning (STP) concepts, the rationale behind innovation in product and service design, and the identification of target groups. It examines Tesco's use of the STP framework, illustrating how the company segments its market demographically and geographically, and how it positions itself as a premium brand. The report explores the rationale for Tesco's innovation initiatives, such as the 'Tesco Red Door' service platform, in response to intense competition, global expansion goals, and the uncertain environment created by the COVID-19 pandemic. It also investigates the role of data in improving customer relationship marketing, enhancing customer expectations, and the levels of service provided. The analysis highlights the importance of adapting marketing strategies to meet the needs of specific target groups and leveraging data to gain a competitive advantage in the retail sector. The report concludes with a discussion of how Tesco's strategies contribute to its overall business objectives and customer satisfaction.

Sales and Marketing
(BMS403)

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Concepts of segmentation, targeting and positioning specific to a product or service....................3
Rationale for innovation in a new product and/or service design....................................................5
Choose a specific target group within the framework of chosen business and create viable
solutions that would appropriately that specify target customers’ needs.........................................7
Evaluation of the role of data in improving relationship marketing, improves the target
customer’s expectations and level of service provided....................................................................8
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13
Books & Journal:...........................................................................................................................13

INTRODUCTION
Business sector is wider & broader which is changing at rapid scale. Sales and management
and are two basic part of business which are needed to be carried out appropriately. In this
competitive era, it is is essential to be unique and provide innovative products as well as services in
market. Innovation play important role in development & achieving of goals & objectives. In
retailing industry, innovative products & services are introduces by enterprises at larger level.
(Andersen, 2020). Like many retailing companies use technology in their products & services to
engage with customers for longer period. Main aim of this report is to understand the importance of
sales & management within business. It is crucial to produce innovative products so that
sustainability of business increases for longer period of time. Tesco, a largest supermarket retail
chain headquartered in United Kingdom. Enterprise deals in groceries items and daily consumable
products. This report comprises of concept of STP, rationale for new product or service, target
group of business and role of data in improving relationship marketing and target customer
expectations.
MAIN BODY
Concepts of segmentation, targeting and positioning specific to a product or service
STP- It is defined as strategic approach in which it is defined as it refers to producing
communication in market so that objectives are achieved. In relevance of selected entity, it is
necessary to focus on use of this marketing concept so that it is easier to launch new product or
service properly. It is time consuming process as it requires wide range of market information &
appropriate research. In relevance of selected firm, it is essential for them to use it in their
innovative service platform so that they are able to make decisions in most effective manner. It is
duty of manager of firm to make assure that these elements of this concept are being adopted
properly. Through use of this method, managers are able to carry out effective decisions making
process. Then, when using of this to product or service better results are achieved. The main
principle behind the process is to segment audience, target each segmented group
according to their preferences and habits, and make positioning adjustments in
branding and marketing strategies to accommodate their needs and expectations.
It comprises of three components which are discussed below-
Segmentation: In this element TESCO is uniting different innovators with new products,
ideas and emerging technologies so that they are able to deal with the new emerging ideas and
technologies that will leads to better disruption in the coming time. The team is looking for
innovators who can work with Tesco in areas that are beyond the daily operation's and the regular

functions so that there can be focus that can be used for achievement of higher competitive
advantage so that there can be further improvement to provide effective services to shoppers that
includes the process of launching of new technologies it is a approach that is part if TESCO overall
innovation journey that is focussing on building up of higher focus of innovation around their five
year program that includes the launching of some innovative brand under the existing brand name
of TESCO, or launching of some more products and services or there can be introduction of new
technology such as the self checkout payment system that was launched few years ago. It is a part
of efforts to make the business more simple and resining its utility for their target segment of
customers. It is a group innovation team that is bringing together the experts across to focus on core
business activities (Brignall, 2019).
The group is focussing on innovation by establishment of networks where the market has
been segmented by major use of demographic segmentation. In this there is area-wise segmentation
that is used by the management of TESCO, such as the area is divided in three segments that are are
London, Israel and San Francisco so that there can be timely access to emerging technologies and
there is proper establishment of TESCO as a ideal partner for the timely innovators who are looking
for development of innovators so that there can be further development of ideas through this
geographical segmentation that is done by the management of chosen firm.
Targetting- It is another element of STP in which it shows that targetting a specific group or
market for product or service. Further, it is also crucial to target audience which can potentially use
products of firm. In relevance of chosen entity, they also target their market on basis of variables
such as demographic, geographic, etc. On basis of these, targetting is done in most appropriate
manner. For example- selected firm focuses on demographic variable. Thus, depending upon this
variable they targets market accordingly. In this fast changing market & behaviour of consumer
trends, targetting specific target group has become crucial (Dibb, 2019). Also, main benefits of
targetting is that through this information is collected in most efficient manner. Another advantage
is that it is also beneficial for using of marketing strategies according to targetted audience. Also,
targetting is done on several factors such as size,profitability, ease of reach & many more. These
factors are crucial to be focused so that decisions regarding segmented market is done
appropriately.
Positioning: It is attribute in which the positioning will be created by TESCO by making
use of four basic aspects that are food, drinks, technology, data, robotics, packaging and automation.
There is a strong pipelines of innovation that is being focussed in this approach so that there can be
response to customers needs and there is a opportunity to welcome innovation in the business with a
fast approach. The new group innovation team will be assisting TECSO in having access to the
exciting new ideas that can assist the business to grow at a rapid speed. The multi disciplinary team

has been built up to focus on key innovation locations over 200 innovation ideas so that there can be
development of disruptive innovation. The group platform that has been created by TECSO In form
of this red door will be assisting in the future functioning and enhancing the market share of
TESCO. The main tag line of this innovation approach is related to attending of all the virtual
events with fast changing technologies so that there can be quick evaluation of ideas. It is often
seen that positioning is necessary to be focused as customers mostly purchases or use service of
particular brand which has higher position in market. Thus, it is important to position a brand,
product & services which assist ion engaging with customers at rapid scale. So, in context of
selected brand, they have positioned themselves as premium brand in market (Decelle, 2016). To do
positioning, marketing strategies are being adopted by enterprise so that positing is carried out
specifically.
Therefore, after analysing of above explained matter, it is seen that marketing approaches
are essential to be used. Further, through properly lining of these elements to new launched services
company is able to make decisions in most appropriate manner. With help of these elements,
decisions making regarding business activities are carried out effectively. There are various benefits
of using this concept such as it increases sales within target market, assist in analysing of gaps in
market, help in avoidant of waste expenses cost in advertising, promotion etc. So, it is essential to
have appropriate knowledge about it so that objectives are achieved accordingly.
Rationale for innovation in a new product and/or service design
Tesco is giant supermarket and retail chain that operates at global level. They have many
competitors such as Walmart, Sainsbury, Amazon, etc. Innovation is the major reason for
development of business sector in market. In retailing industry, it is crucial to produce innovative
products as well as services so that sales revenue and profit is obtained by firm. As their new
service which is Tesco Red Door which is service platform for attracting new products & services
ideas for future aspects. In this rise of competition retailing sector, it is necessary to be aware about
these new innovations to deal with competitors appropriately. Further, by properly adapting of
innovation goodwill of company also increases at rapid scale (Flohr, 2019). A business cannot
survive for longer period, if new products or services are not introduced. There are several reasons
for the launch of this new innovation service which are discussed below-
Intense competition-
It is a major reason for innovation of this service design because the retailing industry has
changed and is evolving with period of time. It is necessary to focus on this intense competition
which is making difficult for company to run their business activities appropriately. In relevance of
chosen firm, they are being affected by competition at larger scale. This service of Tesco Red Door

will help firm to attract new ideas within their business through influencing new talents minds.
Intense competition forces businesses to change their products or service design to survive in
market. Due to this intense competition, changes are made in business at larger scale which also
disrupts their work environment at wide range (Heese, 2019).
Global expansion
This is another reason for design of service of Tesco Red Door platform. Main reason is that
by adopting & focusing on this new innovation of service design assist in global expansion of their
business activities at wider scale. This new service design help in being recognized at national as
well as international level. It is essential for selected entity to expand globally for which innovation
is necessary to be focused. Global expansion is major focused point of organisation & to achieve
this reliable information is being needed to expand business globally.
Uncertain situations(COVID19)
In this ongoing current pandemic situations, it has become difficult for enterprises to carry
out their business activities properly. COVID19 has impacted upon business sector at wide range.
It is crucial to deal with these uncertain situations so that it is easy to make decisions appropriately.
In relevance of Tesco, many new business start-ups has emerged in this pandemic situations. This
gives idea to company to launch this new service design platform. On basis of this, they are able to
generate more new ideas for business (Irwin, 2018. This uncertain situation has made it difficult for
both businesses & non-businesses to survive in critical situation.
Competitive advantage-

Market has changed after occur of pandemic situation of COVID19. It is necessary to focus
on these situations. Mostly in retailing sector, due to many new businesses it is essential to achieve
competitive advantage. In context of selected organisation, through launch of this innovation
service design, it is easy for them to gain competitive benefit in market. It has attracted many
customers towards brand. By achieving competitive benefit, they access to customers at larger level.
With their organisational strategy, they easily gain advantage at marketplace. By delivering of
innovative products at frequent level opportunity can be accessed by chosen entity.
Fulfil needs of customers
Customers are asset for organisation on basis of which profit & sales are easily generated.
Without customers, it is not possible for entity to carry out their exchange process. So, through this
introduce of new service of Tesco Red Door, it is able to fulfil needs of customers at al, aspects
because when something innovative is being introduced in market, users find it useful & purchases
it. It is critical task which require proper attention & processes to fulfil the demand of end users
(Lichao, 2017).
Therefore, from above analysis it has been examined that it is necessary to carry it
innovation within business sector so that goals are accomplished within period of time. Moreover,
customers needs & demands are also fulfilled when new product or services are launched at market
place. Furthermore, this is specified that to increase goodwill & customer engagement in business,
new things are necessary to be produced.
Choose a specific target group within the framework of chosen business and create viable solutions
that would appropriately that specify target customers’ needs
Target group is defined as group of individual who actually purchases product of a brand. It
is necessary to be aware about these target group so that decision regarding marketing activities are
undertaken in most appropriate manner. In reference of chosen firm, their target group are young
children & income based family. These are target group of selected company who actually
purchases products of brand at wider range. This target group is flexible & needs as well as demand
changes with period of time.(Nieto, 2016). It is essential for business organisation to be aware about
their targetted audience needs properly so that resources & other decisions are taken in correct way.
In relevance of chosen entity, as they have launched a new service platform they need to
examine actual needs of customers so that further decisions are undertaken appropriately. They
have large customer base & operated globally which makes it important for them to examine
demands of users specifically.
This target market has several needs which are explained below-

 Better services at affordable price- This is main needs & demand of this target group as
they look for better services & but at low costs. This need is required to be fulfilled by
chosen corporation so that target group wants are fulfilled. Moreover, solution for this is
that company is expected to deliver their products through drone & it makes it convenient
for customers to receive their purchased item within period of time. By providing better
services at affordable prices leads to increasing goodwill of a brand at higher scale.
 New alternative options within large product portfolio- In this, target group looks for
wide range of alternatives of same product or service. It is because this group always look
for something new in market or additional options. In case of chosen entity, they have wide
range of products in their retail stores which is best viable solution for this target group. It is
important to use these viable solution within business perspective view so that engagement
with customers is done in proper manner (Ramamurthy, 2016).
Benefits of target groups-
 By knowing target market is beneficial for attracting of new customers that are able top
purchase or service of firm.
 Another benefit is that by targetting specific market, it is time saving for company to use
their al resources at optimum level.
Thus, it is stated that target groups are crucial to be examined by organisation so that they
are able to make proper implementation of their new ideas & produce viable solution for these
needs as to achieve both long & short term objectives. By properly specifying the wants of target
group it is easy to make decisions in positive manner. Furthermore, manager need to conduct proper
market research analysis so that better output is achieved. Both these demands of customers are
essential to analysed which leads to engaging with end users appropriately (Ryans, 2019).
Evaluation of the role of data in improving relationship marketing, improves the target customer’s
expectations and level of service provided
Data & information play important role in business & organisations. In this competitive era,
it is necessary to use data within business so that everything is carried out in proper manner.
Further, this has been also seen that with use of reliable information & data it is easy to achieve
business objectives in appropriate manner. In relevance of selected firm, it plays crucial role in
improving relationship marketing, improves target customer expectations & level of service
provided. It is difficult for entity to execute their business activities in proper manner & which
might leads to problems, issues etc.

There are various sources through which data can be gathered such as primary & secondary
sources. For example- data can be gathered through newspapers, articles, blogs etc. So, evaluation
of data in improving several aspects is further discussed below-
Role of data in improving relationship marketing
In retailing industry, data has been always an important part. With help of these data,
company is able to properly market their products, services & other activities in proper manner.
Relationship marketing refers to process or strategy which is designed to analyse customer loyalty,
interaction & long term engagement (Sivakumar, 2018). Main aim of this relationship marketing is
to improve strong connections and effective communication with customers. In relevance of chosen
entity, they should use this concept of relationship marketing so that actual demands of customers
are being determined properly.
Use of data in this relationship marketing is crucial as because it assist in gaining consumer
insights properly. In this, behavioural data can be used by Tesco to critically understand the how
customers has been engaging with brand & product as well. It is important to have correct
knowledge of these data & collect them properly. Moreover, relationship marketing requires wide
range of information & data. So, it is duty of manager to use these informations in proper manner.
Advantages
 Main benefit of using data in relationship marketing is that Tesco is able to understand
customer viewpoint, behaviour in effective manner. This helps them to use their advertising
& marketing strategies efficiently.
 Further benefit is that it assist in prediction sales trends which are useful for future growth &
development (Smith, 2017).
 Also, applying relationship marketing through using data help in making correct decisions
about how to understand customers as it comprises of various level such as basic marketing,
reactive, accountable, proactive and partnership.
Disadvantages
 Once data has been collected, there is need of storing them & preparing for backup. It makes
it cost expensive procedure for company who using data in functions & operations.
 Another drawback of using data is that it can be used other parties for manipulation,
distraction of brand from their core activities etc. So, when using them appropriate measures
are needed to be adopted.
 In context of Tesco, they have to update their information system regularly because they
uses of these data at every day to day activities.
Role of data in improving target customer expectations

Customer expectations are important as they help businesses to improve their working
strategies & functions. It is not easy to determine customer expectation as it require correct way of
market research information etc. It is seen that target customer expectations are essential to be
examined on basis of which brand goodwill increases needs are fulfilled at all aspects. It is tie
consuming process to improve target customer expectations as it requires new product, innovations,
top meet up with those explications.
More often, with use of data it is possible to identify customer potential, purchasing
behaviour, what marketing strategies could be used etc. Information & data plays crucial role as it
help in analysis of competitors strategy & potential end users. For example there are various types
of factors which influences which drives expectations such as word of mouth, previous customer
experience, experience with other companies, and many more.
Advantages-
 Through use of data, real time data promotes fast accuracy which also help in making
effective decision making. By properly focusing on this, manager of Tesco is able to
determine customer's behaviour pattern (Wuryandani, 2018).
 Another benefit is that it helps in collecting appropriate data is beneficial for future as well
as current predictions. In relation of chosen company, through using of these data it is easy
to make strategies & tactics when planning in business.
 To improve target expectation, improvements are made in many areas of business which is
beneficial for overall functioning of other activities of organisation. In context of undertaken
firm, they have improve their many strategies.
Disadvantages
 Using of data is not easy because customer expectations depends upon market trends. So,
to manage these expatiations skilled staff & employees are required by entity which is again
time consuming procedure (Zhang, 2018).
 Another disadvantage is that it is not always possible that collected data can be used for
meeting up all expectations of customers. Hence, non-reliable data can directly affects
structure of whole marketing strategies of company at larger scale.
Targetted customer expectations are important to be determined with changing period of
time so that effective strategies are being used. Furthermore, it is seen that data play crucial role in
improving expectations of end users.
Role of data in service provided
In service product also data play important role in distribution. This is because service
provided to customers are essential to be focused as they delivered through using data &

information. Furthermore, it is also seen that services are being provided with proper considerations
to targetted customers.
It is essential to be aware about these data when providing services as because when Tesco
provide services of its Tesco Red Door service platform, they uses wide ranges of data in processes
& procedures such as when preparing data sheet of customers, keeping record of their payments, are
some of activities in which data is used at larger scale.
Advantages
 Main benefits of role of data in service is that through this business is build as a whole.
Further, there are various types of services which are provided by chosen company.
Moreover, information & data are being used to arrange all services in proper order & to
enhance their effectiveness appropriately.
 This is also benefit of Tesco while using data in providing services because it improves
overall customer experience. So, when using of these data correct services are required to
be adopted so that positive feedback is achieved (Andersen, 2020).
Disadvantages-
 In providing service, detailed planning is needed to use data in appropriate segments at right
place. Thus, when focusing on this distract company form other operations.
 Using of data at higher level might lead to loss of skilled employee as many businesses use
data tools & techniques & have few employees. It too impacts upon subordinates morale &
de motivates them to use their own skills or knowledge.
Thus, it is examined that role of data is increasing with its importance in business. Each &
every enterprises are using data to fulfil their needs, engage with customers & for conducting
market research. Further, while using of data makes it possible for entity to achieve heir overall
organisational goals within a period of time.

CONCLUSION
After a brief analysis of above report, it has been concluded that it sales as well as
management is critical part of business which is needed to be understand with proper
considerations. Also, it is necessary to have appropriate knowledge about market in which
innovation product or services is to be launched. Further, discussions has been made about STP,
viable solution, reason for innovation of new product and role of data. Therefore, it is evaluated that
to fulfil wants & demands of customers it is essential to gain information regarding targetted group
of audience. Thus, with help of innovation business is likely to achieve success for longer period.
So, it is necessary in every sector of businesses to innovate & produce something new in market to
survive for longer interval. So, sales as well as management are two different things are needed to
be used in correct way.

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