Tesco's Marketing Strategy: Mix, SWOT, Ansoff, and Digital Impact

This report provides a comprehensive analysis of marketing strategies with a focus on Tesco. It begins by defining marketing and presenting the extended marketing mix (7Ps) with Tesco as an example, detailing product variety, pricing strategy, place of distribution, promotional activities, processes for customer satisfaction, people management, and physical evidence. The report then explains Tesco's competitive advantages through a SWOT analysis, examining its strengths, weaknesses, opportunities, and threats. Furthermore, it describes Ansoff's growth matrix and explains how Tesco can utilize it for growth through market penetration, product development, market development, and diversification. Finally, the report discusses the use of digital marketing to improve Tesco's performance and growth, including strategies for increasing customer loyalty, targeting the right audience, engaging with customers, gaining brand credibility, preparing for the future, and generating better revenues. The report concludes that marketing is essential, SWOT analysis helps maintain competitiveness, the marketing mix promotes services, and digital marketing attracts and engages customers, ultimately improving firm performance. Desklib provides access to similar solved assignments.

Introduction to Marketing

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1(a) Defining Marketing.............................................................................................................3
1(b) Presenting the extended marketing mix with example........................................................3
(2) Explaining competitive advantages by SWOT analysis........................................................4
3(a) Describing Ansoff’s growth matrix.....................................................................................5
3(b) Explaining Ansoff’s matrix to analyse the growth..............................................................5
(4) Explaining use of digital marketing to improve performance and growth of organization. .6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing consist of all the activities which designed to satisfy the need and wants of a
consumer through exchange process. The present study will highlight marketing-mix with the
example of Tesco. Also, analysis the internal and external factors of an organization by SWOT
analysis. Moreover, this report will identify growth strategies by using Ansoff Model. Further, it
discussed how the company uses digital marketing to improve entity’s performance and growth.
MAIN BODY
1(a) Defining Marketing
It refers to all the activities that are related to buying and selling of a product and services
(Apopiy and Dmytrenko, 2017). Marketing is a process of planning & executing the conception,
promotion, pricing and also distribution of goods and services to satisfy the need of an individual
consumer. This includes selling, advertising and delivering the product to an individual and
organization. The common example of marketing are billboards of road side, television
commercials advertisement and magazines.
1(b) Presenting the extended marketing mix with example
Marketing Mix
Extended marketing mix is the combination of seven elements of marketing that help the
business in order to achieve goal and objectives. By referring Tesco as an example of extended
marketing-mix as explained below:
Product- Tesco has a wide variety of products and services includes clothing, food,
financial services, etc. Thus, company expanded its business into the online marketing stores by
offers free grocery delivery services and free music downloads.

Price- Pricing strategy for Tesco is Cost leadership, where it offers product and services at
possible low price without any settlement with quality.
Place- The main headquarter of Tesco is in London, UK. It uses 2 main channels of
distribution such as offline and online and almost 8000 offline stores Tesco operates in the world.
Promotion- Promotion activities followed by cited firm are SEO (search engine
optimization), billboards on roadside and Television etc. It extended the promotion activity by
enhancing the good brand image as compared to others (Bahl and Chandra, 2018).
Process- The process related to keeping customer happy in order to speedy billing services
and easy availability of goods and services on online stores with discount and cashback offers.
People- Company organizes the various programmes and activities to make employees
motivated and happy namely, save as you earn, privilege card etc.
Physical evidence- Tesco does not put so much effort in furnishing the stores, it only
focuses on clean and attractive stores and organizing the product category wise and easy to find.
(2) Explaining competitive advantages by SWOT analysis
Tesco examine the internal strengths and weakness of the company. Also, explore the
external opportunities of the company to attains the threats.
Strengths- Tesco is one of the best retailer in the world and no.1 in the United Kingdom. It
has 34.2% of market share in grocery market of UK and this operates many countries such as
Hungary, China, India etc. Tesco deals with more than 5 Lakh customers every day in online and
offline stores and also won many awards like 'British Favourite Supermarket' and Drinks awards
like 'Grocer's Label Food award' etc.
Weakness- The biggest weakness for TESCO is such as Finance profit levels were
impacted during the recent crisis of covid-19. It has Financial errors due to its credit card liability
and high debts, So the financial profits affected the company and due to its low cost strategy, it
decreases the profit margins.
Opportunities- There is a significant opportunity to enlarge online shopping and offer a
home delivery services for any products and services. Currently customer can order online anytime
and from anywhere it helps to increase in sales (Kar, Bansal and Mishra, 2021). Tesco continuously
inaugurate new stores with different variety of products to sustain in the competition market. This
also allows enhancing and improving its existing technologies that are privilege in private labelled
market.

Threats- To retain in competitive market it is difficult for Tesco because especially in UK
there are various nearest competitors like, Sainsbury and ASDA. It also faces price war from Lidl
and ALDI, these are popularly known for discounters. Hence, it is not possible for Tesco to
compete with them on price.
3(a) Describing Ansoff’s growth matrix
Ansoff's growth matrix also known as product or market expansion Grid, is a tool used by
various firms to plan and analysis their strategies for growth (Ponzoa and Erdmann, 2021). It is
designed to help company to figure out that, where of four strategic directions the business should
opt for successfully growth of the organization. This can be the quick and simple way to find the
risk for growth. The idea is each time move into a new quadrant.
3(b) Explaining Ansoff’s matrix to analyse the growth
Market Penetration- In this strategy Tesco will focus over selling products of company in
existing market and also pointing to increase the market share through market penetration. Also,
focuses more on decreasing the price of a product to attract the new costumers and provides
discount on the price that can help in order to attract customer.
Product Development- Product development is a strategy to develop a new product to
carry in existing market. This involves substantial Research and Development (R&D) with
expanded the range of the product of Tesco (Tesco Ansoff matrix, 2020). Organization can acquire

competitor's product and also merge resources to build a new product which help to meet the wants
and need of existing market.
Market Development- Tesco will expand business operations to supported new product in
new market. To build new customer base company can be focused on new strategies, product
dimensions to attract other distribution channels. It took over the supermarket of Scottish to
identify the new market (Quinton and Simkin, 2017). Also, firm has its own stakes that associated
Quinn worth, British foods and crazy prizes.
Diversification- This is situation where company introduced new products in new market.
It can help to diversifying a risk in different markets and products. Tesco were deals with only
grocery products in the past but now it has its own brands with many products and services.
(4) Explaining use of digital marketing to improve performance and growth of organization
Increases customer loyalty- Digital marketing helps Tesco to increase customer loyalty by
regular conservation with customer. Engaging with customer easily through social media, email,
app and web digital experience to improve the performance of company.
Target the right audience- Tesco target specific group of people those likely to purchase
the services and products. It helps company to target on the basis of their gender, income, age,
preferences, interest and many more factors.
Engage with customer easily- Digital marketing ensure Tesco to engage with customer
easily by offering real value and build a community to inspire other people. Besides, it provides
entertainment value to customer by knowing them about Tesco's journey with their customer.
Gain Brand Credibility- This also help to increase brand loyalty through branding and
marketing. Tesco post contents regularly for discounts, reviews of customer and introduced new
product that ensure to engage with customer. Brand loyalty take place when customer selected to
purchase repeatedly from years to years.
Prepare for Future- Digital marketing help company to implement effective and new
strategies and best practices improving the performance of the firm. This ensures Tesco by
adopting new technologies to expand the business and gain competitive advantages.
Generate better revenues- Higher conversation with customer generates the effective
profitable benefits through digital marketing techniques (Soegoto, 2021). Also, it increases growth
expectancy of Tesco to 6.3 times and give better chance to expanding the workforce.

CONCLUSION
From the following report it has been concluded that marketing is an essential part of any
company. By using SWOT analysis, it has been identified that company has to monitor its internal
condition in order to remain competitive in market. Beside this, study explained the extended
marketing mix i.e. 7P’s which concluded that how entity promoted their services and products in
the market. Moreover, the report discussed growth strategies of a business through Ansoff Model.
Further, study summarized that by using digital marketing company can attract the customers and
engage with them easily with various platforms. Thus, it helps to improve the performance and
growth of the firm.

REFERENCES
Books and Journals
Apopiy, V. and Dmytrenko, I., 2017. Increasing competitiveness of retail trade on the basis of
structural transformations. Journal of Research on Trade, Management and Economic
Development. 8(2). pp.80-88.
Bahl, S. and Chandra, T., 2018. Impact of Marketing Mix on Consumer Attitude and Purchase
intention towards' Green'Products. A Journal of research articles in management science
and allied areas (refereed). 11(1). pp.1-11.
Ibrahim, A. A., Alkhawlani, M. A. A. and Al-shaghdari, F. M., 2017. Customers Desires on
Marketing Mix and It’s Impacts on Tesco (Malaysia). International Sciences of
Management Journal. 1(1).
Kar, S. K., Bansal, R. and Mishra, S., 2021. Tesco: Entry and Expansion Strategy in India.
Emerging Economies Cases Journal. p.25166042211038465.
Ponzoa, J. M. and Erdmann, A., 2021. E-Commerce Customer Attraction: Digital Marketing
Techniques, Evolution and Dynamics across Firms. Journal of Promotion Management.
pp.1-19.
Quinton, S. and Simkin, L., 2017. The digital journey: Reflected learnings and emerging
challenges. International Journal of Management Reviews. 19(4). pp.455-472.
Soegoto, F. A., 2021. Product Development using SWOT Analysis. International Journal of
Entrepreneurship & Technopreneur (INJETECH). 1(1) pp.1-10.
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