Tesco: Marketing Environment Analysis and Recommendations

This report provides a detailed analysis of Tesco's marketing environment, encompassing internal and external factors impacting its operations. It assesses Tesco's positioning and targeting strategies, utilizing perception maps, market segmentation techniques (demographic, psychographic, geographic, and behavioral), and the 4Cs of effective positioning (clarity, credibility, consistency, and competitiveness). The report identifies Tesco's strengths, such as a skilled workforce and strong supplier relationships, while also acknowledging challenges like intense competition. Two key recommendations for Tesco's future marketing plan are proposed: enhancing its online presence and diversifying its product offerings. The report justifies the recommendation for building a stronger online presence, emphasizing the benefits of market penetration, market development, product development, and diversification through digital channels. The conclusion highlights the importance of environmental assessment and strategic positioning for maximizing profitability and productivity.

Fundamentals
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INTRODUCTION...........................................................................................................................3
Part 2................................................................................................................................................3
An overview on assessment of the current marketing environment.......................................3
An analysis of the organisation’s positioning and targeting strategy using perception maps,
segmentation techniques and the principles of the 4Cs of effective positioning...................5
Two recommendations for the future marketing plan of your chosen organisation...............8
Justification of one of the two recommendation....................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8
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INTRODUCTION
Marketing is defined as promotion of brand, services and products in order to have more
competitiveness and profitability in industry. There are different type of marketing strategies
through which company can maximize their growth and opportunity (BOUDJAR, 2021).
However with the analysis of marketing environment organisation can significantly offer their
products and services to target base of customers in effective manner. Present report involved
discussion on Tesco. For this report include assessment of current marketing environment of
organisation along with segmentation techniques, perception maps and four C's of effective
positioning. Along with this report include recommendation for future marketing plan.
Part 2
An overview on assessment of the current marketing environment
Marketing environment mainly include internal as well as external factors in which internal
factors consist of shareholders, employees, retailers and distributors, consumers are more. While
on the other than external factors include political, economic, technological, legal and social
aspects. All these factors have significant tendency, capability to influence organisational
marketing operations. It is essential for company to effectively utilise marketing environment as
it will allow them to build strategies and establish relationship with customers through which
company can significantly serve customers in a well defined and effective manner. TESCO is
offering their business services to many consumers thus it is essential for them to identify
marketing environment, as it will allow them to formulate strategy for growth. In terms internal
business environment it has been underlined that company is having a highly skilled workforce
that facilitate this organisation to assure higher profitability (Ding, Yuan and Hu, 2021). With the
help of skilled employee’s organisation satisfy needs and demands of customers by providing
them high quality services. It has been identified that in marketing environment Tesco is facing
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high consumer power in which there are a number of other organisations those who are offering
same or similar form of products and services to customers. This facilitates customers to select
and purchase from other options in market. As per the market environment analysis of company
in has been underlined that this company is facing intense competition in which there is
extensive competition prevailing in business environment. Respective company is operating their
business operations with certain vision that include offer consumers more innovative and modern
services and earn their trust and loyalty. Furthermore, it has been identified that respective
organisation is having formative relationship with number of suppliers through which
organisation have high quality raw materials. This effectively aid organisation to undertake their
production services with high quality raw material which automatically enhance satisfaction
level of consumers. In addition to this it has been identified that this company fundamental
business strategy is to satisfy and offer consumers highest quality possible products with lowest
price. Company take advantage of low pricing strategy in order to enhance its profitability and
sales in effective manner.
Thus according to the above mentioned market analysis it has been identified that this
company is forming their business with sound business practices that not only help them to
attract customers but also facilitate them to establish strong relationship with its suppliers,
through which company have ability to serve consumers in effective manner. However it has
been identified that there is intense competition which is affecting organisation operation in
which other rivals are serving consumers with the products and services of affordable price base.
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An analysis of the organisation’s positioning and targeting strategy using perception maps,
segmentation techniques and the principles of the 4Cs of effective positioning
In order to establish their business in a new market segment it is essential for an organisation to
position and target consumers with the help of effective targeting as well as positioning
strategies. It has been identified that perception mapping is defined as a visual representation in
which product and service times more than competitors. This is also known as positional
mapping. It is a competitive analysis framework in which company takes advantage of
consumers input in order to effectively understand that which brand and product of company is
liked most by consumers (Menéndez Torre and Yadav, 2021). With the help of this company can
also take marketing data in order to determine competitive landscape. It has been underlined that
positional mapping emphasize upon quality data through which organisation can identify
subjective feelings as well as consumer opinion towards brand and products. For the respective
organisation will take advantage of survey and reviews. With the help of perpetual map
respective organisation identifies the industry competition in order to identify their place in
market against its competitors.
Market Segmentation
It has been identified and the main purpose of market segment is to determine various
groups within target audience in order to satisfy their needs and demands in effective manner.
According to the marketing segment analysis of respective company segmentation is done
below:
Demographic
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Company is aiming to offer their products and services to the age group of all individual
and all gender. However in this consumer of lower higher income group is the main target of
company. They are the target potential consumers in which respective organisation present their
offerings.
Psychographic
As per the segment this factor mainly emphasize upon personality as well as interest of
consumers. In term with respective organisation with the help of extensive research organisation
will offer their production services to easy going and determine consumer group. It has been
identified that psychographic segmentation effectively facilitates company to attract attention of
consumers.
Geographic
As per Geographic segmentation it has been underlined that it is one of the easiest to
group identify consumers in terms with their physical location. The possible target group of
respective organisation is the consumer group of United Kingdom with urban and rural density.
Behavioural
In context with behavioural segmentation it has been identified that it is one of the most useful
for whole business segment whether it is small or large. With the help of this segmentation
company can offer the product and services to consumer group as per their spending habits,
loyalty towards brand and more (Nair and Gupta, 2021). As per this segment it has been
identified that company aim towards its active users who are having positive and spectacle
attitude towards the brand.
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4 C's of marketing is clarity, credibility, consistency and competitiveness. With the help of this
organisation can create positioning statement in order to build online value proposition.
According to the analysis it has been identified that consumer want high quality product and
services in innovative manner with affordable price range. It has been identified that competitors
are offering low pricing production services to consumers. In this business can effectively
enhance their competitiveness and can serve customers needs and wants by offering unique and
innovative services and products with higher benefits and affordable pricing segment. While in
terms with communication it has been underlined that respective organisation has well
established community for every in which consumers and share tips and tricks along with best
practices (Ócsai, 2021). Furthermore, in context of convenience to by organisation offer
consumers a facility to buy the production services from online and offline stores. However it
has been underlined that there is no presence of respective organisation on online stores
comparatively to its rival’s. In context with cost to satisfy it has been identified that competitors
are serving belatedly low pricing production services to consumers.
Two recommendations for the future marketing plan of your chosen organisation
Strong online presence
According to the above-mentioned analysis of company's market environment has been
recommended to Tesco to effectively improve their online presence. It has been identified that
the major threat for which company can have negative impact is changing of consumer
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behaviour from online channels. It has been underlined that there is a significant opportunity for
company to serve more number of consumers from online channel. In this it is recommended to
organisation to enhance their online presence and integrate a personal as well as professional
account. Online presence will allow organisation to maximize future experience through which
company can you create valuable content. With the help of developing online presence company
can analyse results and have more number of consumers. With the help of improving its digital
presence respective organisation can gain number of benefits in terms of serving large base of
customers while giving them more exposure towards organisational products and services.
Diversification
Organisation can add services products and stages of production to existing business, as per the
analysis it has been identified that the major weakness of respective organisation is lack of
choice of products. While on the other hand its competitors is offering wide number of products
and services. In this organisation is recommended to facilitate diversification in order to enter
lines of business (Sakamoto, 2021). This will significantly aid company to minimise risk of loss.
It has been identified that this strategy allow organisation to have better form of investments
through which company can build their portfolio that will significantly add more effectiveness in
current portfolio of company.
Thus the help of emphasising upon above-mentioned to recommendations organisation can
bill the future marketing plan in a well define and efficient way. These recommendations will
facilitate organisation to serve customers in more effective manner by ensuring growth and
profitability.
Justification of one of the two recommendation
By building online presence company can make more number of target groups of
customers. It has been identified that online marketing will facilitate company to offer quality
content through which they can actually attract attention level of consumers. It has been
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identified that by building their online presence effective organisation can help the customers to
get more discounts and cash back. It play most important aspect in attracting consumers and
taking more competitive advancements.
Market Penetration
The help of marketing penetration strategy for example by selling their products in
existing market segments with the help of competitive pricing strategy and add campaigns on
social media customers can be effectively influence in effective manner. In this Tesco by coming
up with special offers on many products the help of online marketing can enhance their sales.
Market development
With the help of marketing development strategy for example by offering existing
products in new market with the help of digital marketing company can gain more
competitiveness.
Product development
It is essential for organisation to enhance the product base comparatively to other rivals.
In this company by coming up with their own version of products with the support of strong
supplier based company can have more negotiating power.
Diversification:
Diversification strategy will allow company to serve new products to new consumer.
However it is not easy strategy but with the help of offering new products through online channel
organisation can get attention of large base of consumers around the world.
CONCLUSION
As per the above mentioned report it has been concluded that marketing place essential role
for organisations that allow them to enhance attention of more number of consumer. This report
states that company is required to undertake assessments of their marketing environment, as this
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will allow them to effectively position their production services in market segment. It further
facilitates them to turn get consumers. These reports also identify that online presence plays
important role which company can effectively influence large base of customers. This will
significantly aid organisation to maximize its profitability and productivity at great extent.
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REFERENCES
Books and Journals
BOUDJAR, N., 2021. The Importance of Teaching with Problem Solving Strategy: A theoretical
study. dirasat nafsiyat wa tarbawiyat, 14(1), pp.423-433.
Ding, L., Yuan, H. and Hu, B., 2021. Adopt or not: Manufacturers' RFID decisions for gray
marketing in a competitive environment. Computers & Industrial Engineering, 151,
p.106957.
Menéndez Torre, C.A. and Yadav, R.K., 2021. Definition of a methodology to analyze the
Product Portfolio Management: Example analysis of the cloud computing market PPM.
Nair, K. and Gupta, R., 2021. Application of AI technology in modern digital marketing
environment. World Journal of Entrepreneurship, Management and Sustainable
Development.
Ócsai, A., 2021. The Importance of Business Models. In Ecologically Conscious
Organizations (pp. 29-35). Palgrave Macmillan, Cham.
Rahman, M.S., Hossain, M.A. and Fattah, F.A.M.A., 2021. Does marketing analytics capability
boost firms' competitive marketing performance in data-rich business
environment?. Journal of Enterprise Information Management.
Sakamoto, M., 2021. The missing C: addressing criticality in CLIL. International Journal of
Bilingual Education and Bilingualism, pp.1-13.
Zou, W., Hu, X., Pan, Z., Li, C., Cai, Y. and Liu, M., 2021. Exploring the relationship between
social presence and learners’ prestige in MOOC discussion forums using automated
content analysis and social network analysis. Computers in Human Behavior, 115,
p.106582.
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