Marketing Management Report: Tesco's Strategies and Market Analysis

This report provides a comprehensive analysis of Tesco's marketing management, covering its industry background, market positioning, and unique selling proposition. It delves into internal and external marketing audits, including PESTLE and SWOT analyses, to assess market attractiveness and gro...Read More

Marketing Management

Table of Contents
INTRODUCTION................................................................................................................................3
1) A background statement to outline the industry, market positioning as well as the the present
unique selling preposition................................................................................................................3
2) The internal and external marketing audits and the overall marketing attractiveness and the
potential for the market growth.......................................................................................................6
3) Marketing mix actions to achieve gap between the company's present marketing strategy and
external environment.......................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES ..................................................................................................................................12

INTRODUCTION
Marketing management is for performing the activities related to distribution of goods and
services. Marketing management plays a vital role in any company because it is a way for
promoting and advertising company in a target market.
This report is about Tesco's market positioning, present unique selling proposition
and in this report there is explanation about marketing audit(internal and external) that how
PESTLE and SWOT helps in finding overall market attractiveness and also for finding potential
growth of market. This report includes marketing mix 7Ps which help in achieving gap between
company's present marketing strategy and external environment.
TASK 1
1) A background statement to outline the industry, market positioning as well as the the present
unique selling preposition
The marketing world is full of different types of micro, small and large companies and every
company needs the better marketing strategies to build up and grow in the market for the longer
time. Here, the TESCO is one of top multinational retail company of UK, founded in 1919 by Jack
Cohen and trending as the multinational groceries and the merchandise retailers and headquarter in

Welwyn Garden City, Hertfordshire, England, UK. TESCO has a different distribution channels
across the world to satisfy the demands. TESCO is differentiates into the different areas such as the
books, clothing, electronics, furnitures, petrol and the internet services across the world.
TESCO has started to sell the war-surplus groceries from the Wall Street Market in Hackney. In
60's, the TESCO has owned and opened more than 800 stores to control the retail market in UK and
as well as to expand the market across different countries.(Wierenga and Van der Lans., 2017)
TESCO also introduced the internet shopping facility after 1995.
Currently, TESCO is the 3rd leading retailer of the world and having the stores in the seven different
countries of Asia and the Europe. TESCO confirms the announcement of agreement to merge with
the biggest whole seller Booker Group to become the largest food store. Currently, the TESCO is
having supermarkets, hypermarkets, superstores and the convenience stores. The revenue
generation of TESCO is of about millions of euros every year and due to its large scale expansions,
there are currently, 450,000 employees are working with TESCO.
The different subsidiaries of TESCO are Tesco Stores Ltd., Tesco Bank, Tesco Mobile, Tesco
Ireland, Tesco Family Dining Ltd., Dunnhumby, Spenhill, booker group and the Jack. TESCO is
having a different shop portfolios that are Tesco Extra, Tesco Superstores, Tesco Express, Tesco
Metro, One stop, Tesco Dot-com only and Dobbies. Tesco also introduced Clubcard based the
receives points or the bonus points from the amount spent of the shopping.
Unique selling preposition of TESCO
The Sale promotional activities is the major part for the companies that can be small, medium or
large and it is the process of inducing the customers to buy their products and this can be done
increasing the promotional activities in the various ways such as personal selling, digital media
marketing and by building the relation with the different markets.
TESCO is the leading retailer across the market since 1919 and still in the existence because of its
unique marketing strategies and the strong operational management. The main goal ODF TESCO is
to build the strong relationship with the consumers that helps in making the trust strong and the
biggest reason that makes the TESCO unique i.e., the integrity. TESCO focuses on the “EVERY
Little Helps” to build up the or to strengthen its base and to nullify the competition in the market.
TESCO also focuses on the media advertisement because of the increment in the digitalization that
helps in spreading the new products to the customers easily and that also helps in reducing the
waste and the budget invested on the waste. The print and media advertisement of the TESCO also
sometimes advices about the cooking skills. There are various sales promotional formats on which
the TESCO focus that are as follows -

 Clubcard - TESCO introduced the Clubcard in 1995 and the purpose of introducing the
Clubcard is to collect the points or the GBP 1 on the amount spent by the customers several
times, the customers also receives the special vouchers on behalf of the points the customer
received.
 Free Gifts – TESCO also offers the different type of the gifts or the vouchers to attract the
customers such as Buy-ONE-Get-One-Free and the quiz's with the gifts to the winners.
 Point of Sale (POS) materials - The Point of selling is the unique promotional activity
such as posters, displays stands and the POS continues to become more and more powerful
in TESCO. The BAR codes are the essential part of POS and the customers reward program
“Clubcard” keeps the track record the customers.( This innovative steps makes the TESCO
different from the other retailers and makes the marketing extremely focussed and
profitable.
The companies like TESCO is the focused business and follows the Key Performance Indicators
(KPI) to evaluate the present and the future vision also follows the Corporate Social Responsibility
(CSR) that is the core of the TESCO.
TESCO follows the seven part strategies that are -
 To grow in the UK Core
 To be a one and only maker of the top and the highly valued brands
 To be a biggest international retailers in all the online marketing platforms
 To expand the retail stores in the markets
 To build the better and developed team to create the better values
 To be the strongest leader in all the sectors as the TESCO is in the food industry
 To support the local communities.
TESCO also deals with some business plans and the strategies that includes -
 Accessibility
The TESCO is the third largest retailers in the world and due to its expansion in the different
countries, the revenue generation ratio is also very high. The business plan of the TESCO if to make
the accessible to the targeted audience. TESCO not only just expanding its offline presence but also
increases its business in the online world to because the online channel is the fastest and the easily
reachable to the customers and the that's why the TESCO have more than 6,000 companies in 11
countries.

 Diversification
The Diversification in the different sectors of TESCO i.e., in the clothing, electronics, toys, oil,
software and the finance makes the network as well as the net worth of the TESCO strong.
 Brand Positioning
The first and the foremost step of the TESCO is to position the brand in the market and also
believes in the “high-volume low cost” and also take care about the providing the better and the
premium quality products and the services.
 Customer Acquisition
The focus of the TESCO is give the better services to gain the faith of the customers for the longer
term. TESCO also run the Green Shield Stamps tom give reward to the customers and also gather
the information about the customers. TESCO also introduced its Clubcard and proves to be the
successful promotional tool.
 Awareness
The most important step of the TESCO is to create the awareness about the new products and the
services by the promoting on online platforms, attractive posters and the billboards, print media and
the TV commercials and also the step toward the environmental protection to reduce the carbon
presence that nullifies the competition of the TESCO with the other companies.
2) The internal and external marketing audits and the overall marketing attractiveness and the
potential for the market growth.
The marketing audit is an important part of the market planning that refers to the comprehensive,
systematic, evaluation and the interpretation of the business marketing environment that influences
both the internal and the external markets. The internal and the external marketing environment
includes labour, money, machinery, time, materials, product and the buyers decision process,
perception of the market and the latest marketing ideas that can make the company different from
others.
The internal and the external environment of the TESCO retail supermarket can be determined with
the help of several analyses such as PESTEL and the SWOT.
PESTEL Analysis
The main objective of the analysis is to determine the external environment of TESCO and
the factors that affects the TESCO performance and the entire operation. Here the detailed PESTEL
analysis of the TESCO.

Political factors – TESCO is the leading retailer across the seven countries including Asia
and the Europe. As the TESCO operates globally, the political factors influences on the performance
and the stability and these includes tax, act of legislations and the stability of the political parties.
As TESCO is having the stores across the world so that helps in creating the employment and
creates the great impact on the lower paid and the less skilled people. Some companies started
cutting their cost to came in the competition with the TESCO but due to the strong marketing
strategies, TESCO starts opening the stores in the different countries to increase the employment
ratio.
Economic factors – This factor is the main concern for the TESCO that maximize the cost
and the profits. TESCO changes the policies or the factors which could affect the financial planning.
The main key reason of success of the TESCO is the extension of the business in the different
sectors such as electronics, toys, finance etc.(Kerin and Hartley., 2015) that helps in generating the
better revenue. After the closure and the cost cutting reduced the company's workforce of about
thousands of the employees, TESCO starts shifted towards brand value rather than the luxurious
items.
Social factors – After the several changes in the marketing trends, TESCO increases its
market in the other sectors to increase the sale. TESCO are paying attention on the economic factors
that directly influence and impact on the customers behaviour. After the recession in 2008, TESCO
adopt the changes accommodate the demand for the organic products. TESCO focuses on the
customers behaviour, latest market trends and the needs of the customers because in today's time,
the consumers are choosing the healthy food products. As the TESCO is also into the different
marketing sectors, the customers are attracted more. TESCO is the brand and do not need any
publicity because of its strong strategies and the having the quality of adopting the new things
makes the TESCO different.
Technological factors – The advancement in the technology brings the new opportunities
for TESCO. TESCO introduced the advance and the innovative technologies and also brings the
betterment in the online marketing with the good quality products ad the services i.e., The TESCO
Clubcard. The new innovations in the technology brings the TESCO into competition for the long
term planning and also reduces the carbon footprints which includes superfast deliveries,
automation, launching the apps and the strong online presence.
Environmental factors - As the global warming and the bad quality of the products
reducing the quality of the environment, TESCO starts reducing its carbon wastage and the e-waste
to minimize the the cost and to maximize the social awareness in the customers. The main goal is to
keep the planet not more than 1.5 degree warm. TESCO is now the producing the renewable

electricity and the the this also starts bringing the better results and the reduction is of about 26%
from all the stores of TESCO across the world. All this actions and the implementation of the
TESCO brings the great changes a reduces the waste.
Legal Factors – Legal factors affects every organization directly or indirectly on their
performance and the productivity of the organisation. Some of the legal factors that affect the
TESCO marketing -
The law is introduces to protect other companies from TESCO and changes the product prices
according to the marketing trends.
TESCO also crack the misinformation in the discount.
SWOT(strength, weakness, opportunities and threat)
SWOT analysis provide overview about companies condition by explaining its strength,
weakness, opportunity and threat. SWOT provide overall image of a company. It analyses internal
environment of organization.
Strength:
Strength is that power of company which make company better from other company. In
today's market the main strength is positioning company's product in customer's mind. Tesco SWOT
analysis says there are so many things which makes Tesco very powerful like their skilled
employees, supermarkets all over UK, their brand trust and the leaders of Tesco. This all thing are
main strength of Tesco as their franchise everywhere makes easy for consumer to reach their
supermarkets, and the quality of its goods and services bring brand loyalty in customer. Strength are
also like having good financial position, strength like providing products to the consumer at cheaper
rate as compare to others. And the facilities like product can be returned within 3 days if there is any
defect in product becomes strength for it. His strength make Tesco leading supermarkets of UK.
Weaknesses:
Weakness is companies that thing which make it weak from other companies. Some
weaknesses which Tesco is having like it is using low cost strategy lead to decrease in profit margin.
Tesco providing different type of price of same product differentiate with brands create confusion in
mind of customer either they go for quality or they go for cheap price, this become weakness for
Tesco on some point. Due to poor market research Tesco had faced problem that it had to close his
few stores which are not working well in some countries, and poor market research lead it to open
its stores where there are not so many people who had interest in purchasing product from its
supermarkets. Tesco had faced problem due to its false accounting declaration and Tesco was find

for this fraud in 2017.
Opportunities:
Opportunities are those chances which company can take if they are alert when opportunity
hits them. Tesco uses opportunity by introducing Jacks, which is new discount store and which has
delivered nice growth for Tesco. Tesco can also grab opportunities by emerging or enhancing its
business to emerging countries like Turkey, Indonesia, and South Korea. And the best opportunity
for Tesco is that it can start providing its product through online shopping, So that people who lives
far from its stores can also buy products of it. Tesco can also make strategic partnership with
reputed companies which will be an excellent opportunity for it.
Threat:
Threats are those negative things which can affect business if threats are not detected.
Britain is no longer comes under European Union, which become threat for Tesco because of trade
deals and cost matters. Today's market condition is very dynamic and this dynamic environment
brings so many threats with it.(Quelch., 2017) Market changes every day and no one has control
over and that's why it becomes big threat for Tesco. It also has big threats like its competitors
WalMart, Aldi and other big name in supermarkets.
3) Marketing mix actions to achieve gap between the company's present marketing strategy and
external environment.
Marketing mix :
Marketing mix can be defined as a tool of marketing which company uses to complete its marketing
objectives. Marketing mix includes 7 Ps.(Kotler and et.al., 2018.) Marketing mix includes those
tools which helps in improving companies marketing strategy and also help in development of
company.
Tesco UK's leading supermarkets feels that there are some loop holes in their current
marketing strategy so to improve its marketing strategy and to provide better growth, it is applying
new marketing mix strategy in which it is including 7Ps of marketing mix which are as follows :
Place, price, product, process, people, promotion, and physical environment. This all Ps very
important role in making marketing strategy. To remove problem of its old strategy Tesco is
applying this marketing mix by executing this Ps as follows :
 Place – Place is a word which says that at which place or market company want to sell their
product like Tesco is now providing facility to all its potential customer by opening its
supermarkets near them, or it can be said that it is opening supermarkets where it is getting a

scope of potential buyer. So by providing their facility to target market help in enhancing
their positioning and distribution channels. Proper positioning makes marketing strategy
more powerful because when company hits its target market then it brings new customer
with it. Tesco is a supermarkets so its target market is all type of public either child, young
adult or old people, because everyone has different need and all the thing which they all
need are available in Tesco supermarkets.
 Product : It is that term which attracts consumer to visit stores. A quality product help
company to increase its sale and bring loyalty to its customer. Product can be of both type
either tangible or intangible like goods and services.(Deepak and Jeyakumar., 2019) Tesco is
now applying product mix strategy by bringing more products so that if any type of
consumer come to its supermarkets do not go with dissatisfaction and consumers will able
to find variety of product in its stores. And also Tesco is giving training to their employees
to get more improvement in its services to customers, and that will help it in developing
company's image in market. Tesco is making available all products that customer wants so
they have no need of going to different shop to purchase different purchase the want to buy.
 Promotion – Promotion is one of the most important part of marketing. Promotion is for
making customers known about quality of product and services or for the introduction of
good or services. Promotion comes during launching of new product. So Tesco is
advertising its product by providing big sale on its products, also by providing offers like
buy one get one free.(Hüttner., 2018) Tesco is attracting its customer by organizing events in
which it is providing gift hampers to public and also advertising about its new product
launching. For improving sale or to attract customer there is need of promotion. Customer
only purchase those products which they are known of and to make customer known about
products there is a need of promotion. Tesco is using social media as a big promotional
platform. Tesco is using both traditional as well trending social media it is advertising and
promoting its product on Television and Radio which are part of traditional media and also
using Facebook, Instagram, YouTube and Pinterest as trending social media apps.
 Price – It is that amount which consumer give for purchasing the product they need. Price is
the main factor which attracts customer to buy any good or service. People purchase those
products which they need and they have budget to purchase it.() It is vital component of
marketing strategy as it is that factor which bring buyer to a shop for purchasing goods or
services. Tesco is using pricing strategy in which it is providing products to customer in low
price and also maintaining good quality. Tesco sets a stable price so that it does not go up
and down which affects customer in wrong way. Tesco also maintain good relationship with

its supplier which make them products available at good price.(Haider and et.al., 2019.) So
Tesco gets product at good price that's why it is making available product at satisfied price
to its consumers. Tesco is providing same type of product with different price rates of
different brands. Like if Tesco is providing coffee in its stores and it is proving it of different
brands at different price like one brand gives 1kg coffee at 100rs and other brand giving it
on 90rs price so there is an option available for customers to purchase according to their
budget or brand mind set. So price factor impact marketing strategy a lot. (Usui, K., 2017)
 People – People includes many factors like employees of company, culture, management
and customer service. This factor is directly related with business. For company it is
important to know that market which is targeted by it is having enough people or not which
will purchase its goods and services. Tesco is now concentrating more on both either they
are inside people or outside people or it can be said that either they are employees or its
customer. This both are crucial part in running business. So to develop this marketing
strategy Tesco is bringing more qualified staff and also retaining talent by providing them
the best environment and opportunity, of employees feels better and they will give their
100% in work and which directly impact on growth of company as well as individual.
Second aspect of people on which Tesco is mainly focused is on the customer by providing
them the best products and services. And for that Tesco has started bringing better quality
product and also improved its customer service department by bringing more
understandable and good communication skilled employees. Employees and Customer are
USP of any business.
 Process – Process is act as system that an organization used to run its business. To run
business effectively and efficiently their should be a proper process for it. Good process
leads to good organization environment. There is process for each thing like for making
juice you have to first bring the fruit of which you will make juice, then you have to slice it,
after that putting it on juicer and adding sugar in it and then start juicer machine, now juice
is ready by this example it can be clearly seen for every work there is a process.(Wierenga
and Van der Lans., 2017) So Tesco to reduce gaps and to improve its quality Tesco started
new process of recruitment in which it hired experts who attracts the best talents and then
they follow main selection process by placing right person at right job. To make anything
perfect their should be proper process for it. Process can only be improve if all the steps of
process had been done with accuracy.
This all are Ps of marketing mix and applying this Ps in right manner by Tesco is helping it in
achieving gap between company's present marketing strategy and external environment.

CONCLUSION
After the complete research, this report conclude the outline and the different marketing
strategies of the TESCO group and the analysis of the internal and external marketing audits of the
TESCO by and the overall marketing attractiveness and the potential for the market growth by by
the PESTEL and the SWOT method that conclude the different aspects and the impact on the
TESCO. After all these exercise, the report generates the conclusion that the marketing management
is very important discipline which focuses on the practical marketing approaches, techniques and
the resource that helps in developing the company also decides the sustainability of the company for
the future growth.
REFERENCES
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