Marketing Audit and Strategic Priorities for Tesco Organization

This report provides a comprehensive marketing analysis of Tesco, a multinational retail company. It begins with an executive summary and table of contents, followed by an introduction that highlights the importance of marketing principles. The main body of the report includes a marketing audit, background of the company, macro analysis using PESTLE factors, and micro analysis focusing on customers, suppliers, marketing intermediaries, and the public. A competitive analysis is also presented, including perceptual mapping and strategic group analysis, along with market share data. The report then conducts a SWOT analysis and concludes with strategic priorities for the upcoming year, offering insights into Tesco's position in the market and recommendations for future strategies. References are provided at the end, including books and journals.

Principles of Marketing
Management

EXECUTIVE SUMMARY
The principles of marketing helps to encourage the customers towards brand and their
products and services. This report is based on the internal and external factors that influences the
decisions of company. This report is critically identified the competition of organisation and
competitive industry of the target market. This report is also comprises a SWOT analysis and
strategic priorities which should be formulated by the organisation.

Table of Contents
EXECUTIVE SUMMARY.......................................................................................................................2
INTRODUCTION.....................................................................................................................................4
MAIN BODY.............................................................................................................................................4
Marketing Audit......................................................................................................................................4
Background of the company....................................................................................................................4
Macro Analysis........................................................................................................................................4
Micro analysis.........................................................................................................................................5
Competitive analysis...............................................................................................................................7
SWOT Analysis.......................................................................................................................................8
Strategic priorities for the upcoming year................................................................................................9
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................10
Books and journals:...............................................................................................................................10

INTRODUCTION
Marketing is a very wide concept which embraces all the strategies that will help an
organisation in order to accomplish their objectives. Marketing helps to attract and gain
customers towards the purchase of product or services of a particular brand. It is focused on to
increase the sales of the organisation. The report is based on the Tesco organisation which is a
multinational company. It is a specialized in retailing business and considered as the third largest
retailer across the world. The headquarter of the company is in UK (Ayedh, A. M. and Et.al.,
2019). This report is going to discuss on the marketing audit plan for the respective organisation,
impact of internal and external factors which influences the decision of customers. It is
imperative for an organisation to gain benefits over rivalries in the target market, it is done with
the help of competitive analysis. The report is also embraced with strategies which will be
beneficial for the organisation in order to deal with the current situation.
MAIN BODY
Marketing Audit
Marketing audit is a systematic and comprehensive analysis of the business environment
which includes both internal and external environment of an organisation. It comprises with
objectives, goals, principles, strategies of organisation in order to grab the opportunity and
identification of issues. It also helps in recommendation in order to take corrective course of
action that is suitable as per the requirements of organisation. It is an important and useful tool
which is used for marketers in order to apprehend the present ecosystem.
Background of the company
Tesco's is known as general merchandise retailer and a grocery store in the London. It is
introduced as a third largest retailer which sales goods from food to fashion customer. It is highly
focused on to provide better services day by day in their stores as well as online stores. The
founder of the companies Jack Cohen who introduced Tesco in 1919. Tesco includes products
and services such as retailing of toys, books, electronics, clothing, software, furniture, telecom,
financial services as well as internet services. The Company is multinational in nature which is
likely to operate its business throughout the globe (Blokdijk, G., 2021). When the covid-19
situation is arise it impact all the strategies and decisions of all organizations. It is very important
to mention that Tesco is also highly impacted and influence with the situation of covid-19. It is
very complex and critical to understand that it experiences huge losses but have enough
capabilities to deal with the situation. Due to such situation, they are also focused to expand their
business in terms of vegetables, fruits, and other basic necessities. It has been observed that
Tesco organisation is deal with some issues but they are also capable to achieve their position in
the market with the sale of its necessities.
Macro Analysis
Macro analysis involves the external factors that influences the decisions and strategies of
organizations through which they perform their activities. It is very essential to understand that
all these factors may create direct impact on the performance and growth of an organisation. To
understand and identify the macro factors pestle analysis is a great tool which provide a detailed

analysis of the external environment that helps to analyze the unpredictable environment in
which they operate their activities. Pestle analysis includes factors such as political, economic,
technological and many more. In addition to Tesco organisation, the pestle analysis is mentioned
underneath:-
 Political factors: Political factors are those factors which are governed by government of
the country which include some policies and procedures. It has been studied that political
condition of UK is stable, so it is grateful for the organisation to operate their activities
while outlining the policies that should be applicable by the company.
 Economic factors: Economic factors describe the condition of economic in the country
which includes demand and supply, GDP, interest rate, inflation rate, taxes and many
more of a particular country (Board, Y. J., 2019). In context to Tesco, it makes a
sufficient contribution to the GDP of country through which they will get a sincere
support by the government. The demand and supply of the products of the respective
organisation is also good enough, that results with huge profits and earning.
 Social factors: Social factor includes current trends in the market which is considered as
the important factor which helps to formulate strategies in order to attract more
customers. In context to Tesco organisation, it has been observed that the company is
highly focused on the current trends that what is going in the market and create its
products and services according to the current requirements of customer that will help to
improve the satisfaction level of users.
 Technological factors: Organisation is highly depend on the technologies which they
have been used in order to get success in the target market. It has been observed that the
respective organisation use advanced and latest technologies in order to improvise their
products and services that will help to earn more profit for the organisation.
 Legal factors: It is very important for the organisation to accept the laws and regulations
that must be apply by them. Tesco significantly follows the rules and regulations and
adopt legal factors in order to get fulfilled by them, will help to provide better services to
their customers in a very effective manner.
 Environmental factors: Environmental factors includes resources in the environment
which should be taken care by the organisation. Tesco is highly concentrate on to reduce
the footprint of carbon and makes optimum utilization of resources in order to reduce the
harmfulness to the environment.
These all are the factors which are mentioned above are influences the decisions of Tesco
Company. All rules regulations procedures must be applied by the organisation. The company is
highly focused on to serve customers according to the latest trends in the market that will assist
the organisation in order to make profits (Daneshjo, N. and Pajerská, E. D., 2019). It is critically
to observe that these all external elements are advantages to the development of plans and to
enhance the performance.
Micro analysis
Micro analysis is a concept which is used to examine the micro factors which influence
the performance and operations of a company (Boccalatte, J., 2020). It supports in formulating

corporate strategies and help to make a right decision which is suitable for the organisation. In
context to Tesco, for successful decision it should be carefully analyze all the macro factors.
Micro analysis has been mentioned below:-
 Customers: It is very commonly known that customers are the most essential element for
every organisation. The organisation is work on the basis of customers in order to meet
their demands and requirements (Christie, B., 2019). With the reference of Tesco
organisation, it has been observed that the main priority of the company is to keep
customer on the top. It is very imperative for the organisation that it highly focuses on
innovation and creativity towards its product and services to meet the satisfaction level of
customer. They always try to provide quality goods and services in order to gain loyalty
towards brand.
 Suppliers: A supplier is a person who supplies or provides goods and services to the
other company. The products and services are to be available by the supplier to the
organisation, where he is responsible to supply the products and services on time. Tesco
has been dedicated by lots of suppliers. Branston is very commonly used supplier by the
respective organisation from more than past two decades. The other supplier is AMT that
supports organisation in order to sale their products and services which prominence on
grapes, citrus fruits, melons, pineapples since 2014. The suppliers are very complicated to
the growth of organisation. It should be very important for the organisation that it supply
products on scheduled time otherwise it will be threatening to the performance of
organisation (Kabeya, G. E., 2019). They are highly focused on to make proper
coordination with suppliers in order to serve better services to the customers.
 Marketing intermediaries and public: It has been seen that the organisation regularly
performs the market research, develops plan and strategies in order to enhance the

performance of organisation as well as pays significance attention to the industry trends.
It is perilous for the organisation to develop marketing mix and worked on all the seven 7
P’s in order to serve better and effective to their customers.
Competitive analysis
It is very important for the organisation to know its competitors or rivalries that are
present in the target market. It has been seen that competition is very high in each and every
sector and every level (Kpokiri, E. E., Taylor, D. G. and Smith, F. J., 2020). In order to provide
the tough competition to other competitive organisation they formulate strategies that will help to
gain competitive benefits that are available in the target industry. In context to Tesco
organisation, they paid high attention in order to understand their needs and requirements of
customer and satisfy them in a very effective manner and better than their competitors.
Perceptual mappings: Perceptual mapping can be understood as a visual representation
of an organisation which can be compared to its competitors. These maps can help to see a
location for an organisation which describes customer’s experience of brands, products, services,
commodities and their response to them. The company is assessed by the data which is used in
product development process in order to identify prospective goods. In context to Tesco, it has
been observed that company delivers an excellent service to their customers even though all the
competitors almost offer similar products in the market but still it is leading the market by
satisfying customers at a great level in the country. The respective organisation is very popular to
deliver high quality products and services at a very affordable prices which is very advantages in
comparison to other competitors. They are enough capable to build a positive brand image while
providing excellent services in the market. The company build a solid position by offering high
quality products at a very good price to all the customers.
Strategic Group Analysis: This analysis is referred as a study which is executed by
group of companies in this same industry because they all are operating and performing under
the same model of business through which they are direct competitors. Morrison’s, Sainsbury’s,
ASDA are one of the major competitors which give significant competition to the Tesco
organisation while perform and operate as a part of same structure group. The prices of all such
organizations are comparable and Tesco sells their products and services at a very premium price
with high quality. The organisation wants to increase its market share and necessitates a new
strategy. They all are focusing on various strategic categories (Mlecnik, E., Straub, A. and
Haavik, T., 2019). The reordering of such a strategic teams might have significant performance
influence of each individual. It is very complicated to become a market leader in the same
industry. This will support the organisation in order to meet the demands and requirements of
customers while gaining a competitive benefits in the target market.
Market share of Tesco and competitors in UK
Tesco 27.9%
Morrison’s 10.8%
Sainsbury's 16.3%
ASDA 15.5%

SWOT Analysis
SWOT analysis defines the internal capabilities of the organisation. It helps to identify
the strength and weaknesses, opportunities and threats of an organisation and how they can work
on it practically. In context to Tesco, the SWOT analysis is mentioned below:-
Strengths  It has been studied that Tesco
organisation has taken very wisely
their decisions in order to expand their
business. That's why it is recognized
as one of the largest supermarket
chain in UK. Along with this it
focuses on to conduct proper research
which helps to gain competitive
benefits.
 In order to identify their customers’
requirements and desire they thorough
research and developed products and
services in order to match their
demands (Weatherford, A., 2019).
Moreover the methods of marketing
will also support them in order to
attract and gain huge number of
customers.
Weaknesses  It has number of competitions in the
market. Online marketers also
facilitate stiff competition to them. As
the company offers low prices it also
results in lowering its profit.
 The organisation introduced several
programmes in order to engage and
attract customers but still there is
deficiency that they are unable to
retain other customers.
Opportunities  The company is also looking forward
in rural areas. It helps that an
organisation has taken great benefits
of the potential in order to provide
products and services to the rural
clients as well. This demonstrate the
market of organisation.
 Highly focused on to explore new
markets
Threats  It is very important to note that the
situation of covid-19 has impact a lot
in every sector of market including
Tesco organisation.

 Tesco has lots of competition such as
ASDA and Sainsbury’s who give
direct and tough competition to the
organisation.
Strategic priorities for the upcoming year
Strategic priorities are fundamental to the organisation which aids them to increase the
value of the organisation by formulating various strategies in order to achieve the objectives of
organisation (Yadin, D., 2020). After analyzing the strength, weakness, opportunity or threats of
the organisation, the strategic priorities for the upcoming future and compact with the position
are mentioned underneath:-
 An organisation is focusing on to formulating strategy that will assist them to be offer the
tough competition. They are always focusing on to create and innovate the new products
and services in order to attract more number of customers to the brand. Currently they are
focusing on to accessibility of the product and services so that they can gain competitive
benefits.
 Another strategic priorities which is based on the online shopping and marketing. As the
situation is deal with lots of challenges due to the covid-19 customers recommend to buy
goods and services through online platforms and want their delivery at door step. So it is
a great strategy that will support an organisation.
 Discounts and offers are the other strategic priorities of the organisation in order to
achieve competitive and stable position in the market which helps them to encourage the
users to buy products and services from the organisation (Zerin, F.H., 2019). Thus,
discounts and offers always supports and organisation in order to increase the sales.
CONCLUSION
It has been concluded from the above report is that principles of marketing are very
essential for all the organisation. It is very significant to identify the factors that impact
organisational performance. This report is based on the study of market audit plan where external
factors and their impact are discussed. SWOT analysis helps to identify the internal factors that
impact its performance. Competition is also outlines in context to Tesco. Finally the end section
of report includes strategic priorities which should be formulated by the organisation in order to
operate and grow in successive manner.

REFERENCES
Books and journals:
Ayedh, A. M. and Et.al., 2019. The integration of Shariah compliance in information system of
Islamic financial institutions. Qualitative Research in Financial Markets.
Blokdijk, G., 2021. ISO 9 0 0 0 I SO 9 0 0 1 1 0 0 Success Secrets: The Missing ISO 9000, ISO
9001, ISO 9001 2000, ISO 9000 2000 Checklist, Certification, Quality, Audit and Training
Guide. Emereo Publishing.
Board, Y. J., 2019. Annual Report and Accounts 2018/19. YJB: London.
Boccalatte, J., 2020. Tuesday, February 25, 2020 8: 00–10: 00 AM Community Foundation of
Middlesex County Tentative Agenda* Items Require Action.
Christie, B., 2019. GP recruitment in Scotland is “challenging,” warns auditor.
Daneshjo, N. and Pajerská, E. D., 2019. Creation of marketing information system in a company
and the expected value of marketing information. In International Conference on Advances in
Business and Law (ICABL) (Vol. 3, No. 1, pp. 28-34).
Kabeya, G. E., 2019. " Journeying into the future": An audit of the Writers' Trust/McClelland &
Stewart Journey Prize.
Kpokiri, E. E., Taylor, D. G. and Smith, F. J., 2020. Development of antimicrobial stewardship
programmes in low and middle-income countries: A mixed-methods study in nigerian
hospitals. Antibiotics, 9(4), p.204.
Mlecnik, E., Straub, A. and Haavik, T., 2019. Collaborative business model development for
home energy renovations. Energy Efficiency, 12(1), pp.123-138.
Weatherford, A., 2019. Things Go Better with Nostalgia: How the Coca-Cola Company Uses
Brand Storytelling to Influence Its Holiday Marketing Efforts (Doctoral dissertation, University
Honors College Middle Tennessee State University).
Yadin, D., 2020. MBA-550 International Dictionary of Marketing.
Zerin, F.H., 2019. Marketing Strategies of Pan Pacific Sonargaon Dhaka.