Tesco's Strategic Marketing: Competitor, Customer and PESTEL Analysis

This report provides a strategic marketing analysis of Tesco, a UK-based multinational grocery retailer. It covers market size and trend data, highlighting the company's sales growth and profit margins. The report includes a competitor analysis, identifying key players like Sainsbury's, Asda, and Morrison's. Furthermore, a PESTEL analysis examines political, economic, social, technological, environmental, and legal factors impacting Tesco, while a SWOT analysis outlines the company's strengths and weaknesses. Customer and stakeholder analyses are also included, emphasizing the importance of customer preferences and stakeholder interests. The report concludes by suggesting key strategic marketing objectives for Tesco, such as promoting new products and targeting new customers, to enhance market share and competitive advantage. This document is available on Desklib, a platform offering a wide range of study tools and solved assignments for students.

Strategic Marketing

Table of content
 Introduction
 Market size and trend data
 Competitor analysis
 Macro and micro factors
 Customer analysis
 Stakeholder analysis
 Key strategic marketing objectives
 Conclusion
 References

Introduction
Strategic marketing can be defined as the process in which
the company uses different methods and ideas of marketing
in order to make differentiation in the market (Beirman,
2020). Every company tries to make use of those strategies
and methods which will be helpful for them in attaining
competitive advantage. Tesco is a UK based multinational
grocery store, it is third largest retailer in the whole United
Kingdom.

Market size and Trend Data
 In the year 2020-21 the annual sales which
was recorded of Tesco is of 28.6 billion
which is huge compared with that of year
2016 in which there sales was declined.
 The company was in a position to make a
growth in its sales which grew in the year
2017 and Tesco made around 200 million
pounds of profit in the year 2020.

Competitor Analysis
 The competition in market for Tesco is huge in which
companies like Sainsbury, Asda, Morrison's is having huge
market share.
 The highest valuation is of Sainsbury which is having around
28.8 billion which is biggest in the market.

PESTEL analysis
 Political factors- Tesco have to face the
issue of changes in the government
regulations which covers taxation policy
which creates problem to them.
 Economic factors- The recession is the
difficult factor which might have to face by
Tesco because during this time people will
only chose to make the purchases of
essential products (Donthu and et. al.,
2020).

Continue…
 Technological factors- They have the
facility of providing the products
directly at the doorsteps of consumers
which is done by making online orders.
 Environmental factors- Tesco does
not make use of plastics for the
packaging or for distribution purposes.

SWOT analysis
 Strengths- Tesco uses different and unique promotion
strategies because of which they develop the focus of
consumers towards their brand.
 Weakness- The rise in prices of food prices has created a
impact on the prices of products of Tesco. It is because of
this reason they are selling the products at high.

Customer Analysis
 Customers have the potential to make any
changes if they do not like the products
and the services of any company.
 Specially in the retail sector where the
competition is huge so in this case
consumers would like to make the
purchases from that company who are
providing them at affordable and quality
products (Sahaf, 2019).

Stakeholder Analysis
Stakeholder analysis is the process of making the
identification of people who are involved in
making the projects.
 High power, high interest-It means that
people who have the investment in the projects
because of which they will be having high
power to make any changes because their
interest is on to check that if it would provide
adequate return (Thrassou, Vrontis and
Bresciani, 2018).

Key Strategic Marketing Objectives
 Promoting new products or services- For Tesco it would
be great if they will launch their new products which will
help them to increase their market share and gain
competitive advantage.
 Target new customers- This will include to target new
customer base which can be done by providing products to
them at lesser prices.

Conclusion
From the above presentation it can be concluded that strategic marketing is
important for developing a goodwill in the market. It will always be helpful in
making the analysis of those goods and services which will help the company
in achieving success. Small businesses provide quality products and services
to society on regular bases. Government also supports establishment of small
business through provide financial assistance and relaxation in taxes.
Background and experience creates positive as well as negative impacts on
entrepreneurship. There are various characteristics, traits and skills of
entrepreneurs that differentiate then from other business managers.