Marketing Principles: Environmental & SWOT Analysis of Tesco Retail

This report provides an environmental analysis of Tesco, a British multinational groceries and general merchandise retailer, focusing on its marketing principles and strategies. The analysis includes micro and macro environmental factors affecting Tesco, such as product, marketing, and management issues, as well as political, economic, social, technological, legal, and environmental (PESTLE) factors. A SWOT analysis identifies Tesco's strengths, weaknesses, opportunities, and threats, highlighting issues related to product quality, marketing channels, and employee productivity. The report concludes with recommendations for Tesco to improve product quality, management services, and marketing strategies, including leveraging digital marketing and adapting to changing consumer trends. Secondary data collected from various sources such as published articles, books, and websites is used in the qualitative analysis. Desklib offers similar solved assignments and resources for students.

Principles of marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Principles of marketing can be defined as marketing ideas that company use for effective
marketing strategy. On the basis of principles company build product promotion strategies and
use these principles for effective promotion of goods and services. The purpose of marketing
principles is that any business can apply these principles to their marketing strategy. It can be
applying universally to fit the needs of any kind of business. This make easy for organisation to
adapt to own unique brand. By this an organisation learn marketing process and also examine
range of marketing decision that organisation must make to sell its product and services. Present
report is based on Tesco is a British multinational groceries and general merchandise retailer
headquarter in Welwyn Garden city, England. The report will undertake environmental analysis
of Tesco retail food industry by making use of relevant models and frameworks. The report will
further identify current position of the organisation in relation to their competitors.
MAIN BODY
1) Environmental analysis:
For analysing the Micro environmental analysis of Tesco following issues are explained:
Product issue: Despite the success of Tesco in the world company is facing product
issues such as Tesco product and service quality is lower as compared to another food brand.
Company does not manufacture its own product rather company buy materials from suppliers
thus company fail to understand the trend and culture of consumers.
Marketing issue: Tesco does not follow proper marketing channels as its services is to
be available in the local market only (Faraji, Yamini, and Gholami, 2019). Company buy product
from suppliers fail to meet customer expectation because Tesco does not advertise its product to
the global market through online media and only few people know about the product and
services of company.
Management issue: Tesco management services is poor because employees are less
productive and under motivated. Company does not hire skilled people rather they hire unskilled
staff at low cost. This practice decreasing the productivity of company and organisation is not
being able to achieve their goals.
Macro environmental analysis of Tesco:

Political: Brexit deal created the environment of uncertainty as Brexit is increasing prices
of food approximately by 3 to 5%. Accordingly, Tesco has to increase the price of food this will
create negative impact on company as consumer will not continue to buy the product at high
cost.
Economical: Currently recession is prevailing in the country because of pandemic as
unemployment rate is increasing creating an atmosphere of financial instability and social unrest
among people. Consumers buying power is declining this will create negative impact on
company as people start decreasing their spending and will not buy food from market this will
impact on the growth and profitability of the company.
Social: Changes in social structure, innovative style creates positive impact on company.
Consumers are following trend they prefer to buy food from market instead of cooking at home.
Busy lifestyle of people has increased their dependence on readymade food this will increase the
demand of food.
Technological: The usage of technology is increasing among business this will create
positive impact on Tesco (Wang, and et.al 2018). Company has adapted latest technology by
creating payment of food through mobile application, barcode scanning etc. it helps the Tesco to
be more efficient in the market.
Legal: Government has introduced laws regarding food and beverages to reduce the
consumption to minimise risk of cholesterol, heart disease etc. (Kung, and et.al 2019). This will
create positive impact on company as Tesco has to produce food that contain low sugar so that it
will not harm health of consumers.
Environmental: Currently country has legislated to reduce carbon footprint to minimise
the impact of environment (Environmental Analysis, 2022.). This will create positive impact on
Tesco because company is following green approach and putting many efforts to improve
industrial output (Adefarati, and Bansal, 2019). Company is adopting industry standards to
become more effective in the eco system.
SWOT analysis of Tesco
Swot analysis is done to know about the company strengths, weakness, opportunity and
threats and companies overall position in the industry. In this analyses the internal and external
factors are identified that affects the organization.

Strengths- Tesco has branches in more than 16 countries and this results in increase of
the profits of the company. Market share of Tesco is more than its competitors as consumer are
buying the products.
Weakness- Fraud found in the financial statements of the company it has a negative
impact on the companies' reputation. Low cost strategy used by Tesco reduces the profits of
business.
Opportunity- Tesco can enter into partnership with the other companies for overall
growth of the organisation. Company can also collaborate with other brands to provide better
services to the consumers.
Threats- There are various other competitors who are acquiring market share they are
Wall mart, ALDI. These companies are also growing and its threat to Tesco company.
There are various issues come out from the SWOT analysis of the company. These issues
affecting the overall performance of the company. There is product related issue in this
companies are not offering better quality product and services to the customer than the
competitors. In addition to that company is facing issues in terms of marketing as firm is not
marketing its products globally through online media (Soegoto, 2021). Consumers don't know
about the new product and it results in hindering the performance of the company.
Moreover, organisation is facing management issues in these employees of the company
don't work effectively in the firm. Management don't motivate the employees to improve their
performance it has a negative impact on the performance of the firm.
On the basis of the pestle analysis of the Tesco there are various external issues come out
(Ahmadzadegan and et.al., 2020). In Political issue the Brexit has increased the prices of product
and Tesco also raises prices that results in decreasing the profits of the company.
Further, company is also facing economic issues as when the pandemic hits many people
are unemployed, so they are not buying the product it has a negative impact on the sales of the
company. Besides this company is facing social issue they are not buying food and in technology
Tesco has adopted all but somehow managed to implement the latest technology like barcode
scanning (Benzaghta and et.al., 2021). In legal factor company is imposing tax on sugar so
customer are not buying. In case of environmental issues business is facing carbon issues and
company is trying to reduce the carbon footprints.

Secondary Data is collected from various sources like data is collected from the various
published articles. In addition to that data is collected from books and websites. In this
qualitative method has been used to collect the data from the already collected data by the other
person for their purpose.
CONCLUSION
From the above analysis it is concluded that marketing is a process by which producers of
goods and services find where the demand exists for certain product. It is essential that company
bring product and services to market. Without a clear target consumer, it will be difficult for
company to decide correct marketing strategies to implement. From the discussion it was
inferred that environmental analysis play a vital role in the success of company. Report provided
environment analysis of Tesco food industry by using relevant models and framework. Company
is facing marketing issue as Tesco does not have proper marketing channels and also company
buy food product from different suppliers and use their brand logo to attract customers. Further
PESTLE analysis to be made to assess potential business ventures by identifying opportunities
and threat in the business. Report also mentioned SWOT analysis to summarise the issues in the
internal and external analysis.
RECOMMENDATIONS
 It is recommended to Tesco that they should use better quality in their product as it will
improve customer retention. People will continue to buy product from the same
organisation and will not shift to another brand. By making improvement in quality
company can build brand trust this will boost return on investment of company.
 Tesco should work on management services to retain employees for longer duration.
Company should provide proper training to employees this will boost the morale of
employees and they will develop feeling of belongingness with the organisation.
Company should continuous monitor the performance of employees so that productivity
to be increased at greater level.
 Further recommendation made that company should follow trends as consumer demands
is continuously changing according to changes taken place in the external environment.
Company should provide food according to taste and preference of customer so that

consumer continue to avail services from that organisation only. This will increase
profitability of Tesco and company will gain competitive advantage in the market.
 It is suggested that Tesco should follow best practices and should keep all the things
transparent this will create flexibility in the organisation. Company should follow proper
communication channel to interact with the employees as by this employee will get
motivated and work effectively.
 It is recommended that company must use digital marketing to market various products
and services. Company must include digital marketing and advertise its products so that
more and more customer knows about the product. It will further increase the overall
sales of the company and brings higher efficiency in the organization.

REFERENCES
Books and Journal
Adefarati, T. and Bansal, R. C., 2019. Reliability, economic and environmental analysis of a
microgrid system in the presence of renewable energy resources. Applied energy. 236.
pp.1089-1114.
Ahmadzadegan, M. H. and et.al., 2020, July. Detailed Study on the Features of Mobile
Applications. In 2020 International Conference on Electronics and Sustainable
Communication Systems (ICESC) (pp. 901-907).
Benzaghta, M. A. and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights.6(1). pp.55-73.
Faraji, M., Yamini, Y. and Gholami, M., 2019. Recent advances and trends in applications of
solid-phase extraction techniques in food and environmental
analysis. Chromatographia. 82(8). pp.1207-1249.
Kung, C. T., and et.al 2019. Microfluidic paper-based analytical devices for environmental
analysis of soil, air, ecology and river water. Sensors and Actuators B: Chemical. 301.
p.126855.
Soegoto, F. A., 2021. Product Development using SWOT Analysis. International Journal of
Entrepreneurship & Technopreneur (INJETECH). 1. pp.1-10.
Wang, Y., and et.al 2018. How to construct DNA hydrogels for environmental applications:
advanced water treatment and environmental analysis. Small. 14(17). p.1703305.
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