TESCO Marketing Management: Strategies, Analysis, and Audit Report

This report provides a comprehensive analysis of TESCO's marketing management, focusing on its strategies, market positioning, and unique selling proposition (USP). The report begins with an overview of the retail industry, market positioning models like STP (Segmentation, Targeting, and Positioning), and TESCO's USP, which emphasizes high-quality goods and exceptional customer experiences. It then delves into a detailed marketing audit, including internal (SWOT analysis) and external (PEST analysis) environment assessments to evaluate market attractiveness and potential for growth. The internal analysis highlights TESCO's strengths, such as its geographical diversification and broad product range, alongside weaknesses like past accounting scandals. The external analysis examines political factors, economic impacts, and competitive threats. The report concludes by identifying gaps between TESCO's marketing strategy and the macro environment, suggesting marketing mix actions to achieve set outcomes and enhance brand value and market share in the competitive retail sector. This report is a valuable resource for understanding TESCO's marketing approach and its adaptation to the evolving market landscape.

Marketing Management

EXECUTIVE SUMMARY
Marketing management is defined as planning, research, executing and controlling
programmes in order to satisfy client's need and demand. For this assignment, the chosen
company is TESCO organisation that has performed marketing management. The internal and
external analysis has performed for knowing about effectiveness of those factors. For creating
brand awareness and loyalty among consumers, market positioning has done. The respective
organisation has USP of providing high quality good and services in effectual manner. In order
to overcome gap among organisation's strategy of marketing as well as macro surrounding,
actions of marketing mix has taken place for achievement of set outcomes.

INTRODUCTION
Marketing is defined as the study and procedure of creating relationship and satisfying
consumers need and demands. It is the set of institutions, process and activity in order to
communicate, exchange, deliver, create offers which has value for partners, consumers, society.
Similarly, management of marketing is the art as ell as science of selecting their targeted
marketplace, keeping, acquiring as well as leading consumers by delivering, developing as well
as communicating higher value to consumers (MARKETING MANAGEMENT, 2018). It is very
important for organisation for marketing its goods as well as services in appropriate and efficient
manner so that goal and objectives can be accomplished. With rise in competition, it is very
essential to understand requirement of clients for survival and growth. The chosen company for
project work is TESCO which was founded in 1919 that deals in retail sector. It serves various
types of products such as clothing, furniture, petrol, books, financial services and so on. The
main purpose of this report is to discuss about industry, their marketing positioning as well as
USP. The market audit, micro as well as macro environment and their potential for market
growth has discussed here. Also, there are some gaps among firm's strategy of marketing as well
as macro surroundings which are explained with help of new marketing actions.
BODY
1) Background to industry, market positioning and unique selling proposition
The retail sector is rising with change in need and demand of consumers. According to
data of 2017, retail sector leads to rise in economic output which was £92.8 billion and
employment was £2.8 million (Retail Industry, 2019). Similarly, in 2018, the business of retail
was approx 31900. There is rise in retail sector which contributes 0.6% from three months to
August which is more than previous last three months. There are four largest retailers such as
Walmart, Morrisons, Sainsbury and TESCO in market. The organisation chosen for assignment
is TESCO, it was established in year 1919 at England, UK. It is the leading groceries as well as
retail company(Ngo and O'Cass, 2012). The founder of this enterprise is Jack Cohen which is
part of marketing stalls. The Dave Lewis is known as the CEO of company as well as John
Allan is non executive chairman. It is operating 6800 shops in different location which provides
products and services to consumers. As per data of 2019, 450,000 employees are working for
achievement of goal and objectives. It have various subsidiaries like TESCO Bank,

Dunnhumbly, Booker Group, TESCO Mobile and so on. It has earned revenue of £63,911
million, operating income of £2,206 million and net income as £1,320 million (Tesco
Introduction, 2019). TESCO mainly focus on providing goods or services to client's for
achieving goal and objectives.
TESCO has to use various strategy for marketing its goods as well as services in
appropriate and efficient manner in order to attained the objective effectively. For market
positioning, it has examined STP model which is described below:
Segmentation- This is the process of identification of market which has to be segmented
on basis of different factors (Ogunnaike, Tairat and Emmanuel, 2014). TESCO can separate its
marketplace as per the several categories that are: Geographic- The respective organisation segmenting marketplace as per the region and
density. They have to focus on such factors for market segmentation and provide
products accordingly. Demographics- There are various elements on basis of which market is segmented by
TESCO such as age, income, gender, education, occupation, size of family, social status. Psychographic- As per personality and lifestyle,market segmentation has to be performed
for better outcomes.
 Behavioural- The behaviour of each and every customer has to be analysed by respective
organisation on basis of occasions, user status, benefits sought and attitude.
Targeting- It is defined as procedures for identifying attractive segments from
segmentation phase (Tadajewski and Jones, 2012). In this stage, the segmented market is
targeted on basis of above factors which are given below: Geographic- It includes region where TESCO is operating their business in United
Kingdom at 13 countries covering both rural and urban density. Demographics- The demographics includes different elements where that have focused
all age group, targeted both male and female segment. Both low and middle income
category products are manufactured covering employees, professionals and students. Psychographic- Under psychographic, TESCO has targeted traditional lifestyle and easy
going personality person for buying of products and services.
 Behavioural- It produced products which provide cost benefits and focusing on active
users.

Positioning- This is defined as final process where organisation create their position in
minds of consumers to purchase products and avail services (Vargo and Lusch, 2014). There are
different ways through which TESCO can position their products and services such as: Functional Positioning- With this market positioning, they increase quality and range of
goods as well as services (TESCO Segmentation, Targeting and Positioning, 2019).
Within this quality of range of products is served to targeted customers. The price of
good is high in functional positioning as they serve premium quality goods. Price Positioning- In this positioning, TESCO sells their own brand products such as
LCD TV, Widescreen HD and so on. This helps in attracting large number of consumers
as they focus on price rather than other marketing mix. Mulit- Segment Positioning- This is alternative types of market positioning that focus on
several segments with different products. With this positioning they sell various goods
and services to their customers in an effective and efficient manner. Symbolic Positioning- This is based on aspirations, aims, values of customers. Such
market positioning is used by TESCO for their fair trade range of goods in grocery and
food items. They charge high prices for products and services in order to satisfy their
value, perception.
 Experiential Positioning- This is defined as sensory condition or cognitive input to users.
This market positioning is used by TESCO for their beauty and health products to
increase sales and profits.
Unique Selling Proposition is also called unique selling point which differentiates
products and service from their competitors in terms of high quality, low cost, first ever product
(Baker, 2016). In this point, organisation work on what competitors don't have. Here, TESCO is
third largest in world and largest retailer at United Kingdom which has brand presence. The USP
of TESCO is to earn recognition not only on providing cheap products rather than they focus on
creating high value for consumers through treating people the way they like to be treated. The
respective organisation focus on delivering exceptional experiences to their users in proper
manner. The slogan of TESCO is every little helps which is also USP for business which create
high brand value and goodwill at marketplace.

2) Marketing Audit, internal and external overall market attractiveness and potential for market
growth
Marketing Audit
Marketing audit is considered as the systematised, assessment, encompassing, examining
as well as representation marketing environment of enterprises that involves internal and
external, goals, principles, objectives to determine different location of opportunities as well as
problem for recommanding strategies for enhancing performance of firm's marketing (Gellynck
and et. al., 2012). It is conducted through third party for knowing industry in order to operate
business at competitive world. The marketing audit is conducted for task environment, strategy,
system, function, productivity and macro environment. This audit assist in determining about
how well marketing section of respective organisation carry out their activities and operation for
improving performance. Here, TESCO has conducted market environment audit to know about
market attractiveness in order to run their business in systematic manner. They are described
below:
Market Environment Audit
It is defined as combination of both internal and external factors and forces that impact
ability of organisation in order to establish relationship and serve consumers (Gordon, 2012).
TESCO has to analyse their market environment audit to know about various aspects such as
political, social, strengths, weaknesses and others. The both internal and external environment
audit has performed which is described below:
Internal Environment Audit
It is defined as internal or controllable factors of business. For internal environment audit,
SWOT analysis has been conducted by TESCO which is described below:
Strengths- It is defined as positive and internal attitudes of firm. The strengths of
TESCO are described below: Geographically Diversified- TESCO is operating their business in 14 countries having
more than 6800 stores. This has covered Asian market too including North America and
Europe (TESCO SWOT Analysis 2019 | SWOT analysis of TESCO, 2019).
 Diversified Market and Product Range- This types of plan of action helps in getting
success to respective business as it deals in huge range of products such as mobile phones

business, ware items, school uniforms, telecom services, financial and many more.
Weaknesses- It is defined as those factors which are negative that detract from gaining
strength of firm (Vitouladiti, 2014). In order to become competitive, such factors has to be
developed in positive manner. Some of weaknesses of TESCO are as follows: Fraud Trail and Accounting Scandal- As per data of 2017, respective organisation has
charge with fines because of mendacious or fake account declaration and provided wrong
profits. This leads to decrease in goodwill and brand value of organisation in competitory
marketplace.
 Decline in Profits- The price of share has fell to more than 9% because of decline in
operational net income. This has considered as lowest action of organisation after Brexit.
Opportunities- It is an external factors that helps in contribution to success of business.
The opportunities which are available to TESCO are described below: Joint Venture- There are many stores of TESCO which are underperforming so they can
grab opportunity for joint venture for improving their position. It is good chance to
enhance profits and market share through joint venture.
 Expanding Jacks Business- The respective organisation has introduced Jack business
which is considered as new discount stores that helps in growth of business. This can
easily competitive with Aldi and Lidl by providing low cost products and services to
consumers.
Threats- This factors has no controlled over by business which creates threats for
achievement of goal and objectives (Weinstein and Pohlman, 2015). The threats of TESCO are
described below: Economic Crisis and Credit Crunches- The change in tax matters, legal, government
regulations, economies, credit crunches impact performance and operational efficiency of
respective organisation.
 Competition with Supermarket Giants- There are many rivalry of respective organisation
like WalMart, Aldi and others. The market share and profits of respective organisation
has declined due to rise in competition which is biggest threat for business.
External Environment Audit

This is defined as outside factors or influences which impact operation of business. This
is important for TESCO business to perform audit of market by including various component
(Homburg, Jozić and Kuehnl, 2017). For external environment audit, PEST analysis has been
conducted by TESCO which is given below:
Political Factors- The retail industry operate their business globally which has impacted
through political environment. This includes stability, legislation, tax rates and so on. Retail has
faced recession which has impacted business and leads to unemployment in market. TESCO is
largest retailer industry which creates employment opportunities to reduce unemployment from
market. Opportunities- The rules and regulation of government of respective country motivates
TESCO for creating of job opportunities in order to expand business.
 Threats- The recession leads to shifting need and demand of users from one to another
that creates threats for TESCO as it lower sales and profits of business.
Economic Factors- TESCO has competitive advantage in terms of overwhelming
physical appearance. There is frequent change in value of currency, economic rate that impact
profits of business. Under law of EU, organisation having high market share is dominated. Opportunities- In order to increase sales and productivity, TESCO has opportunity to
produce low price goods in order to serve in less developed countries as they prefer high
quality at low cost.
 Threats- This factors leads to decline in quality of products and decline in market share
which is threat for them.
Social Factors- There are various social factors which includes behaviours, clients
purchasing patterns, lifestyle brands, customer conceptions and others. With change in trends
leads to shift people from one products to another. TESCO has focused all group segment for
buying of products and services for attainment of final ends and desired targets. There is rise in
demand of young professionals and Eastern European Immigration. Opportunities- TESCO has an opportunity to enhance their number of food items in order
to increase sales and profits.
 Threats- With rapidly changing need and demand of people leads to rise in production
price that is threat for TESCO arrangement.

Technological Factors- There are various technological element that includes research
and development, innovation and many more. With increase in technological factor, TESCO has
to move themselves towards new innovation and internet for providing better experience to their
consumers. It is providing products and service online to their consumers in an effective and
efficient manner. While manufacturing products, new machine and technology has to be adopted
for better goods. Opportunities- TESCO provide online shopping in order to do home delivery of products
to enhance sales, brand awareness and brand loyalty.
 Threats- With rise in online shopping and technology, less people visit stores that is
threat for TESCO that reduces profitability and sales.
Task Environment Audit
This includes various factors that are interrelated with working of organisation like
customers, retailers, marketing firms, markets, competitors and many more (Hutt and Speh,
2012). It is very essential for TESCO to analyse task environment and produce products and
services in an effectual and prompt style. The elements assist respective business to gain long
term sustainability for business and helps in earning maximum gains and profits in proper
manner. This includes following: Customers- There are more than 5 million consumers with whom TESCO deals for
providing products and services in an impressive and economic way.
 Competitors- There are many retail organisation that deals in same products and services.
The main competitors of TESCO includes ASDA, ALDI, Sainbury's and many more.
Marketing Organisation Audit
The enterprises consists of different hierarchy of management structure like top level,
middle level and lower level (Icha and Agwu, 2015). It is essential for respective organisation to
do proper analyses of employees performance at each and every level of hierarchy. The
performance measurement will assist in increasing productivity in an effective and efficient
manner. The working force are asset of organisation so it is essential for audited accounted
manager for identification of different carrying out activities at every stage for meeting target
standards. In case of lack of meeting those standards then gap has to be filled between actual and
measured performance. Therefore, audit manager has to perform proper audit in order to
accomplish set score and end in an effectual and expeditious style.

Marketing Strategy Audit
This audit helps in proper checking of feasibility of TESCO marketing objectives,
strategies and mission which has direct impact on performance of organisation. These all are
important for organisation in order to accomplish goal and objectives within given time period.
The marketing strategy audit includes following: Mission- The mission statement of TESCO is creating that matters of business improved
and jointly. Marketing Strategies- The marketing strategies of respective organisation is positioning
brand, creating and enhancing consumer acquisition and brand awareness.
 Marketing Objectives- The main objectives is to deal and leads in retail super market and
provide high prime good and employment at little cost in order to beat competition.
Strategic Marketing Planning
It is defined as ongoing procedure which assist company for creation of marketing
program and plan of action for implementing it in specified marketplace (Kotler and et. al.,
2018). This assist in defining current position of organisation, identification of promotional
opportunities and evaluating them in proper manner. In context of TESCO, it has to develop
strategic marketing plan for positive outcomes in an effectual and prompt style. In order to make
strategic marketing plan, there are some steps which are required to be followed in an telling and
expeditious way. It includes setting of goal and objectives, analysing situation, mapping
messages, living mission, outlining tactics, making time framework, making budget, dividing &
conquer, measuring performance and taking actions (10 Steps to Developing a Strategic
Marketing Plan, 2019). This assist in understanding plan among stakeholders in organisation
which informs for management decisions, behaviour of staff for goals and responding among
both potential and current clients. The manager of respective organisation has to make changes
in plan from time to time in order to attain set score and desired targets. This assist in growing
market shares that resulted into more profits and revenues in an appropriate style.
The various types of audit has conducted by business for accomplishment of their set
desired ends results. With such audit, proper market is analysed and accordingly need and
demand of consumers are fulfilled. TESCO has conducted audit for market that includes both
internal and external, strategy, task environment, market organisation and so on. All these are
essential for market growth and success of enterprise in efficacious and businesslike mode.

Therefore, with helps of audit, business can easily achieve goal and objectives that leads to rise
in sustainability, profitability ad growth of business. Along with it, strategic market plan has
prepared by business in order to attain desired outcomes of concern in effectual and appropriate
manner. The respective organisation has to make plan as well as auditing for marketing of
business in an effectual manner.
3) New marketing mix actions to achieve gaps between company's present marketing strategy
and external environment
As the wholesale market is growing day by day so the competition is also enhancing
which creates a gap among existing strategy of marketing as well as macro geographical area
(Lee and Lam, 2012). So, in order to achieve this gaps TESCO takes fresh marketing mix
activity. As marketing mix is considered as the group of marketing variable which an
organisation control as well as combines for producing the expected response into targeted
marketplace. This is the essential marketing techniques that comprises of whole components that
influence product demands offered through company. The main aim of this is to develop
appropriate product at right price at proper place with effective promotion. Therefore, new
marketing mix are discussed below:
Products- The firm TESCO presently has several ranges of products groceries, clothes,
foods and others. Moreover, they have their own product brands such as TESCO value, TESCO
lotus and many more. In order to achieve the gaps, the respective organisation have to perform
market research so that they get to experience about the necessarily and need of users as well as
market. So that they can do innovation into its existing product and produce new products
accordingly for attaining competitive advantage.
Price- Respective organisation utilised cost leadership pricing strategy as it helps them to
facilitate product at lower price with efficacious quality (Levy, 2012). Moreover, they usages
economies of scale and appropriate channels for procurements. Thus, for achieving the gaps
among present market strategy and external environment, TESCO can utilise competitive pricing
strategy for their innovative or new products as it aids them to determine the effective cost for its
B2B or B2C. Also, the business which provide online has to apply mixed approach where price
supported evaluation can decide the profitability edge according to the rivalry valuation strategy.
Places- As presently TESCO is in operation in around 13 countries with the help of
various distribution channel. Their super stores are refers as the large super market which sell