Tesco Marketing Strategy: Planning, Objectives, and Extended Mix

This report provides an analysis of Tesco's marketing process and planning. The first part defines marketing, describes the role of the marketing function, its interaction with other departments, and examines Tesco's extended marketing mix (product, price, place, promotion, process, people, and physical evidence). It evaluates how the marketing mix contributes to Tesco's business objectives and offers recommendations for improvement. The second part focuses on the strategic marketing plan, linking it with the overall organizational mission, corporate strategy, and objectives. It discusses SMART marketing objectives, the use of marketing research to support new product launches, situational analysis including marketing audits and competitor analysis, and the development of marketing strategies applied to the extended marketing mix. It also addresses marketing budgets, tactical actions, control and monitoring measures, media budgets, and the selection of appropriate digital, offline, and social media channels for communication.

Marketing process and
planning

Table of Contents
INTRODUCTION...........................................................................................................................4
PART-1............................................................................................................................................4
MAIN BODY...................................................................................................................................4
definition of marketing................................................................................................................4
Description of the role of marketing function.............................................................................5
Marketing function works and interacts with other departments................................................5
Extended marketing mix of Tesco..............................................................................................6
An evaluation of how the marketing mix contributes to the success of the organisation in
meeting their overall business objectives....................................................................................9
Recommendations.....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
PART-2..........................................................................................................................................12
Strategic marketing plan links with the overall organizational mission, corporate strategy and
objectives...................................................................................................................................12
Clear and SMART marketing objectives..................................................................................12
Marketing research to support the new product line launch.....................................................12
A situational analysis.....................................................................................................................13
Marketing audit.........................................................................................................................13
Competitor analysis ..................................................................................................................15
Sub-segments............................................................................................................................15
New product value-proposition ................................................................................................16
Development of the marketing strategies applied to the extended marketing mix...................17
Marketing budget......................................................................................................................17
Tactical actions..............................................................................................................................17
Identifying appropriate control and monitoring measures........................................................17
Media budget.................................................................................................................................18
Recommendations and rationale for selected and integrated multi-media activities................18
Appropriate digital, offline and social media channels for communication.............................19

Multi-media plan based on quantitative and qualitative criteria...............................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Marketing is defined as the activity that is used by the organisation for the purpose of
promoting organisational products and services in market. In marketing various activities and
actions are included such as advertising, selling as well as delivering products to customers and
other business entities. It executed by the organisation for stimulating demand of customers for
purchasing business products and services. Marketing planning is referred as the process of
organising and defining organisational marketing aims and develop strategies and tactics to attain
these goal and objectives in efficient manner (Barzotto and De Propris, 2019). In this report
chosen organisation is Tesco which is British multinational groceries and retailing organisation
founded in 1919 by Jack Cohen. Headquarter of organisation situated in Welwyn Garden City,
Hertfordshire, England, UK. Tesco serves in United Kingdom, Hungry, Ireland, Slovakia and
Czech Republic through opening 7,005 stores. This report covers in two parts. In first part
concept of marketing, marketing functional and their interrelation with other departments and
extended market mix are mentioned. In second part connection of marketing plan with
organisational mission, strategy and objectives, situational analysis, tactical actions and media
budget is explained in the context of Tesco organisation.
PART-1
MAIN BODY
definition of marketing
Marketing is defined as the actions which is undertake by organisation to promote
business products and services and attract audience towards business through high quality
message (Borgardt, 2019). The main objective of marketing is to deliver standalone value to
prospects and customers through content that help business to strengthening brand loyalty,
demonstrating product value and improve business sales.
Marketing is the activity or process for creating, communicating, delivering as well as
exchanging offerings that have separated value for business customers, partners, clients and
society at large.
Marketing is the sum of activities and actions that are involved in flow of organisational
goods and services from producers to customers. Tesco uses marketing activities for promoting

organisational products, attracting and influencing customers that enhances organisational sales
and profitability ratio.
Description of the role of marketing function
Marketing is the broad term that is used by Tesco to attain higher sales and profitability
through influencing customers towards organisational products and services. Marketing is the
process of planning and executing conception, distribution of ideas, promotions of goods as well
as creating exchange that satisfy individual and organisational objectives. Some functions of
marketing and their role in business success are mentioned below:
Identifying needs of customers: Marketing plays important role in identifying customers
needs and demands that help business to produce products accordingly (Gotteland, Shock and
Sarin, 2020). Marketing team of Tesco gather information regarding customers that enable
business to influence customers through provide needed products.
Finding best distribution channel: Major function of marketing is to identify and select
best distribution channel through which business right products are reach to customers at right
time. It plays important role in business through delivering products to customers and satisfy
their needs and demands that retain them with organisation for longer period of time.
Setting prices: Establishing appropriate prices of products and services in the most
important function of marketing. Marketing team of Tesco takes pricing decisions after
conducting deep marketing research because profitability of business depends on suitable
pricing.
Conduct marketing research: Main function of marketing is to conduct market research
for gathering information and data regarding target customers. It helps business develop products
and service according to customers demands that lead business towards growth and success.
Marketing function works and interacts with other departments
Marketing is the department that involve in various operations such as promoting
business products, access customers needs and influence their behaviour. Functions of marketing
department are interrelated with other departments of organisation that help business to attain
determined goals and objectives in efficient manner (Homburg, Theel, and Hohenberg, 2020).
Interrelation between different department of organisation and marketing department are
mentioned below:

Marketing and finance: Interrelation between marketing and finance department help
business to attain determined goals and objectives in efficient manner. Finance department
develop budget for each department that enable them to perform operations in efficient manner.
Marketing department needs funds to perform marketing operations and conducts marketing
campaigns.
Marketing and production: Marketing department of Tesco interlinked with production
department because it provides important information related to customers needs, demands,
preferences and market trends that help production department to produce products accordingly
that satisfy customers (Klimanov, and Tretyak, 2019).
Marketing and human resource: These departments are interrelated to each other
because marketing department conduct advertisement for vacant positions and HR department
help marketing department through appoint suitable candidate and provide then training so they
can perform business operations in efficient manner.
Extended marketing mix of Tesco
Tesco is the leading retailing supermarket in the world. Marketing mix is defined as the
set of various actions and tactics that are used by the organisation for the purpose of promoting
products and services and attracting number of customers. Marketing mix included products,
price, place, promotions and now organisations uses extended marketing mix that included
several other P's such as people, physical evidence and process. Factors of marketing mix in the
context of Tesco is mentioned below:
Marketing Mix Tesco Sainsbury
Product Tesco offers variety of
products that includes food,
stationary, electronics,
cosmetics, clothing and
financial services. Respective
organisation provides these
products under its own brands
such as Tesco Lotus, Tesco
Sainsbury provides wide range
of products to customers like
ready to eat meal and bakery
products, organic food
products, home collection
range, furnishings and kitchen
products as well as basic
financial services. Respective

value and F&F Clothings that
helps business to reach
potential customers and satisfy
them through provide quality
products and services.
organisation focus on
innovation and quality
management that improve
organisational brand loyalty.
Price Prices are defined as the
monitory value on which
customers are ready to
purchase products. Cost
leadership is the pricing
strategy of Tesco that helps
business to maintain low price
of its products and services
without compromising
products quality (Li, Larimo,
and Leonidou, 2021). Pricing
strategy enable business to
reduce prices that attract
number of customers towards
business.
Sainsbury pricing strategy
depends on 'the value of
money' that enable business to
retain customers. Organisation
uses competitive pricing
strategy instead of price
cutting policy. Organisation
provides basic and kids
products at very low price with
having excellent quality that
provide value for money.
Place Tesco provides its products
and services through online
and offline modes.
Organisation has 7000 offline
stores around the world that
are known as Tesco Express,
Tesco Extra, Tesco compact
and various other. Online
business of organisation is also
termed as Tesco Direct.
On the other hand, Sainsbury
has more then 500
supermarkets and 700
convenience store that
provides regular services to its
customers. Organisation also
provides home delivery and
online purchasing option that
enhances organisational
customer base. Sainsbury has

Hence, organisation uses
different channels to reach
customers.
13 regional distribution centres
and 2 national distribution
centres.
Promotion Tesco uses television,
newspaper, advertising and
social media platforms to
promote its outlets to attract
and influence customers
towards brand. Respective
organisation also biggest
spender on traditional
advertising that helps business
to improve sales ratio.
Sainsbury uses above the line
and below the line promotional
strategies for drag attention of
customers towards brand.
Organisation uses broadcast
media line television and radio
for promotion (Nguyen, and
Harrison, 2019). It also
implements sales promotion,
database marketing, social
media channels and
promotional campaigns to
spread awareness regarding
products.
Process Process is defined as the set of
activities that are performed to
achieve determined goals and
objectives. Tesco creates
standardised process to
accomplish specific task like
processing customer's order.
Tesco implements self-service
machines to make payment.
Sainsbury starts online
shopping for its customers that
is very convenient and
provides click and collection
facility to customers. There are
various changes in pricing and
delivery process are done that
enhance organisation customer
loyalty.
Physical evidence Physical evidence includes
tangible or non-tangible
representations of business
such as furniture, business
Sainsbury has excellent store
designs and layouts that helps
business to address customers
needs and demands.

cards, menu, equipments and
logos. Tesco has efficient logo
that differentiate organisation
from other competitors. It
helps customers to find
organisational products. There
are different online websites
also develop by organisation
that are easy to operate.
Organisation provides quality
of baskets and trolleys that
provides effective shopping
experience to customers.
People Tesco has approximately
4,20,000 people who plays
important role in attaining
business determined goals and
objectives (Oltarzhevskyi,
2019). Tesco invest huge
money in providing training
and development opportunities
to employees. Tesco provides
rewards to employee that
motivates them to retain with
organisation.
Sainsbury has trained experts
and professional who perform
operations efficiently to attain
business objectives.
Organisation provides training
to employees to they can
perform business operations in
efficient manner.
An evaluation of how the marketing mix contributes to the success of the organisation in meeting
their overall business objectives
Marketing mix is defined as the framework that includes various marketing activities and
actions that enable business to serve customers according to their needs and demands. Tesco
provides variety of products to customers that help it to cover higher market share and attract
number of customers towards brand. As respective organisation adopts cost leadership pricing
strategy through which business provide quality products to customers at affordable price that
enhance organisational customer base (THIS, 2020). Tesco provides its products through online

and offline modes that enable business to reach large customer base. Through using offline and
social media platform business can spread awareness regarding organisational products and
service in market that help to meet determined goals and objectives in efficient manner.
Organisation uses standardised process that enable it to perform business operations in efficient
manner. Tesco appoint skilled employees and provide them training that enhance their
contribution towards attaining business goals and objectives. Overall, implementation of efficient
marketing mix strategies help business to attract customers and accomplish determined
operations in efficient manner.
Recommendations
 It is recommended to Tesco to develop long-term marketing plan with having clear goals
and objectives as well as communicate it to all hierarchical level of organisation. It helps
organisation to complete marketing objectives in efficient manner.
 Tesco should experiment, test and measure different marketing approaches to attain
business goals and objectives in efficient manner. Organisation should enhance its
investment in social media marketing because it improve organisational interaction with
customers.
 It is recommended to Tesco to establish key marketing metrics that provide guidance to
employees and lead their efforts in right direction (Wirtz, and Lovelock, 2021). It is
suggested to organisation to concentrate on ROI of marketing campaigns that help
business to improve brand image and identity in specific market place.
 Tesco should establish cross-department workflow that helps business to improve
marketing operations. In the process of conducting marketing operations, it is important
to keep all needs, demands and preferences of customers in mind that help to provide
them better experience with organisation and retain for longer period of time.
CONCLUSION
As per the above report, it can be concluded that marketing is the essential thing that help
business to attracts customers, identify their needs and demands as well as provide them products
accordingly that retain them with organisation for longer period of time. Marketing helps
business to attain whole organisational objectives in efficient manner through communicating
products information to customers that attracts them towards brand. Marketing is the process of

getting potential clients and bring customers efforts in business products for creating higher
customer base and market share

REFERENCES
Books and Journals
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