Tesco Marketing Plan: A Comprehensive Analysis of Tools and Techniques

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Running head: TASK 3
MARKETING ESSENTIALS
TASK 3
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Contents
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References.................................................................................................................................................13

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LO3
Marketing planning tools and techniques
 Situation analysis tools and techniques
Situation analysis can be helpful for the companies to identify their internal and external
environment properly (Sharma, Ahuja & Alavi, 2018). This is how they can effectively develop
proper business strategies. In terms of conducting this study the company Tesco has been
selected. Thus, the situation analysis of Tesco has been analyzed below
SWOT analysis
Strengths
 The company has won several awards
 This is the most profitable supermarket
 The customers are satisfied with the
company
Weaknesses
 The companies may not buy many
items of the company
 The retailer is mostly depended on the
market of UK
 High competition from the rivals
Opportunities
 The company can keep focus on
international market
 They also have some opportunities in
the private kevel market
Threats
 Economic recession in the UK market
 Increasing the labor wages
 Different government regulations as

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 They already provide effective
services and products to their
customers but they also can develop
their western goods more actively
well as some political landscapes
After analyzing the SWOT analysis it can be seen that Tesco has different kinds of strengths,
weaknesses, opportunities and threats. In this case the company needs to develop their strengths
more by mitigating their weaknesses. On the other hand, they also can use their opportunities in
terms of managing their threats. This is how the company can easily get several benefits with
proper strategies.
PESTLE analysis
With the help of the PESTLE analysis the company Tesco can analyze their external
environment and like this they can develop proper strategies effectively. The PESTLE analysis
of Tesco has been analyzed below
Political: UK is politically stable and the government of this nation positively supports the
companies (Pooler, 2018). However, the vat rate of the UK government increases per year by 13
billion. Thus, it provides some effects on their business process. In the business of Tesco mainly
the vat rates of UK give some threats of low income.
Economical: UK is the developed nation and economically this country provides positive effects
on the business of the company. The supermarkets have been growing rapidly in this nation and
the customers are also economically stable so they easily buy the goods as per their choices.

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Thus, the company gets the chances of development. On the other hand, when the country faces
the economic recession that time the unemployment rate increases and the company gets
negative effects.
Social: The life style of the people of UK has been changing rapidly. Nowadays they are getting
attracted with the online shopping. Thus, the business of Tesco has been getting affected with
this. Therefore, the company needs to keep focus on their online business more to get the
benefits.
Technological: Tesco can use technologies in their supply chain management process. UK is
technologically developed country. Thus, its technological advancements provide positive
opportunities for the company to develop their supply chain management process.
Legal: There are some legal rules for the companies of UK. In this case Tesco also needs to
maintain the rules to run their business in the market (Okumus & Cetin, 2018). In this case the
agricultural policies affect the activities of the company. On the other hand, they also maintained
the price related policies as well as the financial policies are also maintained by the company
such as credit cards, loans and so on.
Environmental: The companies of UK maintained the environmental policies in terms of
maintaining global warming. In this situation Tesco also maintained their activities and decrease
their energy consumption as well.
 Setting goals and objectives. Evaluating and monitoring marketing
plans

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In terms of running an organization it is very important for the management team or the
marketing team to develop some goals and objectives. By meeting the objectives the company
can gain success in the competitive market. Tesco always develop some objectives for their
business such as
SMART objective of Tesco
Specified goal: To expand our services easily in many places rather than UK (Okumus & Cetin,
2018).
Measurable: To increase the market share by 20% within the next few years.
Actionable: To identify the market trends for fulfilling the customer demand.
Relevant: To keep the price low along with offering high quality services effectively (Marcos &
Richardo, 2018).
Time bound: within the next 4 years the company will achieve their marketing goals.
In order to set the objectives the company analyzes their business environment properly. Based
on their threats and weaknesses as well as the market position they adopt the objectives. Like this
they can easily get successful and overcome their limitations in a positive way.
Marketing plans of Tesco
Proper marketing plan provides some impacts on the business of the company. The marketing
process always can be helpful for the company to satisfy their customers. In this case it can be
seen that, they bring some attractive products which can attract the customers more (Bauer,

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2018). Along with this the company also keeps focus on the communication process with the
customers. Thus, they can take the help of the digital marketing process. Thus, they can provide
some ads in the social media sites like Facebook, Instagram and so on. Like this the customers
can get easily aware of the company and the products (Malhotra, 2018). However, providing
discounts, offers are also very effective part of the market process. When the customers get
effective discounts on products, buy one get one offer then they can select Tesco over other
companies.
After implementing the marketing plans the company needs to monitor the effectiveness of the
plans. They can analyze their numbers of customers, profits, sales margin and so on. This can be
helpful for them to understand if their marketing plans are working properly or not and they can
make some changes in their plans if they do not meet their objectives as well (Bernstein, 2018).
Therefore, monitoring of the marketing plans is as important as the marketing plans.
 Market segmentation and target market selection
In the marketing process segmentation is an impactful part. In the process of market
segmentation the companies can divide the customers in different groups and they can target the
people on the basis of their groups (Hoque et al. 2018). After market segmentation they also can
target the people as their customers. Like this they can be helpful to develop their marketing
plans as per the needs and demands of their targeted customers. Thus, it can easily help the
company to reach their target market and enhance their sales as well. Tesco is a super market and
for their business proper market segmentation is important as they can effectively develop their
products and services as per the needs of their target market. On the other hand the marketing

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process can be more impactful for Tesco as well. Thus, the market segmentation and target
market selection process has been analyzed below
There are some groups of the market segmentation such as
Demographic segmentation: In this case the people can be divided on the basis of their age,
sex, income, family backgrounds and so on. Thus, the company can target the people as their
customers on the basis of their income, gender, age which are the most effective part.
Geographic segmentation: On the other hand it can be seen that the company can also select
the people on the basis of their geographical position. Thus, the country can be the part of this
segmentation.
Psychological segmentation: There are some people who want to buy products frequently.
Their demands are much important than their needs (Campbell, Martin, & Fabos, 2018). Thus,
these kinds of people can be easier target for the companies as they can buy anything anytime.
Behavioral segmentation: There are some people who buy the products on the basis of their
needs and behavior. For example the higher class people have the behavior of frequently buying
things on the other hand the middle class people do not have such behavior they only buy the
products of their needs.
Thus, these are some segmentation which can divide the people and they can buy products in
relation to this segmentation (Holbrook, 2018). Thus, Tesco can easily target their customers on
the basis of their segmentation. It is very essential for the company Tesco to analyze different
factors for identifying the target market easily. For selecting a target market it is very essential

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for the company Tesco to analyze different factors such as understanding the lifestyle of the
customers, need of the customers, age of the customers, income of the customers, spending
capacity of the customer, education of the customer and lifestyle of the customers as well. Along
with this the company also needs to analyze the mentality, thought process of the consumers,
gender of the customers and social status of the customers. Analyzing all these factors can
definately help the company to select target market easily and on the other hand this also helps
the company to sustain in this competitive market easily as well.
Apart from this the company Tesco needs to follow below steps for selecting target market
easily. Different steps are as follows
1. First the company needs to identify different target marketing strategies for selecting the
target market easily.
2. Then needs to do proper segmentation.
3. After that the company needs to develop market segment profiles.
4. Then they also needs to evaluate relevant market segments
5. Along with this they also needs to select specific target markets for developing sales
forecast easily.
6. These all can definitely help the company to select target markets in an effective way in
this competitive market. Tesco mainly targeted middle class people for growing their
business easily. They sell high quality products in competitive prices for attracting the
middle class customers easily. Adapting different target marketing strategies definitely
helps them in target market selection.
 Creating marketing strategy and allocation resources

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Marketing plan is essential part of the company so it is important for the company to develop
their marketing plan in a proper way. There are major five steps of creating a marketing strategy
and which are given below
 Analyzing the current situation of the company: To develop a marketing plan it is
important for Tesco to identify their market situation (Dhar, 2018). Tesco is an effective
organization and they properly gain competitive advantages over their rivals. Thus, it is a
positive situation of the company.
 Identifying the target audience: The company can target the house wives and children
of UK. House wives as well as children mainly come to supermarket and buy the things
of their choices. This can be helpful for Tesco to attract them by providing them
attractive discounts and offers.
 Developing marketing goals: On the other hand, developing the marketing goals is also
important. Proper marketing goals help the company to conduct their marketing activities
in a proper way. In terms of Tesco it can be seen that, they can have the goals of
enhancing their business process and increasing their sales along with increasing the
number of customers as well.
 Research marketing tactics: After adopting the marketing goals the company can plan
some marketing tactics or activities which can help Tesco to achieve the goals. In this
situation it can be seen that the tactics can be providing discounts on some limited
products, buy one get one free offer, providing ads by celebrity as well as providing ads
in social networking sites, developing public relation, personal selling (Eletxigerra,
Barrutia & Echebarria, 2018).

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 Set the marketing budget: After developing the plans budget allocation is essential.
Thus, the marketing team can develop some budget for their activities. For their
marketing they can develop the budget of $ 51300.
Resource allocation
For conducting the marketing activities the company needs some resources like money,
employees, and technologies and so on. Along with this it can be seen that Tesco also needs
some employees who can help them to conduct their marketing activities. In terms of managing
their marketing process and digital marketing computer, internet is also important. With the help
of marketing budget the money can be allocated properly. Thus, for investment they can take the
helps from their shareholders and investors.
 Monitoring and control measures
With the help of early discussion the effectiveness of the marketing plan and the process of
marketing plan can be identified in a proper way. Thus, after developing the marketing plan
Tesco can implement the plans in their business process. This can be helpful for them to increase
their sales and manage their business in the competitive market. However, after implementing
the plans monitoring and control measures can help the company to identify the effectiveness of
their marketing process. Basically, the control measures are simply important part of the business
process as it can help the company to identify the problems in their business and they also can try
to solve the problem on time. Like this they can properly manage their business activities in a
proper way. However, there are different ways of monitoring and which are given below

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 Periodic performance monitoring: evaluating control measures in a formal review
process on an annual or semiannual basis, such as with auditing;
 Scheduled monitoring: monitoring control measures on a regular basis, such as
reviewing hazard trends and identifying problem control measures once per month; and
 Ongoing monitoring: monitoring control measures on a daily basis, such as when hazard
reports are submitted.
In the case of periodic performance monitoring it can be seen that the marketing team can
effectively analyze their data as well as analyze the hazards. This is how they can easily identify
if their marketing process is going positively or not. On the other hand, the scheduled monitoring
can be done on the regular basis so that the company can easily handle the risks of their business
properly (Grimmer, 2018). Though they monitor their activities regularly but they have some
schedule for this process. Along with this the ongoing monitoring can be done on the daily basis.
Like this the company can identify their threats and they can easily make some changes in their
marketing plans.
After analyzing the above part it can be seen that, monitoring and control measures can help
Tesco to manage their marketing activities in a well manner. However, there are three types of
monitoring process. In terms of Tesco ongoing monitoring can be much effective as they are
supermarket organization so the activities of their customers can be changed on daily basis. This
is how their result can also be changed as well. Therefore in terms of getting proper as well as
positive result they need to develop their marketing plan time to time as this can be helpful for
them to manage their business in a positive way.