Marketing Essentials: Tesco's Marketing Strategies and 7Ps Analysis

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MARKETING ESSENTIALS
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Table of Contents
Introduction......................................................................................................................................3
LO1- Role of marketing and its interrelation with other functional units of organization..............4
P1 Key roles and responsibilities of marketing...........................................................................4
P2 Interrelation of marketing roles..............................................................................................5
M1 Analyzing the marketing roles in relation to a market environment.....................................7
M2 Analyzing the significance of the relation between marketing and other function...............7
D1 Evaluating the key elements of the marketing function and their relation with other units of
the organization............................................................................................................................8
LO2 Ways in which organizations make use of marketing mix (7PS)............................................9
P3 Application of marketing mix (7Ps) to the marketing plan....................................................9
M3 Evaluating different tactics that help to achieve business objectives..................................11
LO3 Developing a marketing plan................................................................................................12
P4 Evaluating a basic marketing plan for the organization.......................................................12
M4 Producing a detailed evidence-based marketing plan.........................................................13
D2 Designing a strategic marketing plan along with the 7PS of the marketing mix.................15
Conclusion.....................................................................................................................................17
Reference list.................................................................................................................................18
Appendix........................................................................................................................................19
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Introduction
Marketing is a kind of framework that is used by business organizations to sell their products.
Marketing strategies help business organizations or companies to develop ways through which
they can promote their products to target audiences. According to Patrutiu-Baltes, (2016),
marketing principles helps an organization to understand the present market scenario and then
manufacture products according to the needs of the target audiences or consumers which help
them to increase their profit margins. The assignment is mainly done to analyze the role of
marketing in a business organization and how it interrelates with other departments of an
organization. The assignment also tries to develop a marketing plan for the organization by
analyzing the 7Ps of the marketing mix.
Company Background
TESCO is a leading grocery and general merchandise retailer company that operates in England
and other parts of the world. It is one of the biggest retailer companies in the UK that has
approximately 2491 outlets operating in various parts of the world. The company aims to
become the largest retail house in the world (Tesco.com, 2019). According to the reports the
company received a pre-tax profit of about $ 1.3 billion from its previous profit which was about
$145 million. However in spite of its strategic position in the UK market the company has faced
stiff competition from its rival groups like the German company's- Aldi and Lidl.
.
Figure 1: Group operating margin
(Source: Tesco.com, 2019)
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LO1- Role of marketing and its interrelation with other functional units of organization
P1 Key roles and responsibilities of marketing
The marketing department of an organization plays a vital role in the promotion of the business
of the company. The main job of the marketing department is to provide a positive review of the
organization and its business to potential stakeholders like suppliers, distributors, investors,
consumers and even government. This helps in the expansion of the business. The marketing
department acts as the face of the company that provides a detailed view of all aspects of the
company. The main role of the marketing department is as follows:
● Setting an appropriate marketing strategy- The main aim of the marketing team is to
set up an appropriate marketing department for the organization based on its goals and
objectives. The strategies may include a venture of the company to enter a new market or
introduce a new product (Ye and Lau, 2018).
● Conducting detailed market research- One of the essential tasks of the marketing
department is to carry out detailed market research. Detailed market research helps the
company to understand the current market scenario i.e. opportunities that the market has
for the company, potential threats from the rivals, preferences of the consumers. This
helps the company to formulate their business strategies according to the current market
scenario thereby increasing the sales.
● Helps in sales improvement- The members of the marketing team helps the product
development team in improving the products manufactured by the company. The
marketing team analyses the previous sales the company has achieved from the past
products and accordingly provides necessary recommendations to the product
development team to improve the quality of the manufactured products which would help
to increase the sales in future.
● Helps in promotions- One of the main tasks of the marketing department is to perform
the task that would help to promote the company and its business to potential
stakeholders. Depending upon the budget plan the marketing department takes initiatives
to develop promotional campaigns or writes promotional content for the company's
website or in company brochures or leaflets.
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● Organizing events- In some companies the marketing department also plays an
important role in organizing the events like seminars, or functions or exhibitions, product
launch events. As opined by Ye and Lau (2018), this helps to promote about the company
and its business in a broader way thereby creating an opportunity for the company to
enter into collaboration with many renowned brands that helps in its business expansion.
● Sales Team support- the marketing team also supports the sales department to improve
the sales of the products which would help to expand the business of the company. The
marketing team develops advertising videos or presentation that the sales team often uses
to attract the consumer.
Figure 2: Role of marketing team
(Source: Influenced by Ye and Lau, 2018)
P2 Interrelation of marketing roles
The term marketing is an important function that in a broader way not only includes processes to
sell the products but it comprises of methods that enable the smooth running of the entire
business of a company. Marketing is a strategic framework that incorporates the entire business
function by integrating with the functions of various departments in an organization. Therefore
for developing an effective business plan for a company, it is necessary that all the departments
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SettingofmarketingstrategyConductingdetailedmarketresearchHelpsinsalesimprovementHelpsinpromotionsOrganizingeventsSalesTeamsupport

of the company work in a coordinated manner. Therefore the marketing team of an organization
integrates with other departments and performs various tasks in the following way:
● Marketing Team and Production Department- The marketing team of a company
needs to work with the production department to fulfill certain criteria. Firstly it needs to
assist the production department to manufacture products according to the needs of the
consumers by carrying out detailed research on the customer needs and preferences.
Secondly, it is also needed for the marketing team to assist the production team to
improve product quality. According to Lynch and Jin (2016), the marketing team in this
case can study the past experiences of the consumers by availing the products of the
company or by analyzing the past sales of the products and thereby suggest ways to the
production team to improve the quality of the product that would help to increase their
sales.
● Marketing team and Finance Department- Apart from performing activities that would
help in selling the products the marketing department also has to help the finance
department to prepare a budget plan for the company depending on the detailed market
research. Besides this, the marketing department would assist the finance department to
analyze the risk and the expected return from a particular business venture. They would
also help the promote the business and the company to various financial institutions like
banks, insurance companies which would help the finance department to get loans for
carrying out future ventures for the company.
● Customer Service and Marketing Department- in most of the companies there is a
customer service department whose main task is to interact with the potential consumers
after and before sales is made. The customer service department tries to acquire the
thoughts of the consumers about the company and its products. The main task of the
marketing department is to analyze the market value of the company through the eyes of
the consumer and then assist the customer service department to carry task according to it
(Lynch and Jin, 2016).
● Sales Department and the marketing team- One of the primary functions of the
marketing team is to perform activities that would help to promote the company and its
business to potential stakeholders. The marketing team, therefore, performs activities like
organizing product launch events, seminars, writing promotional content for company’s
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websites. All these activities help the marketing team to assist the sales department to
carry out sales of the products of the particular organization that would help to increase
its sales [Refer to Appendix 2].
M1 Analyzing the marketing roles in relation to a market environment
Retail marketing is considered to be one of the broader businesses around the world. According
to reports, the retail business is the second largest private sector in the UK. It has an estimated
business return of about $ 358 billion. The UK retail market is dominated by leading companies
like Tesco, ASDA, and Sainsbury which have outlets operating in various parts of the world
(Tesco.com, 2019). However, the changing shift towards online or digital forms of marketing has
hit hard the retailing market of some companies through huge rents and tariffs to adopt the digital
mode of business. Although the grocery market scenario has flourished in recent years by
adopting the digital methods of online marketing programs. The retail market of UK is used to
face severe challenges but the biggest challenge that the sector faces in recent years is through
the changing consumer behavior. Therefore it is necessary for the marketing teams of the retail
companies to carry out core functions like detailed market research, carrying out proper
promotional campaign of the company, analyzing the consumer behavior and thereby assisting
the various departments of the company to develop strategies that would help to produce
products according to the changing consumer preferences [Refer to appendix 1].
M2 Analyzing the significance of the relation between marketing and other function
In general terms, marketing is an essential business function that helps in the expansion of
business by carrying out promotional activities. However, in a broader sense, the role of the
marketing team is not only confined to making the promotion of the company instead it also
conducts activities by coordinating with the other departments of the organization for the smooth
running of the business operations. For example, the marketing team helps the sales department
to increase the sales of products by performing promotional activities about the business. It also
helps the Finance Department to prepare a budget plan depending upon detailed market research
while by cooperating with the product development department it provides necessary
recommendations to fill the gap thereby improving the product quality (Lynch and Jin, 2016) .
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This integration of the marketing team with other departments helps in the smooth running of the
organization which helps the company to take up business strategies according to the current
business scenario by analyzing the possible opportunities and threats. Further, it also helps the
company to manufacture products according to the needs of its consumers thereby helping the
company to increase its business size and profit margins. Proper coordination between the
marketing team and other departments of the organization will help the company to acquire a
strategic position in the competitive market.
D1 Evaluating the key elements of the marketing function and their relation with other units
of the organization.
As stated earlier marketing is an essential function that helps a company's or business
organizations to take up strategies that would help in its further expansion. The marketing team
performs activities that help to reflect the basic objectives of the company to potential
stakeholders. As stated by Uvarova et al. (2016), apart from making promotions for the
company and its business the marketing team also carries out certain functions by coordinating
with other departments of the organization that helps to promote a smooth running business
structure. The marketing team combines with various departments and performs the varied task
each concerned to meet the needs and requirements of the departments concerned.
For example, the marketing team coordinates with the Finance team and helps it to prepare a
budget plan by conducting detailed market research. Similarly, in the case of the production
team, the marketing team analyses the past sales report and proposes strategies to the
production unit to improve the quality of the products. The marketing team also helps the sales
team to carry out the sales of the products by organizing promotional events like exhibition or
seminars or writing promotional contents for the company's websites. For the customer service
team, the marketing team tries to analyze the consumer behavior for the company and its
products and accordingly it provides a recommendation to the customer service team to assist the
consumers by focusing on key points as per the needs.
The integration of the marketing team to other departments of the organization helps to promote
efficiency in the business operations and at the same time the company can carry out its business
operations in accordance with the market scenario. This would help the company to acquire a
strategic position in the competitive market as it would carry out its business operations
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according to the needs of the market which would help to increase its sales compared to its rival
groups (Belkadi et al. 2016).
LO2 Ways in which organizations make use of marketing mix (7PS)
P3 Application of marketing mix (7Ps) to the marketing plan
The marketing principles state that marketing decisions should be taken in accordance with the
customer's needs and preferences. As opined by Loo and Leung (2018), while buying a products
consumers generally see whether the products of a particular company provides benefits and
meets their preference criteria or not. Therefore in order to introduce a new product or enter into
a new market, the company's follow the tactics of the marketing mix. By following a set of
factors included in the marketing mix a company can acquire a strategic hold in a new market or
it can gain a large amount of profit from the launch of a new product in the market. The 7Ps of
the marketing mix are as follows:
Product- this factor refers to the product that is being sold by the company. According to
Harrington et al. (2017), this factor the product that is being sold should provide a considerable
amount of added value attached to it. The products should be the best quality wise, should be
able to meet the preferences of people and should prove to be a potential threat for the products
of the rival companies.
Price- According to this factor the price of the product should be such that it can be availed by
all consumers irrespective of their economic status. Moreover, the price factor includes all the
price-related variables like discounts, allowances, credits, payments associated with the products
that are being sold.
Places- According to this factor, the location of the service provider and the accessibility of the
area also play an important role in determining the sales of a particular product. This means that
a product which can be easily availed from a shop which is located in an accessible area will
acquire more sales compared to the sales of a product that is purchased from a shop where modes
of communication are not developed (Belkadi et al. 2016)
Promotion- The sales of a particular product in the market largely depends upon the market
promotions made by its parent company. The marketing team of a company should carry out
proper promotion in the form of events or campaigns before the launch of a product in the
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market. This would help to increase the sales of the company. The company tries to improve its
products with the help reviews that are often provided by the consumer themselves. For example,
the reviews provided by consumers on the company's website helps the company to analyze the
major drawbacks of their products and develop strategies to improve the same.
People- Here people refer to the employees of the company's who play an important role in
influencing the buyer's behavior. As reported by Harrington et al. (2016), all employees starting
from the managers to the delivery boys have to bear a certain skill in their own fields to attract
the buyers and motivate them to buy the products of the company.
Physical Evidence- this factor refers to all the modes of services that facilitate the
communication or interaction between the suppliers and buyers. For example, if the telephonic
communication of a company is best then it would help to increase its online modes of
transaction thereby increasing the sales. The physical evidence of the company helps it to stay in
continuous touch with the consumer and provide them with necessary information about their
products.
Process- Here process refers to the entire business operation starting from the manufacturing of
products to the delivery. According to this strategy, the sales of a product is likely to increase
more which provides a simple form of procedure for the business transaction to take place. For
example, customers will generally avail the products of those companies where the business
transaction procedures are not complex such as they have an easy mode of payments (Loo and
Leung, 2018).
As for the TESCO company which is one of the leading retailer company in the UK. The
company provides a wide range of products starting from food, clothing to electronic services
that have the best quality. Company also tries to sell its products at a comparatively low price.
The company also has outlets operating in various parts of the world and that allows offline and
online modes of business transaction. In terms of physical evidence, the Tesco Company is at its
best compared to its rival group Sainsbury because the company has small stores which are easy
to navigate by the consumers and appear to be attractive. Besides the company has a large
number of skilled employees who are responsible for its success. The company aims to provide
best and efficient services to its consumers in terms of efficient billing and delivery services.
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Figure 3: 7ps of marketing mix
(Source: Influenced by Loo and Leung, 2018)
M3 Evaluating different tactics that help to achieve business objectives
Business tactics refer to the strategies that are taken up by a company or business organizations
to secure a fir position in the competitive market. Business tactics involve various pricing or
marketing or product development strategies that help the company to grow in an effective
manner. As for the Tesco company which is one of the leading retailer company in the UK. The
company takes up certain business tactics to attract its customer base. Firstly the company takes
up the policy of low pricing where it provides its products at a comparatively low price to its
consumers to gain their attention (Uvarova et al. 2016). At the same time in order to make
business transactions more flexible, the company has recently started its online business
transaction where the company carries out its business transaction through online platforms. The
company has also introduced a new range of services which includes insurance policies and
banking facilities for its consumers.
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LO3 Developing a marketing plan
P4 Evaluating a basic marketing plan for the organization
A marketing plan is a basic outline of a marketing strategy and marketing process used by the
business organization. Attractive planning of marketing process of Tesco can help them to
achieve a huge return from the retail business field. Marketing plan of Tesco consists of the
following points.
Segmentation of Tesco:
Demographic
● Age: From 15 to 70 years as everyone
needs grocery products
As for example Tesco healthy eating for
elders and Tesco goodness for children and
kids (Tesco.com, 2019)
● Profession: All type of professionals
● Income: Both middle income and
high-income group
Geographic
● Density: Both urban and rural area
As for example Tesco metro for an urban
area, and Tesco superstar, Tesco express for
rural area
● Expansion: UK, US, Thailand, and
South Korea
Behavioral
● Status of loyalty: High level of
customers loyalty puts by the Tesco
● Purchase intention: Positive behavior
of customers in the retail business
Psychographic
● Lifestyle: Modern lifestyle
● Societal status: Offers best numbers
of items to younger and middle-aged
customers (Uvarova et al. 2016)
Table 1: Segmentation of Tesco
(Source: Influenced by Uvarova et al. 2016)
Targeting aspect of Tesco:
Market and customer Target strategy of Tesco depends upon the behavior of customers, lifestyle,
demographic classification and geographic area they live. Tesco uses an online shopping portal
that has helped them to save retail business time as well as makes customers happy. As stated by
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