Tesco Plc: Strategic Marketing Plan and Business Objective Alignment

This report provides a comprehensive analysis of Tesco Plc's marketing functions and strategies. It begins by defining the concept of marketing and examining its role within Tesco, including how the marketing department interacts with other departments such as sales, production, HR, finance, and IT. The report then delves into Tesco's marketing mix (product, price, place, promotion, process, people, and physical evidence) and how it contributes to achieving the company's business objectives, such as maintaining its position as a leading supermarket retailer by offering high-quality products at affordable prices. The second part of the report explores how strategic marketing plans link with Tesco's overall organizational mission, strategy, and objectives. It covers topics such as setting SMART marketing objectives, conducting marketing research for new product line launches, and performing SWOT, PESTEL, and 5C analyses. Furthermore, the report includes a competitor analysis, discusses the value proposition of a new product line, develops marketing strategies based on the marketing mix, outlines a marketing budget, and proposes tactical actions. Finally, it touches upon return on marketing investment, customer lifetime value, a comprehensive media plan, and recommendations for integrated multimedia activities, including the use of appropriate digital, offline, and social media channels.

Table of Contents
PART-1............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Concept of marketing...................................................................................................................3
Role of marketing function in Tesco Plc.....................................................................................3
Ways through which marketing function interacts with other departments................................4
Marketing mix..............................................................................................................................5
Contribution of marketing mix in the achievement of business objectives of Tesco Plc............6
CONCLUSION................................................................................................................................7
PART-2 ...........................................................................................................................................8
Ways in which strategic marketing plans links with the overall organizational mission,
strategy and objectives ................................................................................................................8
Clear and SMART marketing objectives.....................................................................................8
Marketing research to support new product line launch .............................................................8
SWOT analysis, PESTEL analysis and 5C analysis....................................................................8
Competitor analysis ..................................................................................................................10
Value proposition of the new product line.................................................................................11
Development of marketing strategies as per the marketing mix................................................12
Marketing Budget......................................................................................................................12
Tactical Actions.........................................................................................................................12
Return on marketing investment and Customer lifetime value.................................................13
Comprehensive media plan .......................................................................................................13
Recommendations and rationale for selected and integrated multimedia activities .................13
Appropriate digital, offline and social media channels for communication..............................14
Justification of multimedia plan ................................................................................................14
REFERENCES..............................................................................................................................15

PART-1
INTRODUCTION
Marketing can be described as a set of activities that helps an organization in promoting
their products and services within the market in order to enhance the sales and profitability of the
company. The present report is based on the study of Tesco Plc. Which is headquartered in
Welwyn Garden City, United Kingdom. The present report aims to provide a brief introduction
to the concept of marketing and analyse the role of marketing as a function within the Tesco Plc.
It also includes a discussion about how marketing interacts with other departments.
MAIN BODY
Concept of marketing
Marketing can be referred to as a process through which organizations try to provide the
right goods and services to the right consumers at the right time with the help of certain
promotional tools. These tools help an organization in promoting the products and services
offered by a particular brand among the customers within the market. This helps an organization
in increasing the customer engagement within the organization and thus increase the revenue and
profitability of the company. With the help of marketing, an organization can work on their
brand image and thus increase their profitability and productivity within the organization
(Baines. Fill. and Rosengren., 2017).
Role of marketing function in Tesco Plc
The marketing department plays a number of roles within an organization. Similarly, the
functions and roles of the marketing department within the Tesco Plc. have been explained
below:
Defines and manage the merchandise
It has been identified that the marketing department in the Tesco Plc. Helps the company
in defining their brand in front of the customers. This is done by presenting the audience about
the products offered by the company within the market, what is the vision of the brand, the
challenges that the company is trying to solve by providing the customers with the required
products and services within the market.
Conducting marketing campaigns
As the company sells a number of products and services within the market, they come to
determine the needs and wants of the customers. Therefore, the marketing department of the

Tesco Plc focuses on providing the customers with the products and services within the market
that are helpful in solving the needs and wants of the consumers within the market.
Customer evaluation
Tesco in particular is very precise about evaluating its customers and taking actions and
making strategies in accordance to that. Customer evaluation is specifically based on the
assessment of the requirements of the target audience and then making marketing strategies
through linking their products and services to the needs of the customers.
Ways through which marketing function interacts with other departments
Marketing is a very essential department within a business but it is not only the one.
There are many departments within a business. And in a business or company as big as Tesco,
there are a range of different departments. These departments are, sales, production or
manufacturing, human resource, finance and accounting, customer service and IT.
Sales department
Sales department of a company is the department or function which includes selling of
the goods and the services provided by the company to the customers. If the marketing of the
products and the services will be efficient then the sales of the company will also increase and
further increase the revenue earned by the company and the sales and the revenue will decrease
in the case of inefficient marketing (Dekimpe. and Hanssens., 2018).
Production department
Production department takes care of the manufacturing or trading of the products of the
company. If there will be no products there will be no marketing. Hence, it is necessary for a
company to check before marketing the products that they are have a reasonable supply of those
products available, or they can get the supply available in time. If not then the marketing needs
to stop (Ziaei. Ketabi. and Ghandehari., 2021).
Human resource department
The HRM department precisely focuses on the development and maintenance of the
human resource working within the company. Hence, for the recruitment of the most appropriate
and suitable marketing manager HR department is required. Also, not only for employing or
recruiting the manager but also the employees that will help the marketing department to become
more efficient and effective will be recruited by HR department (Olson. And et.al., 2018).
Finance department

Finance department deals with all the budgetary calculations and evaluations of the
company. The marketing strategies are set according to an adequate budget which is provided by
the finance department of the company based on other requirements and profit earning of the
company (Porto. and Robert Foxall., 2019).
IT department
Information technology is the department which deals with development and
implementation of the technological advancements within the company. Through more
digitalization the marketing strategies can also be digitalized and technologically advanced
which will also be cost-efficient and more effective for the company's growth (Frost. and
Strauss., 2016).
Marketing mix
Product
Product refers to the goods or the services provided by the company to the customers.
This includes the design of the product sold by the company, quality of the product, features and
options in the products provided, packaging of the product and the market positioning of the
product of the company. In the case of Tesco, the company sells a wide variety of products like
clothing, food, electronics, cosmetics, stationery, etc. and also provides services like financial
services and networking services (Išoraitė., 2016).
Price
Price refers to the amount that the company will charge in exchange for the product or the
services availed by the customers, and the amount that the customer is willing to pay. There are
many pricing strategies implemented by different companies. But in the case of Tesco the
company has implemented the cost leadership pricing strategy. In accordance to which the
company sustains the price of the products and the services to be as low as possible without any
compromise in the quality of the particular goods and services.
Place
Place refers to the area or the location in which the products or the services of the
company are distributed. This basically specifies the geographical boundaries within which the
products of the company are distributed or sold. Tesco uses two channels of distribution majorly,
these are, online channel;s and offline channels. The company has around 7000 offline stores all
over the world. The online channel used by the company is named Tesco direct. Hence, the

company uses different channels of distribution to reach out to the consumers of the products in
particular.
Promotion
Promotion refers to the strategies that help and support the company to make the target
audience aware and interested in their products and services. In the case of Tesco, the biggest
advantage of the company is its strong brand image and reputation, this helps the promotional
activities of the company in a significant way. Tesco uses newspapers, television, and different
media outlets to reach to its customers.
Process
Process basically refers to the procedures or the steps through which the product or the
service will reach its consumers. The products of Tesco reach its customers either through its
offline stores or through its online website. In the offline stores the customers go to the physical
store, pick the product and then make payments accordingly. Whereas, in the online stores the
products can be purchased remotely and online payments are made.
People
People refer to the customers of the products or the services of the company and the
stakeholders of the company. Tesco has a huge number of consumers present within the market.
The employees of the company are also competent and play a huge role in its success. Tesco also
does huge investment for training and development of its employees.
Physical evidence
Physical evidence refers to all the representations of the company that are tangible in
nature. Tesco has an amazing logo. And the offline stores of the company are easy to navigate.
The website is also excellent.
Contribution of marketing mix in the achievement of business objectives of Tesco Plc.
The business objective of Tesco is to develop and maintain its position as a leading
supermarket retailer as well as provide the best quality of products and services to its customers
at a low and affordable cost, in a way that the products and the services are cheaper than that of
the competitors of the company.
The marketing mix of Tesco, presents that, Tesco sells a wide range of products, which
means in that case the company is trying its best to become a one stop destination for all types of
goods and the services too. Next, the pricing strategy of the company is also cost leadership

which means the company is providing affordable products and services by not compromising
towards the quality of the products at all. Also, through distributing the products worldwide the
company can gain more recognition and work towards the goal of gaining a bigger market and
goodwill for the company.
CONCLUSION
This report briefly describes the concept of marketing in the modern era. Also, it provides
a description regarding the role of the marketing functions and how the marketing functions
interact with other departments within a company. The marketing mix of Tesco is provided in the
above discussion. And the ways through which marketing mix supports achievement of the
business objectives of Tesco is also stated above.

PART-2
Ways in which strategic marketing plans links with the overall organizational mission, strategy
and objectives
A strategic marketing plan aims to develop certain strategies that helps an organization in
achieving the organizational objectives. The ways in which Tesco Plc. links its plan with the
objectives of an organization are as follows:
Determine actions to achieve goals
In order to achieve the organizational goals, Tesco Plc. prepares a strategic marketing
plan that helps the company in achieving the objectives that are set by the enterprise. It
determines the actions that needs to be taken in order to achieve the goals set by the company.
Establishing SMART goals
It has been identified that Tesco Plc converts its organizational objectives into the
SMART and achievable goals which in turn makes it easier for the company to achieve the
objectives and targets that the organization has set with respect to its growth and development
within the market.
Clear and SMART marketing objectives
 To enhance the revenue of the food products that falls in the category of luxurious food
product within the company by a minimum of 20%.
 To increase the net profit of the company by 25% by making use different marketing
channels in order to increase the customer engagement within the company.
Marketing research to support new product line launch
It has been identified that earlier, the Tesco Plc used to provide its customers with food
products at affordable prices within the country (Fahad, and Tran, 2019). The Tesco did not have
any kind of products for customers belonging to high income groups within the country.
Therefore, the company has decided to launch a product line that is specialized in the luxurious
food segment and targets the high income groups in the country.
SWOT analysis, PESTEL analysis and 5C analysis
SWOT analysis
Strengths

The company has a good brand recognition and goodwill within the market, hence, the
company's customer base will respond positively. The capital input of the company is also high
so the manufacturing can be done efficiently.
Weaknesses
The company has always traded in affordable and low cost products and services, so it
will be time-consuming for the employees of the company to adapt to the changes. It will also
require recruitment of expert and more qualified employees in the particular genre.
Opportunities
The company will have a new and untouched market to add up in its target audience.
Through recruitment of new employees the company will get more expertise and gain
competitive advantage.
Threats
Reduction in the customer base which was only with the company because it sold only
affordable products. Competitors copying the techniques of the company and competitors selling
similar products at low prices.
PESTEL analysis
Political
Since Tesco is a huge UK based company but operates in different locations throughout
the world, the company has to amend or modify its working according to the government
policies and regulations of each of the country in particular.
Economic
Economic factors like demand of the products that are manufactured can be less in the
beginning due to its high prices and niche market, also, the target audience of the products will
be different than before, this will impact the revenue of the company.
Social
Social factors like the tastes and the preferences of the people in the market have been
inclined towards paying more for healthy and diet friendly products, this helps in maintaining the
health of the individuals, but it is not affordable for all.
Technological

Technological developments and more advancements towards factors online channels of
distribution and online payment methods and delivering these products to the houses of the
customers.
Environmental
Through better packaging and healthy eating the environment is impacted in a very
positive way. Packaging of the products is not harming the environment due to which the people
will be more interested in the product.
Legal
Legal factors impact the performance of the company on major basis. Hence, any
changes in the code of conduct and the regulations by the legislative bodies of different countries
will affect Tesco's working too.
5C analysis
Company
Tesco is a UK based general and grocery merchandise company that has its operational
base all across the world.
Competitors
Within UK the major competitors of Tesco are Aldi, Lidl, Co-op, Sainsbury's, etc.
Customers
Customers of Tesco are spread worldwide. The customers of the company are one of the
three major focuses of the company. Tesco tries to deliver the best services to its customers.
Collaborators
Tesco works with a huge number of strategic partners and suppliers. Some big brands
suppliers of the company are General mills, Princes, Unilever, Nestle, Kellogg, Coca-Cola and
Pepsi Co.
Climate
This basically refers to the context. Any of the outside or external forces that impact the
working of the company come under this aspect. This can include the PESTEL factors impacting
the company.
Competitor analysis
Bargaining power of customers It has been identified that since the competition
within the retail sector is high, the Tesco Plc

has to face issue of bargaining power of
customers within the market. Because of the
existing competition within the industry, the
bargaining power of the customers of Tesco is
high.
Bargaining power of suppliers The bargaining power of the suppliers is low
within the industry. It has been identified that
there are a huge number of suppliers available
to the retail and grocery stores within the
country. Therefore, the suppliers have to
charge less from the organizations such as
Tesco.
Threat of new entrants The threat of new entrants within the industry
is low. This is because, introducing a retail
company within the market requires extensive
amounts of capital.
Threat of substitute products The Tesco Plc. offers a wide range of products
and services within the market. It itself sells a
variety of products are substitutes of products
which are sold by the company.
Competition Tesco Plc. has a number of competitors within
the industry. Therefore, it can be stated that the
company faces tough competition within the
market.
The Tesco Plc will consider the demographics in order to target the customers with respect to the
new product line launched within the market (Elsayed Fayed, 2021). The Tesco Plc will target
high income group consumers living with the posh areas in the United Kingdom in order to
increase the sale of the luxurious food products launched by the company.

Value proposition of the new product line
The value proposition refers to the value or the result that a company aims to provide to
the customers as they encourage the customers with respect to purchasing a product of
accompany. The value that the Tesco plc. aims to provide to its customers within the market is
“Eat Smart for a Healthy Heart.”
Development of marketing strategies as per the marketing mix
The major goals of business are to develop the organization as a leading retail store and
provide affordable products as well as services to the customers. The marketing goals also lead
towards the achievement of the same goals, by providing the products in different markets and
implementation of affordable pricing and best quality products. Also, the promotional policies
and the channels of distribution opted by the company also lead the company towards its end
objective.
Marketing Budget
Particulars Amount (in Pounds)
Marketing Research 720
Owned Media 240
Video Advertising 960
Social Media Marketing 240
Creative designs and software 300
Recruitment 250
Hardware 200
TOTAL 2910 pounds
Tactical Actions
For the purpose of developing a marketing plan that helps the company in achieving their
organizational goals with the help of launching a luxurious product line within the market, the
company will make use of the following:
 The Tesco Plc will conduct a business analysis in order to determine the best
opportunities associated with the growth and development of the business.
 The Tesco Plc will formulate a range of objectives that the organization needs to achieve
in order to enhance its growth and profitability within the market (Girton, 2018).

 For the purpose of developing a marketing plan that helps the organization in extending
the reach of the company and increase the sale of the products launched within the new
product line, the Tesco Plc will make effective use of social media marketing,
advertisements in the television, and traditional marketing tools in order to promote the
product and services within the market.
Return on marketing investment and Customer lifetime value
Return on marketing investment (ROMI) is basically a metric that is used in the process
of online marketing for the measurement of the effectiveness of the campaign of marketing. It
specifically refers to the contribution of the profit that is attributable to the marketing spending,
divided by marketing risked or invested (Moulin., 2020).
Customer lifetime value is basically a measure of total income that can be expected by
the business from a particular customer as long as they are the client of the company. This is
calculated by multiplication of average purchase value of the customer, average lifespan of the
customer and average frequency of purchase (Chamberlain. And et.al., 2017).
Comprehensive media plan
Particulars July (in pounds) August (in
pounds)
September ( in
pounds)
October ( in
pounds)
Marketing
research
180 180 180 180
Video
Advertising
240 280 200 240
Hardware 50 50 50 50
Recruitment 60 80 100 10
Creative designs
and software
75 75 75 75
Social Media
Marketing
60 40 100 40

Owned Media 60 80 40 60
Total 725 785 745 655
Recommendations and rationale for selected and integrated multimedia activities
It has been identified that since the product line that the Tesco Plc is planning to launch
within the market belongs to premium quality with premium prices within the market. Therefore,
the Tesco Plc. have selected the social media marketing and the email marketing strategies in
order to promote the product line among the customers of the organization (Fotiadis, Mombeuil,
and Valek, 2018). The use of social media marketing has helped the company in attracting young
customers towards the product and thus increase the sales and profitability of the company
within the market.
Appropriate digital, offline and social media channels for communication
For the purpose of promoting the luxurious food products offered by the company within
the market, The Tesco Plc. has chosen mixed channels which includes online, offline and social
media channels for communication.
 The Tesco Plc will make use of social media marketing channels such as Facebook,
Instagram, Pinterest, in order to share the advertisements associated with the products
offered by the brand and increase the brand engagement of the company.
 Similarly, the company will make use of email marketing in order to send the customers
with personalized emails (Chernev, 2020).
 The company will make use of hoardings, billboards in order to promote the products and
services within the marketing.
Justification of multimedia plan
It has been identified that in terms of qualitative criteria, the campaign has received
thousands of numbers of comments and views. This states that the customers are engaging with
the brand. Similarly, with the help of the research there is a huge increase in the followers of the
company on the Instagram.

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