Tesco's Marketing Plan: Strategic Analysis and Implementation

This report provides a comprehensive analysis of Tesco's strategic marketing plan, focusing on the launch of a new luxury food product line. It begins by outlining the link between the strategic marketing plan and the overall organizational mission, corporate strategy, and objectives. The report then details clear and SMART marketing objectives, emphasizing the importance of specific, measurable, achievable, relevant, and time-bound goals. It also includes a deep dive into the marketing research conducted to support the new product launch, including primary and secondary market research methods. A significant portion of the report is dedicated to a situational analysis, employing tools like SWOT, PESTLE, and 5C analyses to evaluate the internal and external environments. The report further explores the development of marketing strategies applied to the extended marketing mix (product, price, place, promotion, people, process, and physical evidence), followed by a detailed marketing budget and control measures to monitor success, including metrics like Return on Marketing Investment (ROMI) and Customer Lifetime Value (CLV). A comprehensive media plan, including digital media strategies and social media channel recommendations, is also presented. The report concludes with an overview of the entire marketing campaign, providing insights into Tesco's strategic approach to market penetration and brand positioning.

Marketing Process &
Planning

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
How the strategic marketing plan links with the overall organisational mission, corporate
strategy and objectives................................................................................................................3
Clear and SMART marketing objectives....................................................................................4
Marketing research to support the new product line launch.......................................................5
A situational analysis of marketing audit with the help of analytical tools................................5
Development of the marketing strategies applied to the extended marketing mix.....................7
Marketing budget .......................................................................................................................7
Control and monitoring measures to achieve objectives including metrics to measure success 8
A comprehensive media plan that supports the planned marketing campaign...........................8
Appropriate social media channels for communication..............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES:.............................................................................................................................11
Books and Journals...................................................................................................................11

INTRODUCTION
Marketing can be termed as creating, exploring and delivering of goods and services in
targeted market. It includes several promotional activities which attract more buyers so that
organisation can generate profits out of it (Stevens and et.al., 2021). Marketing focuses on
understanding the needs and wants of customers so that organisations can produce products
which are required by customers. This report is based on Tesco which is multinational grocery
store. It was founded in 1919 by Jack Cohen and it is headquartered in United Kingdom. They
offer various products including food, software, furnitures, toys, supplements and other financial
services. This report will include strategic marketing plan which links to corporate strategy,
missions and objectives. Clear marketing objectives are discussed in this report along with
marketing research which support new product line. Various situational analysis are included in
this report such as marketing audit and analytical tools. Different marketing strategies applied to
marketing mix in mentioned in this report. Setting of marketing budget along with identification
of monitoring and control measures so that objectives can be achieved including metrics to
measure success. It also includes comprehensive media plan like media budget and many more.
MAIN BODY
How the strategic marketing plan links with the overall organisational mission, corporate
strategy and objectives.
Strategic marketing plan evaluate different factors like competition environment,
performance of organisation, behaviour of customers and competitors so that organisation can
achieve their prescribed targets (Evans, 2022). Tesco is a leading multinational brand which
offer groceries and other products. They are planning to launch their luxury product in food line
in their targeted market.
Mission:
“To provide quality, tasty and value food to their customers”
Vision:
To become popular brand by manufacturing luxury food products that can capture the
large market share in effective manner.
STP:
This is the strategic approach which is used by organisations for modern marketing. This
tool focus on commercial effectiveness by selecting the valuable segments.
Segmentation: It is very important for organisation to identify the market segment which
is targeted by them. Tesco select the segment according to geographic, demographic, lifestyle
characteristics and purchasing frequency of customers for their food products.
Targeting: After the segmentation of market into different audience, Tesco evaluate
which segment should target to offer their products. Most profitable segment will be targeted by
them so that they can generate profits.
Positioning: Tesco maintains the quality of their products and classify themselves as
high class and offer products to their customer's according to their demands.
Clear and SMART marketing objectives
Marketing objectives provide clear and specific directions to employees so that they can
achieve defined and prescribed goals. Tesco also involves clear and SMART marketing

objectives which are mentioned below:
Specific: A clear goals are defined so that overall team members understand the
importance of objectives and help them in achievement of various opportunities (THIS, 2020).
Managers of Tesco described the detailed outlines so that employees can differentiate between
risk and opportunities.
Measurable: Goals should be set in the form that managers can measure the success
easily. Tesco set the goals which have benchmark and key performance indicators which can be
measurable.
Achievable: Actions are taken in the manner which help employees in achievement of
goals in effective manner. Managers of Tesco prescribe goals which minimize risk and maximize
chances of profits.
Relevant: It is important for an organisation to set the goals which makes any relevance
according to the operations of the business. Tesco focus on setting goals which are necessary for
them so that they can achieve objectives in effective manner.
Time bound: There should be a particular time limit for achievement of goals so that
employees do not waste their time. Tesco keep track on activities of employees which are related
to achievement of objectives.
Marketing objectives of Tesco are very clear and SMART and they allocate equal
resources in achievement of those objectives. This helps helps them in generating more revenues
by capturing large market share with effective marketing plans.
Marketing research to support the new product line launch.
Marketing research refers to gathering of data and information, analysing and recording
of quantitative and qualitative data which involve problems related to marketing of services and
products (Hanlon, 2021). Marketing strategy help Tesco in identification of targeted markets so
that they can make strategies to offer them products in effective manner. Tesco is launching new
product line which is related to food. It is very luxurious brand which offer tasty and quality
products so that it acquire market easily. Market research help in forecasting the market
environment and needs of their customers so that they manufacture products according to that.
There are various methods of research which are mentioned below:
Primary market research: This research includes two types of data and information
which are exploratory and specific. This help Tesco in identification of qualitative and
quantitative factors for their food line by connecting with end user.
Secondary market research: This includes various informations from outside sources
like magazines, company websites, public sources, commercial sources and various educational
institutes. Tesco uses secondary market research in order to fulfil the requirements which are
necessary in production of food and selling them in targeted market effectively.
A situational analysis of marketing audit with the help of analytical tools.
Situational analysis refers to various methods to analyse the external and internal
environment of organisation. It helps in understanding of customers, business environment and
organisation's capabilities. There are various analytical tools which are used by Tesco for the
marketing audit which are:
SWOT analysis:
Strength Weaknesses
Brand image of Tesco is very well established
which help them in acquiring large market
Competitors like Morrison's can affect the
profitability of Tesco which is greatest

share. weakness.
Opportunities Threats
Tesco uses advanced technology to
manufacture their products and services which
maintain the higher quality of products.
Pandemic like covid 19 hamper the operations
which is a threat for Tesco.
PESTLE analysis: This helps in identification of macro environment and scan various external
environmental factors. This analysis can be discussed in context of Tesco as follows:
Political factors: Factors including trade restrictions, tariffs, tax policies and bureaucracy
are termed as political factors (Willmott and Rundle-Thiele, 2022). Major targeted market of
Tesco is UK which is business friendly that help Tesco in generating revenues.
Economic factors: Economic growth rate and interest rate of targeted market is very
favourable for Tesco which help them in smooth operations. Government agencies and central
banks of UK support businesses.
Social factors: Factors related to demographic trends and cultural aspects such as health
consciousness, age distribution and population growth rate affect the profitability. Tesco offers
quality products which are favourable for targeted market and it leads to their success.
Technological factors: Tesco uses research and development for the manufacturing of
their products which make them high quality products. Use of advanced technology helps them
in up grading their products in effective manner.
Legal factors: All the legal factors are followed by Tesco including license and permits,
labour laws, intellectual property and industry regulations which help them in smooth planning.
Environmental factors: Ecological impact on organisations like climate change, weather
conditions, pollutions, temperature, etc. plays important role. Tesco commence their operations
by maintain all the factors in their favour and they contribute positive efforts in the environment.
5C analysis: It is a marketing framework which evaluate and analyse the respective environment
of the organisation. It helps Tesco in identification of risk and opportunity factors. 5C are as
follows:
Company: Sustainable competitive advantages are identified by Tesco so that they can
enjoy economies of scale and develop technological advancements.
Collaborators: This refers to the entities which increase the ability of Tesco so that they
can provide better quality of goods and services.
Customers: There are 3 main sizes which Tesco can offer their products to targeted
customers which are serviceable available market, total available market and serviceable
obtainable market.
Competitors: Different companies which are operating in same industry are refer as
competitors. There are various competitors of Tesco who are providing same product like them.
Context: It includes various factors which affect the operations of Tesco. All the external
factors of macro environment are comes under context.
Development of the marketing strategies applied to the extended marketing mix.
Marketing mix refers to tactics or actions which are used by organisations to promote
their products and brands in the market (Rakhimov and Tukhtabaev, 2022). Marketing strategies
allow Tesco to use the resources in effective manner so that they can promote their products with
the help of marketing mix. They added luxury food product in their offerings which is promoted
with the help of marketing mix.

Marketing mix
Product: A commodity which is offered to targeted market is termed as product. Tesco
offers various products including clothes, furniture, toys, etc. and they are adding their own
brand of food product line.
Price: This refers to the value which is given by the customers in order to avail the
products. Price is the main factor which decides Tesco's growth and they set price which justify
the quality of products.
Place: Products are offered at the right place which attracts more customer (Sugai, 2020).
Tesco build their store in centre of cities.
Promotion: It is very important factor because sale of products are based on their
promotion.
People: Tesco train their employees so that they can produce quality products for
customers.
Process: Process of Tesco is well structured which help them in reaching to the targeted
customers.
Physical evidence: It refers to the branding of their products and services which helps in
building image of company.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year
Investment 10000 10000 6000 5000
Initial money 10000 5000 5000 5000
Total 20000 15000 11000 10000
Marketing
outlay
15000 1000 3000 5000
Sales
publicity
2000 2000 1000 1000
Direct selling 4000 3000 1000 1000
Promotion 4000 1000 5000 2000
Total 25000 7000 10000 9000
Control and monitoring measures to achieve objectives including metrics to measure success
It is very important for organisations to control and monitor their activities so that they
can ensures the organisational success (Gentsch, 2018). It eliminates the risk factor and provide
solutions so that tesco can achieve their goals. Various metrics to measure success are used by
Tesco which are mentioned below:
Return on marketing investment: It refers to the contribution for obtaining the profit by
the division of risked or invested. It helps Tesco in achieving their objective in effective manner

by offering their new launched product in market which is food line.
Customer Lifetime Value: It is the overall worth of an organisation to customers which
they maintain relationship with them. It helps Tesco in acquiring new customers in lower cost
along with maintaining relationship with existing customers.
A comprehensive media plan that supports the planned marketing campaign
Media planning is the selection of appropriate source which organisation use to promote
their products and services. It achieve the objectives of clients by using best combination of
media. Media planning helps Teco in delivering right information and message to their
customers effectively.
Campaign type and rationale Digital media is used by Tesco because it attract large
number of customers.
Objectives To increase the sale by 30% at the end of year.
Target Audience Age group between 15-50 are targeted by Tesco.
Medium of Marketing
Campaign
Online websites and their application is used to place order.
Content They convey information regarding their product in effective
manner.
Recommendations Tesco should identify the demands of market and use
strategies which help them in achieving competitive
advantages.
Media budget
Particulars Amount
Equipment 160000
Advertising 40000
Promotional tools 10000
Media house 10000
Total 2, 20,000
Appropriate social media channels for communication
Offline and online channels are used by Tesco so that they can increase the sale of their
products. Online platforms include social media including Facebook, Instagram and Twitter
(Maslova, Bozhuk and Smirnova, 2019). Offline modes like banners, hoardings and newspapers
are used to communicate messages in effective manner. The growth and success of company
depends on the promotional and marketing ways which should be done in best possible manner.
CONCLUSION
From the above report it can be concluded that marketing plays important role in

enhancement of profits. It helps in communicating the information and data in effective manner
so that organisation can achieve success. This report includes strategic plans, smart objectives
along with marketing research. It also includes situational analysis and marketing mix for the
promotion. Marketing budget is mention in this report along with metrics to measuring success
and media planning with media budget. Recommendations and rationales are mentioned along
with the channels which used by organisation for communication.

REFERENCES:
Books and Journals
Evans, W.D., 2022. Evaluating Social Marketing. In The Palgrave Encyclopedia of Social
Marketing (pp. 1-3). Cham: Springer International Publishing.
Gentsch, P., 2018. AI in marketing, sales and service: How marketers without a data science
degree can use AI, big data and bots. Springer.
Hanlon, A., 2021. Digital marketing: strategic planning & integration. Sage.
Maslova, T.D., Bozhuk, S.G. and Smirnova, D.V., 2019. Marketing changes management.
Дискурс, 5(1).
Rakhimov, U. and Tukhtabaev, S., 2022. THE INFLUENCE OF MARKETING
MANAGEMENT IN THE MODERNIZATION OF BUSINESS ORGANIZATIONS.
InterConf.
Stevens, R.E and et.al., 2021. Marketing planning guide. CRC Press.
Sugai, P., 2020. Building Value Through Marketing: A Step-by-step Guide. Routledge.
THIS, T.M.I.L., 2020. Strategic Marketing Planning. Hashtags and Headlines: Marketing for
School Leaders, p.29.
Willmott, T.J. and Rundle-Thiele, S., 2022. Improving theory use in social marketing: the TITE
four-step theory application process. Journal of Social Marketing.