Tesco's Marketing Process, Planning, and Implementation Analysis

This report provides a detailed analysis of Tesco's marketing process and planning strategies. It begins by defining key marketing concepts and explaining how marketing functions within the broader organizational context of Tesco. The report then compares how Tesco and Sainsbury's apply the marketing mix (7Ps) to achieve their business objectives, highlighting differences in their approaches to pricing, product offerings, promotion, place, packaging, positioning, and people. A comprehensive marketing plan for Tesco is developed, incorporating elements such as a PESTLE analysis, competitor analysis, STP approach, and budget considerations. Finally, the report outlines a media plan with specific recommendations and activities to support a marketing campaign, ensuring alignment with budgetary requirements. The analysis emphasizes Tesco's use of marketing to enhance customer satisfaction, maintain competitiveness, and achieve sustainable growth in the global market.

UNIT 2 MARKETING
PROCESS & PLANNING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART-1........................................................................................................................................3
Concepts of Marketing.................................................................................................................3
Marketing function relates to the wider organisational context...................................................4
P3.................................................................................................................................................5
Marketing mix..............................................................................................................................5
Comparing the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives........................................................5
P4 Developing marketing plan that includes key elements of marketing planning.....................7
Competitors analysis....................................................................................................................9
STP approach ............................................................................................................................10
Marketing mix............................................................................................................................10
Budget........................................................................................................................................10
Monitoring & control.................................................................................................................11
P5 Producing media plan...........................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing process or planning is a strategy used by many big businesses to sell and
advertise its products with full customer satisfaction by all the marketing tools and techniques
(Gurjar, and et.al., 2019). Selling without marketing nowadays is worthless due to globalization
and increasing competitions marketing plays a big role in the market. Tesco is an international
supermarket company selling its products and services worldwide with many branches
worldwide. This report will include concept of marketing and marketing operations including the
different areas and role of marketing or how the marketing functions relates to the wider
organisational context. Furthermore, comparing the ways in which different organization apply
the marketing mix to the marketing planning process to achieve business objectives. Lastly, it
will include marketing plan that includes key elements of marketing planning that meets
marketing objectives and developing a media plan that includes recommendations and activities
that meet budgetary requirements to support a marketing campaign.
MAIN BODY
PART-1
P1
Concepts of Marketing
Marketing is all about creating a market for the customers to meet their individual needs
through advertisements and promotions it is the best way to sell company’s products and services
internationally so that all the customers can be reached easily (Morgan, and et.al., 2019). Tesco
is an international company and marketing its products worldwide with its expert team at each
branch and doing all the market research for product forecasting and increasing the customer
satisfaction.
The marketing concepts and marketing operations including the different areas and role of
marketing:
Tesco is an international company and using its unique brand and attracting its customers
with unique brand and low price strategy. Using extensive advertising on social media and other
platforms the marketing concepts used by Tesco in different areas are: Production concept: The Tesco main concept is with the use of marketing the production
of products can be forecast by market research and with help of customers feedbacks and
their satisfaction (Olentsova, 2020). Marketing helps in reducing the cost of products

with the help of market research so that the production can be decided how much the
company has to produce for no over productions. Product concept: Tesco with the help of marketing decides which products and at which
price it should be produced. The products which has great demand should be produced at
priority basis and the products which don’t have should be produced at some limits. Selling concept: Marketing helps this company to sell the products by deciding the
channels which has low cost and has less chains. If the products are not available to the
target customers on time then it create dissatisfaction in their mind for that products. Marketing concept: The company Tesco is deciding its marketing which creates more
profits and attract more number of buyer by way of advertising, sales promotions, using
social media etc for increasing the number of customers (Park, 2018). This concept also
include research on marketing so that all the forecast of price, products and substitutes
available to that products.
 Finance concept: Company Tesco has top decide its budget and investment related to
product and other expenditures. Tesco is investing huge amount of budget in advertising
its products and brand so that it gain the importance of customers as much as it can.
Figure 1 marketing concept
P2

Marketing function relates to the wider organisational context.
The Tesco is dealing in thousands of supermarket products and services worldwide so it
has wider concepts of marketing on which its team is making great emphasis. The main role of
marketing in case of wider organisational concept are:
Market analysis in which all the information related to each products of market and their
substitutions and their demand or prices are gathered and then the analysis is done by expert
team (Ancillai, and et.al., 2019). On the basis of this gather information the actions are taken for
changing the products style or feature or price to make the product more demanded by the
customers.
Designing and developing the products is main responsibility of every organisation
because customers will be more attracted towards the products which looks good and easy to
manage like packaging of the products and marketing helps in advertise those products for
increasing the demand. Tesco time to time developing its products for more competitive
advantages and due to changing taste of the customers.
Research and development is the main department of Tesco so that all the marketing
functions are regulated correctly at each branch. This team of Tesco helps to find out which
products has great demand and which products are being demanded by the customers or any
modification to the existing products (Boisen, and et.al., 2018).
Pricing and place this has great affects on the company Tesco that is why Tesco is using
low strategy pricing techniques so that more customers are attracted towards the product because
if the prices are high the customers will switch to the substitutes products of rivals.. Tesco us
doing its business and deciding the area of business where the demand is high so that it can earn
more profits because deciding the place of operation is very important for more revenue.
Competitions increasing competitions has led to the need of marketing in an organisation
compulsory (Royne, 2020). Tesco is using various marketing plan and campaign to remain
competitive in the present world by satisfying more number of products with unique brand and
products. Globalisation has increased competitions so Tesco is regularly keeping eye on the
market through market analysis so that products can be developed according to the needs of the
customers demand.

P3
Marketing mix
Marketing mix is the set of marketing tools which focus on attaining the objectives of the
firm and focus on multiple areas the main areas are product, price, place promotion. Marketing
is the mix of all the activities and plan that is used by the company to achieve the overall
objectives of marketing. Tesco is using marketing mix elements to achieve its overall objectives
by deciding in advance the product, price, promotion, place, packaging, positioning and people.
Comparing the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives.
Tesco is an international company and selling its products worldwide in most of the countries
and it is producing products for all kind of age, gender or cultural peoples and using 7 P’s of
marketing mix for achieving its target or objectives. Sainsbury’s is also a supermarket company
and using marketing mix with some different techniques like the seven P’s are: Price: Price is the only factor that decides the sale of the products by the customers
because cheap price increases more demand and vice versa (Lahtinen, 2020). Tesco is
using low price strategy for increasing it demand by the customers because customers
will buy products with advance features and cheap price where as Sainsbury is suing
price discrimination methods on some prices for increasing the demands of its products. Product: Tesco is providing huge variety of branded products to customers and providing
thousands or more choices available to the customers for making any kind of choice for
their satisfaction. More advanced is the product more will be the demand of its products
Whereas Sainsbury is also providing wide variety of products available to the customers
for their choice to remain competitive in the global world. Promotion: This company Tesco is using various strategy of advertisements like on
television , charity and providing various discounts to the customers so that they will be
more attracted towards the products. Whereas Sainsbury is also using various advertising
on television, internet and other medias for marketing. Place: Tesco has its headquarters in Chestnut, England and its stores are available in the
whole world for distributing easily to the customers. This company also provide channels
like online selling and offline selling whichever is comfortable by the customers.

Sainsbury has 600 supermarkets and 800 convenience store and it also take online orders
and services for the customers. Packaging: The packaging or labelling of Tesco is unique and has separate brand
different from other companies because packaging plays a key role in advertising the
products and attracting the customers. Tesco has unique brands and each products has
printed labels on it. Sainsbury also has different brand and labels on each products to
differentiate its products and for advertising the products. Positioning: Tesco is deciding its products positions according to the level of profits and
customer satisfaction attached to it. The products which has great and stable demands are
give more priority and need less advertisements or marketing compare to the products
which has less demand and need more advertising (Mas, E., 2020). Company Sainsbury
is also following the same method of positioning its products on level of profit earned
from the products an services or vice versa.
 People: Deciding the people for the market is important because selling the products in
those market which has no demand and less demand of the products it totally waste of
money and efforts. Tesco is deciding its market in advance by market research so that the
production will be according to the customers need so that the supply will be not more
than its demand. Whereas Sainsbury is also following the same methods and only
producing those products which has great demand and advertising to those market where
customers are more interested towards the products.
Figure 2 marketing mix

PART-2
P4 Developing marketing plan that includes key elements of marketing planning
Overview: Tesco is the largest and well-known brands and hence selling distinct products in the
product line would make business achieve success in long run
Vision: To become the highly valued business and serve the customers, communities and planet
in best of manner
Mission: To become the market leader and to sell variety of products that are not only value for
money but also have distinct quality that makes it different from its competitors
Business objectives:
 To increase sales of business by 40% by the end of this year
 To maintain the customer satisfaction for long run
 To enhance the market share by 20% by end of this quarter
Marketing analysis
PESTLE analysis
Political factors: Various factors such as political instability, tariff rates and tax rates
might negatively impact the Tesco. Also, if there is higher political instability than Tesco would
not be able to sell the goods effectively. Moreover, higher tax rate would also increase the prices
of various goods within the country (Goldberg, and Jansen van Rensburg, 2020)
Economic factors: In UK inflation rate, import and export restriction are some factors
that need to be observed by the business so that negative impacts might be reduced. Furthermore,
higher inflation rate within the country would only reduced sales of the Tesco creating the
negative impact on firm

Social factors: in any society there are certain customers, trade and beliefs that need to
be closely analyzed by the firm so that there are no losses. Moreover, people nowadays are
interested in consuming on healthy and nutritious foods. Thus, for positive working Tesco needs
to focus on selling more of such goods
Technological factors: Technology needs to be upgraded on regular manner so that
company is able to sustain in the market for longer duration. Also, this factor is positive as Tesco
is using technologies that are highly upgrade for faster processing of various works
Legal factors: there are various laws that are been formulated by the government that
needs to be strictly followed so that there are no government intervention in the future. Also,
laws such as health and safety laws, minimum wages laws, labour laws etc. are followed within
the Tesco to ensure that the new product line might be easily introduced within the market
Environmental factors: it is important the companies follows the safety and
environmental laws so that they are not only able to operate efficiently but also develop the
sustainable brand image in the market. Also, using the best sustainable practices will help Tesco
to attract more number of customer towards the business thus helping to generate more revenues
towards the business.
SWOT analysis

Strength:
 Biggest grocery retailer in UK that
sells variety of goods to consumers
 Having the large market share
within UK and around the world
(Djellabi and et.al., 2021)
Weaknesses:
 Fraud trails and accounting scandal
has led to decreased public image
 Low cost strategy might reduced the
profits of the firm
Opportunities:
 Joint ventures will help in expanding
into newer regions.
 Strategic alliances with other brand
will help in increasing sales
Threats:
 Excessive competition in the future
will create problems for business
 Rising cost in various products will
create negative impact on firm
Competitors analysis
Basis of difference Tesco Sainsbury Planet organic
Product The new product that
would be sold is
packed organic food
meals that would be
available in different
sizes and variety
It has wide offering of
and various product
lines. Moreover, it is
best known for selling
organic foods items to
large number of
people
It offers thousands
of organic products
that might be
delivery across the
UK easily
Pricing strategy It would adopt
premium pricing
strategy for the
packed meals due to
its freshness and
quality (Martynenko,
2018)
It has the competitive
pricing strategy
where prices of the
products are set
according to the
markets
It has adopted
dynamic pricing
where the prices of
the products
changes according
to the customers
and its demands
USP Increased market Established brand Dealing in

share and best prices
of goods
image and greater
customer loyalty
particular
specialized product
line and assuring
freshness
STP approach
 Segmentation: For the organic packed food meals the market would be UK and adjoining
parts and would target those people that are concerned in consuming healthy food meals
(The segmentation, targeting, positioning (STP) marketing model, 2022)
 Targeting: The target age group would be 15-35 that are more health conscious and are
mostly working job professionals that finds difficulties in remaining fit.
 Positioning: It would be done through making freshly packed meals that are not only
great in terms of prices but also taste good and are highly nutritious
Marketing mix
Product : The product would be available in different sizes and would contain variety of the
organic foods items within meals that would be readily available to lots of the people either
online or offline
Price: Premium pricing policy would be adopted due to its freshness and taste. Furthermore,
people would be ready to purchase such products at high rate because of its quality.
Place: It would be available in all parts of UK and would also be made available through online
delivery on the official website (Thabit and Raewf, M., 2018)
Promotion: Method like marketing campaigns, poster banners will be used for the offline mode
while it will be promoted on the online through social media platforms such as the Facebook,
twitter, Instagram etc. so that more people are aware of new product line within Tesco
Budget
Expenses Amount
Administration expenses 10000
Employees salary 30000
Marketing and selling expense 50000
Market analysis expenses 65000
Technical device application 40000

Security evaluation expenses 35000
Monitoring performance 20000
Utility bills 35000
Supervisory expense 20000
Total expenses 305000
Monitoring & control
For the new product line of the packed meals monitoring would be done through setting
certain benchmarks in context of quality and sales and also various key performance indicators
would be set up so that regular check up on efficiency might be assured (Tien, Phu and
Chi ,2019). Thus, through these key performance indicators the firm would be able to identify
the area of improvement and also able to take corrective actions on time so that there is no
wastage of resources. Moreover, the firm would be able to develop better strategic plans in due
course of time.
P5 Producing media plan
Media budget: It is required for Tesco to promote the new product lien within UK so that more
potential customers might be drive towards the business.
Expenses Amount
Advertising 30000
Influencers and blogs 50000
Emails 20000
Employee salary 35000
Posters 40000
Marketing programs 56000
Total expense 231000
Recommendation:

The above media budget is appropriate as expense that are mentioned are approximately
appropriate as through devising the media expenses into this category would assure that business
is running successfully and also it would be able to establish better control over certain activities
and expenses (Kurnianto and et.al., 2019). Furthermore, through such divisions there would be
better allocation of resources within the business best marketing campaigns might be initiated.
However, it is recommanded to the Tesco that it should always conduct the market research
before following this media budget so that best popular channel of the communication through
competitors might be found out easily.
Also, the best offline channel would be through word of mouth and the posters that
would be displayed in public places about the launch of new organic meals so that more people
might be made aware for the same. Furthermore, in context of online mode social media and
influencers are the best way that would allow people to relate with them easily and also greater
persuasion level might be made on the target public. Also, the figures that have been chosen for
the above media budget is appropriate as Tesco is very well-established brand and inquiring such
expenses will result in more revenues in the future (Krasyuk and et.al., 2020). Also, this is
appropriate as too much expense would only result in efficiency and in case if this plan does not
work out (properly) than it would only result in losses that is not good for company to wok in
long run.
CONCLUSION
From the above project it can be concluded that marketing concept is very wide and it is
important for the firms to identify different operations areas so that marketing might be done
effectively. Also, the study had identified the significance of marketing functions and compare
the marketing mix of different organization in marketing planning. Also, through all these
operating functions the firm would be able to allocate the resources within various departments
in the best way and would be able to easily implement change within the organization without
having the much resistance. Furthermore, effective marketing plan is developed for launch of
organic food meals in UK market. Lastly, detailed media plan had been discussed that would
allow Tesco to meet certain marketing objectives and goals that would ensure greater success in
the future projects.

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Online
The segmentation, targeting, positioning (STP) marketing model. 2022. [Online]. Available
through:<https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-
targeting/segmentation-targeting-and-positioning/>.

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