Tesco's Marketing Principles: Promotional Mix Analysis & Portfolio

This portfolio provides an analysis of Tesco's promotional tactics, examining the various components of its promotion mix. It covers advertising strategies, including in-store and out-store methods, supported by a SWOT analysis. The portfolio also explores direct marketing techniques, supported by a customer relationship management model, highlighting the use of e-leaflets, catalogue marketing, and discount codes. Personal selling strategies, both in-store and out-of-store, are discussed, along with the role of customer relationship management in enhancing customer interactions. Furthermore, sales promotions and public relations efforts are examined as integral parts of Tesco's overall marketing approach. The document aims to provide a comprehensive overview of how Tesco utilizes different promotional tools to maximize sales and build brand image.

Principles & practices of
marketing

Table of Contents
Background of the company............................................................................................................3
TASK 1............................................................................................................................................4
Covered in Portfolio...............................................................................................................4
Promotion Mix of Tesco.........................................................................................................5
Advertisement.........................................................................................................................7
Direct marketing...................................................................................................................11
Personal Selling....................................................................................................................13
Sales promotions..................................................................................................................14
Public relations.....................................................................................................................17
TASK 2Formal Report...................................................................................................................17
Introduction..........................................................................................................................17
Marketing strategies 1(AIDA)..............................................................................................18
Marketing strategy 2(Above/Below the line model)............................................................20
CONCLUSION .............................................................................................................................22
REFERNCES.................................................................................................................................22

Background of the company
TESCO'S Company is basically a multinational British company that deals in groceries
and general retailer merchandise. Companies main mission or core purpose is to “We make what
matters better, together”. Tesco companies values, vision, and mission are inter related with each
other for shaping a good image or identity of the company in the eyes of the customers. The
values of the company is to serve better services everyday to their customers. When TESCO
company was built the main mission of the organization was to help customers so that they can
utilize better quality of life and also company to become champion for customers. It is the third
largest retailer company measuring by gross revenue in the world, whereas it's the ninth largest
retailer in the world in terms of revenue. The headquarter of TESCO company is in Welwyn
garden city, united kingdom. The firm was founded by Jack Cohen in the year 1919 around 100
years ago. It is a public limited company,Company is serving it's services around the globe, there
are 6,569 shops of TESCO worldwide. While 500,000 employees are working worldwide and
there are 7000 stores of the firm globally. In UK there are 6 (six) distinguished stores formats for
the consumers which are huge in size and product range as well.
The main product in which firm is dealing are supermarket, Hypermarket, superstore,
convenience shop. Around 460,000 employees are working in different parts of the country. The
area where the firm is serving it's services are Thailand, Hungary, United Kingdom, Ireland,
India, Malaysia, Czech republic. The largest TESCO EXTRA is in England in the place known
as WALKDEN. It is spread in the area of 17,230 squares meters and 185,500 square feet of
floorspace. The TESCO EXTRA shops are huge in sizes so, they are mainly located out of the
town while hypermarkets are located nearly public places so, that customers are easily
approachable to the market.
According to statistic illustrations the market share of the TESCO company for grocery
stores in the 12 weeks to august 12, ,2018, the market share stood up to 27.4 percent as compare
to the corresponding period in previous year. Whereas discounters ALDI and LIDL have started
gaining market share every year and TESCO is losing it's market share in the same 12 week
period. In 2001 company gained 15.6% of grocery share and become the leader of market by
6.4%. By September 2004 there was massive growth in the share and raised to 28% and around
12% more than it's market rival. In the year 2004 TESCO was allowed to allowed to buy 10 of
the 52 safe ways stores which were obliged by Morrisons to sell as competition authorities where
3

part of acquisition. In the recent years ,TESCO company has faced many allegations in terms of
social as well as environmental. Many of the allegations which company faced are exploiting
small farmer in the UK, employees are paid less and labour rights are minimal, turning town
centres into huge boarded up ghost towns, undercutting almost every other retailers, Co-
operating with Esso other corporates crimes.
TASK 1
Covered in Portfolio
4

Promotion Mix of Tesco
Promotion mix is considered to be one of the 4Ps of marketing mix which is specifically
refers to the combinations of different promotional tools and techniques like public relations,
advertising, sales promotions and personal selling with a view to maximize sales and profits
(Promotional Mix, 2016).
Source: Promotional Mix, 2019
 Advertising: It is one of the key factor of promotional mix which contributes to the
brand building and also how the market perceives the company. It is considered to be
one of the big part of promotional mix because of its wide and far reach of advertising
and the message that a company can send to its existing and potential customers. It
mainly includes advertisement through social media, newspaper, magazines, banners
etc.
 Personal Selling: It is one of the traditional forms of promotional tool in which a
salesman directly interact with customers by visiting them. It can be said that it is a
face to face interaction which take place between the customers and the company
representative with the aim to influence customers to make purchase of the goods and
services.
 Direct marketing: In this type of promotional technique direct marketing technology is
being used in order to target customers individually, example like through telephone
calls, e-mail, catalogs etc.
 Sales promotions: It is another essential technique of promotion mix of which main
5
Illustration 1: Promotion Mix

purpose is to stimulate customers to make purchase of their products like through
products samples, coupons, offers etc.
 Public relations: It is also a promotion mix techniques in which a firm tries to build
relationship with customers by sharing information with them about an organisation and
about the product and services. In case if any thing goes wrong on the information front
then in that case public relation department has to step forward so as to rebuild public
image again.
6

Advertisement
Definition of advertisement
According to Grant Mc Cracken, 2019 it is a types of promotional activity that is used
by companies in order to promote their goods and services. It is one of the most powerful
marketing tactic that reaches to large number of customer at a same time (Advertising, 2019).
Advertisement is mainly done by Tesco in two ways first in In-Store advertisement and
second is Out-store advertisement.
Evidence of In-store and Out-store advertisement
In-store advertisement:
This are highly effective marketing tactic which are being designed to bring customers
towards the store so as to try their products and to build brand and product awareness. This type
of advertisement is helpful in influencing customer towards their product and services when
they walk through the front door of store.
7

Out-store advertisement: This is a type of advertisement which works well for promoting
products in specific geographic areas. As outdoor sign is considered to be the first thing which a
potential customers sees and it should be sufficient bright and conspicuous so as to attract
attention of customers. Like Tesco does its out-store advertising through various channels like
magazines, billboards, newspaper, social media etc.
8

9

SWOT model is being used to support the evidence of advertisement technique of Tesco
Thus, in order to support the evidence that has been rendered for in-store and out-store
advertisement swot model is being applied. With the help of this model it can be greatly
understood what all the the strength, weakness, opportunity and threat that they company suffer
and avail from such advertisement. The images above proves to be very much helps in attracting
large number of potential customers which result in increasing the market share and it turns into
a major strength for Tesco. On the other hand when the firm advertise its product season wise
like in rainy season they give more advertisement of washing machine which help in easily
drying up of clothes so as to attract customers, but side by side such advertisement affect the
demand of other product of Tesco which is a weakness for Firm. Similarly such advertisement
helps to grab further opportunity as well, in future if the firm launches new product or services
than in that case company need not have to create awareness as customers will already be aware
about the tesco products, thus it will term to be an opportunity for company. Lastly, such
advertisement also proves to be threat for Tesco as the competitors can easily acknowledge the
way a firm uses strategies to attract customers and similarly the competitors too will also use
which will prove to be a threat for firm as the customers may shift from company product to its
10

competitors products.
Direct marketing
Definition of Direct marketing
It is a kind of advertising activity by which large or small business firm use to
communicate directly with consumer by using different media sources such as text messages,
emails online adds and websites etc. (DIRECT MARKETING, 2019).
In order to sell its products through direct selling tesco make use of out of store
personnel selling techniques such as e-leaflets, catalogue marketing, discount codes, etc. so as
to influence customer on spot to make purchase of its products.
Evidence of out of store direct marketing
11

Customer relationship model is being used to support the evidence of direct marketing
technique of tesco
Thus, the above evidence of personnel selling concept of Tesco can be supported with
the help of customer relationship management. As it is a widely implemented model for
managing organisation interaction with clients, sales prospects and with customers. It generally
involves use of technology so as to synchronize, automate and to organise business process but
also for customer service and marketing. It overall goal is to find attract, retain and win new and
existing clients. Thus, in order to build customer relationship Tesco make use of catalogue
marketing and e-leaflets, discount offers so as to attract large number of customers to make
purchase of their products and services. As catalogue marketing offers an opportunity to
incorporate eye-catching and make it easy for customers and clients to respond to their offers. In
addition to this in order to build better relationship with customer firm renders discount offer
system too like rendering in half price, club card fuel save unto 20% , rendering opportunity for
customers to have taste in store itself before making purchase of products so that customer feel
free to make purchase are the example of offer render by tesco. Thus, it helps in influencing
large number of customers and building effective relationship between company and customers.
12