Tesco: Analysis of Marketing Principles, Decisions, and STP Strategies

This report provides a comprehensive analysis of Tesco, a British international grocery and general merchandise company. It explores key marketing principles adopted by Tesco, including the marketing mix (product, price, place, and promotion), and how these principles are applied to enhance productivity. The report appraises the rationale behind Tesco's marketing decisions, considering internal and external factors such as political, economic, social, technological, legal, and environmental influences. Furthermore, it assesses Tesco's segmentation, targeting, and positioning (STP) strategies, detailing how the company segments its market, targets specific consumer groups, and positions its products and services to meet consumer needs and enhance profitability. The report uses a range of marketing concepts to evaluate Tesco's operations and strategic decision-making in the competitive retail environment.

Business & Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of the company............................................................................................................3
Describe key marketing principles of TESCO............................................................................3
Appraise the rationale of marketing decisions of TESCO...........................................................5
Assess the concepts of segmentation, targeting and positioning specific to a product or service
TESCO.........................................................................................................................................7
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11
Books and Journal......................................................................................................................11

INTRODUCTION
Business management is that course which includes several kinds of business operations
and it also support the company to formulate amended strategies in order to get success and
opportunities. Business Administration is a amended measure because it provide list of demand
measures and also help the company to prepare growth prospect in order to get success. In the
business and management marketing is a effective processor which are used by the organization
in order to enhance and promote their products and services in the Marketplace (Baduza and
Khene, 2017) . This report is going to illustrate on Tesco organization which is situated in
United Kingdom. Along with this report is going to illustrate about the key marketing principles
which are adopted by the company in order to enhance their productivity. Along with this report
conductor rational of marketing decision which are adopted by the company and also explain
about the concept of segmentation targeting and positioning of a particular product or services
which are provided by the company.
MAIN BODY
Overview of the company
Tesco is a British international grocery and general Merchandise company which is
situated in Welwyn garden city, England. It is the third largest company which is measured by
gross revenue of the company. The company provides variety of the product and services so that
they can create more customer base towards the company. along with this, there are several
Strategies and marketing principles which are adopted by the organization and order to enhance
their productivity and efficiency in the Marketplace.
Describe key marketing principles of TESCO
Marketing with activity which refers to the practices of the company adopted by the
company in order to promote and upgrade the buying or selling of the product and services in an
appropriate manner. It is the primary components of the organization and Commerce. It is very
important process for the organization in order to enhance their productivity in the Marketplace.
There are several marketing principles of the organization in order to plan and monitoring the
marketing environment. Marketing principle is very essential aspect of developing and

maintaining the operational and cultural activities of the organization in order to promote their
products and services in the Marketplace. Marketing principles are those concepts which refer to
consideration of the practices which includes the transfer of the goods and services from seller to
consumer by using several procedures like advertising inventory transportation distribution and
several marketing principles which are adopted by the organization(Chan and Aung, 2018). This
marketing principal adopted by the organization for appropriate optimization of the market
opportunity so that they can accomplish their goals and objectives in an appropriate manner. The
marketing principles which are adopted by the Tesco explain about the several elements of the
marketing processor in order to enhance their productivity in the chosen area.
There are several roles and responsibility of the marketing which is associated to the
Future organizational context sales and Warehouse departments in order to maintain the needed
level of the stock and inventory at the organization in order to maintain their production
inventory the companies using marketing mix which is based on four piece that is product price
place and promotion. Marketing mix is the concept which describe at the set of the adjustable
practical equipments of marketing in order to produce strong mix of the product price place and
promotion.
Product: is a core element of the organization and it is kept about the competition of the product
and services which are provided by the organization with their value of the customer. Product is
the element which could be tangible or intangible for stock marketing is the department which
provide to the estimate of the manufacturing sales ratio and also given total estimation of the
sales volume. Tesco Company provide youth variety of the product and services which include
food clothing electronics financial services and many more. It also provides delivery services and
free music downloads in order to attract more consumer towards the company.
Price: This is the most important factors of any kind of organization because it shows the
monetary value of the goods and services which are provided by the company for stuff it also
describe the amount which is paid by the consumer in order to purchase the product or services
which are provided by the company. Tesco is the company which always adopted low prices
strategy as compared to their competitors in the market place (Fayezi, Zutshi and O'Loughlin,
2017). Tesco is the company which tries to keep their prices cheap without reducing the quality

of their product and services. The company wants to create more customer base and also enhance
their sales in order to get profit.
Place: this is the core element of the organization which engages activities of the organization
that make the product available to but the consumer. It also conduct companies channel of
distribution intermediary. Tesco is the company which gives information about their Store by
adopting market analytical investigation. The company has several kinds of stores in every area
of the England. The company has arranged several kinds of stores in offline business like Tesco
extra Tesco metro Tesco compactness of home plus Tesco superstore and many more.
Promotion: promotion is the strategy which described as the knowledge of the good which are
provided by the company in order to inform their consumers and motivate potential consumer
towards the company. Tesco is the company which focusing on the promotional activities by
using several social media platform and digital marketing and Advertising and Public Relations
in order to enhance their products and services in the Marketplace. The major advantages of the
test score is low prices strategy and it helps them to enhance their sales and increase their
productivity in the Marketplace.
These are the strategies adopted by the organization in order to analyze the market
opportunities and develop marketing mix.
Appraise the rationale of marketing decisions of TESCO
In order to take decision effectively There are several marketing functions which are
adopted by the organization in order to carry out their business activities and enhance their
efficiency and effectiveness in the Marketplace (Lim, and Tseng, 2017). These kinds of
marketing which are adopted by the organization in order to take appropriate decisions is
modification of the product on the basis of the demands of consumers and choosing of best
distribution sources and appropriate Strategies and several modes. With support the company to
expand and spread awareness and consciousness about the goods and services between the
products of the market. In context of the Tesco company and they are adopting several kinds of
strategies in order to take decision effectively.

The organization is focusing on the external and internal environment in order to evaluate
their performance in the Marketplace. In order to take decision the organization is analyzing the
external factors which create impact on the organization by using pestle analysis which contains
political factors environmental factors social factors legal factors technological factors and
economical factors which support the company to identify and examine the external factors
which create impact on the business so that the company can take the decision accordingly.
Political factors: in context political factors create impact on the company performance in
context of brexit.
Economic factors: after the covid-19 pandemic the countries facing some economic crisis. So it
is very important for the company to another list the economic factors and take decision
accordingly.
Social factors: in today's error the taste and the choice of the consumers will be taken into
consideration by the company and the taste of the consumer has been changed so it is very
important for the organization to adopt the social change and work on them in order to get
positive outcomes.
Technological factors: it is very important for the company to develop supply chain
management system in the organization by adopting several Technology so that they can
accomplish their goals and objectives and take this is an appropriately in order to overcome the
possibilities of the uncertainty in the company.
Legal factors: there are several kinds of legislations and rules which are formulated by the
government of the UK and it is very important for the company to follow them in order to take
decision appropriately and enhance their productivity and efficiency in an appropriate manner.
Environmental factors: global warming and environmental sustainability is very important for
the company so it is very essential for them to adapt to several number of measures in order to
protect the environment.
These are the factors which are taken into consideration by the organization in order to
take their decisions in an appropriate manner in order to overcome the possibilities of the

uncertainty and enhance their productivity in the Marketplace. Along with this there are several
strategies which are adopted by the company are mentioned below:
The organization is identifying the preferences of customer and also going to find the
factors which create impact on their business activities.
Market analysis this is the study of the marketing which helped the company to identify
and analyze the opinion of the customer in order to fulfill the requirements of their customer.
This examination supports the company to take decisions. Also, support them to formulate plans
of the company in order enhance their productivity and efficiency.
Market size the organization is also analyzing the marketing size in order to identify the
potential market so that they can get more success and opportunities in the market place. Market
size in volume is the concept which represent amount of the sales. Along with disc potential
market also represent the capacity in order to fulfill the departments of their consumer and create
more consumer waste towards the organization (Hudson, 2017). It is very important for the
organization to identify every factor in order to take the disease decision. The organization is
operating at the international level so there are several factors which create impact on the
company and due to dynamic nature It is very important for the company to take decision
effectively(Schultes, 2020). And wrong decision can create several threats for the organization so
it is very essential for the company to hire and focusing on their employee so that they can get
more positive outcomes for the company and enhance their keep abilities in order to get more
competitive advantages
Assess the concepts of segmentation, targeting and positioning specific to a product or service
TESCO
The current report is based on the Tesco Company which is situated in United Kingdom and
Retail Company which deals at multinational level. Currently the innovation that is done by the
organization is providing several products according to the taste and lifestyle of the people. This
strategy helps the company to provide entertainment source towards the consumer in order to get
several customer towards the company.

Segmentation is the process which describe as the strategy of dividing the market of the
company in a small segment so that the company can achieve maximum goals and enhance their
profitability. Segmentation is the concept that is associated to separating the market area of the
company on the basis of the requirements and needs of the consumer and company.
Segmentation is very essential procedure in the company because it supports the company to
manage the market on the basis of the requirements and needs. at Tesco company is going to
segment their market and apartment in several categories so that they can appropriately and
efficiently implement their new strategy within the Marketplace and introduced their new
products which include several kind of features (Moghddam, and Nabavichashmi, 2020). There
are several kinds of factors of segmentation with adopted by the company so that they can
separate the market and achieve their objectives and goals in a effective manner. In context of
the Tesco organization they are using embedded system on the basis of the requirements of the
Marketplace. there are various types of segmentation with adopted by the company so that they
can implement their new product in the market place and which are mentioned below:
Demographic segmentation:
It is the popular method with adopted by the company so that they can segment the
market on the basis of the requirement and Desire of the Marketplace. In this time the
segmentation the organization is divide the market on the basis of the age Gender income and the
location and according to the family situation education and other several factors. These all
factors are very helpful for the organization in order to target their consumer and segment among
the business and Consumers. In context of the Tesco the companies targeting every age group
people because they catering variety of the product. Along with this the company's targeting
middle class and higher class people according to their standard as the company is catering the
product according to the requirements and needs of the clients.
Psychographic segmentation:
This is this segmentation which can be divided as the clients and it will be directly
associated to the personality and characteristics of the consumer. It engage schedule kinds of
segmentations which are Technology Trends value and the lifestyle or psychological influences
and several more. In context of the Tesco organization they are going to introduce new product

and services which contain several kinds of information and provide several kinds of facilities to
their consumer. Along with this, the company going to point out several personality traits and
values in order to attract more consumers towards the company(Norton, 2020). In addition to this
the company is also going to examine about the individuals who are much interested in watching
w series and wants to know several information about them. So this is strategy is very helpful for
the company to identify the requirements of their clients and provide appropriate facilities to
their client for consumers.
Geographic segmentation
in this segmentation the company has separate the market segment on the basis of
geographical location where they engage City country and radius around the several location. In
behalf of the Tesco company the going to introduce their the services in the Marketplace of the
United Kingdom and also going to introduce on several other global market for stop the main
target area of the company is United Kingdom where they will going to use and going to
implement their product and services for stop in this segmentation the organization also going to
describe about the geographical boundaries and their kinds in order to enhance their productivity
and function.
Target
This is the second stage of the STP model in which the company is targeting several
kinds of groups by implementing and conducting several promotional strategies so that they can
identify their potential consumer towards the company. In order to get success and achieve their
goals and objectives the company is using several promotional strategies with support the
company to enhance their brand image in the Marketplace. Along with this the company is also
focusing on the technological factors so that they can adopt a mentor technology in order to
enhance and target their potential consumer so that they can get more advantages and
opportunities (Pursall, 2017). This is very amended technique and strategy which are used by the
company so that they can manage schedule consumer and use their potential resources in order to
get opportunities.
Positioning

This is the last State in which the company is using positioning strategy in order to
position their product in the Marketplace so that they can provide their products to the consumer
in an appropriate manner. First the company is analyzing the market segments and target
consumer in the particular segment then implement their 3rd stage which is positioning so that
they can locate their product in the right way. This is strategy is very helpful for the company
because it provides several benefits to the company and also help them to achieve their goals and
objectives. The companies is operating in the United Kingdom from long time so it is very
important for them to adopt and several Strategies and distribution channel in order to get
competitive advantages and enhance their brand image in the Marketplace (Savage, Kautz and
Clarke, 2017). As the company is launching several new product and services in the Marketplace
so it is very different Concept for the company in order to achieve their goals and objectives and
enhance their profitability and implement their product and services in the diversify market.
From the above mentioned discussion it has been analyzed at Tesco companies is
adopting amended strategies in order to enhance their productivity. The way in which the
company's operating and conducting the research about the Marketplace is very amended and it
is very helpful for the company to manage their system in an appropriate manner in order to get
advantages.
CONCLUSION
From the above mentioned report it has been concluded that it is very important for the
organization to adopt effective strategies in order to enhance their productivity and segmenting
and targeting their products and services accordingly. Along with this it is very important for the
organization to take a mended market in this season so that they can get more competitive
advantages and overcome the Threads which are facing by the organization. This report enlisted
about the several things like marketing principles which are adopted by the company and it is
very important for the company because these principles support the company to get more
success and expand their business in order to create more customer base.

REFRENCES
Books and Journal
Baduza, G.Q. and Khene, C.P., 2017. A Needs-ICTD Strategy Alignment Foundation for the
Measurement of ICTD Impact: Three Case Studies in South Africa. The African
Journal of Information Systems, 9(2), p.3.
Chan, A., Guo, S. and Aung, W.P.P., 2018. Gender Mainstreaming in Subnational Governance:
Myanmar's Fisheries and Livestock Sectors.
Fayezi, S., Zutshi, A. and O'Loughlin, A., 2017. Understanding and development of supply chain
agility and flexibility: a structured literature review. International journal of
management reviews, 19(4), pp.379-407.
Hudson, M., 2017. MANAGING WITHOUT PROFIT. Directory of Social Chang.
Lim, M.K., Tseng, M.L., Tan, K.H. and Bui, T.D., 2017. Knowledge management in sustainable
supply chain management: Improving performance through an interpretive structural
modelling approach. Journal of cleaner production, 162, pp.806-816.
Moghddam, A.R. and Nabavichashmi, S.R., 2020. Effect of Human Resource Management
Practices on Organizational Performance Improvement with the Mediating Role of
intellectual Capital; Case Study of Foundation of Martyrs and Veterans Affairs of
Semnan and Khorasan Razavi Provinces. Iranian Journal of Isaar Studies, 1(4),
pp.171-178.
Norton, L.W., 2020. The business of consulting psychology: Lessons from the field. Consulting
Psychology Journal: Practice and Research, 72(1), p.68.
Pursall, T., 2017. Cayman Islands foundation companies. Trusts & Trustees, 23(6), pp.642-647.

Savage, C., Kautz, K. and Clarke, R.J., 2017. A conceptual investigation of maintenance deferral
and implementation: Foundation for a maintenance lifecycle model. In Complexity in
Information Systems Development (pp. 1-16). Springer, Cham.
Schultes, A.E., 2020. Admissions, Enrollment & Pre-College Preparation: A Foundation Year
Program In The Arabian Gulf (Doctoral dissertation).