Principles of Marketing Management: Tesco Report and Analysis

This report provides a comprehensive marketing analysis of Tesco, a leading global retailer. It begins with an executive summary and introduction, followed by a detailed marketing audit examining both internal and external factors. The report includes a macro analysis using the PESTLE framework, assessing political, economic, social, technological, legal, and environmental influences on Tesco. A micro analysis focuses on key stakeholders such as customers, suppliers, and marketing intermediaries. The competitive landscape is evaluated through perceptual mapping and strategic group analysis, highlighting Tesco's position relative to competitors like ASDA and Sainsbury's. A SWOT analysis identifies Tesco's strengths, weaknesses, opportunities, and threats. Finally, the report outlines strategic priorities for the coming year, concluding with a summary of findings and references.

Principles of
Marketing
Management

EXECUTIVE SUMMARY
The function of marketing is to persuade customers to buy from a company. It is clear that
adherence to marketing concepts is a critical need for the organisation. This report discusses a
firm as well as the external and internal elements that have an influence on the firm. Because it is
critical to identify the organization's rivals, the current study includes a competitive study of the
industry. This report also includes a SWOT analysis as well as some future strategies that are
devised and presented.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Marketing Audit.....................................................................................................................4
About Company......................................................................................................................4
Macro analysis........................................................................................................................5
Micro Analysis.......................................................................................................................6
Competitive analysis..............................................................................................................7
SWOT Analysis......................................................................................................................8
Strategic priorities for the coming year..................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals...............................................................................................................11

INTRODUCTION
Marketing is one of the essential functions of management. It is important to attract and
persuade the customers towards the brands. It helps to enhance the sales of the organisation
(Ardyan and Sugiyarti, 2018). In the current report there is discussion related to Tesco and
principles of marketing followed by the company. It is one of the general merchandise retailer
and a grocery multinational that has its headquarters in England. It is vital to note that Tesco is
considered as third largest retailer in the world if it is measured in gross revenue. So in this
report there is discussion related to a marketing audit plan for Tesco in the market of UK. The
scenario of the organisation and the internal as well as external factor that have influence on the
organisation are discussed in the report. It is important for an organisation to gain advantage over
the competitors so in this report there is discussion related to competitive analysis of Tesco. In
the end of the report there is discussion related to the strategies that will help the organisation to
deal in the present situation.
MAIN BODY
Marketing Audit
Marketing audit is a systematic evaluation as well as interpretation of the marketing
environment of business. It is vital to consider both the internal as well as external factors and
integrate them in such a manner that helps to achieve the goals and objectives of the organisation
with use of marketing principles (Christensen, Robinson and Simons, 2021). There is discussion
related to all the problems as well as their solutions along with those opportunities that help
organisation to accomplish their desired goals.
About Company
Tesco is the world's third-largest retailer in terms of gross revenue and ninth-largest retailer
in terms of revenue. It's important to remember that the corporation was founded 102 years ago,
in 1919, in Hackney, London, England (Kotliar and Yurchyshyn, 2018). The company's products
include books, electronics, apparel, furniture, toys, software, financial services, and internet
services. TESCO is a global multinational with practices around the world. According to figures
from 2020, the corporation has a total of 7,005 stores. It is estimated that the corporation
employs around 423,092 people.

2016 2017
2018
(restated)
(a)
2019
(restated)
(b) 2020(c)
Financial statistics (£m)
Sales
UK & ROI 37,189 37,692 38,656 44,883 45,752
COVID 19 has influenced all corporate organisations, it is significant to mention. In regard to
Tesco, the organisation also sells necessities. As a result, it is critical to understand that while the
company is experiencing losses in some areas, the business of fruits, vegetables, and other basic
commodities has expanded. So it is seen that at present time Tesco is facing issues but also they
are able to cover their position due to the sale of essentials.
Macro analysis
Macro analysis is described as the process of study related to the external factors that have
a direct influence on the industry in which the organisation performs. It is vital to note that all
these factors have direct impact on the working of the organisation and its performance. To
understand the macro factors PESTLE analysis is done as it helps to know about the key factors
that it have impact on the operations of business (Živković, Krstić and Simić, 2019). It is
important to consider all the factors such as social political even environmental economics as
well as technological. Is all these factors are external to the organisation but they also impact the
decision making as well as performance of the organisation. PESTLE analysis in regard to Tesco
is done below:
Political factors: Political factor means all the procedures and policies that are made by the
government of the nation. As the study is based on market of United Kingdom's it is seen that the
political conditions are stable. So it is beneficial for Tesco to operate in the market of UK and
fulfil all the policies that are applicable to the company.
Economic factors: Economic factors mean and shows economic condition it includes demand
and supply, inflation rate, interest rate, taxes GDP, etc. of the nation. It is already mentioned that
Tesco contributes could amount to the GDP of UK and it is reason the company always gets
support of government. Along with that it is vital to know that there is good demand of products
of Tesco and that is the reason companies able to earn huge revenues.

Social factors: Social factors include the trends going in society. It is important to consider the
reference of the customers and formulate the product accordingly (Kreutzer, 2019). In relation to
Tesco it is seem that organisation always studies about the trends that are going on in the market
and then developed the product according to the needs and wants of customers that help to
enhance the satisfaction level of the customers
Technological factors: Technology plays a vital role in success of an organisation. It is seen that
the organisation that uses latest technology is able to earn more revenue. In relation to Tesco
they are using updated technology as well as they have launched a process of self checkout point
that shows there using updated technology.
Legal factors: It becomes vital for the organisation to abide with the laws that are applicable to
them. It is seen that Tesco nose all the laws and fulfil them effectively it helps them to serve the
customers in a better manner.
Environmental factors: An environmental factor means taking care of the resources that the
company gets from environment (Queeney, 2020). Tesco aims to reduce the footprints of carbon
and also use the resources in an optimum manner to reduce the harm to environment.
These are the Marco influences on Tesco. All rules and regulations must be followed by
the firm. As well as serving clients according to the latest trends, the kit assists the firm in
making money. These are the external elements that have an influence on the company's
performance. It is critical to notice that they are beneficial in developing plans.
Micro Analysis
It is the examination of all the micro factors that influence an organization's performance
and operations. It facilitates in decision-making as well as the formulation of corporate strategy.
As a result, a careful analysis of the micro groups is recommended for successful decision-
making. The following is the micro analysis in respect to Tesco:

Customers: It is a well known fact that customers are prominent for each and every
organisation. The working of the company is always based on its customers. In relation to Tesco
it is seen that company keeps its customers at utmost priority. Tesco covers around 27.9% in
United Kingdoms (Quesenberry, 2020). It is vital to note that Tesco innovates its products as
well as process as per the need and requirement of the target customers. The company always
provide quality goods and services to the customers and that is the reason they have loyal
customers.
Suppliers: A supplier would be someone who provides goods and services to another
organisation. All products and services are made accessible to the firm by the supplier, and the
individual is in charge of ensuring that things are supplied on time. There are a lot of Tesco
suppliers who are dedicated to the company (Herasymenko, 2020). Branston is one of the many
suppliers that have been providing goods and services for the past 25 years. AMT is another
supplier that has been selling goods and services to Tesco for the last 20 years, with an emphasis
on citrus fruit, pineapples, grapes, and melons since 2014. These vendors are critical to the
organization's growth. If the products are not ready on schedule, Tesco's ability to supply items
to clients may be threatened. This means they would not be able to serve the customers
effectively without proper coordination with the suppliers.
Marketing intermediaries & publics: It is clear that the organisation performs market research,
pays attention to industry trends, and develops plans that enhance organizational performance. It
is critical for a company to create a marketing mix and work on all four pillars of marketing
since this allows the firm to service consumers more effectively and efficiently.

Competitive analysis
It is vital for each and every organisation to know about the rivalry firms that are present in
the market. It is being analysed that competition is present at each and every level and in every
sector. Each and every organisation formulates strategies that help them to gain advantage
against the competitors that are present in the industry. A company can achieve success over the
competitors by understanding the needs and wants of customers and satisfying them better than
the competitors.
Perceptual mappings
It's the company's visual representation in comparison to its competitors. The firm's
location may be seen on the map. A perceptual map describes customers' impressions of brands,
commodities, services, and other firm products, as well as their response to them. During the
product development process, this data will assist a company in identifying prospective new
goods (Martell, 2018). In the case of Tesco, it is clear that the corporation provides excellent
service to its consumers. Although all of the rivals serve the market, Tesco is the market leader
in terms of consumers in the United Kingdom. It is clear that the corporation is known for
supplying high-quality items at reasonable costs that are greater than those of its clients. The
organisation is able to build a strong brand image in the market and provide excellent service to
all consumers. TESCO has a solid position in the market, offering high-quality products at a
premium price.
Strategic Group Analysis
It is a study based on a group of businesses in the same industry. Because they all operate
under the same business model, they are direct rivals. In terms of Tesco's competitors, ASDA,
Sainsbury's, and Morison's are the most prominent. All of these businesses are part of the same
strategic group. The firms' prices are comparable, and Tesco sells things at an economical price
with high quality (Banerjee, 2018). When a firm wants to grow its market share and requires a
new strategy, it must think about the several strategic categories. The rearrangement of these
strategic groupings might have a substantial influence on the performance of each employee. It is
critical for an organisation to become the industry's market leader. It will assist the organisation
in meeting the demands and desires of clients and gaining a competitive advantage in the market.
Market share of competitors and Tesco in UK
Tesco 27.9%

Sainsbury's 16.3%
Asda 15.5%
Morrisons 10.8%
SWOT Analysis
SWOT analysis is the analysis of the internal capacities of the organisation. It helps to know
about the strengths of the company as well as the weakness. If an organisation is able to identify
its weakness then they can work over it and change them. Another important part of SWOT
analysis is studying the opportunities as well as threats that may arise in the path of company.
The company is able to prepare about the opportunities as well as is practically prepared for the
threats and take measures for them. In relation to Tesco the swot analysis is done below:
Strengths
 It is vital to note that in relation to
Tesco the company has taken wise
decisions related to expansion. That is
the reason it is largest chain of
supermarkets in United Kingdoms
(Shehu, 2018). Along with that it is
also seen that Tesco has always
conducted proper research that helps to
gain first mover advantage.
 Tesco does thorough research into the
requirements and desires of its
consumers and develops products to
meet those demands. Furthermore, the
company's marketing methods assist
them in attracting customers.
Weaknesses
 The firm has a number of rivals. They
also face stiff competition from Online
shoppers. As a result, the firm sets
prices that are lower than its
competitors, lowering its profit margin.
 The company launches various
programmes to attract and engage
customers, but still there is less
switching cost and Tesco is unable to
retain the customers.
Opportunities
 The company's products are also used
by residents in rural areas. This
demonstrates how vast the company's
Threats
 • The most serious threat to a business
is competition. Sainsbury's and Asda
are direct competitors of the

market is. This suggests that the
organisation has taken advantage of the
potential to serve clients in rural
communities.
 It is also seen that Tesco always
partners to explore new markets.
corporation.
 It is vital to note that COVID 19 is seen
as a challenge in the growth of Tesco
(Rejeb, Sűle and Keogh, 2018).
Strategic priorities for the coming year
It is important to formulate strategies and focus on achieving the goals of the organisation.
These strategic priorities are core to the organisation and help them to enhance the value of the
organisation (Tomczak, Reinecke and Kuss, 2018). After doing the analysis about Tesco the
strategic priorities for near future and deal with the situation are discussed below:
 The company to formulate strategies that will help them to beat the competition. It is seen
that by innovating and developing the product the company can attract more customers.
Along with that it is seen that at the present time it is important to enhance the
accessibility of the product so that it can reach to more and more customers.
 Another important point that must be considered at this time is to formulate strategy
related to online marketing and shopping. Due to the scenario of covid-19 people prefer
to buy goods and services online and want the delivery at foot step. So it is also a strategy
that will help the company.
 It is seen that there are various competitors so the company should to provide discounts
and offers to its customers that will help them to persuade the customers to buy the goods
from the company. The offers and discounts are always helpful for the company and this
enhances the sales as well
CONCLUSION
From the above report it can be evaluated that all the organisations should follow the
principles of marketing. It is important for an organisation to know about the factors that have
impact on the performance of the company. This report was based on market audit plan for
where is discussion related to the external factors and their impact on the organisation and at the
same time SWOT analysis is done to identify the internal factors. Competition is also analysed in

relation to Tesco in this report. In the end of the report the strategies are formulated that will help
the organisation to grow and operate successfully.

REFERENCES
Books and Journals
Ardyan, E. and Sugiyarti, G., 2018. The influence of e-CRM capability and co-information
sharing activity on product competitiveness and marketing performance of small and
medium-sized enterprises. International Journal of Electronic Customer Relationship
Management, 11(2), pp.158-178.
Banerjee, A., 2018. Blockchain technology: supply chain insights from ERP. In Advances in
computers (Vol. 111, pp. 69-98). Elsevier.
Christensen, P.H., Robinson, S. and Simons, R., 2021. Institutional investor motivation,
processes, and expectations for sustainable building investment. Building Research &
Information, pp.1-15.
Herasymenko, O., 2020. THEORETICAL AND METHODOLOGICAL ASPECTS OF
INTEGRATION RATIONAL APPROACH TO BUSINESS PROCESS
MANAGEMENT. Economics, Finance and Management Review, (1), pp.71-79.
Kreutzer, R.T., 2019. Toolbox for Marketing and Management: Creative Concepts, Forecasting
Methods, and Analytical Instruments. Springer.
Martell, D.A., 2018. Marketing information and new technology. In Management Information
Systems (pp. 161-181). Routledge.
Queeney, D.S., 2020. The practice audit model: A needs assessment/programme development
process. In Planning continuing professional development (pp. 27-51). Routledge.
Quesenberry, K.A., 2020. Social media strategy: Marketing, advertising, and public relations in
the consumer revolution. Rowman & Littlefield Publishers.
Rejeb, A., Sűle, E. and G Keogh, J., 2018. Exploring new technologies in procurement.
Shehu, M., 2018, December. Formalizing social media marketing strategies: a case study of
Namibian SMEs. In Proceedings of the Second African Conference for Human
Computer Interaction: Thriving Communities (pp. 1-5).
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Market-oriented corporate planning. In Strategic
Marketing (pp. 49-95). Springer Gabler, Wiesbaden.
Živković, A., Krstić, S. and Simić, N., 2019. Application of the model for support decision in the
crediting of agroindustry complex. Економика пољопривреде, 66(2).