Detailed Analysis of Tesco's Marketing Strategies and Recommendations

This report provides a comprehensive analysis of Tesco's marketing strategies. It begins with an overview of Tesco as a multinational retailer, highlighting its market position and geographical expansion. The report then delves into Tesco's historical background, including its founding and evolution, followed by an examination of the company's value chain using Porter's Five Forces. The core of the analysis focuses on Tesco's marketing innovations, such as the 'Tesco Food Love Stories' campaign, rebranding initiatives, and shifts in advertising spending. The report also explores Tesco's adaptation to digital marketing, including social media strategies and personalized customer experiences. Furthermore, it discusses the competitive landscape, challenges faced, and concludes with recommendations for Target Corporation, emphasizing online marketing and the application of Porter's model to mitigate threats and improve sales. Finally, the report includes a list of references used for the analysis.

Slide 2:
Tesco Plc is a trading company commonly known as Tesco. It is a multinational grocery
and a general merchandise retailer having its headquarters in the city of Welwyn of Hertfordshire
in England as well as in United Kingdom. Tesco is considered to be a third largest retailer shop
in whole world in terms of profit and ninth largest retailer in terms of revenues. Tesco has shops
in almost seven countries all over Europe and Asia and is considered as a market leader I grocery
sector in UK, Hungary, Ireland, and Thailand.
Tesco is a UK grocer, has expanded its shops geographically from the year 1990 as well
as in the areas of retailing of clothing, furniture, petrol, software, toys, books, financial service,
internet service and telecom service. In the year 1990, Tesco reposition itself. Tesco moved
from down market high volume low cost retailer to a market which appeals in many social
groups that offers products ranging from Tesco Value to a range of Tesco Finest. The broadening

of appeal was very successful and the chai of Tesco shops grew from 500 shops to about 2,500
shops in the later fifteen years.
Slide 3:
In year 1923 Jack Cohen, founded a small company of retailing and in the later year, Jack
Cohen partnered with tea merchant Thomas Edward Stockwell for selling their own brand of tea
with a brand name Tesco Tea. The name of the company was derived from both the founders of
the company. Cohen started the business as private company and then converted the company to
a public limited company in 1947. This was done by listing the stock on London Stock Exchange
at share price of 25 pence. Jack expanded the business by acquisitions and then y adding many
new stores in the market. In between the time 1950 and 1960, the company acquired very large
quantity of grocery stores and retail stores in UK. The stores that Tesco used were large and also
offered very huge amount of products. Tesco store that was in Leicester entered the record of
Guinness Book being largest store in quantity terms of products and size of store. In year 1963,

Jack included Green Shield Stamps (GSS), which is a type of Trading stamp that was introduced
by GSTSC (Green Shield Stamp Company). Tesco accompanied with GSTSC and then
introduced GSS in its check out point.
Slide 4
Tesco already has created a strong and solid value chain system that is designed and is
executed. The tool that was developed by Michael Porter is basically based on five forces. The
Porter rule is a threat to new entry, power of supplier and buyer, threat for existing substitution,
as well as rivalry in competition. Porter’s Model is very essential to things in mind. The loyalty
of customers, making sense of pricing difference, standard quality, service or product attributes.

Slide 5
From the year 1919, Tesco reached to a high heritage for running business in the market.
Tesco has reached a royal success in terms of profit and revenues. Sustainability, stability,
reliability are main selling points of the company. According to Terry Leahy, the CEO of the
company, Tesco serves the need of about 90 percent of the British Population. The company has
maintained the share of the market from a long time, however this may not be the same
throughout. The company has to concentrate on the competition management, plans for business
expansion. There are also competitors of Tesco known as Carrefour and Walmart that may cause
threat in future implementing different strategies for attracting consumers, which may lead to
reduction the market share. To raise the quality standards of a company is a good way to conduct
a business. The feasibility that is involved in a technology that is cloud based, innovative process
and product development cycles are some areas of improvement. The automation scope that can
be tested and can be verified is to save cost of the business processes. The team of project

management mostly needs empowered for coming up with some creative models as well as
techniques. There are reviews on business policies, strategies, and measures for quality control
for increasing the sale that is to be considered.
Slide 6
The company of Tesco has mostly changed the method of marketing by solving the
problems that are faced by its customer in their daily life. Tesco identifies that the customers
were no more interested in mass marketing campaigns that stated to buy one and get one free
strategies of discounts and offers.
The company included its own business and the marketing is done thorough customer’s
eyes. The company realized that the customers were interested in seeing real people that includes
real stories in the sector of marketing. They were no more interested in bargaining of the market.

With the new perspective of the customers, the company of Tesco developed a new
marketing campaign that included stories and named it as “Tesco Food Love Stories”.
All the campaigns that were undertaken by Tesco included “Tesco Food Love Stories”
that features particular member of typical family making dishes for some specific reason. The
banners show how the products of Tesco can solve the problem of family that brings the Tesco
right to the kitchen of the customers. Tesco broke the fourth wall that most of the marketing
campaign fails in doing.
Slide 7
Tesco also configured a marketing mix and reviewed the marketing mix of the company
as a new strategy alignment triangle in the company. The main strategy that is used by Tesco is
to introduce marketing mix in the organization. By reviewing the marketing mix, Tesco
improvised a new solution of creating a new farm brand product within the company. The

rebranding of the products that included pork, fruits, as well as beefs allowed company for
appealing the consumers who are cost conscious who were not able to afford the offering of
Tesco. Before rebranding the products of Tesco products of farm style, the products were about
15 % more expensive than the values after rebranding.
Tesco understands the requirement for competing the market in this way and the prices
were also reduced compared to other competitors. This results in increase of the fish sale and the
farm sales with the new product price.
Slide 8
Tesco was considered to be a mega business in the market that invests billions of money
in marketing. Tesco enjoys the great market share and invests heavily in press, cinema, radio,
and TV. Tesco realized that the changes were to be done in the company and it was very much
needed in the market strategy of business.

In the year 2013. The company spent a huge amount of money of about 110 million euro
for marketing effort in traditional outlets. And by the year 2014, the number of that process
increased to about 10 percent. But by the end of 2015, the company’s ad spend was declined
very much of about 80 million euro compared to previous two years.
Slide 9
Another change that the company introduced was rebranding of products. Tesco includes
a huge shift at repacking the grocery of high quality offerings with high quality of packing.
Similar to that of changing the brand of its farm products and fish products, the company also
took initiative to increase its sale and the preferred items. Tesco determined the items that were
suffering the customer drop offs in demand and the products that were performing well.
With automation system, Tesco introduced a new design of packing system as well as
campaigns for the items that needed assistance. The rebranding efforts helps to resolve the

connection to the farms, ranches, as well as other elements that were needed for home grown
atmospheres.
Slide 10
There are not much competitors for the company in previous years. There was very
smaller chain of competition in the company. Chains like Aldi was encroaching more and more
in the market share, Tesco was forced to fight back to sustain in the market.
The biggest challenge that Tesco faced in some of the previous year stabilize the share of
the market. The market share of Tesco was established in 2016. Tesco shifted its market from a
traditional market to a complete digital market across all the channels that were possible. Chains
that included Aldi compete Tesco on social media, but Tesco has found alternative way to
promote their business and to attract their customers.

Slide 11
Tesco focused on personal experience that the customer faces while shopping with the
company. Tesco has introduced a wide variety ideas of marketing in helping the customer to get
attracted towards the product. Tesco started sending emails to their customers by sending emails
on their birthdays and even print campaigns to deliver the product at the doorstep of the
customers. This delivering of products to the customers was new world of marketing.
Marketers of the company believed that the company believed to gain the trust of the
customers and their main target is to target a hyper target specific shoppers. Direct customization
marketing strategies are involved to gain the trust of the customers. As there are many scandals
and competition, Tesco manages in delivering their products to its shoppers and their
shareholders.

Slide 12
The recommendation that the Target Corporation should implement is the online
marketing strategy that Tesco is availing. It is also recommended to implement five Porter’s
model within the company so that to mitigate all the treats related to the company. The sale of
Target Corporation can be increased by incorporating digital marketing analysis that will help to
increase the sales of marketing.

Slide 13
This are the list of references, from where the details about the Tesco were taken to
improve the marketing strategy of the company.