Tesco's Marketing Strategies: A Comprehensive Business Report

This report provides a comprehensive analysis of Tesco's marketing strategies, examining its approach in the competitive UK retail market. It begins with an introduction to marketing principles, followed by a comparison of Tesco and Asda's marketing strategies, highlighting demographic, psychographic, behavioral, and geographic segmentation approaches. The report then delves into Tesco's marketing mix, analyzing product, price, place, promotion, physical evidence, people, and process strategies. Furthermore, it applies the Ansoff Matrix to evaluate Tesco's growth strategies, including market penetration, market development, product development, and diversification. The report concludes with recommendations for Tesco to enhance its marketing efforts and maintain a competitive edge in the industry, emphasizing the importance of product development and diversification, along with understanding market trends and leveraging technology.

INTRODUCTION TO
MARKETING-2

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Marketing Strategies of Tesco and Asda....................................................................................3
Marketing Mix of Tesco..............................................................................................................4
TASK 2............................................................................................................................................6
Ansoff Matrix of Tesco...............................................................................................................6
Recommendations.......................................................................................................................8
TASK 3............................................................................................................................................8
Marketing Plan of Tesco.............................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is the process of selling the products to the consumers by designing products
and services according to customer's need and also need to analyse the behaviour of the
customers. Marketing is the activities which are done the organization to increase the buying and
selling propositions. Marketing is the customer oriented process the organization need to analyse
the behavioural patterns of the customers. The organization also need to determine the efficiency
of the goods and services which increase the satisfaction level of the organization. There are
many market factors which are considered in the macro and micro level of the business
environment and also need to be analysed to increase the productivity of the organization. In this
report there is a brief information about the marketing strategies and the analysis of the
efficiency of strategies of Tesco which is leading retail store chain in UK.
TASK1
Marketing Strategies of Tesco and Asda
Tesco is a multinational retail chain company which deals in all the grocery products.
The company was established in 1919 in England, UK. Tesco have increase the business
capacity effectively and it is also focusing on expanding the company in future to increase the
profitability and market share to compete in the market. Asda is one of the major competitor of
Tesco and is also very efficient in capturing the market as the t is also the retail store which
provide all the grocery to its customers at very competitive prices. Tesco need to analyse the
internal and external factors which can increase the market reach for the customers to increase
the sales. The company need to increase the evaluation of the market factors which can increase
the efficiency of marketing strategies which will also attract more customers to the company and
increase the market share to maintain the position .
Tesco Asda
Demographic The company have divided
this segments into age, gender,
income level, occupation,
education level. Family size.
The ethnicity of customers are
used to divide the
demographic segment. the
company also divide the

In this the company focuses on
all age customers and also
Target on the low and middle
income level customers with
medium or low education level
and also focus of all types of
family size.
customers according to income
level.
Psycho-graphic The lifestyle and personality of
consumers as the company
focuses on the traditionalists,
and also need to be easy going
and determines which can
increase the sales of the
company. (Wood, Wrigley and
Coe, 2016)
The traits, values, attitudes are
focused to divide the
customers into the segment to
attract them more effectively
and increase the efficiency of
the company.
Behavioural Regular occasions and the
customer which are attracted
with the variety of the products
and also are very positive in
thinking.
T6he company focuses on the
never settle for less theory and
provide the best quality
products to the customers.
Geographic The company have focuses on
UK and other countries which
the company is operating it
business.
The company divides the
market according to the city
and towns to operate the
stores.
Marketing Mix of Tesco
Tesco also have analysed the importance to increase the efficiency to attract and market
their products and services to the customers effectively. The company have analysed that

marketing factors have to be analysed to increase the efficiency of the marketing process and
increase the efficiency of the company.
Product
Tesco have introduced many products which are according to the preferences and tastes
of the customers to increase the satisfaction level of the customers. The company also have many
products list from which the customers can choose and increase the satisfaction according to the
budget and price range they are willing to pay. The company also provide food, electronics,
financial services and catering. The company also have to determine the quality of products and
behaviour of the customer value to the products and services to increase the efficiency of them.
Price
Tesco also have to determine the factors which are very effective in decreasing the price
of the products and services of the company so that they can increase the customer's attraction in
the company. Tesco also have identified the low cost methods like economies of scale to increase
the production and decrease the per product cost. The company also increased the use of reward
cards for the customers to increase the sales and decrease the prices of the products and services.
Place
Tesco is emerging in the world and the need to identify the new market place is also a
major aspect to attract the customers is very essential. The company also have to determine the
quality and efficiency of the store destination as it will help the company to attract as many
customers to increase the sales of the company. The stores of the company are majorly in the
market place which is situated where the maximum tourists and customers are
available(Wongleedee, 2015). The company also need top examine the place efficiency to
decease the transportation cost of the goods.
Promotion
Tesco uses its low prices to increase the promotion efficiency to attract the customers to
the company. The company also have to provide the quality of its products with a proper band
name and label to provide a better information about the product so that the customers can
increase the knowledge abut the products. This will also help the company to increase the brand
image by creating trust in the customers. The company also increased the promotion by online
marketing this will also help the company to increase the coverage areas.
Physical Evidence

Tesco also have effectively placed there stores in the market in such a way that it can
increase the value of the customers and increase the brand value of the company. This will also
help the company to increase the clean and healthy store environment for the customers by
increase the quality of the stores.
People
Tesco also have to analyse the efficiency of the customers in the company to increase the
productivity of the company. The company also provided the loyalty programs for the customers
to increase the loyal customers and the effective employees help the company to make the
loyalty program successful.(Perreault, 2018)
Process
Tesco have also adopted the technology to improve the billing process so that the
customers don't have to stand in the big lines. The company also have introduced fast deliveries
for the online store to increase the satisfaction level of the company and provide them with better
quality of products and services. The company also have increased the efficiency of their
employees by provident them with better skills and knowledge to develop an affective bond with
the customers to increase the satisfaction level.
TASK 2
Ansoff Matrix of Tesco
Tesco need to adopt this analysis to increase the efficiency of the company to establish its
operation in the market and active the company's objectives to maintain the market position. The
company also have to develop the effective strategies to determine the quality of products and
market share in the market. This will also help the company to increase the satisfaction level of
the customer and attract them to be loyal customers of the company. This matrix will also help
the company to analyse opportunities to grow the business and maintain the efficiency of the
business. The company have to discover the four generic strategies to establish in the market
effectively.(Liu and Chou, 2016)
Market Penetration
The company have increased the investment of the grocery stores in the current market
and current products to increase the number of customers in the market. The company have also
used the strategies of competitors to grow itself using different strategies. Tesco also have to

increase the efficiency of the products to increase the sales in the current market to penetrate in
them Market and compete in the existing competitors. This will help the company to increase the
customer base and achieve the objectives effectively. The market saturation is also major factor
which the company have to analyse in order maintain the leadership in the market. As the
company is operating globally it also have to analyse the external factors which are responsible
yo impact the growth of the company so that the company can formulate the effective strategies
and increase the quality of the products in the market. In this strategy the market risk is low as
the company only have to invest I the same market with the same products and increase the sales
with the help of effective strategies. The company have also increased the customer loyalty
programs and provided many discounts and offers for the existing customers to retain them and
also attract the new customers.(Kingsnorth, 2019)
Market Development
Tesco in this strategy have to increase the market research to collect more information
about the customers. This strategy helps the company to enter a new market and create a new
customer base with the existing products and services so that the company can increase the
profitability with less risk and lower the competitors in the market(Key and Czaplewski, 2017).
The company also have to design new market segmentation according to the behaviour of the
customers in the new market. Tesco also have the opportunity to develop a new market in the
international market also that they can also increase the growth of the company ad provide better
quality and goodwill of the company. The risk in this strategy is moderate as the customers are
not used to but the products from the retail stores and it does not have the education about the
efficiency of the products of the company.
Product Development
In this strategy Tesco need to determine the new products in the existing market. Tesco
also have the opportunity to innovate the existing product so that the customers have more
product differentiation and increase the satisfaction according to their needs. The company can
also increase the distribution channel in the existing to decrease the cost of the company. This
will also help the company to increase the number of products so that it can also increase the
variety of price ranges in the product which are available for the customers. Tesco need to
evaluate customers needs and current market wants of the customers to increase the efficiency of

the new product in the market. The research and develop of the company have to be efficient so
that they can achieve the market share and also increase the customer's satisfaction.
Diversification
Tesco in this strategy have to examine the factors which will help the company to design
new services and products and in the new market to increase the efficiency of the company. This
strategy is having a high risk and the company can also receive failure. But the new market will
also have new customers and new product will increase the value and knowledge of the
customers to increase the efficiency of the company. Tesco is also trying to analyse all the
factors so that it can expand its business other the world and increase the satisfaction of the
customers to improve the stability of the company in the market. Technological advancements
are also adopted by the company to increase the diversification of the market and products so
that it can hep the company to attract new customers.
Recommendations
Tesco need to use product development and diversification strategy to increase the
efficiency of the company and stabilize the company in the market(Hasan and Ali, 2015). Tesco
also need to understand the current market trends to develop the future trends which will be
followed by the competitors in the market. This will also increase the goodwill of the company
and provide better vision. The use of technology in the operation of the company will also help
to improve the efficiency of delivering the services to the customers and improving the stakes in
the market. This strategies will also help the company to increase product differentiation and
provide knowledge to the customers to become more aware of the fraud strategies of the
competitors. It will also help the company to develop more assets for the company to decrease
the liability by increasing the probability and proving better opportunities to the customers to
choose all the products which are offered by the company. The loyalty of the customers will also
hep the company to establish in the new market and also lean about the taxation policies which
can increase the efficiency of the company.
TASK 3
Marketing Plan of Tesco
Aim

The aim of Tesco is to increase the knowledge and awareness of the consumers about the
products and services to increase the sales of the company. The company also need to develop a
strategic plan to conduct a campaign in the market which will also help the customers to be more
educated about the products so that they can increase the effectiveness of the decision-making in
selecting the products.
Target
The company will have to analyse the target customers which will help the company to
increase the sales and provide better stability in the market. The company have to choose the
customers which are rural and urban citizens, age factors, gender factors, income level, class,
lifestyle, tradition. This will help the customers to target the customers and provide the better
knowledge and attract them to increase the sales of the company. The company ca also help the
company to adopt the technological assessment to analyse the efficiency and providing
knowledge to the customer about the products. The company have also analysed that the
customers which use internet can be provided knowledge easily.
Marketing Campaign Concept
Tesco need to formulate the innovative marketing concept to increase the efficiency of
the target and aim of the company. This will also help the company to determine the effective
stability of the company. The market concept will Also help the customers to educate them with
more effective methods and techniques(Festa and et.al., 2016). As this will help the company to
directly impact the values and belief of the customers to connect to the product and services
easily. Tesco also evaluated the cheapest and effective ways to increase the efficiency of the
marketing campaign online marketing which will decrease the cost and also increase the market
area to provide knowledge to the customers. E-mail, calls, live chats are also very effective
methods which are used by the company to increase the product efficiency to the customers. This
marketing concept will generate the results which will help the company to identify the
behaviour of the customers which are, consistency, liking, consensus. This will also help the
customers to creates the knowledge which are scarce and also provide authority to them to get
the better products from the company to increase the satisfaction level of the customers.

Campaign Media
Tesco have to set the effective media to delver the message to the customers so that to
can increase the knowledge of the customers about the products (Fernie and Sparks, 2018). The
company also need to evaluate the communication channel as it will help the company to
decrease the cost ad increase the profitability.
1. Website- the company can deliver the messages by posting the content on their websites
so that they can improve the knowledge of the customers and also decrease the cost of
company.
2. Events- Tesco also have to organize the events which will help the serve as the medium
to increase the education of the customers. As the company can help the customers to use
the products and services in the events and also help the company to get the feedback
about the challenges faced by the customers to improve them. (Evans and Mason, 2018)
3. Email- email is also a very effective way to approach the specific customers to target
them according to their needs and wants. As the customers can receive offers and also
understand more about the products through email so that they can purchase the product
and increase the sales of the company.(Fan, Lau and Zhao, 2015)
4. Print- Tesco also can increase the knowledge of the customers about the products features
and specifications with the help of print media which is new papers, magazines and
publications which will help the customers to understand the detail about the products.
Resources
Tesco also need to analyse all the resources which are need to make the marketing
campaign successful. This will help the company to decrease the cost of production and increase
the profitability of the company.
1. Money- the company need to raise the capital and also need ti find the investors which
are ready to invest in the company so that the company can increase the efficiency to
conduct the marketing campaign to grow the company.
2. Human Resources- The company also need to increase the skilled employees so that it
van help the company to increase the success rate of the marketing. The employees are
the support of the company and it will also hep the customers to increase their

satisfaction level by improving the customer relations and also providing better quality
products. (Cacciolatti and Lee, 2016)
3. Enthusiasm- the company also need to motivate the employees and the customers to
increase the sales of the company. This will also help the company to move forward
towards the success and stability In the market. This will also help the company to
maintain the position to increase the profitability. This will also help the company to
compete in the market and achieve the competitive advantage.
Creating offers
Tesco need to decide the offers and benefits given to the customers to attract them to buy
the product and visit the store. The company also need to design a budget which will be used to
promote the customers and also provide them a better experience being the customers of Tesco.
With this the company can make effective strategies to allot the benefits to the customers like the
company have given buy one get one free offer, discount offers, schemes for the customers this
helped the company to increase the loyal customers and increase the efficiency of the company
to support the growth of the company. (Baltes, 2015)
Budget and Return on investments
Tesco have to analyse all the expenses done in increasing the knowledge of the customers
and increasing the productivity of the company. The budgets will be made according to the
matrices which are developed by the company which forecast all the future expense and also
provide an effective projection of the returns. (Baker and Saren, 2016)The company will then
have to analyse the efficiency of the company and all the gross profits which will be deducted
from the all the expenses which will be done to increase the product efficiency this will help the
customers to analyse the return on investment. This will also help the company to determine the
pricing strategy of the products and services which will help the customers to be satisfied and
increase their knowledge.
Challenges
There are many challenges which Tesco have faced in achieving the success of the
marketing campaign of the products and services to the customers.

1. The company ca face issues in convincing the customers and accumulating enough
customers to increase the sales and improve the profitability of the company. The
company should decrease the prices of the products with the increased features and
quality so that the customers can increase the satisfaction level.(Adewuyi, 2016)
2. Calculating Return on investment is also very difficult as there are many hidden activities
which take place in the company to create the marketing plan. This can decrease the
efficiency to create an effective budget for marketing of the products and increase the
quality of the products. To solve this problem the company should adopt effective
accounting software which keep the track of all the transactions of the company to reduce
the inefficiency of the company and increase accuracy.
3. Tesco also have analysed that just by opening online store will not increase the sales of
the company. There are many factors which should be kept in mind to make the
technology effective like the company should provide fast deliveries of the products for
free this will increase the customer's satisfaction.(Abril and Rodriguez-Cánovas, 2016)
CONCLUSION
This report had concluded that Tesco has to more effective in increasing the efficiency of
the products. The company also need analyse all the factors which are responsible to decrease the
cost of the operation of the company and increase the profitability. The identification of
customer's needs and wants also helped the company to formulate effective strategies to increase
the growth of the company and satisfaction level of the customers. Tesco also had to compare the
strategies with all the competitors so that they could use their strategies to attract the customer in
company. The retail store also had to make the effective growth so the company also improved
the efficiency of the employees by providing them training and developing their skills. This
helped the company to make diversification strategies to increase the global expansion of the
company.