Tesco's Marketing Management: Strategies and Analysis Report

This report provides a comprehensive analysis of Tesco's marketing management, encompassing various aspects of its strategies and market positioning. It begins with an introduction to marketing management, emphasizing its role in adapting to customer behavior and establishing successful business practices. The report delves into Tesco's specific marketing strategies, highlighting the application of the marketing mix, market segmentation, and the use of TOWS, SWOT, and PESTLE analyses to evaluate internal and external environments. It explores Tesco's strengths, weaknesses, opportunities, and threats, providing insights into its market position and competitive landscape. The report further examines Tesco's market segmentation based on place, occupation, usage, and lifestyles, and describes the current market situation of Tesco and its target market. The marketing mix of Tesco, including product, price, place, and promotion strategies, is discussed in detail. The report concludes with recommendations and the application of the Ansoff matrix to analyze Tesco's growth strategies. Overall, the report offers a thorough understanding of Tesco's marketing approach and its implications for business success.

MARKETING
MANAGEMENT

INTRODUCTION
 Marketing management consists of strategies of new programs and techniques as per customer's
behavior Marketing management describe to find out students marketing process and how they
established new business for marketing in business.
 This technique manage all the processes of business like advertising of products and selling and
supply products in the marketing.
 In this, Tesco describes their marketing strategies on how to do marketing of business and
increase profits according to market. These organizations also describe about marketing mix. And
how they relevant to marketing in business.
 In the report, it tells about marketing methods that was used to increase marketing management.
organization determine e plans and innovation used to increase companies marketing strategies.
 This also covered the marketing segmentation and resources used to grow a business and their
marketing growth.

MARKET SEGMENTATION
 Market segmentation is a process of dividing market where the company aims and
analysis its potential customers. Segregation them into different groups is based on
customers characteristics and their personal details.
 It is also include about the various information of company and customers as well.
Market segmentation groups share their common information, and normally things
which are common to others.
 It is basically divided into high income, mid income and low income groups. These are
based on product's area and its operations.
 Tesco segmentation includes macro and micro-environments factors they targeting to
market. Macro environmental factors affect Tesco marketing decisions, political,
social, technological, culture and legal factors and micro environmental factors affect
internal and external organizational market shareholders which is competition to other
super market industry.
 Market segmentation of Tesco is mainly based on true concept this divided their
population according to their needs and acceptance. Tesco aims to develop their
products and service according to their customers’ satisfaction.

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Marketing segmentation include following points:
 Place- Place where customers takes and buying decision. they also affect to the market. For
examples- a person which is traveling and buying domino's pizza but in train pizza cannot
provided.
 Occupation – Occupation is like take decision to purchase anything . A need of entrepreneur
like luxury for a government sector employees.
 Usage- A user can use their products on the basis of their awareness of the products.
 Lifestyles- It consists of interests, hobbies, merit status, religion and other factors.
Types of market segmentation-
 Geographic segmentation- Geographic segmentation divided the market basis of
geographic conditions; it consists of many regions Tesco geographic segmentation is
based on their customers’ requirements, and their regions which impact their demands.
For example- Tesco fulfill customer’s needs according to their demands which
depending customers test and their satisfaction as well.

Internal environments of Tesco
Strengths weakness
 Tows matrix present strong financial
performance and they handled low
leadership cost.
 Tesco followed Tows matrix they help to
handled all market share and they provide
insurance to their customers.
 Tesco present brand value of their products.
 Tows matrix helps Tesco's using retention
scheme like club card and loyalty card.
 Tows matrix helps Tesco's using retention
scheme like club card and loyalty card.
 Tesco target city centre in UK but it fails to
overlap city centre because they are
established into the great platform.
 Tesco expose their market problems and
trying to get solution on it.
 Tesco faced many changes into market and
trying change their products according those
changes.
 Tesco also face high dependency on market.
So they present new rates of products in the
market.
 Tesco having impact on CSR and other
community.

External environments of Tesco
Opportunities Threats
Tesco having opportunities in health and
beauty products because those products sells
more than other products.
2.Tesco increase their transportation service
they provide online home delivery service.
3. Tesco develop their latest technological
products which impact going to their products
cost.
4. Tesco promote their products via on and
they provide application offer their products so
buying their products at home.
5.Tesco having growth in their non-food
market products like beauty, electrical etc.
1.Tesco faced financial problems like products
rates down and product, unemployment etc.
2.Tesco taking risk to established store in city.
3. The main threats for company face changes
in market.
4. Tesco employees left their jobs and they
trying to appoint new employees In their
organization.
5. Tesco having huge stores but inefficient
products.

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Tesco SWOT analysis (internal environment)- Tesco SWOT analysis determine those
factors who need to developed marketing strategies and their corporate marketing. This
environments find research about their organizations strengths and weakness. Swot analysis also
look out opportunities and threats into the organizations. It asses about the effectiveness of a
corporate plan.
 Strengths – SWOT analysis helps to Tesco to improve their strength There are
strengths to choose products variety, company know what customers demands and
what they want into the market, so they present the products according to
customers’ satisfaction. In other hand variety of products Tesco choose high
branded quality products for customers.
 Weakness – Tesco present wrong products to customers and the organizational
charged for this, sometimes companies market share is not increase they are only
stable in 32%. And currently market share of Tesco also going to down 28.1%.

Tesco PESTLE analysis (external
environment):
Tesco in Pestle analysis shows in depth analysis on the supermarket. Pestle describes the external
environment of Tesco. It also determines all the processes of market and how it impacted on the
market, it represent political, legal,social, technological, economic analysis. They all comprised
about the market situation of Tesco and how the Tesco leading to use those analyses.
 Political- government encourage retailers to provide a mix of job opportunities from flexible,
lower paid and locally based tom highly skilled, higher paid and centrally located jobs. UK
government recently adopts a tax measure that affected Tesco. In 2011 UK governments
growing their rate from 17.5% to 20% with aim to increase governments. UK governments
also include tax of all products in any company they trying to increase their products rates.

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 Opportunities - Tesco adopts To increase their premium range of products. Tesco develop
biggest opportunities in their organizations and Tesco also established their online business.
Company present their products via website or emails and other source. They established
great market to growing their business instantly.
 Threats- Tesco faced threats by other company, competitors present low cost products in the
market and they trying to increase their rates and products cost . Competition to other
company Tesco present most of the products with the best quality service.

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Currents market situation of the market target of Tesco-
Tesco is largest retailer company in UK and 4th in the world.
Tesco established in 1919 and Tesco brand first appeared in 1924.
Tesco opened this store in 1929 in Burnt Oak, Edgware, London.
Tesco stared their business in the Europe, the USA and Asia with over 470,000 employees.
In 2010 their revenue was in excess of 56,910 million which was an increase of 5.6% over
2009.
Tesco established their stores in 14 countries in 4,800 stores.
Tesco store types: Extra, superstore, metro, express, home plus, Tesco.com. Tesco stores
offers- Tesco offers food in retail price, no-food in retail price, petrol stations, home living
range

Marketing Mix of Tesco
 Marketing mix determine a various element together create marketing mix, those are
price, products, place and promotion.
 Marketing mix is set of actions that organizations used to implements in their business
and promote their products and service to increase their business.
 Tesco marketing provide wide variety of products like clothing, stationary, electronics,
cosmetics, financial services, food etc.
 Tesco provide anything to customers which they demand. Tesco sells their products from
good brand in almost every product line.

PRODUCT
 Tesco offers huge range of products in their stores.
 Those products are fulfil customers needs, Tesco understand all the customers
demands and they present those types of products in the market.
 Tesco also examine all people reaction of their products and fulfil customers
needs.
 Tesco provide different varieties products like health and beauty products,
technology and gaming product, home electronics products etc.