BTEC HND Business Unit 6: Marketing Essentials - Tesco Case Study

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Marketing Essentials
TNA67 Pearson BTEC HND in Business
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TESCO PLC.

Table of Contents
Introduction................................................................................................................................2
Task 1 Role of marketing...........................................................................................................3
P1 Roles and responsibilities of the marketing function............................................................3
Market analysis......................................................................................................................3
Development of the product...................................................................................................3
Storage...................................................................................................................................4
Promotion...............................................................................................................................4
P2 Roles and responsibilities of marketing................................................................................4
M1 Responsibilities of marketing in context of marketing environment..................................4
M2 Interrelationships between marketing and other functional unit of Tesco..........................5
Production department...........................................................................................................5
Human Resource Management..............................................................................................5
Distribution department.........................................................................................................5
Finance department...............................................................................................................5
Customer service department.................................................................................................6
D1 Critical evaluation of marketing function and their interrelation with functional units.......6
Task 2 Compare ways in which organisations use elements of the marketing mix (7Ps) to
achieve overall business objectives............................................................................................7
P3 Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives......................................................7
M3 Different tactics applied by organisations to achieve business objectives........................10
Establishing the vision and mission of the company...........................................................10
Assessing the development...................................................................................................10
Making short term tactics....................................................................................................10
Collaborate all the members to explain the tactic plan.......................................................10
Recording or documentation of the tactic plan...................................................................10

MARKETING ESSENTIALS
Evaluating the tactical plan.................................................................................................10
Establishing the vision and mission of the company...........................................................11
Assessing the development...................................................................................................11
Making short term tactics.....................................................................................................11
Collaborate all the members to explain the tactic plan.......................................................11
Recording or documentation of the tactic plan....................................................................11
Evaluating the tactical plan.................................................................................................11
D2 Strategic marketing plan that tactically..............................................................................12
Task 3: Develop and evaluate a basic Marketing Plan............................................................14
P4: Basic Marketing Plan.....................................................................................................14
M4: Detailed Marketing Plan...............................................................................................15
D2: Design Strategic marketing Plan and the evaluation.....................................................18
Evaluation............................................................................................................................21
Conclusion................................................................................................................................22
Reference..................................................................................................................................23
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MARKETING ESSENTIALS
Introduction
Tesco is one of the largest retailing grocery stores all over the world. It is founded in the year
1919 by Dave Lewis in United Kingdom. It has almost more than 10000 stores globally
including China, India, and Poland etc. In this report all the essential functions of marketing
and their interrelationships with other functional units of the Tesco Company. The
discussions will also take place how the 7ps of marketing mix helps the Tesco and the other
competitive company to achieve their goals in this report. Further, a tactic plan and strategic
marketing plan will be made to achieve good business benefit from the target market.
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MARKETING ESSENTIALS
Task 1 Role of marketing
P1 Roles and responsibilities of the marketing function.
Marketing is the main segment or a part of a company to promote a specific product or
services in the market and the main responsibilities of marketing are
Figure: 1 Roles of marketing
Source: (Sajid, 2016).
Market analysis
For doing better business, it is very necessary to gather for an organization to collect
appropriate and correct knowledge and information of the present market status, analyzing
customer’s needs, so they can recognize their business opportunities. Therefore, Tesco should
focus on their customers wants to meet their expectations.
Development of the product
It is very important for any company to upgrade and improve their quality and design of their
products and services according to the change in buyer’s behaviour. It will attract the
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Marketin
g
Marketing
analysis
Storage
Promotion
Product
development

MARKETING ESSENTIALS
customers along with their product demand. Tesco should definitely focus on restoring and
upgrading their stores with modified and innovative produce so they can grab the attention of
the customers.
Storage
Storage is a very important aspect of marketing as keeping the products in a safety place to
protect it from any kind of damage. As a retailing tore Tesco have to be very careful in
storing the product, as the period is too long for a product to be sold (Kozlenkova et al.
2105).
Promotion
It is very essential as it helps to promote a specific product or services and company brand in
the market to inform the customers about its quality and specifications.
P2 Roles and responsibilities of marketing
Marketing is very important in establishing good relationship among the company and the
customers. It will help to restructure the image of the Tesco organization in the market. As a
large global store, it might be hectic for the Tesco Company to associate and please over all
customers. In a sense, marketing will help the company to enhance their revenue. Satisfying
customer’s needs is very essential as if Tesco fails to store the brand products that they are
lookup to or wants to buy then it will be difficult for them to run their business as gathering
knowledge about customers needs and want is very important point (Kiseleva et al. 2016).
M1 Responsibilities of marketing in context of marketing environment.
 Developing marketing information system (MIS) is very important for making a
strategic plan and implements them to enhance the selling of a specific products or
services(Stephen, 2016). It includes planning, product scrutiny, operation and
monitoring the activities.
 Market segmentation is very essential for the Tesco Company as they cannot
communicate or influence all the diversified group of customers. Therefore, they
require categorizing their customers and recognizing their target customers so they
can understand their buying behaviour and expectation from a certain products.
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MARKETING ESSENTIALS
 Marketing tracks the brand equity to understand whether the marketing operations are
falling in to their places or not or whether it affected on maximizing the brand values
in the market or not.
 Tesco should invest on advertisements, personal selling, and sales promotion so they
can enhance their communication system with the customers. Here the marketing
manager plays an important role in analyzing and assessing the cost for implementing
all these communication tools (Cacciolatti and Lee, 2016).
M2 Interrelationships between marketing and other functional unit of
Tesco
Production department
The marketing department of the Tesco Company should research the customer’s needs, as it
will help them to restore and upgrade their store with improved and new products. Therefore,
in this way they will help their production department to in restoring and improving their
store.
Human Resource Management
In Tesco marketing department plays an important role in Human resource department as it
push thee HRM professionals to hire such skilled and expertise staffs in the company who
have a great quality plan store and product developing ideas.
Distribution department
Market research helps in identifying where Tesco should run their business, their target
customers whereas the distribution department tries to make available all the quality products
according to their customers expectation in their grocery stores (Martin and Murphy, 2017).
Finance department
Marketing is responsible to acquire the target customers and to improve their business. Hence
it helps to enhance the cash flow of the company. In the same way finance department also
influence the marketing by allocating a limited fund to accomplish the marketing
programmes in a proper way.
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MARKETING ESSENTIALS
Customer service department
The customer service unit of a company look after the reviews, queries and feedback of the
customers. The integration of customer service department and marketing will effectively
give outstanding results by giving mouth marketing and lowering the servicing costs.
Together they help each other by identifying the opportunities through which they guide their
customers to make the purchase form their stores. They keep on informing and notifying each
other about their respective strategic plans and activities.
D1 Critical evaluation of marketing function and their interrelation with
functional units
The key elements of the marketing functions of the Tesco Company are market analysis,
storage, product development, promotion, distribution. Market analysis helps the production
department to understand the requirements and needs of their company’s target customers. It
helps them to improve and progress the quality and company’s products and services. Proper
storage of the products and commodities in all over the grocery stores of Tesco protect and
enhance the shelf life of the products and thus it is the responsibility of the Human resource
department to look over all the functions of their organization. Distribution and supply of the
products from the manufacturer company to the customers is a long process therefore the
distribution department of Tesco make sure that all the operational function to be conducted
in a exact manner (Dewi and Darma, 2019).
The promotional activity is the key and most important factor of marketing as it not only
advertise and endorse their company brand in the market and also make its viable and
accessible to the customers. The end of marketing is not promoting and selling any specific
product it also require customer service advice to control their queries, feedback and
complaints. All of the functions and the respective department of Tesco are depend on their
finance department as ton operate and implement all these activities requires an estimated
fund which is allocated by them. All the functional units and marketing functions are strongly
interrelated with each other and collectively they sustain and facilitate the company to
maintain and develop their business in a superior manner in the market (Felix, Rauschnabel
and Hinsch, 2017).
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MARKETING ESSENTIALS
Task 2 Compare ways in which organisations use elements of the
marketing mix (7Ps) to achieve overall business objectives
P3 Compare the ways in which different organisations apply the marketing
mix to the marketing planning process to achieve business objectives.
Figure 2: 7Ps of marketing mix
Source: (Ofosu, 2016).
Marketing Mix Tesco Sainsbury
Price Their stores are popular all
over the country as to
provides the good quality if
product in a pocket friendly
budget. They always try to
reduce the supply chain
process cost collaborating
with their suppliers to provide
their customers branded
product with lower prices.
The company understand the
value of money and hence
they have set the price
according to the different
categories of the products.
They want to retain their
target customers and to grab
the attention of new
customers and for this reason
Sainsbury have made
relatively low pricing of few
vital commodities.
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MARKETING ESSENTIALS
Product Tesco provides diversified
ranges of products in their
respective stores that the
customers can purchase all
the essential and vital things
under one roof (Yim et al.
2019). The employees of the
stores strive hard to make
available all the necessary and
improved products. Tesco
also provides their customers
the facility to purchase their
basic products online. They
also give credit, insurance and
other financial services.
Sainsbury provide more than
30000 categories of products
and commodities to their
customers. Their store
comprise of their own
company products alongside
with other branded
company’s products.
Promotion They promote their brand
through television
advertisement, posters and
charitable events. Tesco give
many discount offers in both
online and purchase.
From promotional activities
they use television ads, social
media applications and
hoardings (Feng, Morgan and
Rego, 2015).
.
Place Tesco have more than 7000
stories all over the world and
have good name and
reputation in the international
market. Their grocery stores
also comprise large
supermarkets and small stores
according to the location,
people, economy and size of a
region. Some of the countries
where Tesco operates its
stores are Poland, China,
Sainsbury have more than
10000 stores in all over
United kingdom. Mostly
south–east London, Swindon,
Torquay.
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MARKETING ESSENTIALS
India, Malaysia and many
more.
Process The main focus of the
company is to keep the
digression of their business
policies lowest and mainly
wants to improve their
company services and make it
accessible to their customers
and make all the essential
commodities available in their
all over stores (Bouhali et al.
2015).
Sainsbury believes in price
discrimination and product
positioning policy. They do
not want to compromise
which can effect the whole
supply chain process, For this
reason they have adopted the
competitive pricing policy.
People The employees of the Tesco
company experience various
stages during their
recruitment. However, the
company provides full
opportunities to their
employees for their career
growth. Globally Tesco have
provided 480000
employments in their
company.
The company have more than
18600 employees and they
offer them good salaries and
good career opportunities for
future.
Physical evidence Tesco have unique brand tag,
labels, and colours which
gives a clear evidence of their
company’s brand to their
customers.
Sainsbury have their own
brand logo and colour as a
physical evidence to their
customers.
Table 1: Marketing Mix (7P)
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(Source: Yim et al. 2019)
M3 Different tactics applied by organisations to achieve business objectives
Different organization mainly involves diverse strategic plan or tactics to achieve their
business objectives
Establishing the vision and mission of the company
Assessing the development
Making short term tactics
Collaborate all the members to explain the tactic plan
Recording or documentation of the tactic plan
Evaluating the tactical plan
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