Tesco's Marketing Strategies: A Case Study Analysis

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Marketing Essentials
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Table of Contents
Introduction......................................................................................................................................3
LO1 Explain the role of marketing and how it interrelates with other functional units of an
organization.....................................................................................................................................3
P1 Explain the key roles and responsibilities of the marketing function....................................3
P2 Explain how roles and responsibilities of marketing relate to the wider organizational
context..........................................................................................................................................6
LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve
overall business objectives..............................................................................................................9
P3 Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives........................................................9
LO3 Develop and evaluate a basic marketing plan.......................................................................11
P4 Produce and evaluate a basic marketing plan for an organization.......................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................15
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Introduction
Marketing is a huge essential factor for the brands to gain a clear distinction in the market. This
is the reason why essentials of marketing are significant for every emerging organization to focus
upon. This assignment therefore will put focus on the essentials of marketing in the marketing
(Datta et al., 2017). The assignment will put emphasis on the influential interpretation, which is
based on the marketing essentials followed by Tesco. The assignment will be developing with
the help of explanation of p[rime functional units that tends to reflect the roles and programs on
the part of marketing function. The further parts will demonstrate about the specification based
on the inclusion of impact of roles and responsibilities that has been developing the features of
Tesco. The other part of the assignment will come up with the revelation based on the
comparison of marketing mix followed by Tesco to obtain with successful results.
LO1 Explain the role of marketing and how it interrelates with other functional units of an
organization.
P1 Explain the key roles and responsibilities of the marketing function.
Marketing function is defined as the roles of the business organization that assists it to classify
the products successfully for the market and then helps to promote as well. Promotion of the
products can be considered as one of the prime responsibilities of marketing function. These
functions can be revealed as very common in business organizations (Blythe and Martin, 2019).
This includes product plan, marketing research, sales, and promotion along with procedure of the
development, consumer services and finance. There are various responsibilities, which can be
considered as very vital and those function are responsible for the development of company.
Functions of marketing consists of the strategy management, sales support, market research,
team of finance, developments of products, department of the human resource and distribution
system (Beverland and Lindgreen, 2016). In order to promote the development of Tesco, various
roles are there for marketing functions. The key roles along with responsibilities of marketing
functions are finance, development of product, market research, selling, planning, promotion,
communication and distribution. This can be seen that marketing functions is crucial for Tesco
and this is related with the other functions as well.
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Figure 1: Universal Functions of Marketing
(Source: Rogers and Davidson, 2015)
There are several roles along with responsibilities for the marketing and those are described here.
Managing along with defining the brand
Managing the brand along with defining it can be considered as one of the most significant
aspect of the marketing (Rogers and Davidson, 2015). This includes the definition of the brand,
because of what this is stand for, what one need to be done along with the process based on
which company can act. This will help to define the experiences, which Tesco want in their
consumers along with partners.
Carrying out the campaign management for the marketing initiatives
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As stated by Feng et al. (2015), marketing identifies the services and products proactively in
order to observe the course of the sale cycle then this produces communications and materials.
Producing the promotional materials along with marketing
Market department need to be crate the materials, which describe along with promote the core
services and products of Tesco. They need to be kept them up to date and must prioritize on the
current trends. Developing the search engine optimization for the website is very necessary for
Tesco. As stated by Feng et al. (2015), the website of Tesco must to be at the first place. Website
needs to be designed very carefully as people are attract by it and know about all the information.
Managing and monitoring the social media
Managing along with monitoring the social media can be considered as very vital role for
marketing function. As stated by Feng et al. (2015), social media pages need to be managed by
Tesco very carefully as this is very significant to promote the services and products of Tesco.
Developing the internal communication
There are several employees in Tesco and this can be revealed that all of the employees need to
be understood the company along with its values. All of the employees have to focus on their
organizations goals and they must give their bets to accomplish those.
Serving as the media connection
During the time when Tesco is cited in media, one spokes person will be always there. In
addition they will guides executives in how to respondents for the queries of media.
Carrying out the market research and consumer research
Market research along with consumer research can be considered as very vital for marketing
function of Tesco. The reason behind it can be revealed as this helps to know regarding the
current trends. Apart from that, consumer research is beneficial to identify the needs of
requirements along with the expectation of those consumers from Tesco.
Overseeing the outside agencies along with vendors
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Marketing function can be considered as the aspect, which is typically responsible for choosing
along with managing the vendors and the agencies, those manufacture the marketing materials
along with offering the marketing support. This also covers ad agencies, print vendors, and web
providers.
There are few more responsibilities of the marketing function and those are described below.
The marketing function has the overall responsibilities to increase the revenue of the company,
marketing share along with organizational profit.
Setting marketing strategy
Based on the opinion of Johnson et al. (2017), in order to develop the business and increase
profit a useful and helpful market strategy needs to be applied by Tesco. In this regard, this can
be seen that marketing strategy is very useful and necessary for attracting more consumers along
with increase the rate of sale.
Internal and external development of product
As per the opnion of Wang et al. (2017), development of product is one of the main
responsibilities for marketing function of Tesco. In this regard, this can be seen that product
development is necessary for attracting more consumers along with retaining the existing one.
P2 Explain how roles and responsibilities of marketing relate to the wider organizational
context.
The significant role of the marketing department of an organization is undeniable. With the help
of an effective marketing department organizations are enabled to conduct market research for
gaining a clear understanding of the key requirements of the prevailing market as well as the
customers (Cacciolatti and Lee, 2016). Similarly, the marketing department of Tesco plays a
valuable role in conducting an effective market research in order to gain a deeper insight into the
essential requirements of the existing market along with the customers. However, apart from
conducting a marketing research the marketing department of an organization has a broader role
to play in the organization. The roles as well responsibilities of the marketing department of
Tesco includes the development of marketing strategy, development of customer relationship
management, employee management as well as identification of new business opportunities.
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After the conduct of an effective market research, the marketing department of Tesco takes resort
to the development of proficient marketing strategy outlining the way of promotion of products
as well as services to the customers in order to gain sales volumes as well as maintain a
beneficial position in the competitive market compared to its competitors. After the development
of an effective marketing strategy, the marketing department of Tesco takes resort to incorporate
strategies for the development of effective relationship with the customers for increasing
customer management (Piercy, 2016). Moreover, the marketing managers are endowed with the
responsibility of assigning duties as well as setting targets for the departmental stuff as well.
They take resort the evaluation of the performance of the working staff as well. Furthermore,
they are endowed with the responsibility of analyzing the current demands of particular products
as well as services and incorporate strategies for new business opportunities.
The marketing department of Tesco is endowed with the responsibility of incorporating planning
function, organizational function, leadership function as well as evaluation of functions as well.
In planning function: The marketing department of Tesco is endowed with the responsibility of
development of an effective marketing, determination of the target market of the organization as
well as designing of an effective marketing strategy. Besides, it includes making of product list,
setting up of the programs of product development, development of effective pricing policies,
creation of promotion and advertising programs, deciding about the marketing channel, creation
of a training plan as well as training of the marketing stuff (McDONALD, 2016).
In leadership: The marketing department needs to look after the establishment of negotiation
with the media as well as the public along with providing motivation to the sales people.
In organizational functions: The marketing department of Tesco is endowed with the
responsibility of the organization of effective implementation of programs related to marketing
research. It also works on the declaration of the marketing department’s organizational structure.
It also looks after the working of each operational department, organization of a network of
intermediaries of sales. Moreover, it is endowed with the responsibility of deciding on sales
locations, establishment of relationships with the public, media as well as the government. It
looks after the training of the marketing staff, organization of the transformation system,
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warehouse network, organization of customer conferences, management of the processes for
price changes, promotion as well as improvement of product (Lee et al., 2015).
The marketing department of an organization is seen to have interrelation with other departments
as well. Similarly, the marketing department of Tesco is interrelated with other departments
within the organization including Human Resource Department, Finance Department as well as
production department (Homburg et al., 2017).
The interrelation of the marketing department of Tesco with other organizational department is
as follows:
Interrelation with the Human Resource Department
The accuracy as well as the productivity of a department is developed by the Human Resource
Department. It also looks after the effective training session of the employees. For the
development of an effective marketing team, the marketing department needs to set the
parameters for the training of the employees who are eligible to be in the marketing team. Hence,
it is highly essential for the marketing department to develop effective relation with the human
resource department (Tidd and Bessant, 2018).
Interrelation with the Finance Department
For conducting an effective marketing research, sufficient amount of money is needed. The
transaction of money within an organization is looked after by the financial department. The
financial department is endowed with the responsibility of taking the crucial decision of
providing funding to departments. Marketing department needs huge amount of funding for the
conduct of an effective marketing research, production of commercials, packaging designs,
fliers, designing of logs along with other requirements concerning Tesco. In the markers’ eyes’
financial department is referred to as the backbone of the organization, Hence, development of
an effective relation with the finance department is highly imperative (Feng et al., 2015).
Interrelation with the Product Department
The marketing research is conducted by the marketing department in order to analyze the
requirements of the market as well as the customers and develop products and services
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accordingly. The product development is endowed with the responsibility of developing the
product, which is why it is essential for the marketing department of Tesco to develop proficient
relationship with the product development department (Wilden and Gudergan, 2015).
LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to
achieve overall business objectives
P3 Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives
The marketing process requires an in depth evaluation of the marketing essentials that is required
by an organization. In order to implement marketing practices and gain higher benefits and
competitive advantage for the company, it is essential for them to interpret certain ways of
developing proper marketing skills (Fan et al., 2015). These skills and techniques are pertained
to the usage of various marketing theories that help the company fulfill the objectives that they
desire to. The marketing mix is one such theory that helps the company to gain stability and
strength in the vast sphere of emerging markets. The tool of marketing mix is simply used by
various organizations that help in identification of the company or product offering. The in depth
comparison of marketing mix has been established in this section. The said comparison has been
utilized and compared between the two multinational companies TESCO and ALDI (Goh et al.,
2019). The two companies belong to two different areas. Tesco is a leading retail multinational
company of UK, while Aldi is also a multinational Germany based retail company. Both have a
huge chain of supermarkets that is effective in comparing the marketing mix of the companies.
Marketing Mix with regard to Products in Tesco and ALDI- The product variation and
availability of Tesco is was higher and maintains its stability by expansion of the multinational
retail company in various countries. The product evaluation has been done by consumers that
result in a positive outcome for Tesco (Liu et al., 2017). The product variation in the company
ranges from food, apparels, raw food products, electronic gadgets and many more. The diversity
of the product variation in the company offers a wide range of selection for the consumers. The
approximate estimation of the product line up in the company pertains to almost 40000 and
exceeding. The variation of products also offers great quality that impacts the brand image of
Tesco. The multinational company ALDI lacks in the aspect of wide product manufacturing and
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distribution to their super markets (Massingham and Pomering, 2017). This company still has a
wide variation of products starting from food to electronics and even clothing. The product
supply in ALDI is claimed from other suppliers which are later branded as their own.
Price in TESCO AND ALDI- The pricing strategy of Tesco is one of the main reasons why
they have such diverse consumer force (Priya et al., 2016). These consumers are better suited to
use the Tesco products due to their minimal pricing strategy along with good quality. The
additional attraction in Tesco’s marketing mix in order of price includes the introduction of
Tesco’s club card that avails higher number of offers and discounts to the consumers, and
provides them with scores based on their sales. The multinational company ALDI, also has a
varied range of productions that can help to increase the company’s consumer base. The only
limitation that the company has in comparison to Tesco includes no offer of additional club cards
for their customers.
Place in TESCO and ALDI- The location of Tesco prevails a special place in the distribution of
the company’s products and distribution. The multinational retail company Tesco has distributed
its super market in a location like UK (Rajavi et al., 2019).The location of Tesco helps it in
distribution of different range of super stores and super markets and suits almost every kind of
customers. The brand has suited its distribution of stores based on market space and market
accessibility, therefore it has focused on stores that occupy lesser space and thus the brand can
facilitate a huge number of markets within a smaller range. In case of ALDI, this brand also has a
huge number of stores. But the distribution of this brand’s stores is mostly focused in the UK
market. The stores have a higher benefit in the foreign market place in place of their original
location.
Promotion in Tesco and ALDI- The promotional feature of Tesco is vastly based on providing
higher benefit for the customers. This helps the company to establish offer cards and discounts
through which the brand does its promotion. The promotional features of the brand are also
extended through technology in TV ads and online promotion. ALDI does not have any such
huge aspects of promotion except keeping the price low.
People in Tesco and ALDI- The management of employees in both the companies are quite
similar and they pertain to taking more number of people who can suit their work culture. The
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intake in both the companies is huge due to marketing essentials. The employee force is largely
based on selling of products and understanding the skill of marketing.
Processes in Tesco and ALDI- The transaction and store selection in Tesco is highly useful and
essential for the consumers to select from a huge variation of products (Stead and Hastings,
2018). The customers are readily guided by the people in order to establish a proper relationship
with them. The process in ALDI is quite swift, except the variation is not as much as that in
Tesco. This causes a huge difference in market processes of ALDI in comparison with Tesco.
Physical Evidence in Tesco and ALDI- The physical evidence in Tesco and ALDI has a huge
difference as the products in Tesco are mainly from their own manufacturing factories. However,
the product variation of ALDI is not their own. Almost 30% of the products are taken from other
sellers which are later distributed in the market under their own name.
LO3 Develop and evaluate a basic marketing plan.
P4 Produce and evaluate a basic marketing plan for an organization.
Tesco has come up with the mission and vision in terms of attracting maximum number of
consumers towards the organization. Mission and vision of Tesco ash helped to project the
particular involvement related to the presentation of the Tesco’s marketing plan, which can be
comprehended with the help of inclusion of several factors, which are as follows;
 Projection of marketing mix conveys towards the formation of marketing plan for Tesco
that relates with the better propagation and this highlights in obtaining more numbers of
consumers. Marketing mix can be channelized with the help of 7Ps that belongs to the
part of Tesco’s enhancement. Role of product helps the organization to obtain with
profitable results that build up the marketing plan’s structure for Tesco. Tesco leads to
the path of wide range of productivity across the region more than 40,000 (Rossi and
Krey, 2018). On the other hand, Tesco plays a tactfully in the matter of pricing strategy
that shifts in the economic scale that attract more number of consumers.
 Place plays significant role towards the collaboration of marketing plan for Tesco that
can be developed with the help of placing strategy that tends to reflect the importance of
selected place in terms of gaining more numbers of consumers. On the beneficial
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technique based on the promotion of Tesco’s product that can be obtained with the help
of charity events, implication of discounts and offers that will help the organization to
deal with promotional strategies (Shi, 2018). Physical evidence in Tesco will be reflected
with the help of number of targeted and loyal consumers in the organization. People plays
influential role towards the formation of marketing plan for Tesco that delves to establish
the better relationship between the Tesco’s workers and consumers. In the projection of
marketing mix, process deals with the projection that is based on the procedure followed
by Tesco that tries to achieve sustainability in the international market (Fitriah et al.,
2019).
 The present situation regarding the share of market of Tesco can be illustrated with the
help of presentation of market share. Market share of Tesco can be comprehend via the
range of 30.20%, which ash been reduced by 0.4% (Nadanyiova et al.,2018). The
implication of internal environmental analysis ash helped the organization to come up
with the revelation based on accomplishment of Tesco’s strengths, weaknesses,
opportunities and threats. In terms of SWOT analysis, the strength of Tesco can be
illustrated with the help of 6,784 stores across the border and this has helped the
organization to step forward in the international market.
 Moreover, Tesco has come up with the establishment of more number of stores around
433 in these recent years that has helped to obtain with successful results in the
organization. Strength ash been gained in Tesco due to the projection of proper
management on the part of higher authority. Thus, it can be stated that the collaboration
and propagation of organized senior management of Tesco ash helped to build up the
organization to gain beneficial results (Sánchez et al., 2018). On the other hand, the
organization has been built with the inclusion of certain weaknesses. Weaknesses of
Tesco has been reflected through the means of slow approach on the part of products
such as, books, garments, petrol, furniture etc that delays related to delivery.
 Opportunities and threat can be reflected in the form of taking chance to enter in the
world of digitalization that will help the organization to gain with market expansion.
Opportunities can be demonstrated with the help of inclusion investment that tries to
develop the product styles in Tesco and the organization’s biggest rival is Sainsbury and
others. Market penetration can be demonstrated as a vital part that helps to form the
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