Marketing Plan and Management Strategy for Tesco (Business Report)

This report provides a comprehensive analysis of Tesco's marketing plan and management strategy. It begins with an overview of Tesco's history and its marketing strategies, emphasizing the importance of understanding market trends and customer preferences. The report delves into the application of the STP (Segmentation, Targeting, Positioning) approach, detailing how Tesco segments its market based on demographics, psychographics, and geographic factors. It also examines the 4Ps (Product, Price, Place, Promotion) and 7Ps (including People, Process, and Physical Evidence) of the marketing mix, illustrating how Tesco uses these elements to achieve its marketing objectives. The report further discusses the relationship between marketing strategies and current tactics, offering recommendations for improving Tesco's marketing plan and addressing potential issues. The analysis highlights Tesco's commitment to providing quality products, reasonable pricing, and effective promotional campaigns to attract and retain customers in a competitive market.

Marketing plan and
management strategy

ABSTRACT
The project is based on Tesco to understand about marketing mix of the company. The
company have large operations into the market for which various innovations and
diversification needs to be regulate as per market demand. So that, this report needs to be focus
about marketing plans and strategies for establishing large market with the help of STP
approach. There is need to put highlight on each product promotion and classification of
targeted people. Also, this project will be end with effective recommendation to improve
marketing plan and overcome with issues in TESCO.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION ..........................................................................................................................5
Overview of Tesco and marketing strategies.........................................................................5
Marketing mix of TESCO .....................................................................................................7
7 P's of service marketing mix- .............................................................................................8
Relationship of marketing strategy in current tactics. .........................................................10
Recommendations................................................................................................................11
CONCLUSION..............................................................................................................................12
.......................................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
An organisation considers as an active part of market, through which customers gets
insights and information of new products and services for own use (Cacciolatti, and Lee, 2016) .
They play vital role in serving customers as per their desires. There are a lot of competitors and
market factors that affects an organisation. They work for profit and consumer satisfaction to get
sound growth into market but has to face obstacles and risk to achieve desired goals. There are
immense need to make the product as per trends and customers wants for which proper analysis
and identification of existing market (Akramovich, and Muratovna, 2019). The report is going to
consider marketing factors of Tesco, the company serving their products since around 100 years.
It has their main headquarters in London, UK. The company has expanded on international level
through varieties of product segments such as groceries, healthcare, general stores, clothing and
several others. They have attain huge growth under market by taking fruitful decisions and
implementing effective marketing strategies. In order to understand what strategies could make
the organisation at sound position, the report is going to put highlight on various model like STP
approach, 4 and 7Ps of marketing (Baker, and Saren, eds., 2016).
Overview of Tesco and marketing strategies
Tesco is a leading organisation of United Kingdom that has established into 1919. the
company has first started with a local store with varieties of food items with the efforts of Jack
Cohen. The first step taken for organisation growth was taking dealership with Stockwell. It has
attaining high growth by being a lowest retain and achieve position of third largest retailer into
the world(Yoon, Jang, and Lee, 2016). This has made possible by taking effective decisions of
management and marketing. The owner had concerning with risk and due to positive customer
response, it has decided to expand into market with varieties of products and outlet ( Cawsey,
and Rowley, 2016). Tesco was first opened with a largest retailer in 1930 by opening market stall
and further proceed for another supermarkets. After that, it had started using al the sources which
could help the company in delivering worldwide services. For that instance, online services,
import and exports had taken into consideration. Tesco provide quality products by using
innovative techniques and schemes to attract large number of customers. They use strategies like
providing discounted schemes, run campaign to grab customer attention. Customers are ready to
pay high process for quality products that results to its worth, but Tesco use reasonable pricing

policy which is beneficial for customers and organisation to attend customers loyalty and
retention. Tesco generate various cards schemes and advertising sources in order promote every
single product to get customers excess (Chang, 2016). Also, Tesco ensure what customers could
prefer and their behaviours through which it would get easy to formulate strategies which could
stand at their desires ( Chuang, and Lin, 2017).
STP approach:
An organisation develop various strategies to reach within the area of effective customers
so that their products could get sufficiency supply. It is the approach which is effective into
marketing and required to segment the targeted market as well get a reputed brand name over
rivalry competition. This approach helps in getting the desired market as per new and diversified
products range (Chernev, 2018). Tesco use STP marketing model in an effective manner
through which it could convey desired messages to the targeted audience. Essential points of this
approach are mentioned below:
segmentation: an organisation first in needs to search effective and sound market
through which proper strategies would be formulate for new product promotions (Wang, 2017)
An identification of customer preference and their beliefs of buying are necessary to understand
their needs and wants which they expect from he organisation. Analysing their preference will
make clear vision of getting success into new strategies and product. Companies should first
segment the market for each section of society as per demographic, psychographics, geographic,
lifestyle factors(David, David, and David, 2017),. These are the elements which affects
purchasing power of an individual. Tesco segments their market as per the basis of people age,
income, geographic and demographic factors. Under these segments, tesco focus on all age
category people which have low to high income level for men, women and children. They prefer
to develop urban area and achieved product segment into 13 countries. Due to heavy range of
product items into every categories they prefer to understand each market and produce in
accordance to their beliefs and culture (De Pelsmacker, Van Tilburg, and Holthof, 2018).
Targeting: this process of STP approach involves the procedure of targeting the left out
market. Every individual can efficiently contribute into organisation products and services. So
that, there should always be the approach of understanding each individual and its markets in
terms of demands and wants. After considering segmenting process, there is need to look for the
sources who can pursue it effectively (Goffin, and Mitchell, 2016). It include sound finance and

accessibility to reach to segmented market. Tesco has large number of contacts to marketers who
help them in analysing ,market and people so that segmentation will get success( Doyle, 2016).
The company provide facilities and features as per income level such as there are some stores of
Tesco that provide services at high prices for high income group as they only believe to take
standardised services.
Positioning: positioning refers to the process of segmenting the product in such a manner
that it will give some value to the users and market could get a new variety. Organisation and its
products needs to get superior position into market through which customers could rely upon its
features for continuous use (Elena, 2016). It is needed to run campaign and events to get
audience attention and aware them for the best use of products and services. Tesco runs various
campaigns and techniques for positioning its brand that is functional and symbolic positioning.
Through functional segment, the company mainly sells their product at affordable prices but
due to high income group come up with fine range of product quality that require extra costs.
Whereas, through symbolic positioning, the company does not use irrelevant activity and tasks to
produce goods for which they does not opt cotton production for clothing apparels and sells less
supply in these area(Gershon, 2016).
Marketing mix of TESCO
TESCO is popular supermarket brand in Britain. It engaged a number of consumers and
expand their store across the whole United Kingdom. The company provides better quality
products to their customers at low price(Griffitts, 2016). Marketing mix is the tool of marketing
that is adopted by the organisation to achieve overall marketing objective objectives of defined
target market. It includes product, price, place and promotion. These tools of marketing
regarding the products are discussed below:
Product- A product is a thing that available in the market for customers which satisfy
their needs and desirers. TESCO provides wide range of products to their customers like food,
clothes and electronic products. To buy the product from the company, the customers have to
pay equivalent amount. The organisation expand range of product line to provide variety of
goods to their customer(Isaias, 2016). It also expand the business by online marketing. Every
product of the TESCO is from the great brand. The availability of products are depends upon the
stores near the area.

Price- Price is a amount of money that is paid to consume the specific product. TESCO
tries to set low price of a protect without having any change in quality (Hollensen, 2019). It uses
the various ways to set the appropriate price that are economic in scale for the organisation and
chose the best medium to procure employees to maintain the price low comparatively. The
organisation maintain the relation with suppliers to ensure the efficiency of supply chain.
TESCO cut the promotional cost and other unnecessary expenses to reduce the price of product.
Place- The headquarter of TESCO is in the England. Stores of the respective organisation
are spread across the world. It uses the offline and online channels to distribute their products to
customers. Tesco compact, tesco metro and tesco extra are some offline stores of TESCO. It is
evaluate by the respective organisation that customers are neither feel easy with big store nor it is
possible to open them (Jabbar, 2016). Place or distribution is referred as to provide the product to
right person at right place on right time. The organisation should use the appropriate channel of
distribution, that can ensure the availability of that product at defined time.
Promotion- TESCO use the various medium of advertisement to promote their product
in the market and spread awareness of bran among the customers(Wang, and Kim, 2017).
Television, events and promotional discounts are used by the organisation to attract the prospect
customers. These promotions improve the image of brand and reduce the cost of production of
goods(Kotler, 2016). Easy availability of product and additional discounts are helpful to acquire
loyal customers within the organisation. These offers and discounts on products are provided to
customers.
7 P's of service marketing mix-
In the goods, value of product is set by the combination of four elements that are
marketing mix. In the services the suppliers as well as customers both are being known as
marketing equation(Lancaster, and Massingham, 2017). The consumption of goods is stand for
the services. Services have the different characteristics than the products because they can not be
seen and touch by anyone. Tools of marketing mix is important to analyse all factors that are
related to the business. These marketing mix are discussed below:
Product- The product is referred the thing that is being offered to customers .TESCO
provides various services to their customers along with products. As the organisation sells the
food, electronics and financial services. These services are important for the organisation to

make their position among the customers. Pre as well post services are provide by organisation to
satisfy the consumers need and demands (Litman, 2016).
Price- To set the price of intangible products such as service is a challenges for every
organisation. For the customers, it becomes easy to make relationship between the physical
product and price. As TESCO provides the financial and telecom services to their customers, the
organisation have to take the appropriate decisions regarding the price of the services. There are
various methods are applied by the organisation to set the suitable price structure and interest
rate that particular service( Luthra, and Mangla, 2018). Organisation should set the price
according to the customers. If the price is respectively high, customers can switch the company.
Promotion- Every organisation use various communication tools to to inform and
persuade the customer, so they act favourably. TESCO use advertisement, personally selling and
publicity to enhance the brand image. All the services are provided by the respective
organisation is promoted in appropriate manner, it creates the knowledge among the customers.
These services are intangible nature (McCollough, and Shook, 2016). Basically there is no
difference between the buying of goods or services because in both of them the consumer have to
take proper decision. All the information that is available through the promotion plays important
role in pre- purchase stage.
Place/ distribution- distribution is very important for the organisation to ensure that their
product availability to customers. Basically it is the process to make product available to right
person who needed that at right time and suitable place. The transportation of services is not the
same as the products. It is the movement of services from the place of production to consumption
but in the services the production and consumption place are same because the services can to be
store for the future use(McDONALD, M.A.L.C.O 2016). TESCO use various channels of
distribution to distribute their services to consumers. These channels are exclusive, selective and
intensive distribution.
People- In various cases the the service creator and customer come in direct connect with
each other. Such as the financial service that is provided by the TESCO, these services are
required to customer and employee connection(Oyefesobi, and Alao, 2017). There are various
problems are raised regarding the service, they can be resolved by the physical interaction of
service provider and consumer. The intensity and duration is different according to the need.

Almost 420,000 people are working in the TESCO currently. These employees provide better
services to the organisation that help to achieve objectives.
Process: this step of marketing mix is related with the organisation strategy of making
connect with customers in terms of delivery, getting payments and distribution services. Tesco
has online facilities and process of paying through one click and get easy asses over delivery
through multi channels(Park, S., 2020). Their production and distribution process has efficient
functioning due to highly skilled labour forces and professional experts to take multiple orders.
They first analyse what channels and promotional tool is cost efficient which elements extra cost.
Performance: another last step of marketing mix, it consist significance for effective
productivity in terms of boosting growth and success. It includes factors of product value into
market, which assess how the company provide value and worth products in terms of price and
quality. Tesco main aims at high quality with reasonable products which is it best known for.
They are influenced with customer retention and their response. They indulge process of getting
feedbacks to take the modification as per their wants (Perreault, 2018). They must ensure they
would not left out with opportunity and suggestions that are relevant for productivity.
Relationship of marketing strategy in current tactics.
Marketing strategy has become a crucial factors to take into consideration for success and
growth of company. Marketing is essential as to earn profit(Stukalina, 2019). It is a part of
organisation function which consist value in terms of reaching to customers. Marketing makes
the work easy and approachable to the large number of people. When organisation think of
producing product it should always be prepare with how it would accept by people and what
does it need to make the best of all. Marketing managers play vital role in getting the things
done by evaluating appropriate strategies(Pinto, and Yagnik, 2017). Tesco has commencing its
business from several years ad attain good understanding of market. For that instance they use
various policy and strategies to stand at a first position. They use approach of marketing mix and
build product, price, promotion on the basis of reliability and customer preference. Their
strategies mainly aims at customer satisfaction and cost-efficient factor. The company make
products with high quality and set price as per the value and worth. The company currently
focusing on building promotional strategies through online channels and convert their offline
manner into online(Ras, Mathafena, and van 2017).

At past scenario, they focused on paid advertisement through TV, press, cinema, radio
whereas, in order to reduce cost and influence on quality, it aimed at building online selling with
the view to gain large followers (Steenkamp, 2017). Tesco recently needs to diversify their
products into farm and dairy products in supermarkets, due to high demand of customers and
their health concerns. To make these products with a new perception, Tesco has decided to
launch new products and design that will reflect a unique selling aspect in high quality
packaging(Ritchie, and Jiang, 2019). One wrong move of marketing strategy could lowers the
level of customer efforts in purchasing that happened with Tesco in years of 2012. in order to
rebuild the brand, the company has now established with customization delivery where they
promote their services with attractive products as designed as people demand to make their
occasions more special (Smaliukienė, and Petrauskaitė, 2018).
Recommendations
As it is the fact that marketing has played incredible role in organisation fluency and
smooth functioning. There s high need to focus on building effective marketing strategy and
remove all the negative factors that influenced on organisation productivity and profitability. The
company has established with several changes by creating new product lines and changes into
pricing level. Tesco need to diversify their range of product through analysing market and clear
out influence on understanding the market to the full extent. Marketing mix consist important
steps and principles that must be assisting into practical manner.
Promotional tools have to be utilised effectively by knowing the exact results and how it
will be beneficial for tesco. Focusing on companies present scenario, the company includes
another varieties of product into farm and dairy products. To get success into these
diversification, Tesco must categories the market into smaller sections as per their interest and
income level. Not all people are same and have different opinions over pricing policy. Some of
them think lower prices mean low quality and for that instance, price needs to be at middle level
not so much low and not so much high. In effect with these changes, every level of individual
would be showing interest into organic products. There are high competition into market like
Aldi, Asda which continuously focus on taking one step high from Tesco, so that company will
ensure about competition level and make the modifications in according to their strategies. There
are following points that must be taken into consideration for Tesco:

 prepare online tactics and hire effective individuals who could take handle online
sources an campaigns.
 Put money in online promotions rather than advertising or articles.
 Provide new products as a sample for free use to aware customers about its features and
suitability.
 Tesco must influence wit h market factors of place by opening outlets at every local
streets.
 The company must use discounted scheme for new product line for making promotions
until it get a good brand value.
 Make use of drone and robotics software to be innovative in delivery and grab large
customer attention.
CONCLUSION
It has clearly concluded that marketing played vital role in promotion, distributing and
making connections with general public. Make understand of customers behaviour and their
preference is essential to know about their ants. For that instance, the report has concluded with
effective strategies through STP approach and marketing mix in order to make changes and
accept new formation of diversified strategies.

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