Marketing Report: Tesco's Functions, Segmentation, and Research

This report provides a comprehensive analysis of Tesco's marketing strategies. It begins with an introduction to marketing functions, market segmentation (demographic, behavioral, and geographic), and the 4Ps of marketing (product, price, place, and promotion). The report includes a discussion of research conducted on the role of social media in promoting a new range of formal wear, including research questions, a literature review, and an overview of research methods. Data analysis, including a frequency table, is presented to interpret the findings. Furthermore, the report incorporates SWOT and PESTEL analyses, as well as a section on e-marketing and how companies manage their online image. The report concludes with a summary of the key findings and recommendations.

MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1 Marketing functions..........................................................................................................1
1.2 Market Segmentation with examples...............................................................................2
1.3 4P's of Marketing with example.......................................................................................3
2.1 Conduct an actual research...............................................................................................3
2.2 Research methods used.....................................................................................................5
3.2 Data analysis.....................................................................................................................6
Frequency table......................................................................................................................7
Interpret the findings .............................................................................................................7
Conclusion............................................................................................................................12
3.3 Present the findings........................................................................................................12
2.3 SWOT analysis...............................................................................................................13
4.1 E-marketing ...................................................................................................................13
4.2 Explain how companies manage online image..............................................................14
3.1 PESTEL analysis of the product.....................................................................................14
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17
.......................................................................................................................................................18

INTRODUCTION
Marketing is considered as an activities that is undertaken by firm to promote purchasing
or selling of goods or services. This involves advertising, selling as well as delivering products to
customers or another enterprises (Armstrong and et. Al, 2018). Moreover this is the business
procedures of developing relationships with consumers and satisfy them. In general terms,
marketing is the set of institutions, activity as well as methods of communicating, delivering and
exchanging offerings which has value for clients, partners and society at large. For this report the
chosen company is Tesco which is a leading British multinational groceries as well as general
merchandise retailer. Its headquarters is in Welwyn Garden City, UK. The purpose of this report
is to explain the market functions, segmentation and 4P's of marketing. Research is conducted
and its methods as well as findings of its. SWOT and PESTLE analysis for the product and E-
marketing. Apart from this how firms manage the online image are also mentioned in this report.
1.1 Marketing functions
Marketing functions is considered as the role that aids firm to find out as well as source
possible successful goods for the market area they perform them through distinguishing them
form same or likely products. Herein Tesco use some functions of marketing that are mentioned
below:
 Conducting Market Research: Market research is considered as the procedures of
ascertaining the viability of new products or services by research performed directly with
potential consumers (Blythe and Martin, 2019). This function of marketing functions
helps firm to identify the target market as well as obtain perception and another feedback
from clients regrading its interest n products or services.
 Product development: This includes the modification of present products or their
representation or formulation of an whole new product which satisfy the new consumers
demand or market niche. With the help of this Tesco can diversify the ranges of target
consumer as well as extent into new market segment.
 Analysing Target Market: This functions of marketing permit firm to segment the
market as per identifiable characteristics like area, hobbies, age etc. By analysing the
target market Tesco able to identify the various kinds of consumers who are interested to
purchase their products or avail services.
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 Promotions: This is one of the essential marketing functions. Promotion is considered as
the set of activities that is used to communicate the goods, brands or services to the
customers. This marketing function used by Tesco to enhance awareness, develop interest
, produce sales or improve brand loyalty.
1.2 Market Segmentation with examples
Market segmentation is considered as the procedures or dividing a market of potential
clients into groups or segment depends upon various characteristics (Bowie and et. al., 2016).
Tesco market segment are mentioned below:
 Demographic: This divides the market as per the demographic variables such as gender,
religion, family size and so on (Market segmentation of Tesco. 2019). It is considered as
the most common practice of segmentation within the marketers. This is mostly seen into
whole sectors such as manufacturing, auto-mobiles etc. For example: the company Tesco,
for their product Tesco Technika they perform the demographic segment that are
mentioned below:
Gender Both male and females
Occupation Workers, professionals, students.
Social status Middle and lower middle class, working class etc.
Age All age group
 Behavioural: In this segmentation, company segmented the market as per the consumer
behaviour, uses, tastes, preferences and so on. For example: for tesco technika tv, they
perform the behavioural segmentation that re mentioned below:
Attitude Positive
Occasions Regular
Benefits sought Variety, cost advantage
 Geographic: This divides the market as per the geography. It is considered as the
essential market segment for the marketer as individuals who belongs from various
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regions many have different needs. For example: For the product Tesco Technika TV,
they also segment the geographic are which are mentioned below:
Density Urban as well as rural
Region United Kingdom and approx 13 other countries.
1.3 4P's of Marketing with example
Marketing is considered as the procedures of attracting potential clients as well as
consumers in firms goods or services (Brennan, 2014). There are 4P's such as products, price,
place and promotion. All these are mentioned below:
 Product: Product is considered as the products and services which are provided to the
consumers for sales as well as are capable to satisfy its demands. For example: Tesco
facilitates a huge variety of products involving electronic, stationery, food, clothing etc.
also it have their own products such as Tesco Lotus, Tesco value and so on.
 Price: This is considered as the amount that a clients pays to obtain the expected goods
or services. For example: Tesco use the cost leadership pricing strategy so that they can
maintain the low prices without compromising with quality.
 Place: This is considered as the simple availability of goods into target market place. It
implies that appropriate market channel is to be selected in order to reach the clients. For
example: Tesco utilises the two essential distribution channels such as offline and online.
It have approx 6, 809 offline stores with various kinds like Tesco Home plus, Tesco
Metro etc. Its online business of the firm is known as Tesco Direct.
 Promotion: This implies the marketing communication as in advertising the goods to
communicate its features (Burchell, Rettie and Patel, 2013). For example: Tesco
promotes their products or services with the help of newspapers, televisions as well as
another media outlets for communicating their message to consumers. Also, it use
another types of sales promotion.
2.1 Conduct an actual research
Research is the process through to collect information for the purpose of interpretation
and providing valid conclusion. Hence this helps to get in- depth knowledge about different
factors covering aims and objectives. There are many activities which has to be followed by
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researcher for conducting research such as introduction, setting aims and objectives, literature
review, data analysis, etc. With the help of these activities, there is proper and in- depth
discussion about research topic and get proper recommendations and conclusion (Huang and
Sarigöllü, 2014).
Title:
Role of social media platform in order to promote new range of formal wear that help
in increasing business sales. A study on TESCO PLC.
Research Aim:
To determine the role of social media platform in order to promote new range of
formal wear that help in increasing business sales. A study on TESCO PLC.
Research Objectives:
 To ascertain impact of social media on sales of TESCO PLC. To determine the importance of social media for promoting new range of formal wear.
Research Questions
 What is the impact of social media on sales of TESCO PLC? What is the importance of social media for promoting new range of formal wear?
Literature review:
Impact of social media on sales of TESCO PLC
There is positive impact on sales of TESCO PLC with use of social media techniques
because majority of population is using social media techniques and they are able to compare
prices of different brands. While launching new product range, it is easy to frame marketing
policies for attracting targeted consumers. When people have knowledge about features and
characteristics of formal wear, then they are ready to purchase products. According to Atanu
Shaw (2019) with the help of social media techniques, discount offers can be communicate in
effective manner, so sales will affected positively.
Importance of social media for promoting new range of formal wear
According to TJ McCue (2019) Social media platform includes Facebook, Instagram, etc.
which is the source for interacting with external people. TESCO PLC is able to interact with
consumers frequently and able to make communicate about new range. So this enhance brand
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awareness among consumers which increase market share in industry. While launching new
range of formal wear, people are ready to buy it because of attracting discount offers. Social
media is one of the effective promotional tools because this is the cost effective technique
through social media account. So with the help of social media tools managers of TESCO can
easily market formal wear.
2.2 Research methods used
Research is the process through which in- depth study of topic is done with consideration
of different tools and techniques. In research some issues are discussed which can be resolved
which provides some conclusion and recommendation at last. Research methodology is the
section in research under which different tools and techniques are discussed such as method of
research, sources of data collection, etc. With the help of this section, reader is able to understand
which tools and techniques are used and justification behind it. Some tools and techniques are
discussed as under-
Research approach- Research approach is the planned way which describes steps for
conducting investigation. This is the best way to get broad idea about different techniques used
for conducting research. There are two types of research approach i.e. inductive and deductive.
In this investigation, inductive research is used because this focus on every small aspects and
then focus on major concepts. Hence this is effective for achieving research aims and objectives.
Type of investigation- Research is time consuming process because it covers different
activities so it as to be done in effective manner. There are two methods of conducting research
i.e. qualitative and quantitative research. In this investigation, qualitative research method is used
because this represents collected information in pictorial format. So it is easy for reader to
understand it (Leeflang and et.al, 2014).
Sources of data- There are two sources of information i.e. primary and secondary
sources. Under primary sources information is fresh because this is collected by researcher
through respondents. Questionnaire is used to collect primary research. Questionnaire is the set
of questions related to investigation problem to get knowledge about mindset of respondents.
While secondary information is collected through online sources, books, journals, etc. which is
already collected by someone else. In this study, both the methods are used so this gives deep
analysis about research topic and able to provide proper recommendations to market new range
of formal wear in effective manner.
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Sampling- Sampling is the process under which some individuals are selected for taking
their views on social media, it is not possible to collect data from whole population, hence some
individuals are selected as samples to collect overall idea about mindset of targeted population.
There are two methods of collecting samples i.e. probability and non probability sampling.
Simple random probability sampling is used to collect views of candidates. Under this method,
there are possibilities that any individual can be selected as respondents (Lovelock and Patterson,
2015).
3.2 Data analysis
Data analysis is the process to systematically collect, organise and represent data. This is
the section on he basis of which data interpretation is done. Thematic approach is used to analyse
data to get correct and appropriate outcomes. Primary data is collected from 10 managers who
have knowledge about impact of social media on TESCO PLC sales.
QUESTIONNAIRE
Q1) Do you have knowledge about concept of social media?
a) Yes
b) No
Q2) What is the impact on social media on sales of TESCO PLC?
a) Positive
b) Negative
Q3) What is the importance of social media for promoting new range of formal wear?
a) Improving sales
b) Enhancing consumer base
c) Cost effective promotional tool
Q4) Which of the following social media is effective for sales of TESCO PLC?
a) Facebook
b) Instagram
c) Twitter
Q5. What are the challenges faced by managers of TESCO PLC while marketing through
social media platform?
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a) Frequent up- gradations
b) Lack of training
c) Impersonal relations with consumers
Q6 Recommend some ways through which social media assists in improving sales?
Frequency table
QUESTIONNAIRE
Q1) Do you have knowledge about concept of social media? Frequency
a) Yes 7
b) No 3
Q2) What is the impact on social media on sales of TESCO PLC? Frequency
a) Positive 8
b) Negative 2
Q3) What is the importance of social media for promoting new
range of formal wear?
Frequency
a) Improving sales 5
b) Enhancing consumer base 3
c) Cost effective promotional tool 2
Q4) Which of the following social media is effective for improving
sales of TESCO PLC?
Frequency
a) Facebook 6
b) Instagram 3
c) Twitter 1
Q5. What are the challenges faced by managers of TESCO PLC
while marketing through social media platform?
Frequency
a) Frequent up- gradations 4
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b) Lack of training 3
c) Impersonal relations with consumers 3
Q6 Recommend some ways through which social media assists in improving sales?
Interpret the findings
Theme 1: Concept of social media
Q1) Do you have knowledge about concept of social media? Frequency
a) Yes 7
b) No 3
Interpretation- AS per above picture, it is clear that out of 7 respondents have knowledge
about social media platform and its usage. But remaining 3 individuals does not have knowledge
about it. Hence it is interpreted that it is important to create awareness among employees, so
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a) Improving sales
b) Enhancing consumer base
c) Cost effective promotional tool
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5
3
2 Frequency

managers of TESCO PLC can use social media techniques for market new range of formal wear
properly.
Theme 2: Impact on social media on sales of TESCO PLC
Q2) What is the impact on social media on sales of TESCO PLC? Frequency
a) Positive 8
b) Negative 2
Interpretation- Above graph shows that there is positive impact on sales of new product
according to view of 8 individuals. While 2 candidates says there is negative impact. So it is
interpreted that there is positive impact because with use of social media platform it is easy to
cover more consumers for the purpose of marketing and taking their feedbacks.
Theme 3: Importance of social media for promoting new range of formal wear
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a) Positive b) Negative
0
1
2
3
4
5
6
7
8
8
2
Frequency

Q3) What is the importance of social media for promoting new
range of formal wear?
Frequency
a) Improving sales 5
b) Enhancing consumer base 3
c) Cost effective promotional tool 2
Interpretation- social media is important for promoting new range of product because it
assist in communicating with more target audience. Hence as per view of 5 managers there is
improvement in sales with use of social media, 3 candidates says consumer base gets improved
because get knowledge about TESCO PLC brand. At last 2 managers says it reduces cost of
promotion because this is cost effective tool. So social media technology is effective for
improving sales of new range of forma wear at TESCO PLC
Theme 4: Effective social media tool
10
a) Improving sales
b) Enhancing consumer base
c) Cost effective promotional tool
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5
3
2 Frequency

Q4) Which of the following social media is effective for improving
sales of TESCO PLC?
Frequency
a) Facebook 6
b) Instagram 3
c) Twitter 1
Interpretation- There are different social media tools such as Facebook, Instagram, etc.
As per view of 6 individuals, Facebook affects sales, 3 individuals says Instagram have
influence, 1 manager of TESCO PLC says Twitter have influence. So it is interpreted that
majority of consumers use Facebook for the purpose of marketing of new range of formal wear.
Theme 5: Challenges faced in implementation of social media platform
Q5. What are the challenges faced by managers of TESCO PLC
while marketing through social media platform?
Frequency
a) Frequent up- gradations 4
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a) Facebook b) Instagram c) Twitter
0
1
2
3
4
5
6
6
3
1
Frequency

b) Lack of training 3
c) Impersonal relations with consumers 3
Interpretation- There are different challenges which is faced by managers of TESCO
PLC while using social media techniques. As per view of 4 manager negatively affect because of
frequent up- gradations, 3 candidates says there is lack of training and remaining 3 candidates
says it is not possible to maintain personal interaction with consumers. So sometimes this is
affects sales of product.
Conclusion
From the above discussion, it is clear that impact of social media is effective for
improving sales of new range formal wear at TESCO PLC. This research assist to know about
different issues such as lack of training, frequent up- gradations, etc. which affects marketing
activities through social media technology. So it is important to deal with those issues and make
strategies properly to get positive impact on sales and profits. There is use of primary and
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a) Frequent up- gradations
b) Lack of training
c) Impersonal relations with consumers
0
0.5
1
1.5
2
2.5
3
3.5
4
4
3 3
Frequency

secondary data for collecting information. Questionnaire is used as primary source of
information.
3.3 Present the findings
Majority of respondents says that there is positive impact on sales of formal wear with
use of Facebook because majority of consumers use it. Social media techniques are cost effective
which helps to cover more consumers. There is requirement of training to employees, so they can
use it in effective manner and able to market new range of formal properly which gives positive
impact on sales of TESCO PLC.
2.3 SWOT analysis
SWOT analysis of TESCO PLC is as under-
Strength- TESCO PLC have strong digital market department through which managers
can implement social media techniques in better and effective manner. This assist to improve
communication with consumers which has positive impact on sales (Malhotra, Birks, and Wills,
2013).
Weakness- There are regular up- gradations in social media techniques. Employees at
TESCO are not flexible enough to work with deal with them. So this is the greatest weakness
which affects working style of TESCO PLC in advertising new range of formal wear.
Opportunities - Marketing through social media will provide an opportunity to TESCO
PLC of saving lot of money and time. There is reduction in promotional cost and with digital
platform new and innovative ideas marketing strategies can be used. Apart from this it will tap
maximum number of consumers. With online sources, consumer can get knowledge about new
range of formal wear instantly, hence there is improvement in sales of TESCO PLC.
Threat- Due to poor climatic condition, there is of loss of internet connection. This is the
biggest there for TESCO PLC because there is negative impact on connectivity with consumers.
Apart from this there is threat of data loss and confidential information of organisation may get
revealed (Rowley,2016).
4.1 E-marketing
E-marketing is considered as the procedures of marketing a product or services utilising
the Internet. This not only involves marketing on Internet. It also called the digital marketing,
web marketing, internet market and many more (Burns, Bush and Sinha, 2014). This help Tesco
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to develop strong relationship with clients or potential consumers. They also uses some e-
marketing tools which are mentioned below:
 Blogging: This is considered as the procedures top reach firm business, target market by
using blog. Various owners of the business utilises a blogging platforms like WordPress
for both its site as well as blog. As it becoming popular day by day so Tesco can also use
this type e- marketing promote and develop their business.
 Social media: This is considered as the type of e-marketing which includes developing
as well as sharing content or information on social media networks for attaining their
objective relating to branding and marketing. Tesco can use this to keep connect with
their consumers, enhance awareness regarding its brands as well as maximise their sales
and leads.
4.2 Explain how companies manage online image
Now a days, online image is essential for attracting more number of consumers. So,
Tesco can manage online image by following ways:
 Facebook: For managing the online image, Tesco can concentrate most efforts on their
firm's Facebook. As in this more than 1.44 million active viewers per month. Moreover,
they can operate their Facebook page so that more number of people get attracted and
know more about their company.
 Respond to bad reviews: In case any one are putting bad reviews in for the company's
websites or products immediately they have to respond to that why it is so (Churchill Jr,
2017). Through this Tesco can manage their online image as customers issues are
identified and resolved easily which enhances their online reputation.
3.1 PESTEL analysis of the product
Tesco is an multinational organisation deals in retail sector and a large product portfolio
and planned to expand its market. Expansion is very important for an organisation to remain
always competitive in marketplace so it planned to launch formal wear in market of UK. So
before expand in market external analysis is very much important to reap out important insights
while come out with a new product (Constantinides, 2014). Here are the description of external
environment of UK that are as follows:
Political factors:
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Tesco which is an multinational organisation and has stores in almost 12 countries with
large product portfolio. It aimed to come in formal wear. The political power of UK influence
performance of Tesco in which includes taxes, rates and legislation affects on their profitability.
It suffer from effect of Brexit on their prices resulting in pound deviation affects on their
business proceedings. So all facts affect on their business in both positive and negative way.
Economic factors:
In economic factors that impact in both positive and negative way on business as Tesco
planned to launch a new product range that is formal wear in market of UK. In period of
economic boom it affect on disposable income of people. That helps in enhance clothing that
enhance sales of clothing manufacturers of both whole sellers and retailers in best way. On other
way recession affect on their business in negative way and retailer stuck stock of inventory in
large amount that negatively affect to business of Tesco and consumers also.
Legal factors:
A large no. of legal factors affect on their business of both small businesses and large
giants in clothing industry. Clothing industry suffers from various laws that are workers rights
and child labour laws (Czinkota and Ronkainen, 2013). Union workers in clothing industry at
time of Tesco planned to enter into that market that employees pick out from employment if they
get less wages in comparison to same industry.
Technological factors:
Technological market majorly affect the business of clothing industry in which
availability of resources, demand and supply function of consumers many more. While entering
into market organisation have to be self sufficient in technological perspective by encounter
shortage of raw material to lead in market in proper way. In context of Tesco they have to adapt
machinery that give best results but due to changing nature of market and consumers become
more demanding.
Social factors:
In clothing industry consumers become more demanding and their needs constantly
changing (De Mooij, 2018). For Tesco to operate in effective manner have to build schedules
and deliver products as fast as much possible. In UK now referred as Fat man of Europe that
almost people become obese or overweight. The organisation which builds plus size products can
easily operate in marketplace.
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Environmental factors:
Recent trends in UK influence their market of clothing retail industry because people day
by day become so much environmental conscious and demands products such as packaging in
paper and recycling of products and materials (Grönroos and Gummerus, 2014). In context of
Tesco which planned to expand in market they have to keep all these measures so that best
consumer satisfaction should be delivered.
CONCLUSION
From the above report it has been concluded that marketing is essential for the companies
in order to attain goals and objectives of the firm. Product development, analysing the target
market, promotion etc are some marketing functions. Firm use the geographic, behavioural and
geographic market segment. Moreover, products, price, place and promotion are 4P's that are
helpful to decide distribution channels, pricing strategy etc. research is conducted for new
products as well as SWOT and PESTLE is done for respective product to know their strengths,
weaknesses etc.
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