Tesco's Marketing, Sales, and Negotiation Strategies and PESTLE

This report provides a comprehensive analysis of Tesco's marketing, sales, and negotiation strategies within the UK retail industry. It employs PESTLE and SWOT analyses to evaluate the external environmental factors and internal strengths and weaknesses impacting Tesco's performance. The report examines Tesco's marketing mix, including product, price, promotion, place, people, process, and physical evidence, offering recommendations for improvement in each area. Additionally, it includes a reflection on the author's experience observing Tesco's sales and negotiation practices, highlighting areas of strength and potential development, particularly in problem-solving and emotional intelligence skills. The report concludes with recommendations for Tesco to enhance its negotiation skills and overall market position, emphasizing the importance of adapting to changing consumer preferences and technological advancements.

MARKETING, SALES AND
NEGOTIATION

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
TASK -1...........................................................................................................................................2
PESTLE analysis.........................................................................................................................2
SWOT Analysis...........................................................................................................................5
Marketing mix.............................................................................................................................5
Recommendations........................................................................................................................6
TASK – 2.........................................................................................................................................6
Reflection.....................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
1

INTRODUCTION
Business marketing refers to the process of promoting and spreading awareness about the
product and services among the people. The marketing play essential role in the increasing the
value of the company in the marketplace. It gives assistance in attracting large numbers of the
customer from domestic as well as international marketplace The present report is based on the
UK leading organisation TESCO which is a retail industry. The Tesco deliver grocery product
and services to the consumer in order to satisfy them. With the help of marketing the Tesco is
generating higher profit from different marketplace. The report will examine the marketing
environmental analysis that include PESTLE and SWOT analysis of the retail industry and Tesco
company.
MAIN BODY
TASK -1
PESTLE analysis
Factors Description Impact
Political factor The profitability and growth is affected by the
polices of political or the ruling authority of a
country as it includes rules and regulation
which is imposed by the authority for export
and imposed of good as well as services of the
company. The imposed duties are different for
every country due to that the company has to
pay the taxes of good and services as per the
taxes duties which increase the price of the
commodity along with that the organisation is
offering financial support to the retail industry.
Along with that the company is not able to
make decision without considering the
government policy and procedure which
include the safety and the securities reasons
The stable political party deliver the extensive
For instance, the Tesco is the leading
company of the United Kingdom
which is having great value in the
internal as well as international
marketplace. As the company is
ruling the international market
effectively the organization is
affected by the various political
factor. (Adamyk, 2019).
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support to the retail industry in leading the
marketplace.
Economic
factor
The economic factor is the most essential
factor that need to considered before launching
or operating the company in the marketplace.
The changing in the prices of the currency
affect the organization as it increases and
decreases the price of the commodity.
Moreover, it changes the buying preferences of
the consumer as the people prefer to buy the
product in cheap price with the good quality.
The United Kingdom is the developed country
because of that the organization acquire the
financial support from the country and able to
deliver good amount of wages to the working
people (Caliskan, Özen,. And Ozturkoglu,
2020). Along with that the people of UK are
having the good household income, so they are
able to spend money on the commodities
easily.
Due to the economic factor the Tesco
is providing adequate salary to the
employees. Apart from that the
company is able to deliver product
and services at minimum prices to
the large numbers of the customers.
Social factor: In the modern era the people are largely
depend on the marketing trend which is
changing day by day. That shuffle the buying
preferences of the product and services in the
marketplace. The current social trend of using
online platform for buying and selling goods
and services affecting the growth of the
organisation.
The Tesco is able to deliver more
information about the productivity of
the company. In order to satisfy the
consumer, the organisation provide
variety of the product and services to
the buyers and follow all the
marketing trend that attract the
customers and increase the
sanctification of every individual.
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Technological
factor:
Due to COVID 19 the people of the different
market started by the product and services
from the online stores because it delivers the
extensive comfort to them. The technology
keep changing and coming up with the new
innovation which increase the demand for the
creativity of product and services. As the
innovative technology available in the
marketplace the company is utilizing the online
platform in order to satisfy them effectively.
Along with that the organization use
the loyalty card for increasing the
comfort and satisfaction of the
consumer. The organization utilized
the online platform for marketing the
product and services of the company.
For example, the company is using
Facebook, Instagram, Gmail, chrome
and website etc.
Environmental
factor:
The peoples of the nation are becoming
conscious about the environmental issue. The
potential customer in the marketplace avoid the
product and services that hit or affect the
environment badly. In order to that the
organization launch the recycling plans, for
having the sustainable environment
(Christodoulou and Cullinane, 2019.). Along
with that the company removed the plastic in
billions from the country to provide
environmental precautions.
Moreover, in order to attract the
customers, the company promise to
the consumer that by the 2030 the
company will provide 100%
environmentally friendly product and
services all over the world. In order
to take the environment friendly
initiative, the organization decreases
lots of the product which is affecting
the environment.
Legal factor The changes in the rules and regulation of the
country which is imposed by the authority
affect the operating function of the company.
For leading and operating the stores in the
different country the organization supposed to
follow all the rules and regulation effectively.
For instance, the organization is not allow to
deliver the wages which is against the rules set
by the authority.
On the other hand, the company is
not allowing to make any kind of
discrimination against the people that
belong to different cast, religion,
gender, and level of the income.
4

SWOT Analysis
Marketing mix
Marketing
Tactical Tools
Current Strategy (based on each P)
applied by your chosen organisation
(add some related theories/concepts
to underpin your understanding
when needed)
Your evaluation/argument on the
effectiveness of each marketing tool
currently applied by your chosen
organisation
Product Tesco continuously invests in the
research and development for the
developing innovative and useful
products.
The product development strategy
used by the company really works in
the favour of the company as it
provides an idea for the need of the
customers as well as what can be
created in order to enhance the
growth.
Price Tesco follows cost leadership
strategy.
It provides Tesco with competitive
advantage by providing the lowest
cost possible (Hamilton, and
Webster, 2018 ).
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Strengths
 Tesco has a strong product portfolio
and sells its products and services
worldwide.
 Because of the wide range of products
and services offered by Tesco, it has a
wide and diversified portfolio of
customers across the world (Dumon,
McDonald, and Schmitz).
 Tesco has the license of various
technologies and technology under
progress which adds to the strength of
the company and attracting more
clients.
Weaknesses
 One of the major drawback of Tesco can
be improper inventory management. Tesco
paid a fine £175,000 due to holding of
inventory 15 days past its date of expiry.
This affects the market image of the
company.
 Tesco needs to work on its quality control
measures as there has been a record of
customer complaints which states there is a
scope of improvement.
Opportunities
 The increase in the unemployment in
other sectors can work in favour of
Tesco as it can the new workforce and
fuel its own growth.
 Tesco can analyse the markets of
various countries and move ahead
with the option of strategic acquisition
Threats
 Due to the UK-EU relations, the free trade
agreement between the two might get
hampered (Etareri, ).
 The exit of Britain from the European
Union has affected the supply chain under
the supermarkets industry.

Promotion Tesco trails the pull strategy of
promotion (Soegoto, 2021)
It helps Tesco in creating demand for
the products among the customers.
Place Tesco uses online as well as offline
channels of distribution.
This helps Tesco with wide range of
customers.
People Tesco is a source of survival to about
4,00,000 people across the globe.
These employees are used in
different department and are one of
the major contributors of success.
Process Tesco uses the STP model (Hanaysha,
Al Shaikh, and Alzoubi, 2021).
This model is helpful in the
implementation of marketing
strategies on the basis of small
groups of consumers.
Physical
evidence
It includes tangible products offered
by Tesco, its logo, website, and the
content which is available on the
website.
All of these help Tesco in improving
its brand visibility and gaining
customer engagement.
Recommendations
Marketing Tactical Tools Recommendations to each P
Product Bringing creativity in new product not always works, therefore
it should focus on improving existing products.
Price In order gain high income oriented customers, Tesco should
change the pricing strategy.
Promotion Tesco can also make use of Push strategy.
Place It can focus on the regions based on its target customers.
People Employ people from different background and provide a room
for new ideas.
Process Tesco needs to more specific while targeting the customers.
Physical evidence Use of email marketing to enhance brand visibility.
TASK – 2
Reflection
Description
As per my understanding of the company while working with the industry expert, the
management of the company carries out the process of sales and negotiation with a number of
skills. The negotiating skills that I recognized include communication skills, formulation of
different kinds of strategies as per the requirement of the situation, problem solving behaviour,
emotional intelligence, and persuasion. Similarly, the selling skills of the company that I
identified include conducting buyer research, identifying the purchasing patterns of the
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consumers, evolving the product knowledge in order to increase the customer base as well as the
growth of the company.
Feelings
It was great experience for me as I learn so much thing from the company and encourage myself
to become professional. At that time I feel that Tesco has a great work environment within its
organization. It allows people from various cultural backgrounds to work together. It focuses on
providing a safe, happy and healthy workspace for its employees.
Evaluation
From my perspective, Tesco is well versed with the tactics of selling and negotiating in
the market. The staff of the Tesco are good at communicating with their customers and
explaining about the details of a specific product, but they their problem solving skills were not
up to the mark. There is a scope of improvement under their problem solving skills. The
problem which appeared in front me were due to the mismanagement of inventory maintained by
the organization. According to my evaluation, the research and development team which takes
decisions related to product development and conducts various researches for the same helps the
company in enhancing its sales and contributes to the organizational growth (Khanta, and
Srinuan, 2019). But, I think the needs to focus building emotional intelligence skills for
enhancing the sales and negotiating skills of the company.
Analysis
According to me, the communicating skills of the employees were good because they
were confident about selling those products and for the same they were ready to share their
knowledge about the particular product in order to influence the consumers. However, problem
solving skills of the employees were not because of the situations. The complaints of the
consumers were regarding the quality of the product and not removing the expired food products
from the shelves (Moura, 2021). Under this situation, the company was at fault and they had no
justification in order to clarify the mistakes.
Conclusion
From the above analysis, it can be concluded that in order to be considered as a
successful organization in the market, it is important to focus on each and every skill of selling
and negotiation. Therefore, the company needs to focus on improving its current skillsets which
includes improving problem solving and developing emotional intelligence.
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Recommendations
Tesco needs to identify its main objectives while utilising its negotiating skills which will
help the company in creating an impact on the other party as to why it should consider the
request. The employees should develop a habit of communicating to the head regarding every
and every issue. Enhancement of these factors will helps a company in improving sales and
negotiation skills for strengthening the marketing communication and empower its
competitiveness.
Action Plan
Skills Strategies Monitoring and
evaluation
Time
Problem solving Focus on the solution
and clearly define the
problems.
Based on the results
of trainings provided,
the problem solving
skills will be
monitored and
evaluated.
3 weeks
Emotional
intelligence
Focus on listen and
learn to respond
effectively.
With the help of self-
help reports and
aptitude tests.
4 weeks
CONCLUSION
From the above study, it can be concluded that there are factors that hampers the growth of an
organization such as political, economic, social, technological, legal and environmental. This
study reveals the importance of selling and negotiation skills in the marketing communication of
a company. It further identifies the strengths, weaknesses, opportunities and threats of the Tesco
with the help of Swot analysis.
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REFERENCES
Books and journals
Adamyk, K., 2019. PESTLE Analysis on Tesco PLC.
Caliskan, A., Özen, Y.D.Ö. and Ozturkoglu, Y., 2020. Digital transformation of traditional
marketing business model in new industry era. Journal of Enterprise Information
Management.
Christodoulou, A. And Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability, 11(21), p.6046.
Dumon, D., mcdonald, K. And Schmitz, R., Innovative offers outside the field of traditional
sport.
Etareri, L., A Critical Analysis on Strategic Management.
Hamilton, L. And Webster, P., 2018. The international business environment. Oxford University
Press.
Hanaysha, and et.al 2021. Importance of Marketing Mix Elements in Determining Consumer
Purchase Decision in the Retail Market. International Journal of Service Science,
Management, Engineering, and Technology (IJSSMET). 12(6). Pp.56-72.
Khanta, F. And Srinuan, A.P.D.C., 2019. The relationships between marketing mix, brand
equity, lifestyle and attitude on a consumer’s private product brand purchasing
decision. African Journal of Hospitality, Tourism and Leisure. 8(5). Pp.1-14.
Moura, M.B.L.D., 2021. Equity Research in Food & Retail Industry-TESCO PLC (Doctoral
dissertation, Instituto Superior de Economia e Gestão).
Soegoto, F.A., 2021. Product Development using SWOT Analysis. International Journal of
Entrepreneurship & Technopreneur (INJETECH). 1. Pp.1-10.
Willan, M., 2021. The Essentials of Contemporary Marketing. Bloomsbury Publishing.
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