Marketing Analysis of Tesco: 7 P's and International Context

This report provides a detailed analysis of Tesco's marketing strategies. It begins with an introduction to marketing and an overview of Tesco as a retail organization. The main body of the report explores Tesco's background, followed by an in-depth examination of the 7 P's of the marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence) and how Tesco implements them. The report then discusses how Tesco effectively applies these principles in an international context, considering factors like product adaptation, pricing strategies, distribution, and promotion. It also provides recommendations for developing marketing decisions in the international context, considering factors like cultural differences and local market demands. The report concludes with a summary of the findings and references to relevant literature.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Background of chosen organisation............................................................................................3
Explore 7 P's for selected organisation and explain how organisation implement them............3
How organisation effectively apply principles of marketing mix in an international context....5
Recommendations for developing marketing decisions in international context.......................7
CONCLUSION................................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals.....................................................................................................................9

INTRODUCTION
Marketing refers to an activity which is process of creating, set of institutions, delivering
and communication of products and services which are valuable for the customers, partners,
clients and society. It effectively strengthen brand loyalty which results in increment of sales and
profitability (Boyd and Koles, 2019). Organisations uses marketing as it assist in earning trust
and loyalty of customers which is highly required for growth of business. This report is based on
Tesco which is classified as retail industry. It was established in 1919 by Jack Cohen and its
headquartered in England, UK. It offers large variety of retail products for their customers in
order to satisfy their requirements. This report will include about the organisations which is
selected to present this report. Its 7 P's are explored and how business implement marketing mix
for better operations is also discussed in this report. It will also include how organisation applied
principles of marketing in international context. At the end, recommendations are also carried
out so that organisation can make marketing decisions.
MAIN BODY
Background of chosen organisation
Tesco is a general merchandise and groceries retailer which is headquartered in Welwyn
Garden City, England. According to the calculation of their revenues it is ninth largest retail
organisation in the world. They have their stores in five countries of Europe. They deals under
the products like hypermarket, supermarket, superstore and convenience shop. They invest huge
amount in research and development for analysing the requirements of the customers so that they
can offer required products and services (Donthu and et.al., 2020). They have diversified
themselves in number of items including financial services, toys, telecoms, furnitures,
electronics, internet services, clothing and many more. They follow low cost retailing strategy
which assist them in capturing large market area in effective manner. Managers of Tesco focus
on the reviews and feedbacks of their customers so that they can understand their demands which
make them priority of large number of customers. They also adopted online delivery services
which assist them in making their availability for longer term in order to provide services.
Explore 7 P's for selected organisation and explain how organisation implement them.
The concept of 7 P's or marketing mix is a framework which focus on the achievement of
marketing objectives with the help of different marketing techniques. It focus on the different

functions and segments of an organisation so that they can increase the share of targeted market
in effective manner. Tesco have adopted marketing mix which assist them in achievement of
their goals in best possible manner. This can be explained as follows:
Product: It refers to the items which satisfy the needs and demands of the targeted
audience. Tesco deals into wide variety of products which involves different brands like Tesco
lotus, Tesco F&F, Tesco everyday value, Tesco value and many more (Enyinda and et.al., 2020).
All these brands of Tesco focus on the offerings which can attract large number of customers by
fulfilling their demands. The products which supermarket chain offer to their customers involve
home electricals, health and beauty, clothing and jewellery, toys, baby and toddlers, technology
and gaming and many more. Tesco also used Kotler's five product levels in their operations so
that they can meet the needs of their end user in effective manner. This model can be explained
as follows:
 Core benefit: It suggest the basic needs of the customers while buying the products.
Tesco cater the needs of their customers by customizing their products according to the
needs.
 Generic products: This includes the products which are developed with the features
which are essential for their function.
 Expected products: Tesco involves additional features which their customers expects in
their demanded products and services.
 Augmented products: It involves the features which make their products different from
their competitors.
 Potential products: All the improvements and upgradation in the products which Tesco
have to involve are classified under this.
Price: This element of marketing mix is responsible for the revenue generation. Tesco
believes in capturing the market with the help of maintaining as possible lower prices of their
products and services (Heggde and Shainesh, eds., 2018). Tesco focus on the involvement of
economies of scale in their production process so that they can create higher margin for their
profits. Their low prices attract large number audience in order to avail services.
Place: It suggest the location where organisation use to sell their products. It is very
essential to select the best appropriate location which is easily accessible for majority of the
targeted audience. Tesco have located their stores in the location which is centre of the city

which is highly reachable. Their offline stores like Tesco Extra, Tesco Metro, Tesco Express,
Tesco Superstore, Tesco compact and many more are located in the famous places of country
which attract audience in effective manner. They also distribute their products with the help of
online applications and websites which is opportunity for them to provide services according to
the time of customers.
Promotion: Promotion is the element which is responsible for the communication and
interaction with the targeted customers. It develops interest of the customers by providing
relevant information and knowledge about the products and services among audience (Hunt,
2020). Tesco use different promotional techniques in order to promote their products such as
advertisements. They also involve personal selling which results in maintaining healthy
relationship with their respective customers. Advertisements can be done through offline and
online platforms such as newspapers, articles, e mails, text messages, social media platforms, etc.
People: This element involves all the employees and workforce of an organisation which
acts as a mediator between organisation and their customers. Tesco have experienced and skilled
employees who communicate with their potential and targeted audience on regular basis in order
to resolve their problems and doubts. They also provide them regular trains which inculcate their
required knowledge so that they can carry out operations according to the demands.
Process: Process assist organisations in commencing customer friendly journey so that
they can create positive work environment. Employees ensures that they undertake all the queries
and doubts of the customers which are getting their online websites. They focus on the reducing
the waiting time of customers in order to solving their problems. Tesco also focus on tracking
their regular operations so that they can minimise the mistakes and errors which arise on
different stages.
Physical evidence: According to this, organisation provide tangible clues or improve the
experiences of the customers by providing them best quality of labelling and packaging. Tesco
ensures that they involve attractive packaging of the products because it creates the first
impression on the mind of the customers (Jobber and Ellis-Chadwick 2019). Tesco provides
positive ambience to their customers as their staff member follow appropriate code of conduct.
They also maintain decorum by providing uniform to their employees which adds positive factor
in their physical evidences.

How organisation effectively apply principles of marketing mix in an international context.
Organisations have to involve principles of marketing which includes 7 P's of marketing
mix. It is essential for them as it assist in achievement of their prescribed targets and goals in
appropriate manner. Tesco have applied marketing mix which improves customer experiences by
fulfilling their expatiations in appropriate manner. They have applied product strategy with the
help of effective research of target market so that they can maintain accuracy in their offerings.
The products which Tesco offer to their customers are highly valuable for them as it maintains
appropriate quality and standards. Products like food, clothes, furnitures, toys, electricals are
supplied according to the current market trends which is essential for longer sustainability in the
targeted market (Ketter and Avraham, 2021). Price is the second element which is applied by
Tesco according to the analysis of economic condition of the market and use of raw material in
production process. They try to acquire market by providing lower cost of their products so that
they can cover all the segments of the society. Affordable products with higher quality assist
Tesco in becoming one of the leading organisations in retail sector. The positioning of company
becomes highly positive which is valuable factor in achieving success. Place is the element
where customers and organisation meet in order to exchange of products and prices. Tesco uses
physical stores along with online stores for serving the needs of customers with the help of their
products and services. The sales expertise and middlemen of Tesco also assist them in delivering
their required products within specific time frame. The distribution chain involves intermediaries
and various logistics so that they can fulfil the demands on time.
Tesco applied promotion in order to influence the mind of the customers towards their
products and services. Different promotional techniques such as social media platforms like
Facebook, Instagram and YouTube are used by them which is attractive way to showcase their
products. It increase the engagement rate of customers as social media is the best option to
influence the targeted audience (Kitchen, 2020). People is the element of marketing mix which is
applied by hiring skilled employees so that Tesco can accomplish their required goals. Their
knowledge can guide customers for buying products and services which are useful for them.
They maintain healthy relationship with customers which results in better retention. Tesco
provides monetary and non monetary motivating factors to their employees so that they can
perform according to the rules and regurgitations of the company. Process of an organisation
should be maintained in smooth manner so that they can improve their customer journey. The

positive experiences of customers is highly essential for an organisation which assist in surviving
for longer period of time. Tesco have separate department of customer care which handle all the
queries if their customers for 24*7. They uses software to track the reviews and feedbacks of the
customers which assist them in customizing of their services (Vrontis and et.al., 2021). Physical
evidences is the last evidence of the marketing mix which ensures that customers get positive
ambience during their shopping time. The tangible and intangible experience should be provided
according to the expectations of customers. Tesco provides attractive packagings to their
customers which develop their interest in order to buy that particular product.
Recommendations for developing marketing decisions in international context
 Organisations should focus on the international demands along with local demands so
that they can includes features and elements according to that. Tesco should analyse the
interest and behaviour of the international market so that they can modify they products
in appropriate manner.
 Cultural differences should be majorly focused by an organisation so that they can attract
customers from international market (Lunde, 2018). Tesco indulge in marketing research
so that they can understand the culture of other countries. It assist them in manufacturing
of products without wastage of available resources.
 They should plan and develop local campaigns so that it can increase the brand awareness
in the international market. Tesco can involve media planning, global ads, and other web
based marketings so that they can spread knowledge about their brands.

CONCLUSION
From the above report it can be concluded that marketing is essential function of an
organisation which assist the in creating and exploring the demands of targeted market area. It
assist in delivering the values which are demanded by the customers so that they can increase
their revenue generation rate in effective and efficient manner. Product value is increased in the
market with the help of marketing which is essential for growth and development. This report
involved about an organisation which used marketing principles in order to get success.
Marketing mix is explored and its implementation is carried out in context to the selected
organisation. Recommendations are mentioned which assist organisation in serving the
customers present in international market.

REFERENCES:
Books and Journals
Boyd, D.E. and Koles, B., 2019. An introduction to the special issue “virtual reality in
marketing”: definition, theory and practice. Journal of Business Research, 100, pp.441-
444.
Donthu and et.al., 2020. Journal of marketing theory and practice: a retrospective of 2005–
2019. Journal of Marketing Theory and Practice, 28(2), pp.117-137.
Enyinda and et.al., 2020. Marketing-sales-service interface and social media marketing
influence on B2B sales process. Journal of Business & Industrial Marketing.
Heggde, G. and Shainesh, G. eds., 2018. Social media marketing: Emerging concepts and
applications. Singpore: palgrave macmillan.
Hunt, S.D., 2020. Indigenous theory development in marketing: The foundational premises
approach. AMS Review, 10(1), pp.8-17.
Jobber, D. and Ellis-Chadwick, F., 2019. EBOOK: Principles and Practice of Marketing, 9e.
McGraw Hill.
Ketter, E. and Avraham, E., 2021. # StayHome today so we can# TravelTomorrow: tourism
destinations’ digital marketing strategies during the Covid-19 pandemic. Journal of
Travel & Tourism Marketing, 38(8), pp.819-832.
Kitchen, P.J., 2020. Marketing communications. In A reader in marketing communications (pp.
1-9). Routledge.
Lunde, M.B., 2018. Sustainability in marketing: A systematic review unifying 20 years of
theoretical and substantive contributions (1997–2016). AMS review, 8(3), pp.85-110.
Vrontis and et.al., 2021. Social media influencer marketing: A systematic review, integrative
framework and future research agenda. International Journal of Consumer
Studies, 45(4), pp.617-644.