Tesco's Marketing Strategies: HND Business Management Report

This report provides an in-depth analysis of Tesco's marketing process and planning, focusing on the company's strategies, the role of the marketing function, and its interaction with other departments. It explores the concept of marketing in the 21st century, highlighting its roles and functions, including meeting customer needs, pricing and distribution, market research, promotion, and facing competition. The report also examines the extended marketing mix (7Ps) and how Tesco utilizes it to achieve its objectives, covering product, price, place, promotion, people, process, and physical evidence. Furthermore, it includes a PESTLE analysis to assess the macro-environmental factors affecting Tesco's business. The report concludes with recommendations for developing a marketing plan that aligns with the company's goals and objectives, ultimately aiming to enhance Tesco's market position and profitability. Desklib provides similar solved assignments and past papers for students.

Higher National Diploma in Business
Management
Unit 2 Marketing Process & Planning
Name:
ID:
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Contents
INTRODUCTION...............................................................................................................................2
Concept of Marketing........................................................................................................................3
Description of the role of marketing function with examples from the chosen organisation...........3
Role of marketing function................................................................................................................3
An analysis of how the marketing function works and interacts with other departments................4
An explanation of the extended marketing mix and examples from selected company...................5
Review strategies and the tactical approaches applied by the company to demonstrate how
objectives can be achieved successfully...........................................................................................6
Recommendations.............................................................................................................................7
Develop marketing plan that includes key elements of the market planning for the company to
achieve the objectives.......................................................................................................................7
CONCLUSION..................................................................................................................................13
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INTRODUCTION
Merchandising is a process for creating, communicating, dealing and delivering
offerings to the customers, clients, partners and society at large. It involves research,
advertisement, promotion, sale and distribution of products and services. Marketing studies
the commercial administration of the organization in order to pull, acquire and hold
customers by satisfying their wants or needs and increase brand loyalty. In the present report,
Tesco has been considered that is a multinational groceries and general merchandise retail
merchant founded in 1919 with headquartered in England, UK. It also specialises in retailing
of books, clothing, electronic, financial services, telecoms etc. The report will explain the
definition and concept of marketing of 21stcentury along with its roles and functions. Apart
from this, it will also present the working of marketing function and interaction with other
departments. Further, it entails the concept of marketing mix and how it contributes to the
success to meet the general objectives of an organisation.
MAIN BODY
Concept of Marketing
Marketing advert to the promotions of buying or selling of products or services to the target
customers. It cites the action of an organisation which it takes to attract the audience towards
its offerings by providing them high quality. In this 21st century, marketing is a pool of both
customary and digital transmission to encourage the products and render services. It finds
out the wants of the customers for providing them products according to their needs and
enhance their expectations. It is a creative activity of evolving, promoting and dispensing
products or facilities to the customers to enhance their businesses(Hongjun, Zhen and
Huichen 2022). Marketing is done to attract the targeted audiences that includes memorable
slogans, attractive jingles or packaging designs and general advertisement revelation. An
organisation uses marketing strategic tool such as marketing mix to achieve the goals of a
business.
Description of the role of marketing function with examples from the chosen organisation
Role of marketing function
Marketing is a function which enables the department operating efficiently by making
strategic planning and deliver the desired business outcomes through people, process,
technology and data. In context to Tesco, the role of marketing is associated with many
obligation and function which are depicted below:
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Meet the needs of the customers: The marketers determine the necessity of the
customers and adopt their marketing strategies accordingly. In relation to Tesco, it studies the
culture that prevails in the market and assess individual behaviour to fulfil their
needs(Rust,2020). Thus, it makes the company able to provide great quality products or
services to their customers.
Pricing and distribution: The marketing plays an essential role in setting the price of
product as it involves conducting market research which will help in determining the
distribution channel as well as price of the product. The marketing manager of Tesco enables
the market research so that it can set its price in order to attract and retain loyal customers.
Market research- It is an essential role in the business of marketing as this
department ensures that proper research is being conducted in order to know the needs and
wants of consumers so that there is such selling of offering which can meet demands so that
sales and profitability of Tesco is increased.
Promotion- This is another role of marketing and the most common one as the
business involves in advertising its brand and products. The marketing unit of Tesco gets
engaged social media marketing, advertisement in newspaper to promote the business of it in
order to reach larger customer base.
Increase market: An organisation uses collective human activity means like
advertisement, sales promotion, public relation, direct marketing, event marketing etc. to
increase its market share. In relation to Tesco, it uses various promotion strategies such as
advertisements, social media, websites etc. which help the organisation in attracting the
customers towards its products.
Good product offerings: Many organization sells more than one product and have
products portfolio that are attractively designed and tagged. In context to Tesco, it has
product portfolio of its brand ranging from medium to higher category. These are all tagged
with brand name and attractive packaging which provides satisfaction to their customers.
Face competition: Marketing helps in facing the competition keeping in perspective
the expectations of the customers and competitor's products that are made available in the
market by observing the market closely (Grzegorczyk, 2021). In context to Tesco, it has
many competitors such as Asda, Sainsbury, Morrison etc. The company covers wider market
share not only among rich people but also cover middle income groups. It provides
innovative or quality product line for its customers. Tesco have good collaboration and
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efficient franchise to render services or supply premium products that help the company to
retain its market share.
Economic growth: The promotion activities make up demand to encourage
manufacturing and distributing activities. As a result, the development of the industries are
encouraged or profitability level improves because of addition in occupation possibility. In
relation to the Tesco, it also improves the standard of leaving by offering superior and
improved products which help in boosting the economic growth.
An analysis of how the marketing function works and interacts with other departments
Marketing is one of the essential pillars of the organisation that includes critical human
activity like market research and planning that are performed by the marketing department.
An organisation needs to create close link with other departments or functions of the
company to develop an effective marketing plan which are depicted as under:
Marketing and production department: The marketing function has link with the
manufacturing section whereby an adequate research for the products and their development
is planned to fulfill the needs of the customers(Kumar,2018). Further, the products are
manufactured with premium quality keeping in perspective the desire of the customers.
Marketers makes effort in getting the products to the market to gain the benefits over the
competitors. On the other hand, the manufacturing section makes an efforts to provide good
quality products without any defect and meet necessities or expectation of the customers.
Marketing and finance department: A marketing function needs to work with the
finance department to facilitate the budget requirements in searching, promoting and
distributing the products. Financial function assist in business operations to meet the need of
finance and enhance profitability. The marketing function focuses on the sale volume of
products and its market share and finance department always have more focus on the cash
flows, cost and return on investment.
Marketing and Human resource management: This department also have to work
with the Human Resource department to manage the staff in its department that are placed
for researching, developing and promoting activities of the products. t(Chia, Full, et. al.,
2022). It also assist in meeting the production target and creating capable sales
team(Thaichon, 2018). The HRM department manage enlisting and training of staff members
where it meets its obligations with marketing department in fulfilling their demand.
PESTLE analysis and marketing-
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It is an strategic tool used by an organisation to analyse the macro environment that
have impact on its business strategies or activities which are describe below in relation to
Tesco:
Political factor: With reference to Tesco, it can act and work closely with UK
government to protect the business from illegitimate interest and taxes by responding to their
queries. So this may aid the company to bring its new product in the market that may increase
its sales and marketing helps in reaching the market with new products.
Economic factor: In relation top Tesco, a rise in inflation rates or interest rates may
affect the financial position of the company. But company can sell its new products over
discount prices to attract the customers by conducting proper market research by marketing
department of Tesco
Social factor: In relation to Tesco, the customers may get attracted by providing
them good quality food products. This would help the company in getting good perception
about the products of a company.
Technological factor: With reference to Tesco, it should bring new technology
model to enhance the customer's experience and also increase its sales. By using technology,
marketing can be done effectively (Shikhalev, et. al., 2018).
An explanation of the extended marketing mix and examples from selected company.
The extended marketing mix is the collection of the seven Ps of marketing that intent to
accomplish the goals of a marketing strategy. With reference to this mix, Tesco has been
considered that covers the framework of marketing mix strategies. It assists an organisation to
position itself in the market by gaining relation over its competitors and achieve its business
goals and objectives. It covers the seven P' s of marketing mix which are described as below:
Product: It refers to an item that are sold in actual by satisfying the needs of the
consumer through goods or services, (Elias, 2018). In context to Tesco it contains in its
marketing mix a wide range of product portfolio that covers items for all age groups such as
men, women and kids. It also cover middle and higher income group in their segmentation
that help company to increase its market share. The firm also has collaboration with
sustainable supplier in order to acquire and market ozone-friendly merchandise. The
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packaging of a product is done by using of recyclable materials that increase the confidence
of potential buyers. On other hand, Sainsbury deals in more than 30000 products line which
includes meat, fish, dairy, bakery heath and beauty and many others.
Price: It refers to the value that is placed for a product and customers are willing to
pay for it. In relation to Tesco, it follows the competitive pricing strategy because it provides
various options of choosing to the customers. The price of its products are placed according
to the premium quality raging from medium to higher category of people. Sometime it offers
discounts on products during seasonal time to attract more customers. Sainsbury on other side
uses competitive pricing in order to stay in the competition so that it can tackle the
competitor’s price. It does not believe in price cutting strategy
Place: It refers to the point of sale where it provides customers access or convenience
for the customers. In relation to Tesco, it has spread its presence in international market with
4673 stores approx including franchise stores. The customers can also buy their products via
online mode as it also spread its presence on websites to gain the competitive advantage. On
other hand, Sainsbury has been operating in more than 600 stores across the world and it is
also open in online stores for the online shopping for its customers.
Promotion: It is a communication used to make offer to the potential customers at the
market place and influence them to examine it further. Although, Tesco has already made a
sustainable position in the market by practising corporate social responsibilities
(Nayeem,2020). The promotional strategies support people to maintain the natural
environment by using the best practices of supply chain that safeguards the environment.
Sainsbury uses sales promotion through databases and incentives as the part of their strategy
of promotion. The website of business is also an essential tool for the promotion for
Sainsbury.
People: It refers to the staff and sales person who work for the business in an
organisation. The excellent services of employees create positive experiences for the
customers and in making brand loyalty. With reference to Tesco, the company follows the
performance payment policy to retain its employees. It also gives rewards to its workers on
the basis of their performance and motivate them towards better presentation. On other hand,
Sainsbury has many efficient and trained staff who are given proper training regularly so that
they can become effective and productive.
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Process: It refers to the process involves in delivering of products and services to the
customers and ensure repeatedly deliver the same standard of services to the customers by
saving time and money. With reference to Tesco, it stores can be found in urban and sub
urban areas with divided sections for men, women and kids. This help the company in
providing services in time and consumer also get the desired product easily. On other hand,
Sainsbury makes use of various process such as quality management, performance
management and many others to enhance its effectiveness and efficiency.
Physical evidence: It cites the customers when interacting with business environment,
layout, interior, packaging and branding of the product. With reference to Tesco, the
company has its own website apart from stores in different countries where customers are
able to buy products online, thus all these stores represent itself as the physical evidence for
the company. On other hand, the company Sainsbury has its website very attractive and also
its stores are attractive in order to make its presence attentive for its customers.
Review strategies and the tactical approaches applied by the company to demonstrate how
objectives can be achieved successfully.
Marketing has great importance for achieving objectives of an organisation because it
helps in understanding the products or services that company offers to the
customers(Warrink, 2018). With reference to Tesco, it provides many benefits of this mix in
meeting the goals of the organisation that are as under:
Resource allocation: In context to Tesco, it provides valuable guide for allocating its
resources depend on the nature of marketing mix. Therefore, it doesn't only maximise the
consumer satisfaction but also provide profit to the firm.
Responsibilities allocation: With reference to Tesco, it allocates the responsibilities
to the members of team by virtue of the specialisation of a each team member(Ghuman, and
Merchant, 2018). Moreover, it helps in developing and executing effective marketing
strategies.
Customer”s needs: In relation to Tesco, it helps in understanding the requirement of
the customers for the product for which they are able to meet the needs by providing them
good quality products.
Recommendations
Marketing mix allows a company to gain profits in comparison to the competitors
that brings value for an organisation and its shareholders. In context to Tesco, it is
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recommanded that it should use natural resources in manufacturing products that provide
lower cost to the company.
It should also choose unique geographic location to increase market share and brand image
recognition among the people. The company should improve tax and compliance benefits that
will assist in mitigating the expenses and product development or diversification. This will
help the company in gaining profits and increasing sales.
Develop marketing plan that includes key elements of the market planning for the company
to achieve the objectives.
Marketing plan is like a document that lays out the marketing strategies for an
upcoming period. It represents a summary in order to achieve goals related to promotion of
the products, and increase its share in target market, timeline of the task completed and so on.
In relation to Tesco, Strategic market plan helps the company to differentiate itself from its
competitors by focusing on the strengths to provide better services to its
customers(Hanlon,2022). So, the elements which link the company to its objective are as
under:
Market research: In context to Tesco, a research provides detail investigation about
the customer's tastes, tendency, needs, competitors and expected direction that help an
organization to accomplish it goals and bring new products in the market accordingly.
Target market: With reference to Tesco, it includes the business dealing market on
basis of demographics, location, income and so on to know the behavior of consumer and
increase market share for growth of the concern.
Marketing mix: It is a set of actions or tactics that a company uses to promote its
brand or products to attract the customer to buy products which includes seven Ps of
marketing that aid in implementing good marketing strategy to Tesco.
Competition: In context to Tesco, this element helps an organization to identify its
competitors in order to gain advantage along with strategies to encounter and gain market
share.
Marketing activities: In relation to Tesco, marketing activities helps in listing the
human activity related to accomplish the objectives that are scheduled for a specific duration
and indicates time lines which enable an organization to improve its performance in attaining
its goals.
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Thus, marketing plan clearly defines marketing objectives of a business concern with the help
of these elements. It indicates an organization where it wants to be in any specific period in
future.
Clear and SMART marketing objectives
SMART goals are goal-setting techniques that enables the team members to create
market plan in order to support and achieve the objectives of an organization. With reference
to Tesco, an effective smart goal helps the marketing teams in clarifying what to achieve,
how to achieve, helps in identifying the areas of improvement and make prosperous change
for the promotion(Elmograbi, 2021). So, these is a framework to set goals for integrated
marketing efforts which are as below:
Specific: A goal should be specific, concise, possible or clear so that they are more
likely to be achieved. In relation to Tesco, the goal is contained enough detail so that people
who are involved able to understand what results are expected.
Measurable: A goal should be measurable by setting standard in order to achieve
desired results. With reference to Tesco, a benchmark is set by defining the expected
outcome of a business concern.
Actionable: The goals should be realistically attainable based on the skills of the
team members, resource available in an organization and within specific time frame. In
context to Tesco, people are able to reach the desired outcome of a business concern by using
their skills and knowledge.
Relevant: The goals must be relevant to the business based on economic condition
and realities of the business climate in order to gain rivalry benefits. With reference to Tesco,
the company goals are always relevant to the business that help in gaining the profitability.
Time bound: The deadline should be specified to attain the goals because the goals
become moving target or unlikely to reach without setting time frame(Fotiadis, Mombeuil
and Valek, 2018). In context to Tesco, it specifies standard time to achieve the target so that
it can be compared later with actual time taken to improve its performance.
So, By using these SMART goals Tesco is capable to increase overall revenue and improve
customers relationships.
A situational analysis
SWOT analysis
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SWOT analysis is a planning framework whereby a business can identify its
strengths, weakness, opportunities and threats. In context of Tesco, a new product line of
food is going to introduce in the market whose SWOT analysis is described as below as
below:
Strengths: Tesco has good market presence as it provides its products in international
market and has 4763 stores approx across the globe. This may assist the company to maintain
its high performance in bringing new product line and grab market share.
Weaknesses: The financial position of Tesco is not so good because of poor supply
chain system. So, it may create hurdle in bringing new product line of food and also affect
the image of the company adversly.
Opportunities: The company is introducing new product so it has an opportunities to
know the taste of the consumer so that it would be able to provide them products as per their
needs and increase its sales(Hamid, et. al., 2021). It can also expand it business globally so
that it is able to reach to the customers that provide them opportunity of earning more profits.
Threats: As there is high competition in the market, so it is a big threat for Tesco to
bring new product in the market. The policies of government also affect the company because
of alteration in policies that can impact revenue of the company.
A competitor analysis including the market segments
The competitors analysis is a process of identifying competitors and researching their
different marketing strategies(Dolnicar, 2019). With reference to Tesco, a new product line of
food is going to be introduced by the company for which an analysis has been done to
identify the market segment which are as below:
Demographic segment: Tesco has introduced its products according to the all age
groups or gender so a new product line of food would be according to their taste.
Geographic segment: Tesco has divided its products into various regions, cities and
countries(Moura, 2021). So, it would help the company to know the taste of consumer and
bring new food products according to their taste.
Sub-segments
Tesco has segmented its market on the basis of demographics where it would bring it new
food products according to all age groups. It also includes gender where by products are
provides as per their taste. Tesco also consider income group people where it cover low
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income as well middle income category of people. So Tesco would bring new products
keeping the perspective of people and demographic segment.
Setting of an overall marketing budget, including allocation of planned spend
The marketing budget is a calculated quantity that will required for promoting the products
with direct or indirect marketing cost that are formed for next financial year. It considers all
costs such as advertising, public relation, employing staff, office costs and other expenses for
marketing. This budget is created to estimate the costs that are essential for flourishing the
business. With reference to Tesco, it would set its budget considering all the cost which
would incurred on all activities of promotion.
Appropriate digital, offline and social media channels for communication
Tesco can use the different types of channels for communication to the customers which are
as under:
Digital channels: The company can choose many digital channels for proposal of its
product which may include e-mail marketing, websites, search engine optimization and so on.
Offline channels: The company can use newspapers advertisements, bulk mailing,
print material (brochures & rack cards), etc. for communication to public.
Social media channels: the company can use various social media channels such as
Facebook, twitter, Instagram, linked-In, google+ etc.
Media Plan
The media plan means to the method of determining of when, how and where a firm
can do its marketing in order to increase their return on investment. The media plan of
TESCO is mentioned below:
 Campaign- It refers to the program of brand awareness that involves the
advertisement of organisation's offering or brand. In relation to TESCO, management
can utilise the social media and print media way by which they can increase their
brand awareness.
 Objectives: The main objective of TESCO is that they need to stay leading
supermarket and offer top quality offering in low cost.
 Target Audience: Company need to reach cost conscious people that are
more concentrated in sales, bargain and value variety.
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 Medium of Marketing Campaign: Company is focusing on advertising on
the several digital media platform.
 Content: The ads by TESCO for its offering majorly involes the vision of the
firm together with an attracting phrases which caters the conusmers towards the
products and services of the company.
 Run Time: The organisation TESCO will function its plan of media for
around 5 months on the social media then it will change its advertisement in order to
accomplish its long term goals and objectives.
 Recommendation: it is recommended to the TESCO that the firm should
measure the traffic and the atmosphere in which they can tempt more consumer and
have prosperous plan of media.
 Justification of media plan: The appropriate media plan for TESCO will
involve appropriate evaluation of its conusmer by collecting feedbacks and
understanding the needs and wants of the conusmer.
 Media Budget: A budget of TESCO will involve the list of expense which
can be need to do and implement their campaign of marketing,
Particulars Amount
Equipment 100000
Advertising 30000
Promotional tools 20000
Media house 20000
Total 1, 70,000
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CONCLUSION
From this report, it has been concluded that marketing helps the company in
promoting their products to gain brand image and satisfies consumers wants by supplying
them good quality products. It is also learned how company should use its marketing function
to increase its growth of market share along with other departments. Moreover, it has been
learnt how company should achieve its goal by implementing marketing mix strategies that
assist an organisation to get competitive advantage. It also displayed that extended marketing
mix furnished various benefits in attaining the objectives of the business concern. Thus,
marketing is a crucial function of an administration that displays an indispensable role in
contributing to the success in a concern.
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