Tesco's Marketing Strategies: A Comprehensive Analysis

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UNIT 2 MARKETING ESSENTIALS
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Table of Contents
LO1: Explain the role of marketing and how it interrelates with other functional units of an
organization.....................................................................................................................................4
P1Explain the key roles and responsibilities of the marketing function.....................................4
P2: Explain how roles and responsibilities of marketing relate to the wider organizational
context..........................................................................................................................................5
M1 Analyze the roles and responsibilities of marketing in the context of the marketing
environment.................................................................................................................................6
M2 Analyze the significance of interrelationships between marketing and other functional
units of the organization..............................................................................................................7
D1Critically analyze and evaluate the key elements of the marketing function and how they
interrelate with other functional units of an organization............................................................7
LO2: Compare the ways in which organizations use elements of the marketing mix (7Ps) to
achieve overall business objectives.................................................................................................8
P3 Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives........................................................8
M3 Evaluate different tactics applied by organizations to demonstrate how business objectives
have been achieved....................................................................................................................11
LO3 Develop and evaluate a basic marketing plan.......................................................................12
P4 Produce and evaluate a basic marketing plan for an organization.......................................12
M4 Produce a detailed, coherent evidence-based marketing plan for an organization.............15
D2 Design a strategic marketing plan that tactically applies the use of the 7Ps to achieve
overall marketing objectives......................................................................................................16
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References......................................................................................................................................18
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Introduction
The term “marketing” is that process of business which helps in creating & building long term
relationships along with providing the higher level of satisfaction to all the potential customers
within the business organization. It is being considered as one of the most essential components
of business management. The complete assignment is in the form of a formal business report
which describes the important role of marketing along with the inter-relation of different
functional units in the effective as well as in an efficient manner. Also, different ways will be
elaborated which are being utilized by different business organizations to implement the
marketing essentials. “Tesco” is the chosen business organization, which is the multinational
company or the largest retailer of groceries. The company is the third largest retailer in the whole
world in terms of gross revenue & it was founded in the year 1919 by “Jack Cohen”.
Figure: Tesco, U.K.
Source: By Helen Knapman, 2019
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LO1: Explain the role of marketing and how it interrelates with other
functional units of an organization.
P1Explain the key roles and responsibilities of the marketing function
A vital role is being played by the marketing function for the purpose of highly promoting the
whole business & completing the overall organizational mission. Reaching up to the wide
numbers of customers, investors & various communities is the main job of the marketing
function. Following are the essential duties, roles or the effective responsibilities performed by
the marketing function:
 Defining the brand: The function of marketing not only defines the business
organization about what it is & what services are being provided by it but it also manages
the brand of the organization by enhancing the long term interaction among different
potential customers as well as other business partners.
 Marketing initiatives: The function of marketing strongly focuses upon promoting the
wide products & services, sold by Tesco with the help of conducting the effective
campaigns as well as the higher level of communication within & outside the business
organization (Massingham and Pomering, 2017).
 Producing marketing: Those materials should be produced by Tesco which can help the
company in promoting core products of the business organization. All those products
should be updated regularly.
 Monitoring social media: The marketing function monitors & maintains the different
pages of social media; it also helps in managing the accounts within the business
organization.
The function of marketing performs all those roles & responsibilities of which contribute
towards the organizational growth in a sustainable manner. Some of the essential roles &
responsibilities of marketing function include the marketing research, communication,
promoting, finance, distribution, and development of the organizational products, selling,
planning & many more. According to Tesco, the marketing function is being considered as the
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survival of the business organization. Marketing enables Tesco to sell its innovative existing as
well as the new products to all the retained & potential customers for the purpose of expanding
the business organization in the sustainable manner (Shahin Sharifi and Rahim Esfidani 2014).
The essential marketing role also helps in enhancing the teamwork while developing an effective
& efficient plan for marketing, which helps in enhancing the long term communication among
all the organizational employees.
With the help of implementing the marketing function in the effective as well as in an efficient
manner. Tesco is able to concentrate upon those business resources which can lead the whole
business organization towards the great level of business opportunities along with achieving the
competitive advantage, sustainably. With the help of conducting the market research, Tesco is
able to know about various changing needs & demands of all the customers. The function of
marketing can enable the whole business organization of Tesco to effectively engage all the
customers & their different prospects within competitive success. Tesco has also introduced &
implemented the standard technique of marketing with the help of the marketing function for
producing a high range of quality products for the maximum numbers of customers.
P2: Explain how roles and responsibilities of marketing relate to the wider organizational
context.
Marketing is the combined process of activities which can result in the profitability of Tesco in a
wider context. Marketing is the process in the business of Tesco which emphasized profit in their
grocery business. Marketing plays a vital role in the grocery business of Tesco. Marketing is
responsible for the economic and financial stability of Tesco. Marketing is responsible for the
development of the standard of services and products which Tesco is marketing in. Marketing
and distribution processes are inter-linked, in fact, most of the distribution failures in businesses
are due to marketing failures (Massingham, 2017).
The role and responsibility of marketing with respect to Tesco has changed in the last few years.
Tesco has changed their marketing strategies. The role and responsibility of marketing in Tesco
has shifted from mass discount offers to solve customers’ daily problems which they face. Tesco
clearly understands that Customers are not at all interested in Discount and offers. The customers
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would be more than happy if their daily issues are been monitored and solved. Knowing this,
Tesco has started their new campaign “Tesco food love stories”.
Marketing is responsible to set strategies to meet the objective of Tesco. Strategies should be
formulated to meet the requirement, where is the context of Tesco, Strategy to solve issues of
customers more effectively would be needed. Market research is very important and it is one of
the responsibilities of marketing for Tesco. Marketing research will help Tesco to understand the
needs of the customers better (Durugbo, et.al. 2014).
The marketing department of any organization is responsible to collect feedback from the
customers, about their existed customers. Improvement in their existed products would be
recommended by the Marketing department. It is the marketing department of Tesco which is
responsible for the development of various promotional materials, according to the demand of
customers and their interest in the services of Tesco. It is the responsibility of the Marketing
department to understand the customers demand. Whatever the image of Tesco, among their
customers, their marketing department is responsible. It is the role of marketing to convey a
message to the customers regarding their new product launch, development in the existed
product. It is the role and responsibility of the marketing department to bring in new customers.
Communicating with the customers and other businesses of Tesco linked is important to work
consistently towards the objective of Tesco (Ibrahim, 2017).
The marketing department of companies is one of the departments which is responsible for the
improvement in the sales of their products. A good image of companies will improve their
revenue and sales, and marketing section of companies play an important role in enhancing the
brand image.
M1 Analyze the roles and responsibilities of marketing in the context of the marketing
environment
The environment of marketing has a direct impact on various different functions & the overall
working of the business organization. The marketing function helps the whole business
organization of Tesco in accordance with the marketing environment such as the helping in
organizing the data from various different sources; help the organization in enhancing & tracking
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the long term sustainable growth & development of all the formulated plans for marketing, helps
in manipulating the data as per the requirement of the whole management team & also helps in
facilitating the historical analysis of the available marketing data. With the changing
environment of marketing, the marketing function helps Tesco in enhancing the marketing
innovations as well as adapting of other technical changes for facing the new & increasing level
of competition (Kennedy and Parsons, 2014). Marketing plays an essential role as the multiplier
as well as an engine of economic development, also it is being considered as the highest
developer of the standard products & services.
M2 Analyze the significance of interrelationships between marketing and other functional
units of the organization
The favorable inter-relationships of the marketing function with other functional units within any
business organization play a significant role in enhancing the economic as well as the financial
stability of the chosen business organization of Tesco. This significance also leads towards the
accomplishment of defined goals & objectives of the business organization along with enhancing
the higher level of communication with not only all the potential customers but also within the
different organizational departments, effectively & efficiently. The standard level of customers’
satisfaction is being ensured by the department of customer service for identifying different
feedbacks given by the customers (Satiani, et.al. 2014). The inter-linking of marketing function
with the research & development department helps in determining the changing needs of all the
customers in an appropriate manner. For the purpose of enhancing the higher level of
cooperation within the business organization, it is essential to perform the functions of
warehousing, packaging & distributing with the marketing function.
D1Critically analyze and evaluate the key elements of the marketing function and how they
interrelate with other functional units of an organization
Four key elements are being found of the marketing function, including the product, price, place
& promotion. Apart from these, there are various other elements have been found such as the
research, planning, strategies & tactics. The inter-relation of all the organizational functions
helps the business organization of Tesco to identify the changing needs of all the customers &
implement the business strategies accordingly. The marketing function helps in implementing the
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most effective strategies for determining the current position along with achieving the overall
organizational vision & mission of Tesco. The function of marketing is inter-linked with the
functions of planning, branding, promotion, finance & accounting, human resources, advertising,
production & distribution, determining the time limit, sales forecasting, etc. which helps the
business organization of Tesco to overcome the competitive phase within the business
environment (Shaw, 2014).
LO2: Compare the ways in which organizations use elements of the
marketing mix (7Ps) to achieve overall business objectives.
P3 Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives.
The 7P’s of the marketing mix are Product, price, physical evidence, Place, promotions Process,
and people. Tesco is one of the leading supermarkets in the United Kingdom. Tesco has gained
so much popularity among the supermarket field that it had crossed all the boundaries and
expanded its business outside the United Kingdom.
Figure: 7 Ps of the marketing mix
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Source: By Andrew Silcox, 2018
Tesco Sainsbury Morrisons
Product: Tesco has
expanded its business and
selling all kind of products
including electronics, toys,
groceries, etc. Tesco has
been taken care of all the
needs of its customers.
Tesco has become one for
all mentality in the minds
of their customers.
Product: Sainsbury has a wide
range of products with many
own branded products. The
takeaway service of Sainsbury
is an additional aspect or
addon to their services.
Sainsburyspends a lot of
money to develop their own
products to improve their
quality.
Product: Morrisons unlike the other
two supermarkets, they have their
own manufacturing units which
ensure fresh food been delivered to
their customers. They deliver their
products under their brand name M
kitchen, Morrison's cellar, etc.
Price: Tesco believes ‘Every
little counts’ when it comes
for the prices of their
products. Tesco has
maintained the lower cost
prices of their products,
despite being so popular in
the supermarket, this
strategy helped Tesco in
maintained their image.
Price: Unlike Tesco, Sainsbury
is more inclined towards high-
end prices and hence the
products of Sainsbury has
more cost than Tesco
(Wierenga,2012).
Price: This marketing strategy of
Morrisons resembles the strategy of
Tesco. They a lot have decreased
their prices subsequently without
decreasing their quality.
Places: Tesco is spread in
two main channels and had
expanded its market
beyond unites the kingdom.
Distribution of its products
is done in online and offline
both the modes
Places: Sainsbury’s customers
can buy their products from
their 605 supermarket or
online. Around 250000 orders
are received in a week on
their online store.
Places: Morrisons is available at 660
stores across the United Kingdom
having 117000 employees. With this
Morrisons have become the second
biggest fresh food manufacturers.
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Promotions: Tesco has
always true to their words
and their consistent low-
price products and services
have helped them in
promoting their
supermarket business
(Souza-Monteiro, 2017).
Promotions: It is the medium
to communicate with the
customers and their needs.
Sainsbury has used almost all
kind of medium to promote its
supermarket business.
Promotions: The lower price of their
products itself have become a
promotional aspect for Morrisons.
Despite this, they have used TV,
Applications and online promotions.
Physical evidence: Tesco
had never liked to spend
money on attracting
customers, their stores are
simply attractive. They
believe in quality and
services.
People: Tesco provides
some of the important
programs to their workers
where they can save money
while they earn.
Process: Tesco has
managed to monitor all the
addressing issues faced by
customers to simplify
payment processes.
M3 Evaluate different tactics applied by organizations to demonstrate how business
objectives have been achieved
Tesco has implemented various effective & innovative strategies for achieving the defined
business objectives in a suitable manner. It has implemented the lower pricing strategy for
grabbing more & more numbers of customers. The main objective of Tesco is to enhance its
brand image by reducing the overall amount of cost along with maximizing the higher amount of
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business profits. The effective strategy of Clubcard service is also being provided by Tesco to all
its customers for providing them with the standard amount of discounts. Also, Tesco has the
diversified marketing strategy including the brand positioning, brand awareness, customer
acquisition & diversification (Jones, et.al. 2014). All the marketing strategies are being identified
& implemented ted by Tesco which can lead the whole business organization towards the long
term growth & sustainable success as well as the development within the competitive business
environment. Apart from all these, a strong level of commitment has been enhanced by Tesco for
making & retaining trained business leaders within all the departmental areas of the business
organization.
Conclusion
It has been concluded that the chosen business organization Tesco implements various effective
& efficient business as well as the marketing strategies for not only achieving the defined goals
& objectives but also to enhance the brand image among various potential customers. The
function of marketing performs essential roles & responsibilities such as the marker research,
increasing the awareness for organizational products & services & also inter-related to various
other organizational functions including planning, human resource department, warehousing,
production, distribution, etc. The innovative tactics have also been discussed to be implemented
by Tesco for achieving the goals & overall mission.
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