Marketing Essentials Report: TESCO Marketing Strategies Analysis

This report provides a comprehensive analysis of TESCO's marketing strategies, focusing on its roles and responsibilities, and marketing mix. The introduction defines marketing and highlights TESCO as a leading retail chain, emphasizing its effective marketing practices. Task 1 delves into the various roles of the marketing function, including management, promotion, pricing, customer satisfaction, and the evolving role of marketing. Task 2 examines the interplay between marketing and other organizational functions, such as finance, human resources, sales, and IT. Task 3 compares TESCO's marketing mix (7Ps) with ASDA's, highlighting their approaches to product, price, place, promotion, people, physical evidence, and process. The report concludes by summarizing the key findings and emphasizing the importance of marketing in achieving business objectives. It also examines how TESCO uses various marketing strategies to attract customers, maintain its market position, and ensure customer satisfaction.

Marketing essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of marketing function ..................................................................1
P2 roles and responsibilities of functions in organisational context...........................................3
TASK 2............................................................................................................................................4
P3 comparison in the ways organisation uses marketing mix....................................................4
TASK 3............................................................................................................................................6
P4 Production and evaluation of basic marketing plan...............................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a procedure that involves convincing buyers to try and use the products and
services provided by the company. The main aim of performing this activity is to increase the
sales and profits of the company. This includes extensive research about the changing trends of
market and doing advertising for the brand this helps in attracting large number of customers
towards the organisation. The company which has been selected for the report is TESCO that
deals in retailing business, situated in UK and established in the year 1919 by jack Cohen, it is
considered as the largest supermarkets chain in the world. Due to it's effective marketing
strategies and practices this has made niche in the market. Different topics like the roles and
responsibilities of marketing function and their detailed analysis along with the ways marketing
mix are applied by the organisation has been discussed in the following report (Abedi and
Abedini, 2017).
TASK 1
P1 Roles and responsibilities of marketing function
There are various roles and responsibilities that different marketing function plays in
effectively achieving the goals of business entities. Increasing the customer traffic towards the
company so that sales and profits can be maximised is the major purpose of adopting this
activity.
Management process- This function involves managing the various aspects that are
important for smooth operation of business. TESCO has able to increase the sales of brand due to
the efficiency in the operations therefore management has to adopted this function as it plays
significant role in improving the productivity of organisation. As this function comprises of
planning, organising, directing, motivating and controlling the varied activities of business hence
this is responsible for systematic arrangement of people and resources and their optimum
utilisation. It is essential to effectively manage these elements as business being a complex
activity has to deal with various unforeseen situations (Yang and Zisiadis, 2014).
Promotion- This function is concerned with inviting the potential buyers towards the
brand's offering for the purpose of increasing profitability and acquiring market share. It has
become common activity which almost every organisation indulges in. TESCO is one such that
communicates about the new products, their characteristics, or schemes like discounts through
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advertising on various platforms like newspaper, television, digital mediums etc. Role of this
function is attract as many people as they can. Different promotional activities are responsible
for establishing brand's position in the market.
Pricing- This function consist of setting effective prices for the goods and services so
that cost incurred on manufacturing that them can be recovered. Role played by this function is
related to determining the rates and appropriate distribution of resources. As this factor majorly
affects the demands in the market, increase in prices reduces the demand and vice versa.
Therefore the main responsibility of this function is to maximise the profit margins. TESCO
provides goods and services much lower price in the market in comparison with others (Akaka,
Vargo, and Lusch, 2013).
Fulfil customer requirements- This function is associated with satisfying the demands
of customers in an optimal manner. It's major role is identifying the needs and wants of people
and works towards the increment of their satisfaction level. Responsibilities of performing this
activities lies in the hands of marketer through research about the market is very important as
taste and preferences of customers keep changing as per trends going in the market. TESCO has
incorporated this function effectively in it's working as the brand is known for providing wide
range of goods and services in order to satisfy the different requirements of customers.
Changing role of marketing- It is a function which many organisation is adopting in
modern times. Marketing role has expanded over the years now marketers are developing new
ways to attract the attention of customers Public relations and customer relationship management
are being used by big brands in the market to sustain the image of company in the market.
Expanding customer base is the main responsibilities of this function through building
commitment and loyalty from buyers. TESCO has adopted strategy called client chain
management for acquiring high growth and market share.
Giving customers what they want- This refers to understanding the customers dilemma
and determining the ways to address them. Employees of TESCO are trained to deal to with
effectively consumers directly through personal interaction. Main role and responsibility of this
function is to ensure that demands of users are fulfilled. Therefore this system should be adopted
by the companies in order to increase the profitability(Vance, 2019).
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P2 roles and responsibilities of functions in organisational context
Department of marketing in the organisation involves in developing strategies for
promoting the goods and services in the market. TESCO's marketing department played major
role in building the image of company. Various activities like advertising, sales promotion,
direct selling, PR etc are part of function that helps in communicating about the different new
features, information related to products are given to people. Managing the product
development, market research, planning are the responsibilities of this function that is helpful in
identification of target market.
Interrelationship between marketing and other functional units of company
Marketing and finance department- There is a direct relationship between the finance
and marketing department as marketing requires huge funds for conducting the promotions of
company and they comes from the finance division like it provides money to other units as well.
The main purpose of both the units is to effectively manage the resources of company and attain
the targets of high volume of sales and profits. Finance department has to make to sure that
money should be used appropriately by analysing the requirements and prospects of profits
attached with marketing activities. Financial managers of TESCO keep records of sales
optimised by the promotional activities of marketing unit.
Marketing and Human resource department- Performing each and every activities of
business requires employees hence there lies the positive relationship between the marketing and
HR department. These two units of TESCO engage in way that they fulfilling the requirements
of each other (Batt, 2013). For example if there is need of salesmen who indulges in increasing
the sales of organisation then this becomes the responsibility of human resource unit to hire
potential employees who can do the this task effectively. In the same way marketing department
helps in the recruitment process of HR for inviting potential candidates through advertisement.
Reports are also exchanged between them and rewards are given based on the workers
performances (Rajeev, 2016).
Marketing and sales department- These two units are connected with each other in way
that marketing department performs the task of building strategies to improve organisation's
image while sales department involves in the plan of action and generating the revenues for the
enterprise. Aim of both the organisation is to increase the sales of products and services. The
sales team in TESCO deal with customers directly and gathers information through their
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interaction this details are then provided to marketing unit so that incorporating these measures
in creating strategies can be helpful in satisfying the demands of customers.
Marketing and Information technology department- IT department is connected with
marketing in a way that objective of marketing can be achieved with the help of technological
advancements. Digital marketing is one such example that shows there is strong relationship
between these two department, with boom of e commerce in business environment various
techniques are developed that provides ways to communicate about the products information to
the consumers. TESCO is effectively using these two functions by selling groceries with it's
online business, in the same way marketing department is using techniques like customer
database management to identify loyal and consistent customers.
It can be concluded that marketing is an essential function and is very much present in
every part of business. This is the main factor that is responsible for building brand's image in
the market. Hence all the departments work cooperatively to organisational objectives (Brandes
and Brandes, 2019).
TASK 2
P3 comparison in the ways organisation uses marketing mix
Marketing mix is a tool that consist of different strategies that helps the organisation by
providing competitive advantage in the market. This framework is used by the marketers for
determining appropriate means to sell goods and services and achieving high growth and profits.
There are 7 P's that are part of this tool named product, price, place, promotion, people, physical
evidence and process (Marketing mix of TESCO, 2018). TESCO and ASDA are termed as the
two largest retail chains in the world and their marketing mix has discussed in detailed below.
Marketing mix TESCO ASDA
Overview TESCO is supermarket chain
founded by Jack Cohen and it
was established in the year
1919. The company provide
wide range of products and
services through online as well
as offline.
Asda is also well known retail
chain in UK which was
founded in the year 1949. It
not only engages in retail
business but also provides
financial services.
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Objective The main objective of this
company is to sustain the
image of largest retailer in the
world through consistent
expansion in the customer
base.
Asda's main objective is to
provide quality goods and
services to the customers.
Product TESCO provides varied
products like food, clothes,
electronic equipments etc.
It delivers wide range of
products from grocery to the
sales of electronics, clothing
etc.
Price This factor is associated with
the prices charged by the
company. TESCO uses
reducing purchasing cost of
strategy and offers it's products
at much lower prices to the
customers this has helped the
organisation in attracting large
number of customers
Asda offers large volume of
products and services lower
price but it does not believes in
compromising the quality of
items. Various discounts are
offered to customers on
various occasions.
Place There are various stores of
TESCO in UK and also it
offers products and services
through online mediums.
Asda has followed simple
approach in store formats and
is planning to expand stores in
UK.
Promotion TESCO promotes the brand
through advertisement,
television, discounts, and
various charitable events.
Although the main advantage
of this brand is related to
charging low prices on it's
Asda uses promotional
techniques like advertisement
that insist on providing quality
over quantity. It also offers
interesting special schemes
during the festive season.
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offerings.
People Following this strategy
TESCO puts emphasis on
hiring talented people to work
for the organisation and
provides appropriate training
to employees (Haverila, 2013).
Asda also focuses on
employees as well as on
customers. Training is
provided to employees
regarding technical skills along
with being friendly towards
customers.
Physical evidence As per this strategy the
organisation has to develop
effective architecture for the
store. TESCO's maintains
cleanliness and hygiene in the
stores and keep them in good
shape.
Asda uses this strategy by
developing stores in various
location and big sizes. The
evidence can understood from
the fact that it provide services
in health and products such as
toys, electronics etc.
Processes This factor is concerned with
process like billing, delivery
etc. TESCO provides quick
billing services and efficiency
with the way employees
respond to customers
grievances.
Asda also maintains it's billing
and delivery system effectively
provide respond to customers
issues through e-mails.
TASK 3
P4 Production and evaluation of basic marketing plan
SWOT analysis of TESCO
Strengths Weaknesses
 Best designs of products are sold at  It faces the issue of goods being
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much affordable prices to customers.
 Provides wide range products and
services in the market.
produced at poor quality
 Damaged reputation due to low quality
of products.
Opportunities Threats
 Improvement in the qualities of goods
and services.
 Expansion in different areas of market
to attract more customers.
 Threats from the competitors like Asda
and ALDI etc as they are providing
good quality products at much
affordable prices.
 Changing government rules and
regulations can be threat to TESCO
Marketing plan: It is a blueprint that helps in guiding the different activities of
marketing. Based on the organisation analysis managers estimates in details about the
expenditure required to made on advertisement or other promotional activities in order to attract
large number of customers and increasing the revenues of business. TESCO is creating
marketing plan for introducing the chain of fast food services in the UK. This plan has been
discussed below:
Executive summary: The marketing plan is made by the TESCO for launching itself in
the fast food business. The company had vision of maintaining long term stability by attracting
large number of customers (Notta and Vlachvei, 2015). It's mission is to acquire leading position
in fast food restaurants for that strategic objective of enhancing the profits by 10% for the
consistent years has been developed. TESCO has segmented the market as per the food habits of
people of UK and targeted fast food lovers, it also wants to positioned itself as healthy fast food
unit. Managers will monitor the progress made on project along with controlling the excessive
expenditure.
Company profile- TESCO is largest chain of supermarket in the world that involves in
providing wide range of products and services like food, clothing, electronics etc. It was
established in the year 1919 by Jack Cohen. It has gained huge popularity and is currently
operating in various countries.
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Vision-- This associated with position where the company wants to reach, TESCO has the vision
of sustaining the position of largest retailers by expanding it's customer base.
Mission- The mission of TESCO is to acquire the market share in fast food restaurants as there is
ample opportunities in this markets.
Strategic objective- Main objective of TESCO is to enhance overall profits by 10% in next two
years by introducing itself in fast food market.
Marketing budget- It involves estimation of expenditure on launching new project in the
market.
Particulars Amount (£)
Research and development £1330
promotion £1500
advertisement £1200
Employee compensation £1400
Total £5430
TESCO has to arrange £5430 for the purpose for performing marketing operations.
STP (Segmenting, Targeting and Positioning)- It is model that is used for creating marketing
communication plan based on this tool marketers develops strategies to address different
audience by delivering relevant content.
 segmentation is concerned with grouping the customers in groups based on their
behaviour and characteristics. TESCO segmented the customers of UK based on their
food habits.
 Targeting- It is an approach where setting targets means selecting prospective customers
that will play major role in the growth of company. TESCO has targeted fast food lovers
in it's action plan.
 Positioning- TESCO is strategically planning positioned as healthy fast food outlets in
the market (Pappas, 2017).
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Monitoring and controlling- TESCO's manager are responsible for monitoring the plan and
effectively keeps track of progress made on the project, it controls the excessive expenditure as
there are chances of going out of budgets.
CONCLUSION
From the following report it has been concluded that marketing is method for attracting
large customer base through promotion. It is essential for increasing the sales and profits of
organisation. Different roles are being played by the various functions of marketing such as
promotion, pricing, management process, fulfilment of customer requirement. Marketing is
interrelated with different departments of organisation like IT, finance and HR. Strategies under
marketing mix helps in increasing the profitability of business.
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REFERENCES
Books and Journals:
Abedi, G. and Abedini, E., 2017. Prioritizing of marketing mix elements effects on patients’
tendency to the hospital using analytic hierarchy process. International Journal of
Healthcare Management. 10(1). pp.34-41.
Akaka, M. A., Vargo, S. L. and Lusch, R. F., 2013. The complexity of context: A service
ecosystems approach for international marketing. Journal of International
Marketing. 21(4). pp.1-20.
Batt, P. J., 2013, December. Quality management essentials and the importance of smallholder
farmers collaborating. In II Southeast Asia Symposium on Quality Management in
Postharvest Systems 1088 (pp. 47-52).
Brandes, D. and Brandes, N., 2019. Bare Essentials: The ALDI Story. Linde Verlag GmbH.
Haverila, M. J., 2013. Marketing variables when launching high-technology products into
international markets: An empirical study on Finnish technology firms. The Journal of
High Technology Management Research. 24(1). pp.1-9.
Notta, O. and Vlachvei, A., 2015. Changes in marketing strategies during recession. Procedia
Economics and Finance. 24. pp.485-490.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice,
price, quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications. 23(2). pp.195-218.
Rajeev, K., 2016. Green marketing: The next big thing. Advances in Management. 9(2). p.1.
Vance, D., 2019. Business Essentials. Cambridge Scholars Publishing.
Yang, B. and Zisiadis, M., 2014. Transmedia marketing: strengthening multiplatform user
participation through storytelling.
Online
Marketing mix of TESCO. 2018. Available through:
< https://www.marketing91.com/marketing-mix-tesco/>
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