Marketing Plan for Tesco: Strategies for Market Expansion

This report presents a comprehensive marketing plan for Tesco, a leading UK-based retail company, focusing on strategies to improve market share and growth from 2022 to 2025. The report begins with an introduction outlining the company's objectives, including SMART goals focused on increasing sales, market share, and brand awareness. It then develops a marketing strategy, leveraging the Ansoff Matrix to explore market penetration, market development, product development, and diversification. A detailed analysis of Tesco's marketing mix, including the 4Ps (Product, Price, Place, and Promotion), is provided, followed by a discussion of the customer-driven strategy, including segmentation, targeting, positioning, and differentiation. Furthermore, the report utilizes the BCG matrix to analyze Tesco's product portfolio. The report concludes by summarizing the key findings and recommendations for Tesco's marketing efforts.

Principle of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing plan ............................................................................................................................3
The Marketing Mix.....................................................................................................................4
Four P's of Tesco..........................................................................................................................4
Develop The Marketing Strategy.....................................................................................................5
ANSOFF MATRIX OF TESCO..................................................................................................5
Marketing analysis BCG .............................................................................................................6
Customer driven strategy (STPD)................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
The marketing is the essential element for obtaining success in the marketplace. The present
report is based on the Tesco company which is leading the market in effective as well as
efficient manner (Sitinjak, and et.al 2020,) . Along with that the company is facing some sort of
issues in the domestic place regarding marketing, customer satisfaction, employability etc. in
order to deal with the obstacles the company formed SMART objective of increasing the
profitability and productivity.
MAIN BODY
Marketing plan
Aim: the aim of the Tesco is to satisfy the potential customers of organization.
SMART objective:
specific: the objective of the company is to increase the sales and marketing share of the
company by generating the awareness among the people.
Measuring: to boost the sales of the company by generating the revenue of 20%
Achievable: with the assistance of marketing it is achievable by The organization.
Realistic: increasing the employability by new hiring process.
Time bond: by the end of the year the organization generate the revenue.
As per the previous analysation the organization is facing issue of less awareness in the
marketplace. In context to that the organisation is increase the brand awareness with the
assistance of digitalisation media. In the digitalisation media the organization promote the
product and services on the online sites and allow the feature of delivering feedback to the
employees. Furthermore it will deliver assistance in improving the quality of the product the
organization in offering to the customers (Ceesay, 2020) . In the modern era the large numbers
of the people are depend on the technology, and they take the decision on the bases of the
advertisement. The organization delivers the important information to the people regarding the
rewards, offers, discount and upcoming products of the company. Apart from that for
improving the value of company and increasing the productivity of the company. The company
will focus on the performance of the employees in order to enhance the employability. in
context to that the Tesco provide training and development programme. To the employees that
will improve the skills and knowledge of the individual person In effective as well as efficient

manner. Furthermore the manger of the company will provide the feedback to the workers that
will help in improving working condition of the organization which further deliver assistance in
providing customer satisfaction and attracting the customers toward the product and services of
the association.
The Marketing Mix
Four P's of Tesco
The concept of “Marketing Mix” focused on the Product (P), Price (P), Place (P), Promotion (P).
This technique is used by the company to achieve the market objective in the targeted based
market. This will cover the in depth marketing strategies of a business. Tesco's 4 P's. explicate
as follows:
Product(P): TESCO provides the huge range of product in each category, that include the
clothing, food electronic, financial services, brand (F&F, Tesco lotus, Tesco value), regional,
international cooking etc (Niazi, Rashid, and Shamugia, 2021). this expanding product line caters
the every individual customer need, this expanded into the online market sector too. Where it
offers grocery delivery and music. Tesco also having bank which provides financial services as
well. However, it is worth to mention that the availability of range and product that customer
visit on the stores. As a result, Tesco has successfully covers many market segments, from high-
low to low-end.
Price(P): Tesco pricing strategy it is schedule by the management. Their aims to reduce the cost
of purchase, if Tesco provides good price promotion strategy of providing loyal and good
customers. Tesco the best channels for procurement to maintain their low prices. Tesco
consistently work on their supply chain system to reduce the cost of transportation and provide
the goods at lowest as possible. Tesco having the unique attractive program called as Brand
Guarantee in this program if a customer is buying 10 or more than 10 products customer will get
the lowest price at any store of the Tesco. Tesco offer discount on 3 essential products, during
pandemic. Tesco having 'club card system' to gather the points on the card and that helps in extra
discount.
Place(P): Tesco headquarter is located in Chestnut, Hertfordshire, England. Tesco having more
than 7000 stores in the different countries. Tesco Express, Tesco Metro, Tesco Compact, Tesco
Homeplus and Tesco Superstore (Fraser-Arnott, 2020). Its having two main channels of
distribution for its product and services by Online & Offline. Supermarket usually sale groceries

and non-food items. The average size of the metro is 1000 sq.mt., situated in town and city
centres. Tesco express are small stores with high margin products and their prices at this store
higher than the other. Tesco Extra are hypermarket stores which carry the wide range of product
under the same roof as, groceries and general merchandise. Tesco stores are small and charge
high rates other than Tesco stores.
Promotion: Tesco is the gold standard in terms of promotion and branding. It has made use of
TV advertisements, sponsors charitable events, offer propagative discounts and many more
(Blut, Teller, and Floh, 2018).
It always focuses on the lowest price it can provide attractive offers that leads to very easy
customer “buy one get one free”, “Half Price”. Online are generally cheaper than the offline
forums. It's still having the both payment system. Its main aim is to improve the brand image by
reducing the price and cost. Cub owner also get points which they can redeem, Tesco sells and
promotes their products online, This brand having strong digital marketing strategies.
Develop The Marketing Strategy
ANSOFF MATRIX OF TESCO
Ansoff matrix due to its grill format, the model gets the opportunities to grow the revenue of the
business through developing the new Product and Services. It is used for the alternative of the
strategies of Tesco.
This topic explores the application of Ansoff Matrix in Tesco:
Market penetration: As the company is facing certain penalties and financial debts that leads to
a bad goodwill in the market customers are trusting on the brand (Khajezadeh and et.al., 2019).
Selling the products to existing market, Tesco has been able to enlarge its business well since it
establishment. This strategy has helped to growth in market share and hike in the use of the
products by existing customers. It involves sales driven approach in the current environment.
Market penetration can be reach through – increasing in sales touch, reaching directly to
customers, improving the basket share of customer total spending etc. Tesco also often comes
up with special offers on many products with a view to increasing the sales.
Market Development: The Rules and Regulation of the other government is also effecting the
prices of the products because every country having their own tax policies. This strategy helps in
implementing the development of market through – Selling the products into the new market or
regions (Kurniawan, Iswahyudin, and Suciati, 2020). This involves – entering into International

markets, Domestic market, trying up with complimentary companies to drive sales of current
products etc. Tesco has enlarged the market from U.K. To the Worldwide in 2019 with 750 new
stores in Thailand over next 3 years. Tesco failed the market in some cases like stores in US,
China, South Korea and Japan; however Thailand is a successful story. Adding the new benefit
and features to the product.
Use different and unique channel for the sales such as offline vs e-commerce.
Product Development: Some the work forces are not performing well in the company that affect
the profit of the company and the product quality as well, the clubcard also facing the
controversy in the market on the unnecessary deduction of the points. Tesco has developed over
the years a good label products to sell into the existing markets. Lots of products from the top
brands, Tesco has its own and sells both versions to different segment of market. If Tesco did not
come up with new version of the products and suppliers, then top brand have more power in any
negotiations.
Diversification: Due to the high competition in the marketplace, its facing difficulty in
enlargement of the network all over the Worldwide in effective manner (Omosa, and et.al.,
2022). Comparative growth of company is the biggest threat for the volume of the customer.
Diversification strategies are very difficult to implement because Selling new products to new
customers is not an easy task. Tesco started as the grocery business in the past but over the time
it multifarious into many areas. Tesco had failed in some of its multifarious strategies. Tesco
sold it with a loss in 2016. likewise, it bought 80% stake in the online video shop blinkbox
Entertainment in 2011.
Marketing analysis BCG
The BCG matrix is refers to Boston consulting group growth sharing matrix which is the plans of
action for boosting the valuer and share of the company in domestic as well as international
marketplace. The BCG matrix is bifurcated the product and service of the company in the four
category. Each quadrant of the matrix consist of unique or innovative feature which the
organization consider for the forthcoming success. The Tesco is one of then leading company of
the UK which is offering wide variety of the product and services to the customers in order to
satisfy them effectively (Medini, and. et.al2019.). In context to that the company segregate the
product in different quadrant. The quatrains of the matrix with implementation are mentioned as
follows:

cash cow(low growth, high shares): due to the high market shares the company is able to
enhance the profit of the company. Due to the high share the company is able to obtain high
income from the marketplace and considered in maturity stage. In context to that the product
fresh meat lies in cash cow quadrant which indicate that the demand of the fresh meat product of
the company is high in the market which improve the brand value of the company. Apart from
that the vegetable and fruits are also having high marketing shares.
stars high growth, high share: it is the quadrant which mentioned the growth opportunity of
the organisation. It deliver assistance in providing supporting environment in effective as well as
efficient manner. Furthermore it deliver assistance in leading the marketplace. The Tesco bank is
involved in star quadrant as the company is offering various facilities to the consumer that
includes current account, insurance and loan facilities to the users. With the assistance of that the
company is improving the global presences of the company in adequate manner (Rolies, and
Trisnayanti, 2021) .
question marks: high growth, low shares. Some product of the Tesco which is not generating
higher profit from the marketplace but having growth in the domestic as well as international
marketplace. The Tesco lard can in consider in the question mark quadrant as it has low impact
on the profitability of the organization.
Dogs: low shares, low growth this quadrant consists of low market growth and a low market
share. Some of Tesco product are offering the power performance in the domestic as well as
international marketplace due to that the customers are shifting toward the different completive
brands. The mobile business of Tesco is one of the factor which is facing high competition in
the marketplace due to which in the mobile industry the Tesco is facing low shares and low
growth.
Customer driven strategy (STPD)
it is one of the most effective and popular plans of action which is utilized by the business
enterprises in order to obtain the success in the domestic as well as international marketplace. It
deliver assistance in forming various strategy for the welfare of the association. Along with tit is
beneficial for bringing better understanding among the people. It consist of different element
which stand for segmentation, targeting, positioning and differentiation. Due to that the company
is able to take adequate action for improving the perforce and accomplishing the goal of the
association in an appropriate manner. Similarly the Tesco is utlizing this strategy for delivering

the compensative advantage as it satisfy the customer and increase the brand awareness among
the people.
Segmentation: the organization make the product segregation on the basis of age,gender,
capability of investing, profession , or the background of the individual person for delivering
right product to the right customer as per taste and preferences of the buyers for the excellent
satisfaction. In context to that the Tesco organization deliver the product and services to the all
age people who belong to different categories (Kader, and Hossain, 2020) . Apart from that the
organization dint make any kind of discrimination between them in the name of race, colour,
gender and areas etc.
Targeting : for accomplishing the objective of the ansation and increasing the profitability and
productivity of the organization. In order to that the organization determine the potential
customer and target the people who are I students, employees or engaged in some profession .
The targeted customers of the Tesco are belongs to low or middle income category. Basically
the customers of the organization are working class, skilled and knowledgable. In context to that
the organization deliver less price product which are not much expensive, but they are valuable.
Basically the grocery products are the requirement of every individual so the organization didn't
target audience specifically it means the product are available for everyone.
Positioning: the positioning of the organization is high in the domestic as well as international
marketplace. As the company offer the best quality product to the customer the position of the
company is good. Due to that the company is able to increase the profitability and productivity in
effective as well as efficient manner. Along with that the company is facing high competition in
the marketplace and still mange to survive and obtain success in adequate manner. With the
assistance of positioning the organization is able to attract the large numbers of the customers.
Differentiation : in order to meet the demand of the customers, the organization provide wide
range of the product and services as per the taste and preferences of the consumers. In order to
that the organization deliver product different from the competitors (Janiah, 2019). Along with
the unique product and services the organization deliver high values to the people which involve
customer satisfaction, transparency etc. Apart from that the organization keep innovating and
modifying the product and services which includes, electric goods, footwear, cloths,
merchandising of the other general goods. In context to that the company keep investing the
capital in hep productivity of the company.

CONCLUSION
From the above report it will be concluded that the Tesco is delivering the values to the large
numbers of the customers in order to increase awareness among the people. The present report
mentioned that the organization segregate the product and services as per the requirement of the
marketplace. Along with that the report mentioned the marketing mix of the Tesco company.
Furthermore the study include different growth strategy which the organization can considered
for the success of business enterprise. Due to that the company is able to boost the market share
of the company in different market.

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