Higher National Diploma Business Marketing Report: Tesco Analysis

This report provides a comprehensive analysis of the marketing concept, functions, and the extended marketing mix, with a specific focus on the multinational grocery retailer, Tesco. The introduction defines the marketing concept and its significance in the 21st century, emphasizing customer needs and organizational goals. The report then describes the role of the marketing function, illustrating it with examples from Tesco, including identifying customer needs, product planning, promotion, and distribution channels. It further analyzes the interaction between the marketing function and other departments like production, finance, IT, and human resources. The extended marketing mix is explained, comparing Tesco's approach to that of Sainsbury's across various elements. The evaluation section assesses how Tesco's marketing mix contributes to achieving its business objectives. Finally, the report offers recommendations for Tesco and concludes by summarizing the importance of marketing in organizational development and growth. The report covers key concepts like product, price, place, promotion, people, physical evidence, and process, providing a detailed overview of Tesco's marketing strategies.

Higher National Diploma in Business
Management
Unit 2 Marketing Process & Planning
The Marketing Concept,
Functions and Mix (Part 1)
Marketing Planning (Part 2)
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Table of Content
Part 1: Briefing Paper
1.0 Introduction p
2.0 An explanation of the concept/definition of marketing in the 21st century
p
3.0 Description of the role of marketing function with examples from the
chosen organisation p
4.0 An analysis of how the marketing function works and interacts with other
departments p
5.0 An explanation of the extended marketing mix and examples from selected
supermarket p
2.0 An evaluation of how the marketing mix adopted by the selected
business (or business unit) contributes to the success of the organisation in
meeting their overall business objectives p
3.0 Recommendations p
9.0 Conclusions p
References p
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1.0 Introduction
The marketing concept is define as the group of ideas and marketing data
which play a significant role in identifying the needs of customers and it is the
process of developing the strategies which work not only for the customer demands
as well as also accomplish the demands and goals of the organisation. The
marketing concept is very essential in the development of any organisation because
it includes the buying, selling, marketing, promotion, distribution of products and
services (Ofori 2021). The function of marketing is also functions in integrating the
activities of the organisation. The function of marketing concept is to search and
provides the different approaches for effective marketing. The concept of marketing
includes the cost efficiency, effectiveness and social responsibilities as the
objectives in the market place. The concept of marketing has classified into five parts
and these five concept are production concept, product concept, selling concept,
marketing concept and societal marketing concept. The report has taken the Tesco
for outlining the concept of marketing (Chase Geringer and Stratemeyer 2019).
Tesco is the multinational groceries and third largest retailer I the world. The report
has described the marketing mix concept with respect to the company which help the
company in achieving their goals and objectives.
2.0 An explanation of the concept/definition of marketing in
the 21st century
The concept of marketing in 21st century is related to the digital platforms and
the main goals of marketing in 21st century is to fulfil the customer needs by
planning, executing, conception , pricing and promotion. The marketing in 21st
century is the process which include the both traditional as well as digital channel for
enhancing the marketing demands for products and services (Chatterjee Chaudhuri
and Sakka, 2021).
3.0 Description of the role of marketing function with
examples from the chosen organisation
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The role of marketing function is to seek the customer requirements and also
work on the feedback of product. The function of marketing includes the identification
of potential sources and ensure the right product with right price reach in the market
for satisfying the needs of customers (Sharma, Nasreen, and Kumar, 2019). The
Tesco has launched the different kinds of products in the market and the aim of this
company is to produce the best quality of products in reliable rate so that it can be
easily available to wide range of customers. The function of marketing include:
 Identification of needs of customer: The first thing in marketing is to
identify the needs of customer regarding the products. The Tesco has
focused the demands of customers through the research, surveys,
campaigns and following the social media before launching of their products
in the market (Utami, Siregar and Asnawi, 2020).
 Strategies for planning of product: The second thing is to analysing the
different process which help the organisation in achieving the target of the
products. In context with Tesco the marketing manager has worked in
branding the image of the products so that its market value arise and this
help the company to sell their products with good price.
 Promotion and publicity of product: The promotion and publicity is the way
of advertising the products for increasing the demands of customers. The
Tesco promotes their products through various process like advertisement,
hoarding, launching events and through the social media. The Tesco
provides the offers and discount to attract the customers towards their
products. The Tesco has ' Tesco Club Card ' which provides the coins to the
customers in purchasing time (Chung and Lee, 2019).
 Distribution channel: This channel is the way of reaching the products to
the customers. The distribution channel consist of wholesalers, retailers,
distributor etc. The Tesco has two modes for distribution of their products.
The first is online and second is offline. The company has made their own
official website for selling their products in the marketplace.
4.0 An analysis of how the marketing function works and
interacts with other departments
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The marketing function works by the integration of another departments for
increasing the quality based work and products.
 Marketing and production department: The function of marketing and
production department is to produce the products by utilising the resources
so that the cost of the production is reliable. The production department of
Tesco Company focus on manufacturing of good quality of products and also
develop the design of packaging of products for attracting the customers.
The marketing manager give the deadline to the production team to produce
the products on time for meeting the demands of customers.
 Finance and Marketing: The marketing and finance department of any
organisation are correlated (Nair, 2021). The marketing team work according
to the guidelines of finance department and set the budgets in appropriate
manner. The budgets are set to fulfil the demands of promotion, distribution
and research. The role of finance department in the Tesco company are to
set the budget in financial capabilities and ensure the good quality product in
the budget. The marketing manager focus in increasing the sales volume
with the help of finance department by concentrating the cash flow, covering
cost and investments.
 Marketing and IT departments: The marketing and IT department both
focus in promoting the products and services by using different tools and
technology. With respect to Tesco, the marketing manager of this company
coordinated their work with the IT department in making the products
attractive by using graphics, images and software. The IT department of
Tesco company has developed the online websites and help the marketing
managers in occupying the large market areas.
 Marketing and Human resources department: The human resource
department and marketing department together work for achieving the
demands of customers by developing the training to the employees. In
context of Tesco, the marketing manager choose the employees in
marketing field with the help of HR department. The HR department choose
the right candidate which have well knowledge of marketing by interview
process.
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5.0 An explanation of the extended marketing mix and
examples from selected supermarket
To meet the demands of customers, the manager of Tesco uses factor of
marketing mix and their detail discussion with two companies are given below:
Basis Tesco Sainsbury's
Product The Tesco is multinational
company in UK and this
company produces the
different kinds of products
which includes the foods,
clothing, stationary,
cosmetics and many more.
The product of Tesco
company is available in
markets in their own brand
name and also in offline and
online way. The company is
also working to launch the
Keto products.
The Sainsbury's produces
the products in UK markets
like electronics, baby
products, food items, beauty
and health products. The
company also produces
ready meat for the customers
who has allergy from the
dairy and gluten food items.
Price The price of each products of
Tesco company is
reasonable. The price of
products has set according to
the scale of economies. The
price of Tesco products is
reliable for their regular
customers by offering the
discounts.
Sainsbury's products are of
good quality and provides the
product to the customers by
focusing on ' value for
money'. The price value of
products of this company has
set by seeing the competition
in the market.
Place The company has chosen
both online and offline place
for marketing and selling of
the products.
The Sainsbury's has chosen
the online as well as offline
both for marketing and selling
of their products. The
company also provides the
home delivery systems to
their customers. The
company has 500 hundred
supermarkets and 700
convenience stores in
different countries.
Promotion The Tesco company
promotes their products
through the social media,
advertisement through the
The Sainsbury's promotes
their products by using above
line and below line strategies.
The Company has launched
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television, events, hoardings
and many more programmes.
The company has also used
the loyalty card namely '
Tesco Club Board' to attract
the customers by giving the
vouchers and gifts.
'Nectar Reward Card' and
attract the customers towards
their products by earning the
nectar points in buying the
products and use this point
as the discounts.
People The Tesco has large number
of employees in the world
and they enhancing the
development of their
employees by training. The
working of people has
motivated by the company by
offering the promotions.
The Sainsbury's has well
trained employees and
company has launched the
level 2 craft skills model
which facilitate the training to
the employees of bakery and
fishmongers.
Physical evidence The company use the
different logos, pictures,
labels of different colour and
size in their packaging
materials for increasing the
demands of customers. The
stores and supermarkets of
Tesco company has arranges
their products in well
mannered which is very
helpful to the customers in
finding the products easily.
The Sainsbury's provides the
good quality of trolleys and
carry bags to the customers.
The design and layouts of the
stores are very well and
attractive so that it takes the
attention of customers.
Process The Tesco use the activities
and task to fulfil the
customers demands and use
self service machines for the
payments. The billing speed
is also very fast in the Tesco
company (Aliekperov,
2020).
The company use very
technology in pricing of the
products so that more
numbers of customers attract
to their products and it
increase the productivity of
the company. The online
service named as 'click and
collect' has provided by the
company for better
marketing.
2.0 An evaluation of how the marketing mix adopted by
the selected business (or business unit) contributes to the
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success of the organisation in meeting their overall
business objectives
The marketing mix is very important strategies in effective marketing of Tesco
company. The factors of marketing mix help the company in targeting the customers
as well as help in achieving the goals of organisation. The marketing mix help the
Tesco company in identifying the best quality products, ways for promoting the
products, place for the better marketing and selling of the products. The marketing
mix help the Tesco company in choosing the right product with right price to the right
people in right time for the growth of the company. With the help marketing mix the
Tesco company has launched new products in low price with good quality and
attractive packaging.
3.0 Recommendations
The Tesco is multinational company and their products have image in terms
of branding in the market so Tesco has to focus on more digitalization process for
increasing the speed and quality of their products and services. The company should
also develop the information technology and work on HRM strategies to help the
employees and provides the standard treating service to their employees foe their
better growth.
9.0 Conclusions
As per above report the marketing concept is the way of enhancing the selling
of products and services in the market on desired price. The marketing is very
helpful tools for the development and growth of any organisation because it help the
organisation in promotion of their products through the advertisement. The report
has describes the Tesco company and their marketing mix which help the company
in creating the brand image of the products in the markets as well as also help help
the company in targeting the customers and increasing sales. The report has also
describes the function of marketing department of Tesco company with finance,
human resource, IT and other departments also. Furthermore, the report has states
that for development of any sector the coordination is necessary and Tesco has well
coordination with other department which increase the growth and also create the
image of brand in the minds of people.
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References
Aliekperov, A., 2020. The customer experience model. Routledge.
Chase, C., Geringer, S. and Stratemeyer, A., 2019. The Effect of University Marketing
Efforts on Students' Academic Decision-Making: An Empirical Study. Journal of
Higher Education Theory & Practice, 19(6).
Chatterjee, S., Chaudhuri, S. and Sakka, G., 2021. Cross-disciplinary issues in international
marketing: a systematic literature review on international marketing and ethical
issues. International Marketing Review.
Chung, H. and Lee, E., 2019, June. Impact of category-specific demand environment on
store brand quality positioning: Empirical evidence. In International Conference on
Advances in National Brand and Private Label Marketing(pp. 14-18). Springer,
Cham.
Nair, R.D., 2021. The spread and internationalisation of South African retail chains and the
implications of market power. In Ownership and Governance of Companies (pp. 40-
60). Routledge.
Ofori, D., 2021. Opportunities and Challenges of Green Marketing. Green Marketing in
Emerging Markets, pp.251-276.
Sharma, Y., Nasreen, R. and Kumar, A., 2019. Role of social network in defining the impact
of marketing-mix on satisfaction from food items at subsistence marketplace. Indian
Journal of Marketing, 49(2), pp.7-24.
Utami, W., Siregar, H.R. and Asnawi, A., 2020. The influence of the sixone 77 meatball
marketing mix to customer satisfaction in Makassar city. Advances in
Environmental Biology, 14(9), pp.1-8.
Table of Content
Part 2: Marketing Plan
1.0 How the strategic marketing plan links with the overall organisational
mission, corporate strategy and objectives p
2.0 Clear and SMART marketing objectives p
3.0 Marketing research to support the new product line launch p
4.0 A situational analysis p-p
4.1 Marketing audit, making use of appropriate analytical tools including
SWOT, Pestle and 5C analysis p
4.2 A competitor analysis including the market segments p
4.3 Sub-segments p
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4.4 Articulation of the new product value-proposition in the eyes of the
customer p
4.5 Development of the marketing strategies applied to the extended marketing
mix p
4.6 Setting of an overall marketing budget, including allocation of planned
spend p
4.7 Tactical actions p
4.8 Identifying appropriate control and monitoring measures to ensure
achievement of objectives including metrics to measure success such as
Return on Marketing Investment (ROMI) and Customer Lifetime Value (CLV)
p
5.0 A comprehensive media plan that supports the planned marketing
campaign p-p
5.1 A media budget p
5.2 Recommendations and rationale for selected and integrated multi-media
activities within the set budget that meet the marketing objectives p
5.3 Appropriate digital, offline and social media channels for communication
p
5.6 Full justification for a multi-media plan based on quantitative and
qualitative criteria p
References p
1.0 How the strategic marketing plan links with the overall
organisational mission, corporate strategy and objectives
TESCO is a multinational retailer company which is situated in the Welwyn Garden
City, England. The company have very good will into the market that makes a good
image in to the market of United Kingdom. They also focus on the new strategies
that can helps in the most customer adherence towards there goal(Thomas, Fay and
Berry, 2020).
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Mission of TESCO- The mission of the company are identifies by this statement that
is “ We make what matters better, together”. The statements is denotes as the
TESCO employees or every significant person tries to achieving the success in the
company together. Its mission is mainly focuses on the health of the customer by providing
hygiene and healthy keto products.
Corporate strategy of TESCO- The corporate strategies of this company is very different in
which the company follows the steering model that can cover all the elements including in
the company like finance, business, operations, community, people and many more which
are handled in the proper way. This models places their value for the custyomer and builds
the lifetime loyalty in them.
Objectives of TESCO- The company of the TESCO is provides electronic, grocery
items and clothing and garments items etc. through the online mode. The objectives
of the company is to established the supermarket that have availability of the all
necessary goods and services and also aim is to sell their products in the low cost
that compete to the other supermarkets in the United Kingdom(Rodríguez and
Egüez, 2020).
2.0 Clear and SMART marketing objectives
Smart marketing goal is for the organization for achieving and enhancing the productivity of
the company in which there are many types of marketing objectives are including like
SMART stands for specific, measurable, attainable, realistic and timely. The process of
SMART goal orientation in context to the TESCO it is very effective for the organization are
mentioned below:
 Specific – In the specific point the company set their target to the customer
which are interested in the products of TESCO that can be very specific for
the customer.
 Measurable- The main objectives of the company is to enhance the
production and achieves the target by 8%. This can be achievable with the
the help of offering the products at minimum price with the quality and
promotion.
 Achievable- TESCO products are trends into the market as the products of
this company have taken as healthy diet that can enhance the customer
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satisfaction because nowadays, many people have aware related to their
diet. So, they can buy more products. This can leads the increment of the
market share and also increases the number of customer into the market
with the help of this company achieve more target in the market.
 Realistic – In this point company of the TESCO is works on the changing of
the product in which they works the on the product with the new marketing
trend and also works on the changing taste of the customer.
 Time bound- Every company have the planning and research related
to the new achievements and also modification this can takes the
particular time to achieve the target segment. TESCO will achieve
their new modification in their products in probably next year(Zabar,
2020).
3.0 Marketing research to support the new product line
launch
Steps of market research to launches new product into the market.
 Identify the competitive market : In the identification of the new market when the
company wants to launch the product in the market that must face many challenges
like the study and the nature of the product and services that will launch into the
entire market and also analyses the market that can decided for the particular
product. TESCO company have set the target on the adult population because of the
new generation are most active on the social media handling that are keep interested
to buy the products.
 Define the goal : In this the company set the target or goal that can help in the right
orientation. The manager of the TESCO decided to increases its sales by the 8% by
selling of the keto products in the market in the new target market the company will
also helpful in increasing the customer retention rate(Qalati, Yuan, Khan and
Anwar, 2021).
 Unique value proposition – This is the very important part that can helps in
the customer adherence in this the company set their prices at low cost or in
the reasonable manner that can adhere the customer focus on the products of
keto. The company also have many varieties of the products like keto rice,
keto chocolates, keto pancakes and many more. The TESCO company also
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