Marketing Analysis of TESCO: New Product Launch and Strategy

This report provides a marketing analysis of TESCO, a multinational supermarket chain. It examines TESCO's internal and external environment, highlighting its competitive landscape and market position. The report focuses on a new product launch, specifically the 'Finest Grocery' range, targeting premium customers. It details the product description, including high-quality chilled desserts, coffee, and ready meals. The report then outlines a marketing mix strategy for the new product, including pricing (5% higher), placement in all TESCO outlets, and promotional strategies such as online marketing and 'Buy 2' offers. The analysis also covers the importance of target market segmentation, emphasizing the focus on customers of all ages seeking premium grocery items. The report aims to provide insights into TESCO's strategic approach to expand its business and attract a broader customer base.

Running head: MARKETING ANALYSIS OF TESCO
Marketing Analysis of TESCO
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MARKETING ANALYSIS OF TESCO
Table of Contents
Introduction......................................................................................................................................1
Recommendation.............................................................................................................................1
Target market...............................................................................................................................1
New Product description..............................................................................................................2
Marketing Mix for new product..................................................................................................3
References........................................................................................................................................4

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MARKETING ANALYSIS OF TESCO
Introduction
TESCO is one of the well-known supermarkets launched in UK and gives a tough
competition to its competitors such as ALDI, WOOLSWORTHS and others, which also offer a
wide range of products like TESCO. It is also known as the multinational shop for groceries in
Australia. The supermarket in this case also sells retail merchandise to the consumers of all
range. TESCO is considered the third largest retailer in Australia after the two super giants
mentioned above (Tesco 2017). TESCO saw its existence in 1919 as a market stall and slowly
emerged from there. Its name slowly became known to others and appeared to the public in the
year 1924. The company stared expanding internationally to other countries in the year 1990s.
The products offered by the brand are clothing, electronics, foods, books and others. It has also
expanded its market in various types of services such as internet services, financial services and
others. The company offered its products in large volume and at low cost. The market
capitalization of the brand is about $18.1 billion and is listed in the London Stock Exchange
(Tesco plc 2017).
The paper focuses on the internal and external environment affecting the company
TESCO and its expansion. Further, it will form a recommendation regarding the target market,
marketing mix and product description of the new product that the company is recently aiming to
launch.
Recommendation
Target market

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MARKETING ANALYSIS OF TESCO
Targeting is one of the most important activities of any business while deciding about
their marketing strategy and the way it wants to expand in the market. Targeting a market means
a way of focusing on the group of people or customer to which the company wants to offer its
products (Wirtz and Lovelock 2017). It is only through proper targeting strategy the company is
able to design it products and pricing strategy accordingly. This is because a produce produces
for the customers and thus targeting or segmenting its customers helps them to move fast with its
activities. TESCO too needs to form a targeting strategy for the products it is aiming to launch in
its stores. The new product that will be launched by the company will mainly aim at offering the
product to the premium customers in the market (Barton 2015). Moreover, it will focus at
offering the product to customers of all age range from juniors to the elderly. This is because the
company mainly produces grocery products, which is useful for all type of customers.
New Product description
The company is planning to launch a new product in the company for expanding their
business as well as customer range. It is planning to come up with the new range of Finest
Grocery for its customers. It is done to increase the sales growth of the company and attract a
better and much premium shoppers. The new range of grocery includes high quality chilled
desert, coffee, red meat, tea, chilled ready meals, continentals and others. The products being
introduced mainly include the things that are used by the high standard people that lead a busy
life and prefer easy to use and eat foods and grocery items. The prices charged for these products
will be five percent higher compare to the price charged by the company in its previous items.
This will help them drive more premium customers for their products in different markets
(Metcalf et al. 2016).

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MARKETING ANALYSIS OF TESCO
Marketing Mix for new product
The company also needs to formulate a proper marketing mix strategy for its product to
get a better understanding of the type of price, product, promotion and place the company wants t
focus (Khan 2014).
Price: The new product that the company is aiming to introduce will be charged a high price
compared to its previous grocery items. This is because the products are of high quality and
mainly consists of foods consumed by rich society. Thus, there will be a five percent rise in the
price of new grocery product compared to the old ones.
Products: The Company is planning to introduce a wide range of Finest grocery products for the
customers and will include chilled food items, deserts, ready to eat food and other premium
items.
Place: it will be available in all the TESCO outlets all over the world and will be distributed
through distribution channels and intermediaries to the supermarkets and the other retail shops.
This is because most of the products being introduced are TESCO’s own products.
Promotion: the company has changed its promotional strategy to launch its new product range in
the market. It has used online portal to increase the awareness of its new product in the market. It
has also focused at Buy 2 strategy in which it offered a pair of products at low price.

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MARKETING ANALYSIS OF TESCO
References
Barton, L., 2015. Active Positioning: The Importance of Relevancy. Journal of Marketing
Perspectives, 1, p.48.
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Metcalf, L.E., Neill, S., R. Simon, L., Dobson, S. and Davis, B., 2016. The Impact of Peer
Mentoring on Marketing Content Mastery. Marketing Education Review, 26(3), pp.126-142.
Tesco plc. 2017. Tesco PLC. [online] Available at: https://www.tescoplc.com/ [Accessed 12 Sep.
2017].
Tesco.com. 2017. Tesco - Online Groceries, Homeware, Electricals & Clothing. [online]
Available at: https://www.tesco.com/ [Accessed 12 Sep. 2017].
Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World Scientific.