Marketing Essentials: Tesco's Marketing Strategy and Media Planning

This report provides a detailed analysis of Tesco's marketing essentials, covering various aspects of marketing operations, the marketing mix, and marketing planning. It begins by explaining the concept of marketing and its role within an organization, particularly in the context of Tesco. The report then explores how the marketing function relates to the broader organizational context, emphasizing the coordination between marketing, finance, production, research & development, and sales. A comparative analysis of Tesco and Sainsbury's marketing mix application is presented, highlighting differences in product, price, place, promotion, people, process, and physical evidence. Furthermore, the report develops a marketing plan for Tesco, incorporating SMART objectives and SWOT analysis, and produces a media plan with specific recommendations and rationale for selected media activities within budgetary constraints. The report concludes by summarizing the key findings and emphasizing the importance of effective marketing strategies for achieving business objectives.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 Explain the concept of marketing and marketing operations including the different areas
and role of marketing..................................................................................................................3
P2 Explain how the marketing function relates to the wider organisational context..................4
PART 2............................................................................................................................................5
P3 Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives.......................................................5
PART 3............................................................................................................................................8
P4 Develop a marketing plan that includes key elements of marketing planning for an
organisation to achieve marketing objectives.............................................................................8
P5 Produce a media plan that includes recommendations and rationale for selected media
activities that meet budgetary requirements and objectives of a marketing campaign brief....11
Media Plan................................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is refers to the set of activities and procedures that used by an organization for
creating, communicating, delivering and exchanging offers to the customers in order to attain
their satisfaction (Zahay, 2019). Mainly, it is intersection of the business and customer that may
assist in fulfilling the needs of the buyers. With the assistance of this, company can build positive
brand reputation at market place. By using this activity, organization can engage customers and
at the same time also develop positive relationship between company and buyer as well. Thus, it
is crucial for company to effectively implement the marketing activities that support them in
increasing awareness in market and at the same time also influence customers to buy company
products according to their needs. This will directly contributes in boosting the sales and
profitability level. Current report is focus on Tesco which is a multinational company deals with
all the household products headquartered in UK. The primary focus of this company is to attain
competitive edge by serving better quality products in over the world. This report is going to
discuss about various roles and responsibilities of marketing function. Marketing mix and plan is
also mentioned in this report that may assist in accomplishing competitive success at market.
PART 1
P1 Explain the concept of marketing and marketing operations including the different areas and
role of marketing.
In an business organization, marketing function is related with buying and selling of
goods and services for fulfilling customers needs. Along with this, the main function of
marketing is to collect all the necessary information about market and customers, transporting
the goods and many more (Wilson, McCabe and Smith, 2018). In relation to Tesco marketing
function is also support them in building their competitive image of the company by satisfying
buyer needs and wants towards its services. In this context, there are some important key roles
and responsibilities of marketing function that played by Tesco are as follows: Buying and selling of products: The primary role of the marketing function in Unilever
to develop the strategies and tactics that can help in selling and buying of the goods and
service of the company that can satisfy the needs of the customers. Basically in this the
the responsibility of the marketing function is to transport the goods to correct place
where it can be distributed among consumers.

 Identify the needs and demands of the customers:The marketing function of the
Unilever also help in understanding and recognising the customers requirements through
their buying habits, taste, feedbacks and market survey. Making profits: the marketing function of the Unilever devise innovative strategy to
increase the sales of the organisation which in turn leads to more profit. The marketing
team of the Unilever develop the strategic marketing plan with objective to increase the
organisation sales in order to make high profits.
 Provide situational analysis: It is the role of the marketing manger of the Unilever to
provide the organisation with situational analysis in order to analyse the competitiveness
and also to refine the company's goals and objectives accordingly. This also includes the
market research for specific product to analyse market trends (Key and Keel, 2020).
P2 Explain how the marketing function relates to the wider organisational context.
The marketing department plays a essential role in promoting the business of organisation
and in accomplishing the objectives (Uncles, 2018).
Tesco has an important role in making the household products and the all the essential items
which helps in contributing in achieving the objectives. The marketing department is responsible
for developing marketing strategy after considering company's mission, preferences of
customers, conduct the competitive analysis and decide on a budget. The marketing department
and various other business functions perform work in coordination in order to develop business
plans and incorporate marketing inputs in other corporate objectives.
Marketing-Finance
All marketing plans includes major financial dimension that is budgeting and profitability
analysis are the key aspects of planning and controlling the market situations which implies
financial tools (Directions in higher education:Rancati, Gordini and Capatina, 2016). The
marketing decisions of company is basically an investment in market which helps finance
department to formulate the budgets and make changes accordingly. Tesco's marketing activities
such as market forecast and sales forecast requires capital and finance needs for which finance
department is responsible.
Marketing-Production

The link between marketing and production department determines the number and type
of products which are marketed. The accurate prediction of sales forecast for each product and
product line is necessary for efficient production operations. The marketing and production
department of company works in coordination and responsible for designing new products where
production is based on extensive market research for demand for new product, time requirement
and space distribution for products.
Marketing-Research & Development
The efforts of R&D department are closely linked with the marketing department of the
company as they majorly revolves around the new product development (Purvis, 2016).
According to the trends in market, the marketing team of the company identifies the market
requirements and provide information to R&D department for in depth study of the facts.
Marketing-Sales
Marketing department and sales department are inter-related as marketing team is
responsible for bringing quality leads to the sales team. With the help of various marketing tools
such as marketing automation software, marketing tracking, marketing team provides leads to
sales team and determine their performance to provide better results to the company.
PART 2
P3 Compare the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives.
The marketing mix is a tool used by organisations to consider different elements that
contributes in promoting a brand and its products (Piñeiro-Otero and Martínez-Rolán, 2016). It
provides blueprint for putting the right products in the right place, at right time with price.
To understand this concept better, let's analyse marketing mix of Tesco and Sainsbury.
Basis Tesco Sainsbury
Product Tesco is one of the leading
company deals with all the
clothing, food, electronics and
the financial services. The
company offer products for
Sainsbury is a popular and one
of the top leading company in
the world. The product
portfolio of company covers
wide range of items foe all age

men, women and children with
different styles according to
the taste of the target market.
They believe in sustainable
development and recycles its
hangers, tags and use paper or
biodegradable plastic bags to
reduce the production of
waste.
group( men, women and
kids).it deals with all the
household appliance and the
products.
Price Tesco's products are high on
quality and low on prices
(Pike, 2016). they manage
affordable pricing. The
company follow low pricing
strategy where focus is to
provide best products to the
customres. The brand is also
using various discount offers
to promote its sales.
Sainsbury follow low pricing
strategy for its product range in
which it considers the
competitors' prices while
setting the price of the same or
similar products. Generally the
prices of products are set
between low to medium
category because of its
premium quality.
Place Tesco has established its
presence worldwide and uses
its unique business model to
bring different stores
worldwide. Mostly stores of
company are owned and not
franchise and are located in
crwoded and most on going
places.
Sainsbury is an Multinational
company operating in more
than 50 countries. The
company has got its own
website to provide facility to
customers to purchase products
online and also providing
option for international
delivery for limited products.
Promotion Tesco prefer to spend its
percentage of revenue to
Sainsbury relies on advertising
campaign with digital

mange the effective promotion
and the activities through
which brand can be promoted
and maximum or engage in
any campaigns and relies on
word of mouth promotions.
They are using many
marketing tools for
promotional activities. It's
unique selling proposition is
short processing time with a
large variety of styles and
affordable pricing.
marketing and in store strategy
(Pike, 2015). The company
focus on providing common
message on all medium of
communications and uses its
own website to promote its
brand. The company also
provides special discounts to
its loyal customers on seasonal
sales to promote its brand
name.
People Tesco is spread at global level
and has a large employee
strength. The company invest
its big amount of money and
time on the effective training
of the staff members. The
focus of the company is to
provide satisfaction to
customers not only with the
product but with the services
as well (Perreault, 2018). The
company provides appraisal to
employees on the bases of
their performance.
Sainsbury pays special
attention to its employees and
follows competitive payment
policy. Other then just basic
pay company rewards its
employees on the bases of their
performance to improve
individual performances.
Sainsbury also provides
flexible working hours along
with pension benefits to its
employees.
Process Tesco focuses on providing
speedy and easy process
functioning to its customers.
The stories of Sainsbury are
properly organised and divided
into floors having separate

The process used by Tesco for
purchase of products is very
basic and easily
understandable and staff
members assist the customers
to get the product in easy
manner.
sections for all billing
counters. The billing system
followed by the company is
simple and basic and provides
shopping points as rewards to
loyal customers.
Physical Evidence The company follow
welcoming and friendly nature
at all stores while handling
customers and provides big
variety of choice. Customers
are satisfied with the products
as company provides trendy
cloths at affordable prices.
The company has established
its presence at global level and
its stores act as the physical
evidence for the company. The
customers are satisfied with
the products and services
provided by the company.
Contribution towards accomplishment of objectives
The marketing strategies applied by marketing department helps company in providing
fashionable new product varieties to customers and focus on accruing potential new customers
(Onişor, 2015). They have contributed in maintaining the brand image of company by
identifying and regulating the various factors that have positive and negative impact on the
company. The company is able to provide designer and quality products to customers with the
help of various department functioning.
PART 3
P4 Develop a marketing plan that includes key elements of marketing planning for an
organisation to achieve marketing objectives.
A marketing plan is an functioning document that outlines an promotion strategy that an
organisation will implement to generate leads and reach its target audience ( Okumus and Cetin,
2018). Marketing plan is develop on the bases of company's overall marketing strategy and
responsible for identifying the target market for a product.

SMART Objective
Objectives are part of every aspect of business and provides direction, motivation and
clarity to the members of the organisation. By setting goals, company targets at aim and SMART
objectives by guiding helps in achieving the target.
 To introduce 'luxury food item' in the existing market within 1 year in order to expand
the market and increase the business profit by 10%.
SWOT Analysis
The SWOT analysis is done in order to help organizations to develop full awareness of
all the factor that are involve in business decision making process. This is use in order to
discover strategics and recommendations along with focus on leveraging strengths and
opportunities to overcome weaknesses and threats. Tesco is among those brand which is driving
a lot of revenue towards Inditex group.
Strengths
 Unique design- The design abilities is one of the advantage of the brand where the luxury
food item are elegant, superior quality and have proper finishing.
 Strong presence- The company has able to established its presence across the globe and
keep expanding its presence in the marketplace which has helped company in sales
volume and profit margin.
Weaknesses
 Generalised collection- One of the major factor is that company does not specialise in
anything and is dealing in everything for everyone. This is a immediate focus that is
lacking in company as they are focusing on day to day wears.
 Lack of advertising- Lack of advertising is a weaknesses because brand is known for
luxury food item and it can easily pull more customers with help of advertising.
Opportunities
 Online E-commerce- Customer prefer online purchasing rather than visiting the stores
due to time consuming factor. The company has identified the opportunity and now has
its own website and application for its customers who prefer online shopping.

 Backing flagship designs- The company is lacking in producing its brand logo or name
clothes showing company symbol as a design and should identify this opportunity in
order to bring great demand for these designs in the market.
Threats
 Low advertising- Due to its design advantage and physical stores evidence, company
rarely spend money on promotional activities. This is a reason that company is involve in
low advertising activities as compare to other competitors.
Porter's Generic
On the basis of three factors that is cost leadership, differentiation and focus strategy a
company identifies and implement the strategies in order to take competitive advantage over
other competitors (Mehta and Kaushik, 2015).
 Cost Leadership: Cost leadership helps company in gaining production cost advantage
over the other competitors as they are using low price strategy to increase the market
sales.
 Differentiation: The differentiation strategy refers creating unique products for different
parts of audience. Organisation use this strategy to provide unique products and services
to its target audience.
 Focus : Focus strategy concentrate on a specific segment and focus on narrow
competitive scope to meet the unique needs of the particular segments (Larson and
Draper, 2015). This is done by using low cost approach (use to compete against the
market cost leader) and focus differentiation approach (it compete against the
differentiator by focusing on particular specialization within a specific range of products).
4P's of Marketing Mix
A marketing mix includes study of different areas of market which helps in formulating
comprehensive marketing plan within the organisation (Malhotra, 2015). The four Ps
classifications helps a company in developing a effective marketing strategies after analysing the
current market tends and preferences.
 Product: Tesco has its own manufacturing process, where it fully has control over the
products it produces. The USP (unique selling proposition) of Tesco is to create and
provide all the house hold products and the facilites to its customers. With this new range

of cloths in traditional wear the company is trying to reach out local people with designs
that integrate modernism with local traditions.
 Pricing: The focus of the company is to provide its product range at a reasonable prices
to its audience. The brand is consider as one of the premium brands so its important for
them to consider the cream customers thus, the company also deals in premium pricing
strategy.
 Promotion: The company is following unique marketing policy of zero investment in
marketing activities. The company invest its money in opening new stores and quality
improvement rather than spending on advertisement and relies on the word of mouth.
 Place: The company is very popular and known brand worldwide and stand out in market
as it is a vertically integrated retailer (Cooper, 2016). The company has manage to
establish itself as one of leading fashionable brand as it has its own designing,
manufacturing and distributing units. More than 80% of the stores are owned by the
company worldwide and rest are in joint ventures with franchises.
Marketing Budget
PARTICULARS First Year
Second
Year Third Year FourthYear Fifth Year
Opening capital 2000 0 1200 1700
START-UP CAPITAL 6000
INVESTMENT 10000 10000 10000 10000 10000
TOTAL 16000 12000 10000 10000 10000
MARKETING OUTLAY:
MARKETING 7000 5000 3600 3200 2800
PUBLICITY 7000 7000 5200 5100 4800
TOTAL 14000 12000 8800 8300 7600
Closing capital 2000 0 1200 1700 2400

P5 Produce a media plan that includes recommendations and rationale for selected media
activities that meet budgetary requirements and objectives of a marketing campaign brief.
Media Plan
This is mainly them method through which the marketers will give the deep knowledge
regarding the identification of how and when their an advertisement can be managed. This
promotes and make it easy to the advertisers to manage and maintain all the areas and the best
media source which they can opt for managing the effective marketing strategy. This mainly
helps the company to enhance their brand image and will also manage to attain a successful
position through which all the market establishment is attained. Media plan is made through
different types of variants like the rationale, goals and the objectives will be according to the
target market and will also focus on the audience, customers, time limit of the campaign,
medium through which the advertisement is being laid and many more. An effective media plan
for Tesco is given as under: Objectives- this is the essential areas through which all the nature and the elements are
being covered which are required in order to make the effective media plan. The main
first and the foremost areas and the objective is to make the product to be on a maximum
reachability band there is needed to maintain the execution through which enhanced and
the improved brand image can be applied. Tesco plc focus on effective strategy through
which all the services and the products are gained. The objective is generally to enhance
and increase the sales and also the production with 30% along with the enhancement of
the profit by 40% on both the international and the national level. Campaign type and rationale- This is considered to be the effective areas through which
all the market image of the product and the company is sustained this implies that it is
mainly the element through which all the company focus on the design on which they are
making the worm to be systematically designed. The main reason for all the campaign is
to make the proper image of the company and also to build the good reputation of the
company in the market. And this is generally being done to promote the product not only
in the national but also in all the international market areas. Tesco applies and use the
digital media through which they effectively maintain all the work and the campaigning
in order to promote their products. This mainly helps the company to enhance their image