Assessing Tesco's Marketing Strategy: STP, Mix, and Relationships

This report provides a comprehensive analysis of Tesco's marketing strategy, examining its application of the STP framework (segmentation, targeting, and positioning) to understand how Tesco identifies and caters to its diverse customer base. The report delves into Tesco's marketing mix, evaluating the 7Ps (product, price, place, promotion, people, process, and physical evidence) to assess how the company delivers its products and services. Furthermore, the report explores Tesco's relationship marketing strategies, analyzing how the company builds and maintains customer loyalty through various tactics. The report provides insights into Tesco's marketing practices and offers recommendations for improvement based on the analysis.

Marketing strategy

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
STP strategy ...........................................................................................................................4
Marketing mix........................................................................................................................5
Relationship marketing strategies...........................................................................................8
Recommendations............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

EXECUTIVE SUMMARY
This report consist of marketing strategies which is used by Tesco for increasing its sale
in the market so that company can earn high amount of profit there are various marketing
strategies which is used by the organisation like STP strategy which contains segmentation,
targeting and positing this strategy help in promoting the product in the market. Marketing mix
strategy is also used by the organisation to develop its demand of the product in the market.
Relation marketing strategy helps in maintaining the profit of the business due to which
companies prefer to use it.

INTRODUCTION
Marketing strategy is the concept which helps in increasing the demand of the products
and services by influencing the consumers of the economy so that they can become the
customers of the organisation which will helps in increasing the sale of the company. Marketing
strategy involves key brand messaging, business value proposition, information and data on
target customers demographic etc. This concept helps in the long term survival of the business.
It also helps in providing competitive advantage to the business by the proper planning of
strategies. It helps in creating brand awareness in the market which helps in increasing the profit
of the business once the products gets promoted in the market it helps in increasing the demand
of the products which increases the productivity of the business marketing strategies is the best
way to promote the goods and services of the business across the country. There are different
strategies which is adopted by the organisation for example word of mouth marketing, paid
advertising, relationship marketing, internet marketing etc (Agustini, 2019).
Tesco is the biggest retail company in UK with huge numbers of customers its headquartered
Welwyn garden city in England. Tesco is considered as the third largest retail store in the world.
This company was founded in 1919 by Jack Cohen. It helps in satisfying the needs of the
customers by providing best services to them. In this report it will be analyse that how different
marketing strategies helps in the growth of the organisation.
MAIN BODY
STP strategy
STP stands for segmentation, targeting and positioning its a three step process which
helps in examining the goods and services of the business and analyse the way business provides
the benefits to the customers regarding the products and services so that demand of the business
can be increased. It helps the business to shift its focus from product based marketing to
customers based marketing. It helps in building the customer loyalty for the business. It also
helps the business in getting potential customers which will increase the profit of the
organisation.
The three step of STP strategy are discussed below:
 SEGMENTATION: It is concept of dividing the potential markets into defined
segments so that similar needs of the potential customers can be identified. For example

similar characteristic of the customer in the market segment which can be lifestyle,
gender, age, interest etc. it is a concept of analysing the demand and characteristics of
different customers in the market. Tesco analysing the needs and requirement of the
customers and their purchasing behaviour which helps Tesco in segmenting the
customers according to their needs and wants so that business cannot face any loss. It
helps Tesco in dividing the market in smaller groups of individual with similar
preference. Segmentation helps Tesco in marketing their products to different individual
on the basis of their needs. Tesco generally collects the information related to customers
through the helps of club card with the Tesco provides to the customers. Then they
monitors the data by creating their demographics to the products which Tesco is
providing. Aldi is the biggest competitor of Tesco in various demographic areas (Akbar,
2020).
 TARGETING: Target marketing is the concept of selecting the potential market from
the various markets which present in the economy. It involves the groups of consumers to
which the organisation wants to sell their products and services. It helps the organisation
in connecting with the specific buyers so that they can increase their sale in the market.
 POSITIONING: it is process which defines the value of the product in the market so
that revenue of the business can be generated it helps in making product unique in the
market so that attention of the customers can get attracted. Tesco uses positioning to
target its buyer in the markets with its wide variety of products and services. Tesco
generally uses multi-segment positioning to promote its products and services in the
market. Positioning helps targets various segments with different varieties of products. It
helps in increasing the revenue of the product in the market.
Marketing mix
It is set of marketing tools and techniques which is used it helps in promoting the
products in the market so that demand of the products can be increased. It involves 4ps of
marketing which is product, price, place promotion. marketing is broader concept it also three
extra Ps which are people, process, physical evidence which after combines called 7ps of
marketing mix.
7 Ps of marketing used by Tesco:

 Product- Tesco offers a variety of products to its customers which includes
food,electronic items,clothing etc. Tesco focuses on its products and improves quality of
its products with effective management operations. Company has also chosen online
market for selling its products which is a major element in increasing sales for the
company. product life cycle of the business helps in analysing the growth of the product
in the market it has 5 steps which are product development, market introduction, growth,
maturity, decline. Product development involves high amount of investment so that
proper development of the product and take place better quality of goods requires huge
investment. Market introduction involves the sales volume of the product by created the
demand of the product in the market customers are influenced to buy the product
according the benefits of the products. Growth stage is when sales of the business
increased by creating awareness regarding the product in the market. Competition
increases in the market due to which price of the product gets decreased. Maturity stage
in this new competitors enter in to marketplace. Prices gets reduces due to competition in
the market. Profit and revenue of the business gets declined. Declined stages involve
increase in the cost of the products due to unstable economic scale. Sales volume of the
business gets declines which affects the profit of the business. Due to which business can
to go through a loss (Duan, 2020).
 Price- Price plays an important role in increasing sales for a company. Tesco tries to
minimise price for its products. In other words Tesco keeps prices as minimum as
possible. For keeping low prices for its products Tesco is engaged effectively with
suppliers and wholesalers of UK. The company is also involved in finding out new
suppliers with minimum cost. Keeping the prices low in the market helps in increasing
the demand of the product in the market if the customers will get the best quality of
goods at low prices it will helps Tesco to increase its sale in the market. Price drop
strategy of Tesco help in increasing its demand in the market. It also provided the
competitive advantage to the business.
 Promotion- Promotion helps in attracting more and more customers from the
marketplace. Tesco has shifted to digital marketing from traditional marketing methods in
order to gain competitive advantage at marketplace. Tesco spends a good amount on
promotion and advertising in order to increase sales of its products. Tesco uses various

platforms to promotes its products in the market it uses advertisement, charitable events
and other promotional channels to increase its brand awareness around the world. It also
provides various promotional offers to the customers like buy one get one free. Tesco
also provides loyalty card to the customers to build its image in the market. Various
marketing strategies helps Tesco to increase its demand in the market it also provides
unique selling ability to the customers (Cahyadi, 2019).
 Place- Place is another factor which plays an important role in selling product. Tesco
chooses best location of UK in order to sell its products. It opens its store according to
target audience selection. Place in marketing mix also includes conducting transactions
through Online platforms. Tesco is getting a immense growth at market place which
means company is focusing hard on its online operations. Conducting online operations is
easy for an organisation due to upliftment in information and technology. Choosing the
place which is easily manageable by the customers helps in developing the growth of the
business. Place helps in marketing the products.
 Physical evidence: it is a basically the environment which is physically experienced by
the consumers it includes layout or physical design of the business premises which
attracts the attention of the customers. Tesco does not spend more money developing its
infrastructure it provides the quality to the product more people can get attracted by the
product and services of the business instead of infrastructure. Tesco place the product in a
proper manner so that people can easily find the products which they require so that
better services can be provided to the customers. Tesco place the products which
attractive offers which helps in attracting the interest of the customers.
 People: it plays in important role in the marketing mix if the right people are not targeted
then product of the company will not be sold in the market which can affect the profit of
the company in the market. Tesco target its customers so that sale of the business can be
increased it provides the best services to the business which helps in building the
customer loyalty of the business in the market. Tesco uses various program to increase
the demand of the business in the market such as save as you earn, buy as you earn and
colleague privilege card which helps in attracting the attention of the customers in the
markets.

 Process: it involves indirect and direct activities it helps in understanding the requirement
of the customers in the markets which helps the business to develop it services in the
market so that demand of the business can be increase (Chaney, 2017). Satisfy the needs
and wants of the customers are very important to increase the profit of the company in the
market. Customers satisfaction helps in the long term survival of the business in the
market. Tesco uses various activities to keep the customers satisfied it provides high
billing services to the customers which helps in saving the time of the consumers. It also
helps in providing the best quality of products to the customers in online and offline
stores which helps in maintaining the customers loyalty of the customers towards the
organisation.
Relationship marketing strategies
It helps in building the customers loyalty towards the organisation so that long term
survival of the business can take place it helps in building the long term relations which the
customers so that growth of the business cannot get affected. It also helps in providing the
competitive advantage to the business so that business loose it market share. Strong relations
with the customers helps in analysing the need and requirement of the customers so that profit of
the business can be increased. It provides better communication between the customers and the
organisation which helps the business to influence the customers easily through the services of
the market. It helps in building the brand image in the market which increase the revenue of the
business so that goals of the business can be achieved effectively. Tesco organises various events
which helps the business to interact with the customers easily and resolve the queries of the
business to helps in understanding the benefits product which company is providing (Faridhoh,
2020).
Tesco uses various relationship marketing strategies which helps in promoting the products in
the markets. Tesco launched save twenty pounds on Nokia phones strategy so that it can attract
various buyer to increase the sale of the product in the markets various offers helps in attracting
the attention of the customers in the markets. Tesco also used club-card strategy to provide extra
benefits to the customers which helps in developing the healthy relationship with the customers.
Club card provides benefits to the customers which helps in increasing the demand of the
company. It provides wide range of products to the customers which increases the demand of the
product it also helps Tesco to expand its business across the world. As per the report bank of

Tesco added 200,000 customers accounts which has increased the revenue of the business in the
market. To increase the sale of the business in the market Tesco organises various events and
programmes which increases the sale of the business in the market. Tesco also have websites
through which they can easily communicate with the customers and resolve their queries they
also provides information to the customers regarding the products through that portals. Healthy
relationship with the customers improves the services of the business by the getting feedback in
the positive manners which helps in increasing the productivity of the business better feedback
by the customers improves the goodwill of the business in the market due to which profit of the
business also get increased if the business will not have healthy relations with the customers it
then will not be able to positive feedback from the customers which can affect the growth of the
business in the market. Positive feedback helps in increasing the growth chances of the business
in the market. Healthy relations with the customers helps in retaining the customers in the
organisation sue to which growth of the business can be increased in the market. Customers
retention in the business shows the demand of the business in the markets it increase the demand
of the business in the market. It improve the revenue and lifetime business of the organisation.
Which increases the growth chances of the business in the market. Increase the sale helps in
increasing the brand awareness in the market which helps in providing the best quality of goods
to the customers. Relationship marketing saves the times and money of the organisation for
promoting its products in the markets it is the best sources of promoting the products in the
markets. Analysing the needs of the customers helps in developing the products in the market so
that customers can satisfied with the services of the business company should also ask about the
changes which company so in the products which they are providing so that they can develop its
services accordingly.
Recommendations
Stp strategies: Tesco can improve its Stp strategies by defining the marketplace, creating the
audience segments so that products can be developed and sold accordingly. Analysing the
effectiveness of the each segment to analyse the demand. Tesco can develop its positioning
strategy company can use right marketing mix strategies so that business can increase its profit in
the market targetting the best customers reduces the workload of the business can also helps in
enhancing the services of the business (Kannan, P.K., 2017).

7ps of marketing mix: Tesco can develop its objectives and goals so that its budget can be
developed company can also analyse its unique selling propositions so that goals can be achieved
affectively. Tesco should analyse the target market so that needs and requirement of the business
can be identified easily. If Tesco will maintain the proper pricing strategy for its product then it
will increase the revenue of the business in the market. Improving the marketing strategies helps
in creating the goodwill of the business in the market due to which growth of the business in the
market will be achieved which will helps in increasing the profit of the business in the market.
Tesco can use effective platforms to promote its services in the markets which will helps in
promoting the products effectively (Steenkamp, 2017).
Relationship marketing: Tesco should listen to the feedback of the customers effectively so that
needs of the customers can be satisfied effectively. Tesco can also arrange a loyalty program
which will help in developing the business Tesco can arrange special for the customers who are
providing more sale to the business. Proper communication helps in increasing the brand
awareness in the society which helps in increasing the sale of the business in the market.
Providing free information to the customers helps in increasing the demand of the product in the
market it also helps in promoting world of mouth marketing which increases the demand of the
business in the economy. Loyalty rewards helps in the building the strong relations with the
customers so that revenue of the business can be increased in the market.
CONCLUSION
As per the above report it has been observed that different marketing strategies helps
business to develop and promote its products and services in the market it helps in increasing the
demand of the product by targeting the potential customers various marketing strategies like STP
strategies, marketing mix strategies helps in increasing the goodwill of the business in the market
by providing the benefits of the products to the organisation which helps in increasing the sale of
the business. It also helps in maintaining the goodwill of the business in the market. Marketing
strategies plays an important role maintaining the demand of the business in the market so that
competitors cannot take advantage. If company will develop its products according to the needs
of the customers then it can affect the revenue of the business in the market.

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Marketing Analysis of Tesco. 2019. [Online]. Available through
<https://ukdiss.com/examples/marketing-course-work.php>
Marketing mix of Tesco. 2018 [Online]. Available through
<https://www.marketing91.com/marketing-mix-tesco/>