Marketing Analysis of Tesco Plc: A Comprehensive Report

This marketing audit report provides a comprehensive analysis of Tesco Plc, a leading retail company. The report begins with an executive summary and an introduction to the company, followed by an overview of Tesco's background. It delves into macro-environmental factors using PESTEL analysis and examines the micro-environment, including the company's mission, strategy, customers, suppliers, and marketing intermediaries. A key component of the report is a competitive analysis, comparing Tesco's strategies, strengths, and weaknesses against competitors like Sainsbury's, ASDA, and Morrison's. The report concludes with a SWOT analysis summarizing the company's strengths, weaknesses, opportunities, and threats. Overall, the report offers a detailed evaluation of Tesco's marketing position and strategic recommendations.

MARKETING AUDIT
REPORT

EXECUTIVE SUMMARY
Marketing is a business approach which encompasses different strategies through which
they can form several strategies through which they can promote and sell their products and meet
their organisational targets. This report is based on the marketing report of the Tesco Plc and the
company offers various general grocery products. The project reports focuses on using different
marketing channels through which they can deliver quality products and services. For identifying
the internal and external factors there are several marketing techniques such as SWOT Analysis,
PESTEL Analysis through which a business can identify the various micro and macro business
environment factors which can create an impact on the operations of the business. Marketing
techniques help Tesco to analyses the competition within the industry with the help of
competitive analysis techniques through which they can identify the competition.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
COMPANY BACKGROUND........................................................................................................4
MACRO ANALYSIS......................................................................................................................4
MICRO ANALYSIS.......................................................................................................................6
COMPETITIVE ANALYSIS..........................................................................................................8
SWOT ANALYSIS.......................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and journals....................................................................................................................13

INTRODUCTION
Marketing is a technique which helps an organisation to promote and sell their products
and services which will help them in generating higher revenues and in gaining competitive
advantage. There are several marketing techniques such as SWOT analysis, Pestle analysis and
other marketing techniques which helps a business to identify several factors which can affect
the company (Boone and Kurtz, 2015). Tesco Plc is a genera retail merchandise company which
was founded by Jack Cohen in 1919 in England. The report aims to provide a marketing analysis
of Tesco Plc through which several micro and macro factors can be identified. The report will
evaluate the competitive and SWOT analysis of Tesco Plc through which better insight of the
company’s marketing position and strategies can be gained.
COMPANY BACKGROUND
Tesco Plc is a public limited company which was founded in 1919 and have been
operating at various location through which they can cover wide market share. The company
focused on their global expansion since early 1990’s. There are several other businesses of
Tesco, some of the other business operated by Tesco are Tesco UK & ROI, Tesco Bank, Booker,
and others. It is one of the leading retail company which have more than 4,00,000 employees and
aims to serve millions of customers which help them in retaining maximum customers. The
company offers services to their customers through online and offline mediums through which
they can meet the competitive business environment and compete with other companies. The
company offers groceries and is operating in UK, Ireland, Hungary, Czech Republic and
Slovakia. The current share price of Tesco Plc is 223.05p. The company is providing their
services through supermarkets, hypermarket, superstore and convenience stores (Buallay and
AlDhaen, 2018). Tesco and Sainsbury holds the largest market share which is 42.7% as of
December, 2020. As per the reports, the current turnover of the company is 64,760 £ millions.
The company owns several other brands such as, Jack’s, One Stop, F&F, Booker, Makro,
Premier.
MACRO ANALYSIS
Political factors

Tesco is operating in various countries and follows various governmental regulations
which helps them in ensuring safety of their products and ensures political stability. By regularly
keeping a track on the political factors and ensuring the stability of the business environment
helps the business to identify opportunities through which they can effectively carry out their
trades. Due to any change in the tax policies and supply policies in different countries will create
an impact on the profitability of the business.
Environmental factors
The company offers wide range of products and services and economic factor plays a
crucial role in consumption of the goods and services offered by the company. Any change in the
policies of UK will lead to major changes in the delivery models and mediums of the company
through which the can meet the demands of their customers (Cahan and Sun, 2015). Due to
increase in prices will lower the rise in disposable income and will lead to reduction in sale of the
products offered by Tesco.
Social factors
For meeting the changing demand of the customers, the company have switched to major
food products which can meet the demands of the customers. The products which have been
chosen by the company can help in meeting cultural factors and the company majorly focuses on
offering benefits to the society by hiring local people through which they can reduce
unemployment and focus on promoting organic products through which they can satisfy their
customer and market demands.
Technological factors
Due to rapid change in the technology and due to technological advancements, the
company have faced many shifts in operating and performing the functions of the business
through which they can identify the changing demands and meet the demands of their customers.
The company shifted to online mediums through which they can target numerous customers and
collaborated with Amazon Go through which they can help customers by facilitating hassle free
shopping and save their time by proceeding quick and self-checkouts (East and et.al, 2016).
Environmental factors

The company have taken several initiatives which can help them in contributing in
improving environment and create a sustainable society. The company have introduced phase 2
of Remove, Reduce, Reuse and Recycle plan through which they can make a sustainable society.
Tesco introduced initiatives through which they can reduce wastage, and form plans through
which they can minimize the usage of plastic and contribute in societal development and
promoting environmental awareness. For making eco-friendly initiatives, Tesco launched various
plans through which they can contribute in sustainable environment and spread awareness
regarding the benefits of such plans and policies (Golyash, Panasiuk and Sachenko, 2017).
Legal factors
Due to any change in government policies and international market laws can affect the
smooth continuity of the operations of Tesco. The government bodies have created various rules
and regulations which must be followed by all retail companies. Tesco have been following
various employment laws and protocols through which they can ensure a safe working scenario
for their employees.
MICRO ANALYSIS
TESCO PLC
Mission statement
“To make what matters better, together.”
The mission of the company focuses on the success of the company. The core values of
the company focuses on establishing a growth target for company.
Strategy
The company focuses on aligning the expectations of their business with suppliers and
market demands through which they can meet the demands of the customers. The mission
statement of Tesco focuses on three different parts, which focuses on improving health,
distinguished quality and improving the lives and living standards of the people. Through
aligning the expectations with demands will help Tesco in meeting consumer needs and can meet
customer satisfaction (Groucutt and Hopkins, 2015).

Founders and executives
Tesco is one of the leading retail company in UK which offers wide variety of groceries
and daily essentials through which they can meet market demands and the company have a he
team of members and executives who contribute in making competitive in such changing
business environment. The company was founded by Jack Cohen and Ken Murphy is the current
CEO of Tesco Plc who work with the main motive of making Tesco the leading supermarket
chain in the industry. The Board Committees of Tesco Plc have been classified on the basis of
different areas, such as Audit Committee, Corporate Responsibility Committee, Nominations and
Governance committee and remuneration committee.
Customers
Consumer markets
Tesco Plc focuses on targeting maximum number of customers by offering wide variety
of everyday value range of products and services through which they can meet the daily essential
demands of their customers. The company relaunched a variety of everyday vale range in which
they offered long overdue fresh supermarket products. This will help them to attract more
customers and meet their daily demands and requirements (Homburg, Jozić and Kuehnl, 2017).
Suppliers
Tesco focuses on delivering high and premium quality products which helps them to
meet the customer demand and satisfaction. Supplying by collaborating with Tesco creates an
opportunity to share products with customers all around the globe and helps in global expansion
and increased business growth. With the help of suppliers, Tesco focus on reducing waste by
sourcing food, managing bumper costs, improve food processing. With the help of suppliers, the
company can redistribute products to charity and fulfill their societal responsibility towards the
people of the society. By having diversified suppliers, Tesco use their experience with
community food connection which helps them to perform the supply chain activities, distribution
activities effectively and meet the demands of the customers through strong supply chain
management and proficient suppliers (Ishak and Yusof, 2020).
Marketing intermediaries

The company is planning for expansion through which they can cover more market share
and offer their stores at locations which are easy and more accessible to customers which will
help tem to attract more customers and maximize their profits (Kaawaase and et.al, 2016). The
company will open more super markets and offer reasonable goods and services which will help
them in meeting the societal responsibility and becoming more competitive in the industry
through which they can be on the top of the ranking and generate higher revenues by increasing
the sales.
COMPETITIVE ANALYSIS
Company Strategy Strengths Weakness Competitor
reaction
Sainsbury The strategy of
the company
focuses on
innovation and
invest in offering
more quality
food products to
their customers
which will help
them to retain
and attract huge
number of
customers. The
company offers
products at
lower prices,
reduce
complexity
which will help
them for
One of the major
strengths of the
company is high
differentiated
food proposition
with greater and
premium quality
of food products
which are
offered by the
company leads
to higher level of
food products
offered by the
company
(Kingsnorth,
2019).
Due to single
operating market
it decreases the
ability to global
expansion and
diversity of the
products which
can affect the
market share of
the company.
The company is
also operating at
lower margin of
food products
which affects the
function and
sales of the
products which
are offered by
the company.
The company
must focus on
expanding their
business
globally through
which they can
attract more
customers and
generate higher
revenues. The
company can
collaborate with
other small
stores which will
help them to
operate in more
markets and
more products
can be delivered.

improving
financial
performance of
the company.
ASDA The strategy of
the company
works with the
motive of
expanding their
business by
offering offline
and online
services through
which they can
attract more
customers and
can focus on the
growth strategy
of the company.
One of the major
strengths of the
company is their
strong and
effective
management
which helps
them to function
effectively and
efficiently
(Kupec, 2017).
The company
have faced many
positioning
problems which
made them face
barriers in
positioning right
products and
services to the
right market at
right time.
The company
must organize a
research which
will help them to
analyze the
demand and
position the
products and
services to right
market and at
right time. In
relation to Tesco
plc the company
can help them to
effectively
position their
products to the
market through
which they can
target more
customers
(Lancaster and
Massingham,
2017).
Morrison For being highly
competitive in
the industry, the
The major
strength of the
company is the
Due to lack of
consistency, it
creates a barrier
The company
must focus on
consistently

company
ensures that the
products which
are offered by
the company are
of high and best
quality which
will help them in
retaining
maximum
customers and
will also be
helpful in
generating
higher revenues
and make
business
profitable.
good quality of
the products
which are
offered to the
customers at
lower prices.
This pricing
strategy helps
the business sin
attracting and
retaining
maximum
customers
(Libby, 2017).
for the company
in meeting
comer
satisfaction
which affects the
sale and profits
of the company.
delivering the
products and
services to their
customers which
will help them in
meeting the
demands of their
customers. By
collaborating
with Tesco the
company can
target and offer
their products to
different
locations which
will help them in
providing their
products to
different
location and
generate higher
revenues.
SWOT ANALYSIS
The SWOT Analysis of Tesco Plc have been mentioned below, which will highlight
various internal and external factors which influence the operations of Tesco Plc.
STRENGTHS
 Creativity and innovation- The
efforts of Tesco for optimizing
response and managing all shortages
WEAKNESS
 Low- cost strategy- By using low-
cost strategy can reduce the profits
margin of the company which affects

of the company by using innovative
approaches throughout the year helps
them to gain competitive advantage.
 Adaptability- Due to the global
pandemic, the company easily adopted
change and used online mediums
through which they can deliver their
products and services to the customers
and gain maximum profits from their
operations (Moorman and et.al, 2019).
 Strong supply chain network- By
using a simplified business model will
help in minimizing incurring cost and
by forming effective waste
management strategies through which
a strong and effective supply chain
management can generate more profits
for the company.
 Superior technological use- By using
flexible payments methods and digital
media platforms for products and
services will help the business to
connect with more customers easily ad
gain more competitive advantage.
With the help of using advanced
technologies will help the company in
performing their functions and
operations effectively and efficiently.
the productivity of the business
(Moorman and Day, 2016).
 Poor operational performance- As it
can be seen that the performance of
some stores I not up to the desired
standards which creates an adverse
impact on the performance of the
company.
 Financial errors- The financial
profits are highly affected due to high
debts and credit card liabilities which
affects the financial status of the
company and it will create a huge
impact on the overall performance and
resource of the company (Park, 2020).
OPPORTUNITIES
 Strategic alliance with other
companies- This can be an
THREATS
 Economic crisis- Due to government
regulations, policies and economic

opportunity for the business through
which they can expand and focus and
making more profits and generating
higher revenues.
 Global expansion- Through locating
and operating in different location will
help business to expand their business
globally (Tarek and et.al, 2017).
 Digital shopping and transactions-
By using online mediums and digital
payments method will help business to
attract more customers through which
they can ern more profits.
 Social supermarkets- This is one of
the biggest opportunity for the
business s through which they can
offer products at reasonable and lower
prices which will help them to meet
social responsibilities towards the
needy people of the society.
upheavals it can create an influence on
the performance and operations
efficiency of various stores of Tesco
in different regions.
 Brexit Referendum- After the exit of
Britain from European unions, it can
create an effect on the trade deals and
pricing strategies of the products of
goods and services offered by the
company (Saura, Palos-Sánchez and
Cerdá Suárez, 2017).
 High competition- Due to high
competition among different
supermarkets operating in UK can
affect the sales and profits of Tesco.
 Legal threats- By following any
unethical practice an affect the brad
image of the company and create a
threat for the brand position of the
company in the industry.
CONCLUSION
From the above report, it can be concluded that marketing is an approach which is
practiced by many businesses which helps them to promote and sell their buying products and
services through which they can attract more customers and sustain for longer period in the
market. There are several techniques of marketing which helps in identifying micro and macro
environmental factors which can influence the operations of the company. It can be seen that
marketing helps to gain competitive advantage which can be analyzed through competitive
analysis technique and evaluate competitiveness, strengths and weakness of the organisation.