Strategic Marketing Planning Report: Tesco Retail Industry Analysis

This report offers a detailed strategic marketing plan for the Tesco retail industry, addressing the influences of Brexit and COVID-19. It begins with an introduction to the retail sector and explores the impact of these events. The analysis includes an examination of Tesco's organizational structure, resources, and environmental factors, followed by a PESTEL analysis. The report outlines corporate and marketing objectives, marketing strategy selection, and market targeting and positioning strategies, including global implications. Furthermore, it provides an assessment of the 7Ps and concludes with a discussion of implementation, control, and evaluation, offering a comprehensive overview of Tesco's strategic marketing approach. This report provides a comprehensive overview of Tesco's strategic marketing plan.

Strategic Marketing
Planning
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Table Of Contents
INTRODUCTION……………………………………………………………………………3
TESCO Retail Industry……………………………………………………………………….3
CONCLUSION………………………………………………………………………………11
REFERENCES……………………………………………………………………………….12
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INTRODUCTION
Strategic marketing planning refers to that kind of planning where goals and
objectives has been set according to the analysis of internal and external business factors.
Strategic marketing process includes all kinds of steps together so that contribution into the
success of the business can be observed. In this report, the analysis has been done on the
particular department store business which includes the realistic and feasible strategic
marketing plan. (Рущицкая, О. А. and Куликова, Е. С., 2015). The research has been done
on the PESTEL analysis, SWOT analysis, competitor analysis and market analysis. The
chosen organisation is TESCO. Tesco is a British multinational retail store and a general
merchandise retailer. It is the leader in the UK market.
Environmental Analysis
Environmental analysis can be defined as it is the process to identify the internal and
external elements which can affect the performance of the organisation. Environmental
analysis is a kind of strategic tool. The factors might present the analysis which entails the
level of assessing the threat or opportunity. The analysis helps in aligning the strategies with
the firm’s environment. This kind of analysis help in achieving the objectives of the
company.
TESCO has reviewed its plan and strategy after lockdown and due to BREXIT in a different
manner in the particular department through introducing a new product line and shifting
themselves towards digital marketing. After reviewing the marketing mix, the company has
launched a new line of new farm brand products. The company has rebranded its products
such as beef, fish. Before the rebranding of its products the company’s basket of style farm
products are comparatively more expensive. ( Azhar, and et.al., 2020) Digital marketing
gives an opportunity to the company to reach to its large number of customers. Also it’s the
easiest to communicate about their new innovation and changes in the types of products. The
company has also worked on its products packaging.
If considering the life after lockdown, the company has different number of teams for
different departments who are analyzing and keep an eye on the sales of the company’s
products. Within the company, there is a team who is looking at the demand curve for the
medium and long term. (Toselli, C., 2015). (Nugroho, and et.al., 2016).The company also has
a team for supply strategy for the medium and long-term. Any kind of forecasts can’t give the
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accurate results and assumptions. Assumptions can be made with respect to the stockpiling.
The people can only analyse but its really important to think about the other aspects too. In
this pandemic situation, the company has tried their efforts from every aspect to execute its
strategic marketing plan. The main focus is on the digital marketing and online
communication so that they can deliver their products in a safe manner. (Klimanov,and et.al.,
2017). Their different kinds of products can only be promoted through different kinds of
social media platforms like facebook, instagram, youtube and many others. Because in this
pandemic situation most of the people have lost their jobs ad youngster mostly spend their
time on these social media platforms so that they can try to get themselves busy in
somewhere. So this is the biggest platform which act as a tool in the digital media for
promoting its products and telling about their services that how much they are safe, secure
and hygienic which will not hamper the health of their customers.
Corporate and marketing objectives
While evaluating the resource implications and requirements, its really important to
understand about the organisational structure of the TESCO company. (VACHA, J.,
STRATEGICKÉ PLÁNOVANIE AKO MOŽNÝ ZDROJ KONKURENČNEJ).The
company’s organizational structure is highly hierarchical which is reflected to the large size
of the business. In some large stores, there are four levels of management.
Figure: TESCO Organizational Structure At Store Level
Source:research-methodology.net
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While making the strategic marketing plan its important that to consider the current local
economic conditions which includes environmental analysis, corporate and marketing
objectives, marketing strategy selection, market targeting and positioning including
globalisation, assessment of the 7 P’s and implementation, control and evaluation.
Marketing Strategy Selection
Under the PESTLE analysis, while making the strategies by the company with the impact of
BREXIT and lockdown. It is important to consider about the certain factors which includes
political, environmental, social, technological, economic and legal factors of the company.
Under the political factors, it includes the tax rates, acts of legislation and about the stability
in which the country operates in. (Anugrah, and et.al., 2019).The company has operated in
various countries so its important that to think about the global political factors which greatly
influence the performance of the company. When Mayoral election has been conducted for
the purpose of electing the mayor of London. It has its political impact on the economy as
well as to some extent to the organisation also. Various rules and regulations, policies has
been implanted and changed according to the requirement of the current time.
Under the marketing strategy selection, there are various ways through which marketing can
be done. It includes the digital marketing campaign, viral marketing, affiliate marketing,
social media platform, email marketing etc. In this pandemic situation, the digital marketing
campaign is the best way for doing the marketing. Under this type of marketing different
people related to the organisation comes on the online platform and describe about their
products. Digital marketing campaign is the way of execution of a marketing strategy across
all the digital channels where consumers are engage with a brand which is usually for the
purpose of improving a company’s conversion rate. Social media platform is also one of the
way for doing the marketing in an effective manner. In today’s trend mostly people are on the
social media where people can get to know about their new products so that they can refer to
the other people also. With the help of email marketing also the customers can be attracted
on a very large scale. Under the email marketing where through posts and templates the
marketing can be done in an effective manner. But email marketing is not as effective as the
social media platform marketing. Because under social media marketing an individual can
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connect to number of people where every person can connect to the every country people and
can market their products on a larger scale.
Under the economic factors, while making strategies for the company its really important that
to leverage costs, demand, profits and prices. Its important that company should be remain
aware about the changes in policies, changes in taxation or any other factors which could
affect the accessibility of finance. In this current situation, when pandemic situation has
been came then various people job has been snatched due to this difficult situation. Many
people get unemployed due to this pandemic situation. Due to this reason it has impact on the
economy performance, the GDP percentage of the country also decreases. Companies are
also not able to earn revenue as compared to their previous situation. Also they are not able to
earn profits and also they have to face losses to some extent and sales percentage has also
decreased.
Under the social factors, due to social changes the people are more tend towards the bulk
shopping and one-stop shopping. Due to lockdown mostly people are at home so they are
mostly spending their time on internet or on the cooking and eating the food items. Therefore,
for framing the strategy the company has increased their non-food items which is offered for
sale. (Jiménez López, R., 2016). Now the people are becoming more conscious about their
health then the company needs to make changes in its approach. The company has adopted
this change by accommodating the demand for organic products. Due to this pandemic
situation the company also not able to socialise themselves on a larger scale. In this pandemic
situation when people are at home nobody wants to interact in appositive manner but
everyone is in the tensed situation that how will they survive without the job. It becomes
challenging for the company to make social relations so that they can make a different stand
in the market. They can’t connect with people on a very large scale as compared to their
previous situations.
Under the technological factors, With the impact of this pandemic situation the company has
made changes in the shopping pattern which tend towards the online shopping. Another point
is about the self service check out point which have provided the convenience and ease for
customers which in turn have reduced labour costs. For the purpose of reducing the carbon
foot prints, the company can also frame their strategy in amore uplift ment manner with
regards to the energy efficiency projects.Under the environmental factors, the company has
already taken step in this field but to make it faster and result –oriented it is important to
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strategise in such a manner that adopt those ways of operations which would benefit the
society. (Perwitasari, D., 2020). By increasing the social conscience in customers, the
company is minimizing the waste produced in their stores.
Under the legal factors, there are some government policies and legislation which impacts the
performance of the company. The strategy should be in this manner that the legal factors
support the strategic marketing plan and does not intervene in executing this plan in a
successful manner. So its really important to think about all the factors related to this type of
analysis which includes the business environment and it affects the internal and external
factors through its strategic marketing planning. In this pandemic situation, the legal
authorities has also changed some rules and regulations regarding the companies so that they
can survive themselves in this difficult situation also.
Market targeting and positioning including globalisation
With respect to the market targeting, its important that the company should target their
customers in a smart manner so that it can earn large amount of profits in future. The
company has mainly targeted the middle income families and youngsters. Because these are
the people who are mainly interested in this field and have the frequent buying pattern in this
field. Specially TESCO has targeted those people who want something very reasonable in
terms of quality as well as the price as well.
They are also concern about the cost conscious individuals. While considering this point in
the strategic marketing plan the company can also perform in a better manner with the impact
of lockdown and BREXIT. (FEBRIANTO, C. N., 2017). The company has implied the
experiential positioning in its strategic marketing plan. This kind of positioning has been used
for the purpose of targeting its consumers for its health and beauty products. Multi segment
positioning is a kind of positioning which is an alternative for the company used to target
several segments at the same time with different products. It has made the extensive use of
multi-segment positioning. Within the plan, it has been decided to select this type of
positioning which beneficial for them as well as for the market also. Through globalisation,
the company can enter into various countries, it can also target other European countries like
France, Italy. And it can also go for Asian countries where the population is of under the
range of young population. The organisation can enter through various ways like investment,
joint venture and franchise etc. Investment can be one of the better ways through which
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country can enter into the market. With investment in infrastructure structure or in airport
sector through which company can enter easily.
Assessment of the 7 P’s
While making the strategic marketing plan, its really important to consider about three points
which are named as implementation, control and evaluation. These all points help in
analysing that whatever steps, decision and planning has been done under this strategic
marketing plan, it should be successfully accomplished in a positive manner. Implementation
talks about the all kinds of analysis with the consideration of all factors that should be
implemented in an effective manner. All the objectives, strategy selection and assessment
should be analysed and effectively implemented. Its important to control those factors which
are not healthier for the company. Evaluation needs to be consider so that after the impact of
lockdown and with the BREXIT effect, the company can re establish and again stand in the
market with a new fresh face in the market with new enthusiasm in it.
Currently TESCO has first half profits with a rise more than a quarter. As customers are
buying more food products in the pandemic situation and the online orders gets doubled.
Demand for food has been increased as compared to the clothing. So sales has been come
down to some percentage. According to the current situation, new strategies and planning
need to be done so that customer can buy more products so that sales percentage get
increased. For increasing the sales, the company has to offer discounts and new range of
products which attract customers on a larger scale.
Implementation can be defined as it is an act or instance of implementing something. It is the
process of making something effective or active. The plan needs to be implemented in a
process or through particular steps. There are various programmes and training sessions
through which plan needs to be implemented. Staff training is the way through the company
makes the staff perfect in its roles and responsibilities. If the staff is perfect then they need to
be dependent on others. Staff training should be decided for a particular time period so that
other employees can support them. By deciding the fixed period of training, its important to
notice that the employees learn all the activities related to their roles and responsibilities.
Senior management decisions should be in this manner that it should be in the benefit of the
organisation and it should be effective in realistic nature so that the plan need to be
implemented in a successful manner. On the basis of senior management decision further
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process has to be implemented in the particular steps and rectify the older things from the
process which do not serve in the favour of the organisation.
Control refers to the power and ability to do something or something which you needs to be
implemented. Through the control parameter the plan has to be implemented in an effective
manner. Control is the way through which plan has been executed after completing all the
steps and it should be executed at the particular period of time. Evaluation is the way which
measures, compares and analyse the coherence between results and specific objectives of the
institutional plans, programmes and projects. Evaluation is the parameter under which before
executing the plan it needs to be evaluated from every aspect so that no loop holes should be
there in implementing the objectives of the organisation.
For making the things turning into successful manner, the company has implemented theory
which is named as Mayo theory. Under this theory, communication is the main factor which
has been operated in the company for the purpose of motivating their employees. Its really a
big task for the company to implement this theory on each employees of the company
because everybody has different backgrounds and it’s a big challenge to make a healthier
communication among the employees. (Ginter, and et.al., 2018). Due to lockdown and
BREXIT effect, different people reacted in a different pattern so its difficult to gather all the
employees on a single and positive thought. Due to lockdown when most of the work has
shifted towards the online pattern then the communication pattern also gets changed. So it
becomes very difficult to always maintain a physical communication because all the kinds of
conversation has been shifted towards the virtual communication pattern. The company needs
to do really work hard on the communication part and to motivate their employees all the
time in this difficult and negative situation. If communication has not been done in a proper
manner, then it becomes difficult to maintain a proper process of working of the company. In
this way, it creates problems in delivering the products to their customers and this kind of
pattern also receives negative feedback from their customers. This theory plays an important
role in establishing the communication for the purpose of motivating their employees. This
theory can’t be implemented in a successful manner because it needs the collaboration from
each and every employee of the company. In this pandemic situation, every employee has
faced different kinds of emotional problems due to which it becomes a challenge for the
company to make their employees always motivated and positive in all the situations.
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CONCLUSION
Strategic marketing planning plays a very important role in any kind of business.
Every business has their own kind of objectives and targets for achieving their dream stand in
the market. In any business every product needs particular kind of marketing strategy,
independence in this competitive world. Due to the effect of BREXIT and lockdown the
organisation needs to change its way of working and also needs to make changes in the
process of working. (Hassan, A. and Dadwal, S. S., 2018). To make their working faster they
have to refocus and plan again with the new patterns so that results can be achieved in a
successful manner. With this impact the company needs to reconsider about the different
kinds of analysis, environment and also needs to think about the internal and external factors
so that new innovation and new patterns can be arranged to make the process faster and
effective. In this difficult situation for making the employees always motivated and focused
on their work, the company needs to do lots of efforts and adopt various ways to make the
employees happy and enthusiastic. The company has to implement a particular theory so that
communication can become easier and effective. But in this pandemic situation everybody is
going through a emotional problem so it becomes a big task for the company to make their
employees always motivated.
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