Marketing Report: Analyzing Tesco's Strategies and Performance

This marketing report provides an in-depth analysis of Tesco's strategies within the UK retail market. It begins with an introduction to marketing principles and then delves into an external analysis, examining retailing trends such as the impact of the internet, competition, and the supply and distribution network. The report then explores Tesco's segmentation, targeting, and positioning strategies, including geographic, demographic, psychographic, and behavioral segmentation. An internal analysis using the VRIO framework (Value, Rarity, Imitability, Organization) assesses Tesco's strengths, particularly its brand recognition, supplier network, and employee dedication. The report concludes by summarizing the key findings and referencing relevant academic sources.

MARKETING REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
EXTERNAL ANALYSIS...............................................................................................................3
Retailing trends............................................................................................................................3
Competition.................................................................................................................................4
Supply and distribution network..................................................................................................4
SEGMENTATION, TARGETING AND POSITIONING.............................................................4
Segmentation...............................................................................................................................4
Positioning...................................................................................................................................5
Targeting......................................................................................................................................5
INTERNAL ANALYSIS.................................................................................................................6
VRIO Analysis.............................................................................................................................6
STRENGTH....................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is defined as the strategic aspect that is followed by almost all the companies and
organisations that are working in the race. Marketing is said to be playing an essential role in the
organisations whether it be any kind of industries like that of retailers and automobiles sectors.
The major aim of adopting marketing strategies is to ensure that the product is reaching the
customers and in turn increasing the customer base (Mothersbaugh and et.al, 2019). It is
mandatory to probably target customers that support increasing sales which will in turn bring
shareholders towards the company. The entire reports deals with the marketing strategies as well
as internal and performance aspects of the company. The company that is chosen in this regard is
Tesco. Tesco plc is the largest retailer supermarket chains in United Kingdom that was
established long ago and it is making profits in the best possible way. It has adopted a greatest
marketing strategy that has set the growth trajectory for it over a long run. Entire report deals
with marketing strategies made Tesco one of the largest retailing services in the United
Kingdom.
EXTERNAL ANALYSIS
Retailing trends
Internet as one of the major boon: the trending retailing services nowadays are said to be more
prominent with the flourishment of internet services. Internet is said to be at its park and people
from all over the world are in use of it. There are different social networking sites as well as
different platforms in order to shop goods is being developed online. This has brought about a
great concern for the retailing services such that every industry is now able to depict its products
online. The people who are living in the remote areas can now shop online. Tesco uses online
platforms in order to depict the products that it has and it is dealing.
Consumers and direct contact with brands: one of the biggest retailing trend is that the
consumer has that are stopping and purchasing items from a brand is now able to speak to them
about their concerns directly using the social platforms. This is said to be an immense
opportunity for everybody to express their views regarding the products and their demands.
Through this process even the biggest brands will get to know their ideas and ideologies of its
consumers and it can produce goods accordingly (Li and et.al, 2021).

Competition
Retailing sector is full of challenges and there are different industries that are operating in this
particular sector. Tesco company is known to be one of the biggest retailing services and is said
to contain numerous employees that are working to deal with the customer satisfaction. On an
average there seem to be billions of customers that visit the grocery store and therefore there it
seems to incorporate in the minds of people that every household is available in this particular
supermarket which is also famous for groceries. There are other retailing services that compete
with Tesco in this particular industry. Yet with different strategies that Tesco has adopted it
stood as one of the largest retailing services whose reputation will not cease for over a long run.
Supply and distribution network
The supply and distribution network of Tesco is said to be a really big and there are numerous
suppliers that usually bring goods to the company. The goods that are inhibited by the company
are divided into sectors in the supermarket and each sector is provided with a manager to deal
with. The supply and distribution network of Tesco will also deal with things that will
incorporate means of taking the products to remote areas upon distribution.
SEGMENTATION, TARGETING AND POSITIONING
Segmentation
It is said that the segmentation deals with the set of micro as well as macro environmental factors
that seems to be affecting the decision making process of the organisations. The factors that are
associated with Tesco marketing is said to be offered by different attractive means that will
decide the segments that are to be focused upon (Key and Czaplewski, 2017). Tesco company
segmentation is of four types:
Geographic segmentation: Geographic segmentation the company focuses upon the religion
density and gender of the communities as well as the commodities upon which the company can
focus upon the countries that are nearby as well as the density of rural and urban population. All
the age categories that fall upon the need of purchasing groceries is also being taken into
account. Gender discrimination is nowhere found in the organisation since there are products that
are available for both male and female.
Demographic segmentation: it is necessary for the organisation to deal with circumstances of
demographic which involve income of occupation education social status and family size.
Focusing upon these aspects the company will get clarity upon the income categories and the

product can be depicted accordingly. When the person's occupation is known than the products
based on the needs can be maintained in the organisation. The education and social status is
important to determine the sales since the employees of the company can interact accordingly.
Physiographic segmentation: Tesco uses physiographic segmentation in order to study the
personality upon which they can easily understand whether the customer is easy going or is
determined to only few aspects. Based on this personality analysis the different sector employees
can deal with the customer accordingly.
Behavioural segmentation: behavioural segmentation Tesco understands the different benefits
that are associated with cost advantage and the variety of purchase as well as the user status. It
can also be understood whether the customer is an active user or adjust passive such that the
attitude can be learnt upon deciding for sceptical and positive approaches (Amelia and et.al,
2019).
Positioning
Positioning of the company is based on how far the segmentation processes are fulfilled. The
competition is at its peak in the marketing race and there are different organisations that are
competing with one another. Tesco usually identify its position in the market and based on its
competitor it will define its strategies that will make it one of the best competitors in the retelling
sector. There said to be different advantages and disadvantages that are associated upon
analysing the position where the company is standing since the company can also implement
strategies as well as the aspect that can draw more customer base.
Targeting
The different types of segmentation that Tesco deals with will determine its targeting. Basically,
Tesco target countries that are nearby and the areas that can adopt to its policies. It will also
target all age categories since their products that are available starting from infant to the elderly.
It also deals with products that are associated with males and females and therefore it can satisfy
the need of gender (Zéman and Bogdan, 2019). The low and middle income categories can also
shop vigorously in the supermarket since there is a range of availability in the market. Students,
employees, professionals can fall under the categories that Tesco deals with since there is no
class differentiation in the supermarket.

INTERNAL ANALYSIS
VRIO Analysis
The VRIO analysis help the company to identify the internal factors that are important to be dealt
with. VRIO stands for value, rare, imitable and organisation.
Value: the value of Tesco is basically dependent upon the resources that are constituted in the
company. It is usually said that the value that is maintained by the Tesco company is high when
compared to the other companies. Here in Tesco the employees are regarded to be one of the
precious resources that well constitute the high productivity. The employees of Tesco are
regarded to be loyal and will work dedicatedly upon interacting with the customers and ensuring
that revenue is properly generated through promotion activities.
Rare: Tesco distinguishes that the local food products are not there when compared to other
company’s policies. If the competitors inhibit challenges that are forced upon Tesco then they
will flourish at no instance. The rear aspect of Tesco company is its employees. The workforce
of Tesco is nowhere found since the employees are very dedicated and stay passionate about
their competitors such that they work in the better possible manner. The other resources for
Tesco is its distribution network which is composed of various investment criteria that is being
done in order to process firms.
Imitable: the policies of Tesco are imitable because they seem to be very easy and can be
acquired by competitors. The employees at Tesco are also sometimes can be imitated by the
other forms yet they have vigorous courage and determination. There is no sense of uniqueness
when it comes to the strategies that are employed by the workforce of the organisation therefore
the skills and the other improvement activities can therefore be imitated by the other companies.
Organisation: The organisation is said to be a well-defined one because the purchases are
strategically invested upon different opportunities that will combine different sectors of the
organisation. There said to be different patents that are imposed upon the company and therefore
it is identified to be the vast network that will sustain competitive advantage.
STRENGTH
The strength of the company Tesco lies in the internal factors that the company deals with. There
seem to be different challenges that are associated with the organisation and when the challenges
are met with the strategies that are important to be adopted then the company is regarded to be
potential in the aspect of growth. The strengths that are in regard of Tesco company are the

company is the biggest grocery store in the entire United Kingdom and it is such that there is
every product that is available for all demographics. The efficient network of supplier is said to
be one of its strength since there seem to be playing a major role in contributed the products for
the company. Tesco is said to be holding a highest market share in the local market and that in
the field of grocery retailing it is said to be one of the most reputed one. There are different
award holders and Tesco company is regarded to be the best performer in the retailing industry.
Although there are number of retailers that are operating in the United Kingdom yet there is a
unique mark that is being set by the company Tesco. This reputation is also considered to be the
biggest strength of the company. the major asset of the company is its employees. Employees
that work in Tesco are said to be more dedicated towards the objectives that are set by the
management. Its workforce is regarded to be the backbone for the purchases that are being done
on a daily basis by its customers. They interact in a fullness by explaining about the policies that
will bring forth the sales for the company.
CONCLUSION

REFERENCES
Books and journals
Mothersbaugh and et.al, 2019. Consumer behavior: Building marketing strategy. McGraw-Hill
Higher Education.
Li and et.al, 2021. Social media marketing strategy: definition, conceptualization, taxonomy,
validation, and future agenda. Journal of the Academy of Marketing Science. 49(1). pp.51-
70.
Key and Czaplewski, 2017. Upstream social marketing strategy: An integrated marketing
communications approach. Business Horizons. 60(3). pp.325-333.
Amelia and et.al, 2019. Effect of Marketing Strategy and Service Quality Against the Decisions
of Parents. Ilomata International Journal of Management .1(1). pp.31-37.
Zéman and Bogdan, 2019. Marketing strategy and building brand value on the Hungarian
market. Ekonomicko-manazerske spektrum. 13(2). pp.1-9.
Online
[Online]. Available through: <>
1