Tesco's Marketing Report: Innovation, STP, and Customer Analysis

This report provides a comprehensive analysis of Tesco's marketing strategies, focusing on segmentation, targeting, and positioning (STP) within the context of its operations. It explores the rationale behind innovation in product and service design, emphasizing its importance in a competitive market. The report identifies specific target groups and proposes viable solutions to meet customer needs, while also evaluating the role of data in improving relationship marketing and enhancing customer expectations. The analysis covers various aspects of Tesco's marketing activities, including its response to competition, expansion strategies, and adaptation to a dynamic business environment. The report highlights the importance of understanding customer demands and leveraging innovation to achieve business goals. Through this detailed examination, the report provides insights into Tesco's approach to maintaining market relevance and driving business growth. This document is a valuable resource for understanding how Tesco utilizes STP, innovation, and customer focus to maintain its market position. The report also highlights the importance of data in improving relationship marketing and meeting target customer's expectations.

Sales and Marketing
(Report)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Concepts of segmentation, targeting and positioning specific to a product or service..........3
Rationale for innovation in a new product or service design.................................................5
A specific target group within the framework of chosen business and viable solutions that
would appropriately specify target customers' needs.............................................................7
Evaluation of role of data in improving relationship marketing and improvement in target
customer's expectations as well as levels of service provided...............................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing activities in a business firm attracts and leads various operational activities of
the business firm towards effectiveness in operations. On the other hand, sales activities related
to various activities performed in an organisation relating to selling up of respective product or
service of the company. In current times respective leaders and managers of the business firm are
focusing on adoption of more and more innovate techniques for conducting respective tasks in an
organisation. It helps in providing a better shape to efforts being produced by various individuals
working in the business enterprise towards effective attainment of desired business goals and
objectives(Lussier and et. al., 2021). It serves as an important tool for management of the
company, as it importance can't be neglected for giving a strong competition to company’s
competitors. In this meta-analysis, operational activities of Tesco are being taken into
consideration. It is the largest British multinational grocery store with its operational activities
mainly based in UK origin. The company was founded by Cohen and is currently being leaded
by Murphay as newly appointed CEO of the company as on 1 Oct. 2020. With relation to
respective company, its higher authorities, invest a huge chunk of financial resources of the
company in carrying out marketing activities of the business firm. With regular general meeting
and interpersonal relation with respective staffs working in the firm helps in extracting innovate
approaches for conduction of various operational activities of the firm and promotes growth in
the business firm (Fischer and Himme, 2017). This document will apply various concepts of
STP, evaluation of role of innovation as well as target customer expectation.
MAIN BODY
Concepts of segmentation, targeting and positioning specific to a product or service
Segmentation, targeting and positioning is a very familiar approach being used in modern
marketing. In general sense, this process refers to establishment of proper communication
platforms for effective operations respective tasks allotted to various individuals working in the
business firm. With regards to chosen company i.e. Tesco, marketing department of the firm uses
this analysis to carry out various operational activities of the firm whether it is launching up of
company’s new product or service in the market or boosting up of sales of current product or
service being offered by workforce in existing market (Geiger and Hüffmeier, 2020). With
addition to that, by using this approach management department of the business firm is to carry

out its respective activities by attaining innovations and also ensures professionalism of work
being done in the business firm. As in this approach various entire market of the firm is being
divided into various segments on the basis of various constitutes such as age, gender, market
trend and many more. Further moving ahead towards next step of this approach depicts, targeting
up of segmented group of individual customers by evaluating various plans and strategies that
suites to the best to respective segmented group. In the final stage, mean position of the business
firm is being determined, as by using respective strategy or approach, management of the
company is able to achieve company goals and objectives in required time period or not.
Evaluation of this approach with regards to chosen company are as follows:
Segmentation: In this stage of the approach, given marketplace of the company is being
divided into various segments based on various factors such as age group of people, taste and
preferences, market trend and many more constitutes. In context to respective business firm, as
the main production activity of the firm is based on delivering grocery items to their customers.
Marketing department divides various customers of the company on the basis of Geographic
conditions including, Region and density, Demographic conditions including, gender, income,
occupation, education and family size, Psychographic condition that includes lifestyle and
personality of an individual or a group of individual as well as Behavioural conditions which
includes occasions, user status and attitude.
Targeting: In the next step of STP, targeting in organisational sense refers to introducing
various plans and policies for the segmented group which is divided in previous stage. By
targeting separated groups of customers, marketing department of business firm is able to operate
its business activities effectively avoiding any sort of wastage of valuable resources of the
company. With relation to chosen organisation, by using this step, respective marketing
department of the workforce is able to apply innovate approaches for conducting various
marketing activities of the business firm. It ensures better working of the firm as various policies
are being implemented by deeply analysing market trends of the business firm (Dwivedi and
McDonald, 2018). It creates less possibilities of wastage of resources of the firm, with addition
to that, it promotes effective working of the firm and also gives strong hand to company
management to fight with their competitors.
Positioning: In this last stage of STP approach, positioning up of various operational
activities being performed by the business firm is being analysed. This stage helps management

of the business enterprise to measure the value being extracted by using certain approach for
carrying out operational activities of the workforce. In relation to chosen workforce, this stage
proves to be helpful to marketing department of the firm as in this stage marketers of respective
business firm are able to acknowledge effectiveness of policies and strategies implemented to
targeted audience of the firm.
Respective managers and leaders of the workforce, Tesco, are able to recognise
company’s key strengths and weaknesses about various policies being implemented for target
audience (Goodman, 2019). This tool ensures better working of the operational firm and avoids
wastages of valuable resources of the business firm while carrying out various business
activities. With addition to that, this tool promotes use of innovate approaches for conducting
respective operational activities of the workforce.
Rationale for innovation in a new product or service design
Operational management department of concerned business firm, Tesco in order to deal
with its huge market presence, has to operate its respective operational activities of the
firm by effective utilisation of valuable resources of the workforce. With relation to some
top competitors of the business firm such as Sainsbury, Walmart and Amazon, managing
department of the concerned firm adopts various innovate approaches for bringing in
uniqueness in company’s product and services. Various department of the firm is being
guided by management to adopt various innovative approaches rather than using traditional
techniques for conducting respective activities of the business firm, it helps management of
the firm to use company’s resources effectively and enhances its ability to fight with its
competitors using various plans and strategies (Kant and Jaiswal, 2017). For instance,
respective firm is planning to offer new service to their customers along with delivering
their quality services. This service will help in bringing in effectiveness of sales activities
of the firm and will also serve its aim towards reducing risk of competition in given market
place. There are following reasons for launching this innovate service by Tesco
management which are as follows:
Competition: Tesco being a retail industry faces lots of competition in given operational
marketplace. Therefore, for overcoming or reducing risk of factor of competition in the
market managers and leaders of respective firm dedicate their core business activity
towards adopting innovate techniques for completion of respective goals and objectives of

an organisation. Various plans and policies being formulated in planning department of the
business firm highly considers factor of competition prevailing in respective operating
environment. As various competitor’s strategy may lead to failure of respective business
policy of the company (Asadabadi, Saberi and Chang, 2018). Hence, by bring in
innovation in respective operational activities of the firm, it helps organisation as a whole
to achieve its dedicated goals and objectives with optimum use of valuable resources of the
firm. In context to Tesco, managers and leaders of the firm dedicate valuable resources of
the company in adopting innovative approaches to conduct respective business tasks. It
helps company to produce unique products and services and conquer their competitors.
Expansion: It refers to expanding up of various operational activities of the business firm
in terms of area. Most of the business enterprises is dedicate to achievement of expansion
of business firm after maximising its profits. By bringing in innovation in respective
operational activities of the business firm helps in avoiding wastage of valuable resources
of the company. With addition to that, innovation in delivering or offering of various
company’s product with services, helps in increasing demand of firm’s brand in given
marketplace. In regards to chosen organisation, managers and leaders of company, adopts
various methods of innovation, which contributes towards effectiveness in particular
business firm and enables firm to expand its business activities, contributing towards
expansion of the firm.
Dynamic business environment: With light to the fact that, various business firms has to
deal with its uncertain environment while operating its business activities. Various plans and
policies being formulated in organisational structure considers this fact of dynamic business
environment and in order to avoid wastage of resources, effective plans and strategies are being
made in the workforce. Innovating and replacing traditional methods of performing various tasks
in an organisation helps in enhancing productivity of the business firm as a whole (Takimoto,
2017). In relation to chosen company, higher authorities of organisation in order to deal with
uncertain business environment, engages in formulation of effective and flexible plans and
policies of the company. It helps business firm to deal with its dynamic business environment
maintaining better productivity of operational activities being performed in the workforce.
Fulfil demands of customers: It refers to delivering quality products and services to
company’s customers without hampering its prices. A sound management of the business

enterprise is defined by effective reacting of demands and needs of various business firm’s
customers. In context to chosen firm, management of the workforce guides its production
department to dedicate their production activities towards customer approach. This approach
involves proper research of given business market and analyses core demand and trend of
product or service being demand in respective market (Ma and et. al., 2020). With little
modification of innovation, provides great deal of help to the concerned organisation for feeding
various demands of respective customers of the company.
Therefore, concerned business enterprise by adopting various techniques of innovation is
able to overcome its fear of competition in the market, helps in dealing with dynamic
environment of the business firm along with fulfilling customer required demands and enhances
company’s capability for dealing with its uncertain business enterprise. Innovation contributes
towards increase in productivity of business firm and helps respective firm to implement new
rules and strategies effectively (Penin, 2018). It helps concerned organisation to launch new
product or service in the market or to boost up sales of current product or service in respective
market business firm us operating its operational activities.
A specific target group within the framework of chosen business and viable solutions that would
appropriately specify target customers' needs
Target group refers to various individuals or group of individuals, to whom respective
marketing department of the company introduces various plans and strategies. A sound
marketing department of the company refers to that department who conducts deep researches on
the respective target group of an organisation. By conducting effective research programmes a
business firm us able to get needful information about market trend as well as demands and
needs of company's customers. It enhances effective decision making by providing adequate data
to marketing department of the concerned business firm, so that respective department is able to
formulate effective plans and strategies to conquer demand of various market customer and also
helps in increasing brand image of company products as well as services (De Angelis, Adıgüzel
and Amatulli, 2017). With reference to chosen organisation i.e. Tesco, as recently the company
has introduced new innovate service, which welcome various innovators for to participate in
companies decision making process. It guides company's management to undertake various
important decisions regarding core operational activities of the firm. Bringing in new innovative
services will enhances effectiveness of the business firm and also contributes towards building a

strong structure towards fighting with various competitors of the organisation (Liu and
Atuahene-Gima, 2018). As the company has such a huge market presence, management
department of the business firm divides various company's customers and formulates plans as
well as strategies as per trending needs and demands of target customers.
This target market has several needs which are explained below: Delivering better service at reasonable prices: This is one of most trending demand of
target market in current business environment. As per this need, various individual or
group of customers in given marketplace demands for quality products and services at
reasonable prices. It becomes difficult task for management department of every business
organisation to keep control of quality and prices of respective company product or
service. For the purpose being, managers and leaders of the firm aims at producing
respective goods and services of the workforce at effective utilising of valuable resources
of the firm and also adopts various innovate approaches rather then using old traditional
techniques for conducting firm's production activities.
 Alternative options within large product portfolio: In this need of market group of
customers, various company's customers demands for wide variety of products and
services rather then sticking to any one particular producut or services offered by
company. In order to deal with this factor respective management department of
concerned organisation i.e. Tesco, keeps in mind fluctuating demand of various
company's customers and are regularly engaged in innovate activities by doing needful
researches at regular interval of time. Marketing department of respective firm, also
accept to the fact that there are very less customers in the market that are loyal towards
various company brands offered in given marketplace of the workforce. Others may shift
their demands towards substitute of products and services available at comparative lesser
prices and offering almost the same quality with service.
Benefits of target group
 By classifying various target groups, respective management of the business firm is able
to determine various demands and needs of their customers.
 It helps in formulation of effective strategies, as deep market research is being conducted
which contributes towards analysing respective demands of target audience and avoids
wastage of valuable resources of the business firm.

Therefore from the above discussion management of chosen firm is able to perform its
respective marketing strategies effectively and also contributes towards enhancing productivity
of the workforce (Payne and Frow, 2017). As analysed management of business firm is aiming
towards innovation in their respective operational activities which will provide with
effectiveness and increased brand value of various products and services being sold by the
company. Innovation will contributes towards delivering of various products and services with
unique identity and will ultimately contributes towards increased market presence of an
organisation.
Evaluation of role of data in improving relationship marketing and improvement in target
customer's expectations as well as levels of service provided
Evaluation of data and information plays an important role in enhancing productivity of
the business firm. In current competitive business era, it becomes very important for
management of the firm to keep relevant data of various plans as well as strategies being
formulated by the business firm. It helps in determining effectiveness of various policies and
strategies being implemented by management of company and later does appropriate
modifications as per dynamic environment of the workforce. Further its importance can also be
mould towards providing an effective path towards achievement of various pre decided goals and
objectives of the business firm. As by following an organised writen policy or reacting various
activities of an organisation as per data, provides additional advantage to firm to carry its
respective goals and objectives towards success and growth of an organisational structure. There
are various sources from which a business firm can gather its data, main sources of data
collection is by performing primary and secondary researches. In primary research data is being
extracted from marketers of the business firm, manually by extracting data from conducting
researches in given marketplace of the workforce, on the other hand, secondary research refers to
extraction of data through visiting various official sites and browsing data available in internet.
Role of data in improving relationship marketing
Data plays an important role in making up of effective plans and strategies for operating
various tasks in an organisation. With helps of these data, various leaders and managers are able
to formulate effective plans and ensures better growth in given marketplace of the organisational
structure. It enhances decision making ability of a marketer which results in productive
operational activities in the business firm and shapes efforts being produced with usage of

valuable resources of the firm towards success in organisational goals and objectives within
given time frame work. In context to selected company, its management department focuses on
relationship marketing process to analyse appropriate demands and needs of various business
customers (Gummesson, 2017). By using techniques of relationship marketing, management
department of Tesco is able to analyse current trend of market customers and are able to analyse
taste and preferences of various consumers of products and services.
Advantages Market trends: By using of relationship marketing approach, managers and leaders of
chosen business firms are able to current marketing demand as well as customer trend in
given marketplace of the company. It helps firm to operate its respective operational
activities effectively and enhances productivity of business firm by avoiding wastage of
valuable resources being used in an organisation. By using appropriate data, marketing
department of concerned firm is able to analyse market trend of business effectively. Sales Trend: Relationship marketing helps marketing department of Tesco to adopt
innovate sales techniques. It enhances profit making of company as innovative
approaches are being used while delivering quality products and services to various
company customers. It shapes efforts being produced in business firm to growth of the
firm by using innovative techniques rather then old cost consuming traditional
techniques in carrying out various sales activities of the firm. Data comes to be of great
help in analysing sales trending techniques, which serves as a helping hand for effective
performing of various department of the business firm.
 Decision making: By adopting relationship marketing techniques, marketing department
of concerned company is able to make effective decision regarding promotional
activities of company's products and services. By collection of data and backups,
marketing department of the firm is able to make effective decision making in planning
process of an organisation.
Disadvantage Costly: Storing up of huge data as well as backups might prove to be cost consuming
techniques for management of concerned organisation. Various data and backups are to
be protected, as they comes under confidential information for working of the company.

 Distraction: Maintaining up of huge data can sometimes proves to be a distraction while
carrying out various business activities of the business firm. As in the process marketers
of respective company analysis data of company's competitors and also concentrates on
respective plans and policies adopted by other business firms to produce and deliver
various products and services of the workforce. Therefore, it causes huge distraction for
less focusing on operational activities of the firm and leads to less innovate approaches
while conduction of respective operational activities of the workforce.
Role of data in improving target customer expectations
Being a marketing department of any business firm, it highly focuses on respective
customer's expectations towards delivering of various products and services of the company in
given marketplace. In context with, Tesco, marketers of respective firm conducts deep analysis
as well as performs various research programmes to analyse market demand of various
customers of company and various goodies that they expect from an organisation. Marketers of
the firm by effective conduction of research programmes are able to analyse true demands of
various product or service consumers and accordingly bring in changes in production activities
of the workforce (Ryu, K. and Lee, 2017). Corporate data comes in with great help to marketers
of respective business firm to maintain effective relations with various customers of company
and makes it easy to keep track on their demands which results in improved relations with them.
Advantages Accuracy: By keeping relevant data, marketing department of the business firm is able to
attain accuracy of performance in various operational activities relating to sales and
promotional activities of company. Marketer of concerned company, just has to quickly
go through recorded data and produce strategies accordingly. Future Planning: Collection of data proves to be beneficial for shaping various
operational activities towards better development of future if a business enterprise. As by
keeping and managers
 Target expectations: In regards to chosen company i.e. Tesco, managers and leaders by
conducting STP analysis, are able to divide and target respective groups of individual
customers separately. Herein, data plays an important role as, it helps in formulation of
effective strategies for target segments of the company and ultimately results in
increasing goodwill of organisation in given marketplace.

Disadvantages
 Uncertain demands: Due to unpredictable demands and needs of company's customers,
various marketers of business firm faces difficulty in determining actual demands of
respective customers of the workforce.
 Unable to satisfy customer to the fullest: Another drawback of maintaining data is that,
sometimes under various circumstances it becomes hard to predict exact demand of
various company's customers which results in unsatisfied customers and leads to shifting
of demand towards substitute of respective product and service being produced by the
company.
With regards to chosen company, i.e. Tesco, targeting customers expectations plays an
important role in conduction of effective operational activities of the business firm. As respective
business firm mainly deals in consumable grocery products, firm has huge threat of substitution
of its product with any other company's product available in market at comparatively lesser price
or better quality of what is being offered by mean company. Marketing department of workforce
with formulation of effective strategies with use of relevant data are able to produce goods in
effective cost using innovate techniques and are also engaged in delivering quality service with
their products in order to increase or maintain brand loyalty of respective company customers.
CONCLUSION
After analysing the above report, it can be said that sales as well as management are
critical part of business enterprise. High level authorities of a business firm aims at various sales
and management approaches to ensure better working of an organisation. In this meta-analysis,
STP is being applied to chosen firm's operations and importance of keeping data is being
highlighted. Various advantages and disadvantages are being evaluated of using data in adopting
various strategies in planning process of the firm. Moreover, role of innovation in core
development of a business firm is being explained in this document.

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