Analyzing Tesco's Marketing Mix, Decisions, STP, and Principles

This report delves into the marketing principles and concepts employed by Tesco, a British multinational merchandise retailer, to understand its business operations and strategies. It covers key marketing principles such as the marketing mix, detailing product, price, promotion, place, people, process, and physical evidence, and their practical application within Tesco. The rationale behind Tesco's marketing decisions, including gaining a competitive advantage, generating sales, ensuring customer satisfaction, driving efficiency, and facilitating business expansion, are assessed. The report further examines the concepts of segmentation, targeting, and positioning (STP) with specific reference to Tesco's skincare product range, considering gender, income level, and age group as segmentation variables. This analysis provides a comprehensive overview of Tesco's marketing strategies and their impact on the organization's performance.

Sales and Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Key marketing principles and its application in the organisation..........................................1
Rationale of marketing decisions taken by Organisation.......................................................3
Assessment of the concepts of segmentation, targeting and positioning specific to a product
or service.....................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Marketing is the process that involves the various activities which are conducted in order
to promote a particular service or product that helps in promoting a product in the existing and
the new market. The process of marketing helps in deeper understanding of the consumers to
businesses. The process of marketing also helps in boosting organisation's brand image and
reputation. The marketing process helps in developing effective strategies for the purpose to
operate a business operation successfully. In order to understand the marketing concept in a
better way, Tesco is taken into consideration. Tesco is a British based merchandise founded in
1919 and headquartered in Welwyn Garden City, United Kingdom. This report basically
involves the marketing principles and various marketing concepts for the purpose to use it in
business operations effectively. The project basically involves STP analysis that also helps the
organisation to launch a service or new product in the market place.
MAIN BODY
Key marketing principles and its application in the organisation
The marketing principles are usually the principles that involves various ideas which are
used by the organisation for the purpose to develop strategies in effective way. All these
strategies plays a important role and also helps in changes and application according to the need
of the organisation(Naik and Nalla, 2020).In context to Tesco, the organisation uses marketing
principles for the purpose to develop strategies related to promotion for its various products and
services. Also these strategies plays a very important role for the managers as it helps them to
attract large number of consumers and also to get a competitive advantage. The marketing
principles used by the Tesco are mentioned below:
Marketing mix basically involves the combination of elements that are used in a
organisation for the purpose to develop strategies for the promotion for a particular service or
product. The main objective of marketing mix is to related to combination of various elements
that are used by the organisation for the purpose to develop various promotional strategies for a
service or product. The main aim of marketing mix is to determine the combination of various
elements for the objective to gain a competitive advantage. In context to organisation, it uses
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various strategies in order to reduce unnecessary costs on activities and promotion. The various
elements of the marketing mix involves:
Product: It can be described as something which is being offered in the online store or physical
store. The main objective of offering a product is to fulfil the demand of the consumer. The
products and services are mainly designed in a way that that can attract the customers. For the
purpose to be successful in the market place, the market analyst of tesco need to have proper
understanding of the product cycle and also they should know how it can be used in a effective
way in order to compete with the competitors. The organisation provides a variety of products
from groceries to home décor and has various stores across all the parts of UK(Lee, 2019).
Price: It is basically the amount which a customer need to pay in order to purchase a particular
service or product. Different companies adopts different pricing strategies for the purpose to gain
a competitive advantage in the market. The pricing strategies helps in aligning with the
usefulness of the product and the monetary value paid by the consumers. The managers of tesco
have divided their pricing strategies as per the demand of the product and its size. The pricing
strategies basically involves economy tactics, bundle and skimming as per the different
strategies. The skimming of prices is basically related to the products or commodities that are
customer is ready to buy at any cost. In context to tesco, the organisation has kept its products
affordable which can be affordable and sell their products at reasonable prices in the
market(Klein, 2021).
Promotion: It basically in helps in promoting a particular product or service which can be used
by the organisation for the purpose to promote their services or products in the marketplace. The
organisation uses various promotional methods and emotional appeal in their advertisements.
The organisation also carries out various campaigns on social media platform for the purpose to
make a connect with the consumers. The organisation also uses various digital channels and
social media sites in order to inform and influence the buyers about the existing as well as new
products. The managers in the organisation also collaborate with famous celebrities and feature
them in the advertisements. The marketers of the organisation uses vernacular based
communication that helps in promoting the organisation's products worldwide. The organisation
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uses hoardings and print media for the purpose to promote its products
efficiently(Narayanaswamy and Heiens, 2021).
Place: A place is something which is used by the organisation in order to display the products for
the purpose to inform the buyers and influence them to make a purchase. Tesco's distribution
channel is very efficient and robust and also helps in making a reach to a massive number of
customers around the globe. The organisation sells its products through supermarkets, stores and
retail outlets. The organisation also uses different online channels for the purpose to influence the
buyers and display the products. The place factor helps the organisation to generate more
revenue and increase the customer base. With the help of creative and innovative ideas with use
of offers and discount coupons it helps the organisation to make a worldwide reach(Goyal,
2019).
People: It basically involves the employees of the organisation who put their knowledge, skills
and efforts for the success of the company. This also involves the marketing team, customer
service providers and many more. In order to make the employees more effective and efficient,
the organisation need to provide them adequate training. The top management of tesco helps in
providing learning programmes and proper training to the employees for the purpose to increase
their revenues. The organisation also takes regular feedbacks and tries to enhance their employee
engagement.
Process: It basically involves the various steps from manufacturing to delivery of the goods to
end consumers. Tesco's top management basically focuses on making its process efficient and
also focuses on providing good quality products to its customers. The organisation focuses on
taking regular feedbacks from its customers and also tries enhance customer experience.
Physical Evidence: It is basically involves providing tangible clues in a company in order to
proof the purchase a consumer has made. In context to tesco, the organisation provides proof of
purchase and value to the customers.
Rationale of marketing decisions taken by Organisation
The marketing decisions plays a very important role in the company and also in order to
make a reach to the customers. The marketing decisions helps in promoting various service or
products that are being offered by the organisation. With development of marketing strategies it
helps the organisation to be well aware of the new market trends and to better understand the
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tastes and preferences of the customers. The marketing decisions plays a very important role in
the organisation:
Gaining competitive advantage: The various marketing decisions helps the organisation to
basically gain a competitive advantage. The market research helps the organisation to better
understand the target audience and developing products according to the aids and upper hand
over their competitors. The top management of the organisation helps in conducting efficient
market research into targeted segments for the purpose to be ahead of its competitors. The
organisation form budgets and specified plans in order to implement marketing strategies in a
effective manner. These strategies also helps in providing insights in the functional areas to the
managers of the organisation(Vieira, da Silva and Gabler, 2019).
Generating sales: The marketing decisions helps the organisation to inform the customers about
the various services or products that influence them to make a purchase. The practice helps in
generating more revenues. The decision makers of the organisation focuses on concentrating on
the various marketing decisions. In order to generate more sales, it is important to analyse the
market specifications for the purpose to develop various marketing tactics.
Customer Satisfaction: The marketing strategies are implemented and formulated for the
objective to gain satisfaction that helps in building brand reputation and creating positive brand
image. The managers of the organisation formulates their strategies and marketing tactics for the
purpose to satisfy the customers and also maintaining loyalty towards the brand. The
organisation focuses on conducting various campaigns on social media sites for the purpose to
gain valuable insights(Brahm, 2021).
Helps in bringing efficiency: The various marketing decisions helps in formulating and
executing the strategies which basically helps the organisation to maintain and build efficiency in
the business operations. The top management helps in analysing the effectiveness of the various
marketing decisions in its operations. The sales funnel includes providing awareness to the
potential customers related to a particular product or service. The marketing team provides
irresistible offers to the potential buyers. This practice helps the organisation to generate leads
that can be converted into sales.
Helps in Business Expansion: The various effective marketing decisions helps the company in
taking decisions. The organisation operates successfully over the globe with the help of making
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strategic decisions. The organisation with the help of satisfying the needs of the potential
customers helps in expanding the business operations successfully(Friend, Malshe and Fisher,
2020).
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lAssessment of the concepts of segmentation, targeting and positioning specific to a product or
service
The concepts of segmentation, targetting and positioning are very significant for the
purpose of evaluating effective performance of an organisation and is crucial for setting
standards for the brand. These concepts are explained in detail below considering the range of
Tesco's skincare products.
Segmentation
Market segmentation is the process of creating fragments out of a large section on the
basis of simliar traits or chacteristics like same preferences or choices. Market segments refers to
sub sections created from a large section under which individuals among each section possess
similarities(Lin and Bowman, 2022). The individuals belonging to a particular segment indicates
similarity in interests and they are likely to react in a similar way to variations in market.
Basis of market segmentation:
Gender: Requirements and desires in context of products varies between men and women which
demands for market segmentation on the basis of gender preferences. Due to the differences of
interest among men and women, the market strategies also works differently in case of gender
based products. For instance, women's share in purchasing could be induced by encouraging high
promotional techniques and offering discounts. Women are tend to get frequently excited for
shopping if there is a market sale and are inclined towards attractive packaging.
Income level: Various brands offer different products which are designed to satisfy the needs of
either high income level or medium income level. Different organisations cater to the needs of
different income segments aiming at fulfilment of their requirements.
Age group: Products are classified according to the utility they are capable of providing to
various age groups. Edible products contain different ingredients and nutritious elements
according to the suitability of age preferences of the audience(Bei, Gielens and Dekimpe, 2018).
In context to tesco, the skin care product range of the brand cater to the requirements of both
male and female segments. The brand offers wide range of grooming and skin care essentials
which are suitable for whole audience in general. The company offers cleansers, toners,
moisturisers, talcum powders and other varieties.
Targetting
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Targetting is the process of defining market segments according to their potential and
identify the market segment which are likely to produce most desirable outcomes. After market
segmentation, these segments are to be identified which needs maximum attention for enhancing
an organisation's market share. A target market is that section of a community which shows high
tendency to consume specific products designed by a manufacturer. Identification of a target
market is very important for the purpose of increased potential sales and high revenue generation
along with maximum customer satisfaction. A product is designed according to the specifications
of the individuals that are being identified as the target market. In context to Tesco, the brand
mainly lays emphasis on the women sector of their market to induce sales of their skin care
product range(Gupta and Bedia, 2021). The company's supermarket stores are visited by
thousands of women on regular basis. Women shops groceries and skin care essentials for their
kids, husbands representing households. Beside this, individual women also engage a lot in the
purchasing of skin care essentials frequently. Due to the more involvement of women in
grooming and beauty product ranges, the brand ensures the specifications aligns and matches
with the preferences of women sections.
Positioning
Positioning refers to the process which defines a product's position in the market like
where it stands among its competitors and how it is different from that of others. Effective
positioning of a product gives unique selling proposition to the product. The process of
positioning includes the strategies and tactics which marks the relevance of a product and
enhance its existence in the market. There are various types of positioning strategies discussed
below:
Characteristics of a product: A product could be distinguished among others if it owns unique
qualities and attributes which make the product stand distinctive among others.
Price of a product: Competitive pricing strategies are likely to determine the position of a
product or brand.
Quality and durability: Guarantee of product's durability and offering best quality is another
concern for deciding positioning strategies.
Usage and applicability of product: A product could be positioned differently if it is offering
great value to customers through their extremely useful application(Byrom and Medway, 2018).
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Manipulative promotional activities and strong advertising: This is another important factor
which serve as a influence determinant while establishing effective positioning. If a company
promotes strong advertising techniques and make influential personalities their brand
ambassador, then the product becomes capable of standing out differently in the market among
various competitors.
In context to Tesco, it make effective use of experiential positioning to target its potential
market for the purpose of increased sales turnover in the section of beauty and skin care product
range. Experiential positioning is the process of determining consumers wants and constructing
a specific experience which then delivered to audience in such a way that it implies brand
differentiation. The brand make use of other effective techniques and strategies to gain high
market share of their beauty and skin care product range(Madhani, 2018). The company follow
low cost strategy ensuring effective use of economies of scale and therefore apply low pricing
strategies in their varieties of beauty products. The company also pays attention on the
presentation attributes which includes attractive packaging using vibrant colours and ensures
useful information display.
CONCLUSION
As per the view of respective marketing report, it has been concluded that evaluation of
effective decision making regarding marketing principles is significantly crucial to attain high
profitability margins. The four P's of market mix and their components should be caregfully
analysed and selected for better performance of the company. It has been concluded that
marketing decision relates to the detailed analysis of past events and past statistical data which
executes the process of effective strategy formulation. In addition to this, the STP analysis is
important for the purpose of determining sections and segments of audience which have
maximum potential of generating high profit margins. Formulation of positioning strategies
decides the scope of making a product unique from that of its competitors.
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