Tesco's Challenges: Macro Environment and 4 Ps Analysis Project

This project analyzes Tesco's macro environment and marketing mix, focusing on the challenges and opportunities faced by the company. The analysis includes a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors impacting Tesco. The marketing mix (4Ps) – product, price, promotion, and place – is also examined to understand Tesco's strategies. The project identifies key challenges, such as the impact of political factors like import duties, economic factors like wage increases, and consumer trends. It also discusses Tesco's marketing strategies, including its pricing strategies, promotional activities, and product range. The project utilizes secondary sources and academic theories to provide recommendations for overcoming challenges, presented in a poster format designed for a seminar tutor acting as the Managing Director.

Macro environment analysis
4 P's of Tesco:
Product-
The company offers wide range of products under different categories
like beverages, pet care products, food items, bakery products, gaming
products, electronic items and car products etc. It owns different
brands like Finest, Tesco, Tesco Loves Baby, Tesco Bank etc.
Place-
It offers products in
more than 6900 stores
in 11 countries. Types
of stores like Tesco
Express, Tesco
Superstore etc.
Price -
Tesco has adopted cost leadership pricing strategy. It offers the products
at very low price while at the same time maintain economies of scale.
This also helps customers to purchase the product under budget and
helps company to improve profitability
Promotion-
It promotes the products through television ads, hoardings etc.
PESTLE analysis -
Political-
It includes factors like
political instability,
unemployment rate,
current legislation etc.
Example- Import duty
imposed by government
of UK affects the
profitability of company.
Social-
It involves trends of shopping by the customers,
belief and attitude of buyers towards company etc.
Example- Obesity is a major issue among
consumers that are more concern towards the
health.
Technological-
It includes change in technology for producing
and distributing goods and services. Example-
Tesco has implemented RFID technology in
Economical-
It involves cost of labour,
purchasing power, gross
domestic product etc.
Example- In year 2018,
government has increased
minimum wage rate by 4.4
%. This influences cost and
profits of Tesco.
Legal-
It involves various laws and regulations of the
government that affects the operations of Tesco.
Example- Tesco is required to operate functions
according to Food Retailing Commission.
Environmental-
It includes rules and regulations of government
to protect environment from negative impact of
activities. Example – Tesco introduced Tesco
Van for collecting wastage.
REFERENCES
Bahl, S. and Chandra, T., 2018. Impact of Marketing Mix on Consumer Attitude and Purchase intention towards' Green Products. A Journal of
research articles in management science and allied areas (refereed). 11(1). pp.1-11.
Hammad, A., 2015. Strategic Change and Its Management to Expand Business Through Implementation of Models: A Case Study of Boots UK.
Available at SSRN 2676800.
Ibrahim, A.A., Alkhawlani, M.A.A. and Al-shaghdari, F.M., 2017. Customers Desires on Marketing Mix and It’s Impacts on Tesco (Malaysia).