Strategic Marketing Plan: Tesco's Response to Brexit and COVID-19

This report provides a comprehensive strategic marketing plan for Tesco, a major UK retail firm, addressing the challenges and opportunities presented by Brexit and the COVID-19 pandemic. The report begins with an introduction to strategic marketing planning and its importance for organizational success. It then delves into an environment analysis, utilizing PESTLE analysis to examine political, economic, social, technological, legal, and environmental factors affecting Tesco. The report outlines Tesco's corporate and marketing objectives, including profitability, employee turnover, cash flow, sales, and R&D efficiency targets. It further explores marketing strategy selection, focusing on brand positioning, awareness, customer acquisition, and diversification through digital marketing. The report then discusses STP (segmentation, targeting, and positioning) strategies, considering global implications and potential expansion. Finally, it assesses the 7 Ps of marketing and discusses implementation, control, and evaluation of the marketing plan, concluding with a summary of key findings and recommendations. The report aims to provide a detailed analysis of Tesco's strategic marketing approach in a dynamic business environment.

STRATEGIC MARKETING
PLANNING

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Environment Analysis..................................................................................................................3
Corporate and Marketing Objectives of Tesco............................................................................5
Marketing strategy selection........................................................................................................6
STP-Market targeting and positioning including global implications and potential expansion. 7
Assessing 7 Ps..............................................................................................................................8
Implementation, control and evaluation.......................................................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Strategic Marketing planning is step wise procedure that provides guidance to
organization to achieve its goals and objectives. It is basically related with conducting auditing
of marketing plan, research, analyze, identifying target segments, etc. In modern era, it has
become essential for organization to develop an strategic marketing plan for attracting more
customers to win cut throat competition. The present report is based on Tesco which is retail firm
of United kingdom. The organization deal in groceries and other items by offering services in
various nations. Current case study will give emphasis on prevailing Pandemic situation and
according show related measures through feasible marketing plan to overcome Covid crises by
evaluating impact on retail industry. Present report will include environment analysis of
specified organization. Corporate and marketing objectives of Tesco will be represented in the
current case study. Marketing strategy selection will be shown in present report for obtaining
better performance of organization. STP and 7Ps will be shown in current case study for
evaluation of industry so that selected market can give emphasis on its improvement areas.
MAIN BODY
Environment Analysis
It is a strategic tool utilized by organization to assess the details regarding surrounding
factors that can both foster and hinder firm to move towards success. The level of threat and
opportunity available in industry can be identified with help of available technique for attaining
quality performance. Environment analysis provides guidance and instructions to Tesco for
assessing prevailing environment in effectual pattern in turn accurate judgments can be obtained.
The Strategic Marketing Planning (SMP) is a systematic road map which leads towards right
direction so that optimization o resources can be exerted in effective pattern. An appropriate
environment evaluation assist marketing manager of business to identify the influencing factors
in turn corrective measures can be taken to improve existing situations. In addition to this, for
achieving the goals and objectives with accomplishing its current mission SMP tend to give
desirable outcome (Singh, 2017). Strategic decision making becomes possible by implementing

SMP into Tesco operational procedure. Studying environment analysis provides opportunity to
select right course of action for gaining organizational growth.
PESTLE Analysis
This is a strategic technique which can be taken into consideration for studying the
external factors. The external components are uncontrollable sand require constant attention for
better handling of unforeseen situations (What is PESTLE analysis? An important business tool,
2021). PESTLE evaluation gives emphasis on political, social, economical, technological, legal,
and environmental factors. It as well provides light on both positive and negative impact of
Brexit and pandemic on each element.
Political Factor
Being a multinational organization Tesco has to face several political challenges which
hinders its performance in international market as compared to domestic circumstances. The
impact of Brexit on Tesco is negative as supermarkets started facing problem with post Brexit
arrangement when moving products into Northern Ireland. With respect to this, political barriers
after mentioned situations have become stronger for Tesco as being British company. The new
dilemma of Brexit may increase or decrease sale of business have no assurance and clarity
(Shatskaya, Komaristaya and Kafian, 2017). Pandemic as a global crises have given adverse
impact on various types of industry. Retail sector has faced boom stage in this adverse scenario
in domestic market but in international area it was difficult to maintain smooth functioning of
supply chain. Tesco has faced both positive and negative fluctuation due to Pandemic which has
increased its sales but reduced its reach to global customers due to lockdown.
Economical Factor
Tesco offers range of products of products to different segments of customers. Targeted
market of Tesco has become wide which has given it various opportunities to enhance its
revenue and profitability. There are different economic factors which affect the operational
activity of Tesco in both favorable and unfavorable manner (Fozer and et.al., 2017). Income
level largely affect the purchasing power of buyers so it should be taken into consideration while
deciding products’ price. Change in taxation policy positively and negatively increase or

decrease the Tesco revenue level. Brexit changes ahs negatively impacted the economic
situation of Tesco. With respect to this, Covid 19 situation has increased scope of retail industry
as it provides online facility as well.
Social Factor
One of the crucial component of environment evaluation is social element as changes in
beliefs, value, etc. heavily influence progress of Tesco. In addition to this, social condition of
different nations are varying which requires strong attention of business in turn positive affecting
factors can be identified for the purpose of capturing larger market share. Customers get
impacted from the way of conducting communication by Tesco with its buyers so analyzing
needs & requires plays significant role in having positive influence. Pandemic has negatively
affected the company’s growth. Studying and reacting according to social norms positive affect
the progress of Tesco.
Technological factor
Cooperating with changing circumstances is one the determinant of success.
Technological elements plays significant role in advancing the way of conducting operational
activities. Reacting in beneficial manner by adapting advanced technological devices encourages
revenue & success in upward direction (Perera, 2017). Brexit has led the company to be
independent from other country legal obligation and accept the prevailing changing situation
through uplifting its standard of working. Business based platform has motivated customers to
get connected with foreign touch for fulfilling basic and luxury requirements. Pandemic has
favorable increased the sales of retail grocery items through online based program.
Legal Factor
Government imposes some regulation on domestic as well multinational organization for
safeguarding the interest of buyers. Adherence to these imposed regulations is essential for Tesco
for ensuring smooth functioning of organization. Various acts has been established whose
avoidance provide adverse outcome to business progress. In case of Pandemic there are different
types of rules has been established by government for reducing the disease. Tesco will negative

get affected from non compliance as it becomes essential for institution to cope up with
prevailing rules.
Environmental factor
Different industry ahs varying standard as they use resources for production as well
disposing the products. It is crucial for Tesco go give emphasis on its corporate responsibility to
attract the attention of stakeholders. Customers, suppliers, etc party positive interact with
company once it has good environmental image in industry. Adaptation of green practices
increased the sales of Tesco.
Corporate and Marketing Objectives of Tesco
There are several types of objectives that business formulates for having systematic road
map in order to move forward. Tesco as being multinational organization ahs wide range of
objectives for which it formulates several suitable approaches in respect to accomplish them. In
addition to this, firm has pay attention on modifying its both short as well long term objectives so
that it can cooperate with changing environmental conditions. Tesco objectives have been
illustrated below:
 Maintaining profitability stable as well increasing 10% by the end of year. Profitability
enhancement will provide various opportunity for expansion along with product &
market development
 Reducing employee turnover by 20 % in the span of 2 yaers. It can be executed by
establishing the training and development programs, performance appraisal, etc.
 Maintaining healthy cash flow through reducing cost of capital and other related
expenditure by 25% at the end of current year.
 Increasing sales by 15% through attracting customers and overcoming competition at the
end of 1 year.
 Increasing efficiency of research and development department in order to meet market
forces effectively by 12%.
These are the some of the marketing as well corporate objectives of Tesco which requires full
attention so that proper suitable strategies can eb formulated in order to lead towards appropriate
direction.

Corporate and marketing objectives of Tesco are largely correlated with best parameters
of diversification in advanced scale expertise, for wider customer satisfaction services. Within
retail industry which heads on profound rise towards competent functioning. Tesco further
within retail industry is globally known to bring on best scaled functional avenues in retail
products and services, towards stringent growth paradigms. This further also explains marketing
and corporate fundamental goals of Tesco are also further correlated, on new advanced leveraged
scope parameters bringing on functional growth standards within global standards.
Marketing strategy selection
Tesco marketing strategy selection can be further analyzed to be widely crucial for
bringing on fundamental scale growth rise informatively, towards increasing revenue goals and
profit percentage aspects innovatively. The retail brand marketing has been potentially further
evolving towards stringent diversification of various new advanced products and services, which
bring on competent productivity among consumers satisfaction. This further heads on strong
focus towards pertaining best competent innovative products and digital marketing expertise, for
bringing on diverse scope for strengthening corporate functional expansion rapidly. Tesco plans
to further extend digital marketing promotions, for further heading on customer’s availability
within products as per retail industry goals and to competitively bring on commercial expertise.
Diversification is also another key concept which is further progressed, for gaining new range of
commercial growth informatively which heads on towards productive connective targets. Below
are the analysis points for digital marketing expansion for bringing on new fundamental rise,
where these can be further discussed as follows (Madhani, 2020).
 Brand positioning: Tesco by using digital platforms heads on focus towards brand
positioning, by extending brand positioning parameters through various online platforms
for stronger brand value growth. The retail brand has been extending stronger brand
positioning goals for technical innovation, higher keen functional goals and to operatively
expand stronger new markets among consumers. Brand positioning, in marketing strategy
by digital platforms extends focus towards operative innovation for stringent growth rise
and yields stronger technical strength. Awareness: Tesco by using digital marketing, further aims to head on awareness factors,
towards leveraging wider scale scope for consistent growth and new determinants

connected towards creating long term awareness. Retail industry functional goals are
further correlated towards gaining best benchmarks, higher scale expertise informatively
to be optimum in new risen scope towards best revenue targets. Customer acquisition: The retail brand believes in serving customers with best retail
services, where new advanced scale functional expertise are worked on for customer
acquisition which enhances brand value. Customer acquisition further extends new rise
commercially, by evolving on stronger consumer brand reach which also enables
goodwill to rise and expand ken innovative marketing domains.
 Diversification: Tesco further by bringing on new advanced scale diversification within
competitive retail industry within online shopping platforms, aims to keep best brand
value rise informatively. Through diversification company extends new scale technical
productive development aspects, where there is variety of marketing factors further
leveraged which enables best competitive scope (Sousa and et.al, 2021). Diversification
further enables new scale towards evolving untapped functional parameters, which
further evolves strategic expansion innovatively, and also sub scale best strategic
fundamental growth.
STP-Market targeting and positioning including global implications and potential expansion
STP plays strong role in bringing functional growth competitively, evolve on innovative
marketing positioning for larger scale expertise and vivid new creative standards for larger scale
productive diversity. Tesco, one of the biggest retail company aims to further bring on global
potential expansion by evolving on STP strategies within marketing parameters, where this
further can be analyzed in detail as follows:
 Segmenting: Tesco as one of the largest retail company heads on focus towards
segmenting customers basis of their demographic and behavioral aspects, where
customers are segmented on basis of specific characteristics. People who come under
middle income category, with affordable price structure in retail industry are worked on
for further scale competent synergies (Chorna, Smolnyakova and Volosov, 2021).
Segmenting further synchronizes wider scale competent expansion rapidly, towards
bringing customers best scale advanced productive services. Segmenting also further

adds to new scale rise among consumers satisfaction aspects, where keen innovation and
preferences are taken care towards attaining long term targets. Targeting: Targeting is done by bringing on best attractive price strategies further for
marketing among segments analyzed within above step, by producing best customer
preference among products. This further also inclines focus towards productive long term
targeting strategies and goodwill horizons, for bringing on productive consumer
satisfaction parameters innovatively. Tesco uses differentiated targeting, for attracting
large sections of consumers for stronger effective new determinants which technically
brings on wider scale growth rapidly. The retail brand is also functionally known for
bringing forward targeting based on specific competent synergies, leveraging keen
connective paradigms further effectively. Products are being served as per specific
requirements, higher specific keen productive strength domains which enables to
establish best customer goodwill.
 Positioning: The positioning factor also further holds high significance, as Tesco further
adds profound focus on effective smart positioning fundamental working standards for
retaining consumer loyalty. By positioning strategies , Tesco further aims to bring on
attractive new advanced marketing policies where diverse marketing paradigms are
further implemented to keenly bring on best brand value growth. In order to further
evolve on bringing best positioning aspect, the retail brand has been operatively
expanding new scale functional rise towards best competitive market positioning.
From the above analyzed aspects of STP strategies within marketing, brings on detailed
functional synergies for competent productive efficacy standards at Tesco. The retail brand as
one of the biggest growing company heads on commercial focus for innovative new varied range
among large sections of people. It has been also heading towards extending expertise correlated
with best functional domains, where STP enables company to leverage best long term goals in
revenue and goodwill horizons (Bostoganashvili, 2021).
Assessing 7 Ps
Marketing mix 7Ps can be further analyzed to be widely one of the most competent aspect for
bringing on strategic rise functionally, which further enables to bring on best productive rise
innovatively (42 Digital Marketing Trends You Can’t Ignore in 2021, 2021).Tesco marketing

7ps holds high significance towards development of best functional long term targets, higher
advanced brand positioning which further enhances competitive scale growth. The 7ps of
marketing are as follows:
 Product: Tesco has varied range of products and services within all stores, where the
consumer goods are widely expanded with high standards of commercial growth
parameters. Products varieties are in grocery, stationery and cosmetics, electronics,
financial services and varied other keen potential categories. This further also
informatively expands focus towards strategic growth framework rise, in terms of
productive services where company heads on towards best potential frameworks. Place: Tesco has online and offline both market presence, where consumers products
availability for varied range of target consumers are strategically focused on profoundly.
This further can be analyzed as, Tesco has around 7000 offline stores where brand
positioning is further extended by varied scope parameters which has enabled company to
expand commercially. Place factor of Tesco is dynamically strong, and finalized as per
convenience of customers for wider productive goodwill. Price: Cost leadership price strategy further enables brand to further bring on competitive
price standards for extended consumer target markets, where company has best optimum
price standards within retail products. Price factor being highly competitive forms cost
leadership in retail industry, where Tesco price strategies further enable brand to
productively expand huge informative brand value growth.
 Physical evidence: Tesco physical evidence factors are related to best manufacturing and
production standards in retail products and services, where physical evidence explains
consumer goods are served as per convenience. This further also explains that
infrastructure and modernized best innovative technical standards are being implemented,
to bring on productive commercial growth rise innovatively. Physical evidence further
also leverages scope for consistent new standards of functional rise, as per best
competitive targets which strengthens corporate strength diversity (Effective Marketing
Strategies in 2021 Have These 5 Elements, 2021). Promotions: Tesco marketing and promotion strategy are focused towards digital
promotions, and usage of multi social media channels for huge scale expansion rapidly as
per promotions targets. Within promotions, digital networks and social media marketing

are used for commercial growth functionally which determines best promotion synergies
actively. The promotions further enable customer satisfaction, higher brand goodwill and
stronger functional growth creatively which extends stronger competitive brand value. Process: Tesco brand heads on profound focus on processing of all retail products,
consumer items and services as per best quality aspects for bringing on higher stringent
commercial rise. This further also explains process factor of marketing mix in Tesco, are
diversified towards high range of technology utilization for extended commercial strength
as per consumers satisfaction levels. With best procedures in supply chain management,
process factor further heads on focus towards strengthened brand promotions among
customers.
 People : Tesco people factor can be understood to be one of the crucial factor, where all
technical expertise are further trained among employees and management for bringing on
best quality growth. People working in departments of Tesco are widely diversified in
best expertise for serving consumers with best services, higher scale brand advancement
goals which evolves towards brand development. With best technicians and employees,
company people factor in marketing mix is profound for gaining higher customer
goodwill.
Marketing mix of Tesco is widely innovative and commercially diversified for best
competent scope, new strategic creative implications for strengthened scope which evolves on
wider rise. The marketing aspects of company heads on profound rise towards determinants
connected to rise on best scale development, where brand heads on stringent commercial growth.
Implementation, control and evaluation
Tesco as one of the fastest growing retail company, further heads on strong focus on
implementation, control and evaluation aspects for keeping benchmarks functionally oriented
towards best quality determinants. Implementation and control of various strategies heads on
strong focus for bringing on functional growth rise rapidly, which adds to brand value rise
connectively. The retail company uses best technical expertise, for keeping overall productive
strength worked on for long tern goodwill rise and strengthened revenue standards effectively.
 Performance management: Tesco uses performance management strategies within
departments, for retaining best functional long term professional goals for consistency

within targets and also to evolve on best competent scenarios. The brand has been also
heading on towards evaluating scope for new investments, training among employees
towards wider quality growth which enhances brand value. Performance management is
also used to keep creativity and fast decisions making potentialities among leaders at
check, for stringent growth rise innovatively which adds to new growth goals. 360
Degree feedback, also adds to new rise standards among performance of employees
towards developing consistency within longer run. Performance management
functionally evolves dynamic rise for consistency development, higher synergy scope
towards effective connective targets commercially (Bhusan and Sar, 2020).
 Ongoing analysis: Tesco by operatively heading on strong determinants for ongoing
analysis, further strengthens corporate scale rise towards keeping productive check on
new marketing investments done for attaining long term targets. Ongoing analysis,
further adds to implementation and control parameters which enhances stronger viable
positioning within revenue goals. Ongoing analysis adds to profound scale expansion,
towards consistent new scale rise among brand connective value standards within
competitive retail industry domains. The leaders and top management keep integral focus
to check inputs and outputs at check within retail services, for gaining stronger
performance rise functionally. The retail brand has been also successfully expanding
towards establishing KPI, which are key performance indicators within attaining longer
run efficacy benchmarks. KPI such as expansion on new target consumers, higher
goodwill and revenue rise informatively adds to technical productive development within
industry paradigms.
 Corrective actions: Tesco as fast growing retail company has been specifically growing
towards informative expansion by being focused on wide corrective actions, where new
competent scope further enables to expand innovatively. The corrective actions, are
worked on with best strategic rise towards overall consistent connectivity paradigms
which enhances brand strength development. This further can be also analyzed to be
actively essential where investments are further consistently build towards training
employees, wider range of keen technical strength within business competitively.
From the above analyzed aspects of evaluation, control and implementation it can be in
detail evaluated that Tesco as fastest evolving retail company has profound operational focus

for bringing best strategic rise. The brand has been also scaling up competencies to keep up
best benchmarks, higher functional growth for technical productive rise which further adds to
brand value growth (Bonnet and Westerman, 2021)
CONCLUSION
From the above analyzed aspects within report it can be concluded that Tesco strategic
marketing planning further adds to profound rise, where scenarios within competitive business
world are commercially focused on. The study has concluded detailed impact of Brexit, within
external business world where pestle analysis further has been explained towards gaining best
scope. Report further concluded environmental analysis, where Tesco aims to further expand
best corporate marketing objectives to expand best revenue and goodwill targets. Study has also
concluded Tesco heads on strong focus on digital marketing platforms, towards functional
informative best marketing strategies which further competently bring on productive rise.
Marketing strategies rise further play strong role, where STP strategies are implemented towards
attaining long term competent parameters, within business run. The study also further concluded
marketing 7ps and evaluation, control strategies here Tesco uses performance management,
ongoing evaluation and corrective analysis which has enabled brand value to rise commercially.
Research further also concluded in detail, Tesco operatively heads on focus for best scale
yearning synergies within investments for marketing towards dynamic competent scope in
profitability.

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