Strategic Marketing Plan Report: A Deep Dive into Tesco's Strategy

This report presents a strategic marketing plan for Tesco, a multinational grocery and merchandise retailer. It begins with an introduction to strategic management and provides an overview of Tesco's operations. The report includes a thorough market analysis, examining market size, competitor analysis using Porter's Five Forces, and micro and macro economic factors using SWOT and PESTLE analyses. Customer and stakeholder analyses are also conducted. The report then outlines strategic marketing objectives and details a campaign strategy, including the rationale, market opportunity, target audience, and campaign messaging. Strategy implementation is discussed, covering the marketing mix, a GANTT model for scheduling, budget considerations, and monitoring and controlling mechanisms. The report concludes with recommendations and a conclusion, providing a comprehensive assessment of Tesco's marketing strategy and its implementation.

Strategic Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Market analysis...........................................................................................................................3
a) Market size........................................................................................................................3
b) Competitors analysis..........................................................................................................4
c) Micro and macro economic factors affecting the organisation........................................4
d) Customer analysis.............................................................................................................6
e) Stakeholder analysis..........................................................................................................6
Strategic marketing objectives:........................................................................................................7
Campaign strategy:..........................................................................................................................7
f) The reason for the campaign and strategic goal of the campaign:......................................7
g) Market opportunity............................................................................................................7
h) Target audience.................................................................................................................7
i) General campaign messaging.............................................................................................7
2) Strategy implementation.............................................................................................................8
Marketing mix:.......................................................................................................................8
GANTT Model:.............................................................................................................................10
a) Channels to be used......................................................................................................10
b) When/timing.................................................................................................................11
Budget............................................................................................................................................11
Monitoring and controlling............................................................................................................11
Recommendation:..........................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................13

INTRODUCTION
Strategic management is considered as the management of all the resources for achieving
the goals and objective of the organisation which includes setting up the objectives, analysing all
the internal and external environments, competitive advantage, and many more. Tesco is
considered as multinational groceries and merchandise retailer which was established by Jack
Cohen in 1919. This company is serving the customers across the globe which has it’s
headquarter in UK. In this report, it covers all the current and future internal and external
environments of the organisation, strategic marketing decision making with its plan and the
recommendation for monitoring the implemented marketing strategy.
1. Market analysis
a) Market size
STP marketing is used for segmenting the market in order to target their customers for
delivering their products and services to their customers. In context to the selected organisation,
STP is mentioned below:
Segmentation: Segmentation is the breaking down of audience on the basis of
demographics, physiographic, lifestyle and their believes and values (Anbarasi and Kumar,
2019). Tesco is able to segment their audiences in which they can promote their business as they
are working in different countries, on the basis of density that they are working in both ruler and
urban areas, their production services are able to cater all age categories.
Targeting: Target is refers to as the evaluation of all the potential attractiveness after
different segments such as the selected organisation can target their market on the basis of
money, providing different benefits, market size and many more
Positioning: In context to the selected organisation, the positioning of a particular product
or service with the help of marketing mix for attracting the customer. Tesco is using various
types of positioning strategies for attracting the target customer segment such as functional
positioning, symbolic positioning, price positioning and many more. Tesco is able to cater their
customer with the help of more than 7000 shops across the globe. Recently, The revenue was
£64.760 billion with the total income of £0.973 billion.

b) Competitors analysis
Porter’s five forces analysis is the first two as the analysis of all the competitive advantage. In
context to Tesco, porter's five forces analysis is mentioned below:
Threat of substitute products and services: the threat of substitute product and services
of the selected organisation is low as in the food retail market, there are small chains of
convenience stores which is not considered as a threat to Tesco as they are providing products
are lower prices (Ashutosh, Sharma and Beg, 2020).
Threat off entry of new competitors: for the selected organisation, the threat of entry of
new competitors in the food industry is low as they will be requiring large amount of capital
investment to be in the competitive market and also for establishing the brand name.
Competitive rivalry: The competitive rivalry for Tesco’s grocery is high as there are
various competitors in the market in which they are competing with each other price and
products.
Bargaining power of buyers: in context to the selected organisation, the bargaining
power of buyer is high as they're having number of choices to select the product and services.
The number of similar organisations is more in which the customer has an option to switch two
other company in terms of cost or brand.
Bargaining power of suppliers: the bargaining power of supplier is low as the suppliers
are inclined towards the major and established grocery retailers in which they are losing their
business contracts too large supermarkets.
c) Micro and macro economic factors affecting the organisation
SWOT analysis
SWOT analysis is considered as a framework which is used for the evaluation of its
position in the competitive market and also used for developing strategic plan. In context to
Tesco, SWOT analysis is mentioned below:
Strength: strength is considered as all those elements which make the organisation stand
out of the crowd (Boisvert and Khan, 202). The strength of Tesco include start it is the biggest
grocery retailer in the UK call mom they have also launched their number of division of stores
such as Tesco Metro, Tesco extras, Tesco supermarkets and many more

Weaknesses: in Contexts to the selected organisation weaknesses are considered at those
elements which stop company from performing at a certain level such as the have faced various
accounting scandals in 2017 due to the false accounting declaration and misinterpretation of
profits.
Opportunities: In context to the selected organisation, Tesco’s has various opportunities
that good give them a competitive advantage such as online shopping which helps them in
growing and also providing home delivery services (Cabrilo and Dahms, 2018).
Threats: Tesco has various factors in which it can harm them such as the Christmas ad
controversy in which the organisation has faced many backlash when they launched their
Christmas and in 2017. The people boycotted the store as they think that Tesco is acting
disrespectful against the Christmas faith.
PESTLE analysis
PESTLE analysis is a tool which is used for analysing and monitoring all the macro
environmental factors which impact the organisation. In context to the selected organisation,
pestle analysis is mentioned below:
Political factors: In context to Tesco, they are running their stores in various countries
which can affect the operations after school which includes factors such as political instability,
unemployment rate, tax rates and many more. The local council of UK were proposed Tesco law
and the government of UK decline this proposal as for avoiding the price hike. Such initiatives
can impact Tesco negatively.
Economic factors: In Contexts to the selected organisation, it includes many factors that
can affect them such as cost, price, serious and many more. They should be aware of all the
taxation policies so that they can gain benefits in order to run the organisation.
Social factors: Tesco is providing goods and services which is according to the police
and attitudes of their customers. They are shifting more towards organic products in order to
satisfy their customers as they believe that it will benefit the society (Charter, 2017).
Technological factors: with the emerging technologies, Tesco is able to keep up to date
with the changing technologies. They also have their own online website for the customers to

purchase and also provide services for delivering of all the goods at the desired places of the
customers.
Legal factors: In order to continue with smooth running of the selected organization,
they need to follow all the local and international market law Ask they are facing many legal
allegations full.
Environmental factors: the selected organisation has taken many initiatives for improving
the environment and also creating a sustainable society (Chernev, 2020). They have launched
their phase two of remove, reduce, reduce and recycle plan as well as they also has taken
initiative for reducing the plastic waste.
d) Customer analysis
In context to the selected organisation, they are primary focus on their customers and it can
be done by applying very strategies such as providing loyalty card schemes so that they can
gather data about their customers with their needs and demands. Along with this, the customer
can also save money which is accumulated points in the card. This card can be used at any
partners of Tesco. The aim and objective of Tesco is to satisfy their customers with providing the
production services they demand. The strategy helps in providing a positive outcome to the
organisation and also increases the customer relationship with them.
e) Stakeholder analysis
Stakeholders are considered ask the individuals or groups who have a positive or negative impact
on the organisation. In context to Tesco, there are two types of stakeholders suggest internal
stakeholders which are considered as a main stakeholder of Tesco which includes employees,
boards, managers an executive committee and shareholders (Hudders De Jans and De Veirman,
2020). These people are important for the organisation as well as their powerful whereas external
stakeholders of Tesco includes the customers, competitors, local communities. The suppliers and
producers of Tesco provide all the products and also help in reducing the food waste. All the
stakeholders of Tesco are important as that helps then taking the major decision about the
organisation as well as making different strategies for current as well as for the future aspects In
running on the organisation.

Strategic marketing objectives:
 To determine and increase the customer base of the organisation.
 To create awareness about the use sustainability for improving the environment.
Campaign strategy:
f) The reason for the campaign and strategic goal of the campaign:
Tesco is a multinational grocery and retailer store which is operating in many countries as they
have a strong customer base. in order to achieve a strong customer base, they can use many
campaign strategies for increasing their profitability. Along with this , campaign will also help
him creating awareness about the Use of sustainable products for improving the environment as
well as encouraging the customers to buy from them.
g) Market opportunity
In context to Tesco, this campaign will helps in achieving them attractiveness of the
market as they are operating in grocery and retail industry. This will help attracting more
number of customers to buy their products and Services and it can be done from identifying the
profitable market and providing various offers to their potential customers (Joshi, 2018). The
goal of the organisation is to increase their profitability as well as create awareness about the
using of sustainable products and it can be done by targeting the different customers and testing
the market opportunities and it can be done by run a test launch in which they can launch their
production services for testing purpose and evaluate the result.
h) Target audience
The objective of the campaign is too increase the customer base as well as creating
awareness about the sustainability. Tesco make sure that they are inclined more towards the use
of sustainable products as it attracts the customers and also encourages them to buy as well as
operating in various countries, they will target the customers in all regions of the country as well
as across the globe. This will help in achieving the objectives of the campaign.
i) General campaign messaging
The objective of the selected organisation is too increase their customer base and creating
awareness about the sustainability (Kazem, Al-Attar and Al-Yasiri, 2020). The message of the

campaign is to make sure that people get to know about the different types of benefits using
sustainable products. The company has already taken initiative towards recycling of but different
materials as well as reducing plastic wastes. Along with this, it will create a huge impact on the
customers which help them in encouraging the use of sustainable products and protecting the
environment for the future aspects. and will leads the customer to buy more from the
organisation and also takes initiative towards the sustainability.
2) Strategy implementation
Marketing mix:
Marketing mix is considered as that set of tools which helps the organisation in achieving
the marketing objectives in the target market. In context to Tesco, marketing mix is mentioned
below:
Product: In context to Tesco, they are selling variety of products such as clothing,
cosmetics, financial services and many more. In order to achieve the objective of the campaign,
Tesco is providing a wide number of products to their customers in order to satisfy their needs
and demands (Li, Cheung and Tse, 2021).
Price: in context to the selected organisation, the organisation chooses cost leadership’s
pricing strategy in which they are maintaining a low price for all the production services without
any compromise with their quality. This leads in getting more number of customers as well as
maintaining its loyalty with providing high quality products.
Place: Tesco is solving customers across the globe with the help of more than 7000
stores. These stores are of different types such as Tesco Extra, Tesco compact, Tesco superstores
and many more which helps the customer in getting reach out to the stores. they also make sure
that products are available in large number of quantities so that the customer can easily purchase.
This helps in maintaining the customer base.
Promotion: incontext to Tesco, they are using different types of emotional strategies such
as promotion with the help of television schema newspapers and many more. They are also using
various loyalty cards and schemes as a promotional method phone creating customer engagement
(Obukh, 2019).

Process: process is considered as that activities which are done in an organisation in order
to Satisfying the customers by providing products and services. The organisation provides self
service machine to make payments.
People: In context to the selected organisation , people of the organisation help the
customer in getting the right product for them and also by suggesting the same (Payne and Frow,
2017). The organisation invest use money in providing training and development for the
employees so that they can interact with the customers properly which assists in satisfying the
customer as well as maintaining the loyalty. They also and garage customers in providing the
information which the customer asks.
Physical evidence: the physical evidence is both tangible and intangible Elements such as
their products and services Of the selected organisation. The customer can easily identify the use
of sustainable products by using the recyclable wrapping papers for the products. The strategy
will attract the customers and also encourages them to buy from the organisation which leads in
making the customer base.
Communication mix
Communication mix is considered as giving information about the products and services
to the customers. In context to Tesco, they are using videos communication makes tools such as
push and pull strategy. Push strategy used by the organisation for promoting their products to
wholesalers, the wholesaler will promote to retailers and the retailer will promote to the
customers whereas pull strategy is a strategy which aims at the customers directly with the help
of advertisements (Prajogo, Mena and Chowdhury, 2021). Tesco Is promoting with the help of
social media, newspapers common televisions and many more. This creates awareness in the
targeted market as well as helps in positioning of all the products which assistant creating
customer trust.
RACE model:
RACE model is considered as online marketing activities which are used by the
organisation for engaging with their customers. This model includes the strategy which includes
reach, act, convert and engage. In this elected organisation, reach includes creating awareness
about the products and services on different social medias as well as on offline media whereas
actors it’s taking steps towards reaching to the people (Valos and et. al., 2017). Conversion of

sale takes place on various platforms suggest the website of a school as well as on their stores
and engagement is done by developing a the strong relationship with the customers with the help
of interaction through emails, social medias for maintaining their customer loyalty (Samaddar
and Menon, 2021).
GANTT Model:
GANTT model is the planning and scheduling of the projects which helps in determining all
the resources needs and planning to achieve the objectives.
a) Channels to be used
the selected organisation can run their campaigns with the help of different channels for
promotion such as advertisement through televisions, newspapers social media and many more.
nowadays social media Is playing a vital role in an organisation for promoting their production

services. With help of social media, Organisation can easily interact with their customers and
also gain feedback about their performance in the market.
b) When/timing
In context to the selected organisation, the objective of the campaign is to create customer base
as well as creating awareness about use of sustainable products and it could be done in six
months with the help of different promotional strategies, marketing strategies such as social
media as social media is the powerful tool in promoting the products and services of the
organisation (Sharaei, Colabi and Khodadad Hosseini, 2020).
Budget
Tesco is providing the services across the globe in which they are able to generate 64.76 billion
British pounds. They are investing around 81.15 million British pounds for advertisement in UK.
For this campaign, the budget can be between 4 to 5,000,000 British pounds in which the
promotion strategies about use of sustainable products as well as using sustainable elements in
manufacturing of the products are covered.
Monitoring and controlling
In context to Tesco, they can evaluate the results of the campaign by analysing the performance
of the company as well as the number of customers engagement to the organisation. In order to
monitor the performance of the organisation they can evaluate the number of products and
services customer purchases from the stores as well as from their websites
Recommendation:
From the above analysis, it can be recommend that, for achieving the objective of the
campaign, organazation can yours social media more effectively for engaging their customers
With the help of different types of contest, surveys, replying to the social media stories. This will
help in creating a strong customer engagement as well as their trust.
CONCLUSION
From the above discussion, it can be concluded that, strategic management helps in
identifying all the internal as well as external factors which affect the organisation. In this report,

it includes the market analysis of the organisation. Along with this, a strategic marketing
objective for the campaign is also created which includes all the is strategies for the same.
Moreover, strategy implementation, race model for digital campaign planning as well as the
GANTT is also mentioned. It also includes the budget, key performance indicators as well as
recommendation how the organisation can continue to engage with their customers on digital
environment.

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