Principles of Marketing: Analysis of Tesco's Challenges

This report provides a comprehensive analysis of Tesco's marketing strategies, focusing on the application of marketing principles to the company's operations. It begins with an introduction to marketing and its core principles, followed by a SWOT analysis of Tesco, identifying its strengths, weaknesses, opportunities, and threats. The report then delves into the key service marketing challenges Tesco faces, particularly over the next three years, including limited global presence, competition, and economic factors. These challenges are analyzed through the lens of service marketing principles, with recommendations offered to overcome them, considering the company's strengths and opportunities. The report also examines the threats posed by competitors, government regulations, and economic downturns. The recommendations include improving the quality of products and services, implementing effective pricing strategies, adopting digital marketing technologies, and expanding business operations online to enhance Tesco's competitiveness and customer base. The report concludes by emphasizing the importance of understanding marketing principles and applying them to real-world business challenges for long-term success.

Principles
Of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of the strengths, weaknesses, opportunities and threat facing the organisation......3
Identification of the organisation's key service marketing challenges for the next three years.. 4
Threats for the next 3 year's of service marketing challenges are follow as:.........................5
Analyses the threats through the theoretical principles of services marketing and provide
recommendations to overcome challenges within the constraints of strengths and
opportunities...........................................................................................................................5
CONCLUSION:...............................................................................................................................8
REFERENCES: ..............................................................................................................................9
Books and Journals:................................................................................................................9

INTRODUCTION
Marketing is the process of creating a goods and services designed to plan, price, promote
and distribute the want satisfying goods to the new and potential customers along with the aim of
profit margins in the company (Hajjat, 2021). The four basic principles of marketing are product,
price, place and promotion etc. are work together and other principles are people, process and
physical evidence etc. also known as marketing mix. The selected company is Tesco which
provides the retail products such as grocery store in supermarket, hypermarket and convenience
shop etc. Also it provides the financial services, telecom services, internet services and many
more.
This respective project report will cover under the principles of marketing consideration
to the company with the idea to help improvement in the organisation.
MAIN BODY
Analysis of the strengths, weaknesses, opportunities and threat facing the organisation.
It is a framework for identifying addition to analysing an organisation internal and
external factors. Internal factors consist the organization strength as well as weaknesses. Along
with that external factors including the organization opportunities and threats (Hockenberry,
2019). It is a method for assessing the competition, performance, risk and potential of an
organisation as well as part of the business. It enable them to increase the awareness of macro
external factors to make a effective business strategy and decision.
STRENGTH WEAKNESS
 Tesco is the largest grocery store and
supermarket in the Britain, U.K. It has
also famous in Ireland as well. With
the respective company, it provides a
different business that offers the
products and services in anything.
 It has more than 7000 stores spread in
14 countries across Europe and Asia
where it has a strong holding market.
 Tesco company has failure of all retail
stores, because company could not
export the products.
 Tesco has damaged the brand
reputation of the company. It has also
limited global presence in developing
country compared to the few
competitors. It consider the high level
of debts for company.

It is exclusively access to the high
grade of natural resources.
OPPORTUNITIES THREATS
 Tesco has been joining up with other
brands, for the growth of business. The
main purpose is to create the business
activities to come up with better
products and services to the customers.
It leads to increase the demand and
sales of Tesco.
 The government of company reduces
the tax for companies which contribute
in the development of country. It is the
biggest opportunity for Tesco to use
their fund for buying new technology.
 Economic factors like government rules
and regulations, business policies are
seriously threat to the growth addition
to performance of the Tesco company.
 Some of the supermarket like Walmart,
Carrefour and Aldi are the main
competitors of the Tesco company.
There effective price and business
strategy creates problem for Tesco to
increase their customer base (Rahman,
2022).
Identification of the organisation's key service marketing challenges for the next three years.
For the next three year's,
Tesco company has the weakness of limited global presence in many developing
countries like many other competitors. As know, Company cannot the export the more products
because it can leads to the failure of business in future (Kashyap, 2019). Thus it is require to
make a overcome challenges of service marketing. It can be weakness of services in future such
as billboards, tv ads and promotion channels. It has a loyal card of Tesco club card can causes a
severe problems in the future. Club card is a loyalty program which can be expired in the future.
It brings a trouble to potential customers in future and create confusion among them to buy
products . It can be a high debt for the company in future. Therefore, Tesco company can be a
huge financial loss in the future, because it has been damage brand in the market. Some of the
business operation can lead to a doubtful because diversification of product and services cannot

available in the future. Tesco provide a low cost strategy which offers the product and service at
a low price to the customers. Poor quality and traditional business approach also proved as a
weakness for Tesco in future which impacted negatively the productivity and profitability of
company.
Threats for the next 3 year's of service marketing challenges are follow as:
From the next three year's, Tesco company can threats in external environment condition
such as direct and indirect tax, credit cards, changing the rules and regulations of government are
the major threat to the growth and performance of the Tesco Company (Palmatier and Crecelius,
2019). It leads to high level of competition in the future. So, the Tesco company will difficult to
face the challenge of service marketing with many competitor. Due to the supply chain problems
of Tesco, the production & profitability of the Tesco business may lead to shortage in the future.
It can be a major threat in the external condition. It has the economy recess in future because it
can be a issue of drop purchasing power in the future of business and also increase the
unemployment in future. It can result of financial uncertain in the future. It can leads to a decline
of the market share of the Tesco company while increase the competitor such as walmart,
carrefour and aldi in future. Changes in the government rules may lead to the biggest threats to
Tesco in future. It also include the rising the direct and indirect taxes in future. It can be the
result of lawsuits between people and organization in the future.
Analyses the threats through the theoretical principles of services marketing and provide
recommendations to overcome challenges within the constraints of strengths and
opportunities.
The product and services of the Tesco are limited as well as it provide the limited
number of intangible services of marketing such as explicit service & implicit service. Tesco
company provide the low quality services with high prices to cover their cost of advertisement,
rent of any premises and insurance etc which leads to decline in their customer base (Purohit,
Paul and Mishra, 2021). The pricing policy of competitors, rise in the price of raw material,
labour and technology can be the threat for Tesco in future. It cannot promote the quality of
services brand in advertisement such as contests, social media ads, livestreams etc. Poor
customer services and low skilled staff is the threat for company which hinder their growth. staff

members cannot utilize the process mapping clearly in directions of delivering the service.
Traditional marketing and business activities can be prove as a threat for company as many big
competitors use digital marketing to promote their product and services to target customers.
They operate their business offline which makes difficulties for them to survive in digital world.
In recent times almost all companies has their online stores which attract customers and increase
their sales (Swanson and Davis, 2020). The biggest challenges for company is to adopt recent
trends and technology in their working under the guidance of government to retain customers for
long run.
Recommendations of overcome challenges with the limit of strength and opportunities are
mentioned below:
Improvement in quality of product and services- Management of Tesco can improve
the quality of their product and services by using their resources effectively as they can also add
variety in their current product line to attract large number of customers. As the company operate
large scale and has large number of employees (Tuten, 2019). By motivating them to increase
their skills, quality and performance to increase the customer experience as well as they also hire
professionals which has proper knowledge about new technology they can improve the quality
of their product and service.
Make effective pricing strategy – In Tesco, there is large number of resources available
such as employees, funds, raw material and It has good connection with many suppliers . So they
can use the benefit of it by purchasing raw material at low cost and provide training to
employees to use raw material in optimally in production process which reduces their cost
(Vatandost, Namamian and Ghobadilemoki, 2021). As the result of this they can also reduce the
price of their product and services to attract large number of customers and increase the revenue
or sales.
Adopt digital marketing technologies- Marketers of Tesco can use the opportunity
advance digital technology in their marketing function to promote their product and services
across the world which help them to increase brand value and customer base. Tesco promote the
quality of services brand in advertisement such as contests, social media ads, livestreams etc. It

leads to increase the purchasing power of the customers and helps the company to drive the
attention of public towards them.
Expand business operations online- To make more convenient and compete in digital
world, Tesco can expand their business operations online by hiring specialist they can develop
their website and grab the opportunity to increase their global presence in order to increase their
customer base and market share.

CONCLUSION:
From the above report, it is concluded that the principles of marketing is the essential task
for the study as well as learning the effectively application used in the real world. It is know that
every time, organisation initiates to enhance something new and innovation for the customers so
that they can have a require to depth theoretical and practical knowledge of project in the
business. It is essential for management of company to have proper knowledge about the
weaknesses and threats. Further, they can use their strengths and opportunities to overcome from
the challenges and survive in competitive market for long run.

REFERENCES:
Books and Journals:
Hajjat, F.M., 2021. Using marketing for good: An experiential project on cause-related
marketing in a principles course. Journal of Education for Business. 96(7). pp.461-467.
Hockenberry, T., 2019. Marketing isn't just for products and services. The Journal for Quality
and Participation. 41(4). pp.17-19.
Kashyap, S., 2019. Social marketing: A conceptual framework. International Journal of
Research and Analytical Reviews. 6(1). pp.952-956.
Palmatier, R.W. and Crecelius, A.T., 2019. The “first principles” of marketing strategy. Ams
Review. 9(1). pp.5-26.
Purohit, S., Paul, J. and Mishra, R., 2021. Rethinking the bottom of the pyramid: Towards a new
marketing mix. Journal of Retailing and Consumer Services, 58, p.102275.
Swanson, S.R. and Davis, J.C., 2020. GEN Z's Conception of Marketing. Journal for
Advancement of Marketing Education.28(1).
Tuten, T.L., 2019. Principles of Marketing for a Digital Age. SAGE.
Vatandost, T., Namamian, F. and Ghobadilemoki, T., 2021. Principles of marketing ethics and
Internet banking service strategy based on perceived value of customers. Political
Sociology of Iran. 3(4). pp.1716-1732.
(Hajjat, 2021)(Hockenberry, 2019)(Kashyap, 2019)(Palmatier and Crecelius, 2019)(Purohit,
Paul and Mishra, 2021)(Swanson and Davis, 2020)(Tuten, 2019)(Vatandost, Namamian
and Ghobadilemoki, 2021)
Online
Rahman., M, 2022. SWOT analysis of Tesco. [Online]. Available through:
<https://howandwhat.net/swot-analysis-tesco-tesco-swot-analysis/>