Marketing Analysis: Tesco's Vegan Product Launch Strategy Report

This report provides a comprehensive analysis of Tesco's vegan product launch, examining the market dynamics, consumer behavior, and strategic marketing approaches. The introduction outlines the rationale behind Tesco's venture into the vegan market, driven by consumer demand and the growing popularity of plant-based diets. The report delves into the description of the new product range, detailing the specific vegan food items offered and the company's objectives. A thorough market analysis explores the trends, size, and growth of the vegan food market, highlighting key competitors and consumer attitudes. The core of the report focuses on the STP (Segmentation, Targeting, and Positioning) strategy adopted by Tesco, detailing how the company segments the market, identifies its target audience, and positions its products to gain a competitive advantage. Finally, the report evaluates the marketing mix elements (product, price, place, promotion) to assess the effectiveness of the company's marketing efforts. The report concludes with a summary of findings and key takeaways regarding Tesco's strategic approach to the vegan market.

Principles of
Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
Description on the new product.......................................................................................................3
Analysis of the market for this product............................................................................................5
Strategy for the segmentation, targeting and positioning of the product.........................................6
Marketing Mix for this product........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Marketing refers to the process adopted by every and every business entity in the present
competitive marketplace where they can promote their products and services at the market. This
will create awareness about the products offered by the company among large number of
individuals by using advertising, sample distribution, online promotion and many more. In this
report, Tesco is chosen as the base organization which is introducing its new segment at the
marketplace. Vegan product range is going to be launched by the business entity where they
offer vegetarian food products to their customers. After examining the market and requirements
of customers, higher authority of Tesco decides to introduce a new product section which is
Vegan range includes vegetarian food items. In this report, various sections are going to be
covered related to the new product development. A detail description about new product which is
introduced by Tesco are going to be discussed in this report. In addition to this, examination of
the market for new product along with discussion about STP approach are included in this
project. At the end, marketing mix about the new product launch are going to be define in this
report.
Description on the new product
In the year 2019, with the help of mental research based Organisation located in UK Tesco
made a detailed research of the target market and they came to a conclusion that there is
requirement of launching a new range of plant based family favourites so that they are able to
move according to the biggest food and that is prevailing in UK.
There are certain points that have made Tesco to launch this new product of Vegan meals:
1) Tesco hundreds of new beginning means in order to boost their present level of profits.
2) Tesco realise that there is success of vegan range of wicket kitchen and for this they are
willing to launch a new one
3) Just retail brand is willing to create a dedicated plant waste zone and vegetarian zone in their
present physical stores.
This new plant range will be known as the plant Chef that will consist of different plant based
alternative for the traditional British meals like Cottage by and Bettered fish as well as for
different snacks (Tesco launches affordable new range of plant-based family favourites to cater
for UK’s biggest food trend, 2019). The new product range by Tesco consists of Chicken Goujon
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and mushroom pizza that is made from the butternut cauliflower Mac season Soya and cheese.
Tesco has described that the new range of plant waste product will be the" biggest culinary trend
of the decade".
Tesco has been already dealing in vegan food items from the range of The Wicked kitchen that
has been created by the director of plants innovation like Chad and Derek Sarno. There is
involvement of executive chef in this new Vegan product range.
This new product range of Tesco was launched in the year 2020 with covering 30 different types
of product. According to Tesco once the new plant Chef range will be launched there will be a
stock of approximately 300 vegan products in all their physical outlets. This movie will lead to
strong sales in The Wicked kitchen (Tesco launches new own-brand plant-based range, 2019).
Sarno also revealed that earlier the so has about 4 million meals from their wicked kitchen range
in just a period of 33 weeks.
The new label of snacks and meals will be also stopped with the Tesco meat products that not
only cater to the vegetarian and vegan Requirements of their customers but they are also seeking
for all the people who are looking for some healthy alternatives.
Tesco is further planning to create their first dedicated plant based vegetarian zones in their store
and they are making continuous efforts to ensure that their food range is highly sustainable.
The new product range of plant 7 Tesco consist of:
1) Butternut cauli Mac
2) Battered fish free fillets
3) Mushroom pizza topped with punchi garlic, spinach and aromatic herbs.
4) Breaded Goujon from Soya tumbles in bread crumbs.
In the last 2 years 68% of people have to listen to cut down their meat from the diet and
Approximately 15% of our food products have been launched according to this requirement of
People and have been plant-based ( Mintel, 2018). This is also a part of the sustainable measures
that has been
Taken by Tesco because they have made partnership with director who recently said that the
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“Biggest effect that can be made as individual towards the health of people is to eat more plants”
(Tesco launches affordable new range of plant-based family favourites to cater for UK’s biggest
food trend, 2019).
Analysis of the market for this product
A large number of people belonging to UK are acknowledged to be health conscious
owing to the constantly increasing cases of diabetes and obese within the region. This has created
a shift in the preferences and choices of customers from unhealthy to healthy choices. A large
proportion of audience of United Kingdom has not just opted to avoid eating the unhealthy or
junk food but have entirely shifted their food consumption towards vegan items. This is so
because vegan items are totally healthy and cause least harm to human body in relation to health.
This has created an upsurge in the vegan market of United Kingdom. As per the reports of 2019,
there were 600000 vegans within the country. Further, it is forecasted that this market will grow
from £559 million in the year 2016 to £658 million during the year 2021.
The global vegan food market size has been acknowledged to be valued at US$12.69b in
the year 2018. This figure is forecasted to inflate on a CAGR of 9.6% during the period between
the years 2019 and 2025. As per The Vegan Society, during the time period between 2012 and
2017, the meat free demand for food got raised by almost 987%. Further, the vegan items are
regarded to be Googled approximately 3 times more than the vegetarian as well as gluten free
products.
Apart from TESCO, there are many other brands that are currently engaged in provision
of vegan food (plant based) items to customers within the bounds of United Kingdom. In this
regard, it is identified that Wicked Kitchen, Sainsbury’s, ASDA, Marks and Spencer and so on
are some of the other top notch brands that have undertaken measures to incorporate the vegan
product segment into their product portfolio.
The attitudes or behaviour of customers in the vegan market is considered to be quite
positive. This is because people tend to largely recognise the substantial efforts being taken on
the part of company to provide them with food products of their health wise choices. In this
relation, it can be easily said that TESCO will benefit from gaining entry into this market
segment as this is a profitable market segment which is largely being tapped by the public at
large in order to ensure maintenance of their health standards. Further, it has been analysed that
the behaviour of consumers have become such that they now want fast food items also to be
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made with vegan items so that they do not have to compromise with their health at any point of
time to satisfy their once in a while cravings of fast food tastes and choices.
Strategy for the segmentation, targeting and positioning of the product
The STP approach or model is one of the most essential framework used by business
organisations when developing marketing communications plans. It assists management team in
order to prioritise propositions after than formulate as well as deliver personalised messages for
engaging in various audiences. In context of the new product launch done by Tesco which is
Vegan product range, marketing team needs to conduct STP so that they can gain favourable
results related with this. Detail analysis about segmentation, targeting and positioning are going
to be discussed below:
Segmentation: The first step is all about segmenting or categorizing the market as every brand
and every product is not each and every person. This is the main reason behind adopting market
segmentation as it assist in dividing customers into small groups who have similar needs,
requirements and characteristics. It has also been said that there are different elements on the
basis of which whole market is going to be segmented by the management team. Below
mentioned are some approaches on the basis of whole market can be segmented.
Demographic – It includes personal characteristics like age, gender, marital status,education and
many more.
Geographic – Segmentationbased on country wise, nation, region, city.
Psychographic – It is the another element which includes segmentation on the basis of
personality, lifestyle, values and many more.
Behavioural – Atlast the basis of segmentation is how individuals use the offerings, benefits of
the product and many more.
In reference to Vegan product launch, marketing team of Tesco segmented the whole market
on the basis of demographics and psychographic. As the main basis of segmentation is about
lifestyle, income level, age group and interest. I
Targeting: Targeting refersto the process comes after the completion of segmentation stage. It is
the element where marketing team of an organization examine the most attractive and influential
segment with the help of segmentation approach. Generally the main focus of targeting
customers is to increase the level of profitability and sales by satisfying the needs and
requirements of customers. In the present context of Tesco, where the new segment or product
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launch by company is Vegan product range. This is the new development where marketing team
provides vegetarian food items to their customers which are made up of plants and herbs. For
this, target customers decided by the managers are those people who are vegetarian and prefer
fresh veg food over chicken or beast. They target thosecustomers towards their new product
range who are highly attracted towards vegetarian food and are usually of the age group between
20-50 years.
Positioning: Positioning isthe last and final stage in context of STP approach where the higher
authorities mainly focuses on positioning product and services at the competitive marketplace in
order to gain competitive edge. It has been said that customer perceptions towards the brand have
huge influence on the positioning of new product at the marketplace. There are commonly three
main sort of positioning which are functional, symbolic and experiential positioning. In the
present context of functionalpositioningthe main focus is to satisfy the needs and requirements of
customers by offering the product. Whereas in relation to symbolicpositioningit is based on the
feature and characteristics of brand whichfulfil theself esteem of customers'. At last, experiential
positioning is fullybased on characteristics which stimulate the emotional connection with users.
In the present context of Tesco, the marketing team of the company position their product at the
marketplace by adopting the combination of all three elements. These factors help in enhancing
the overall profitability and revenue of the business entity at the competitive marketplace.
Marketing Mix for this product
This is a marketing theory which is applied by the organisations across the globe with the sole
motive of devising an effective marketing strategy with the help of which the attention of
customers can be tapped and they can be retained in the long run. TESCO is coming up with its
plant based range, i.e., vegan items to increase its stake in market place as a food retailer. To
successfully create a buzz about the same within people, the management is making use of
marketing mix which is defined in context of the new product range beneath:-
Product
The new plant based range of TESCO includes Butternut Cauli Mac, Breaded Goujons, Battered
Fish-Free Fillets and Mushroom pizza. All of these items are solely made from plants are thus
come under the vegan range of the food retailer. The packaging and branding of these products is
being done by the company in an appealing manner so as to capture the attention of audience in a
rapid course of time.
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Pricing Strategy
The pricing strategy for the vegan items (plant based range of ready to made products) of
TESCO is decided to be valued based pricing. This strategy has been selected in order to
enhance the perceived value of the product range within the customers. This is done with the
intent of gaining the attention of potential customers and satisfying them in an effective manner.
This will provide due assistance to the respective retailer in maximising the financial
performance of the company in terms of revenues as well as profits.
Promotional Strategy including Digital Media
TESCO is making use of digital marketing for the purpose of promotions. In this relation, it is
mainly analysed that social media marketing via a wide variety of platforms like Facebook,
Instagram, Snapchat and so on, is being conducted by the respective retailer to pull the attention
of people towards the newly launched product range.
Channel or Distribution Strategy
The new plant based product range of TESCO is being provided to the customers in market place
by making use of online and offline channels. Offline distribution is being done by the retail
outlets of the firm while the online distribution is being done by the organisational website of
TESCO.
CONCLUSION
After examining the above mentioned elements, it has been concluded that there are marketing
plays very crucial role in the development of brand image of the company at competitive
marketplace and for creating awareness about the products and services among the customers. It
has also been identified that there are various sources with the help of which an organization can
easily promote their products and services which includes online promotion, advertisement,
sample distribution and many more. Furthermore, it becomes essential for a business entity to
identify the target market and customers for their product launch with the help of which they can
easily conduct their functions at marketplace. Apart from this, it has also been analysed that with
the help of STP approach a business entity can easily position their product at the competitive
market which leads towards the growth and development of business entity.
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REFERENCES
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Online
Tesco launches new own-brand plant-based range, 2019[online] Available through:
<https://www.retailgazette.co.uk/blog/2019/09/tesco-plant-based-meals-range-vegan-vegetarian-
launchtraditional/#:~:text=Tesco%20has%20launched%20a%20new,pie%20as%20well%20as
%20snacks.>
Tesco launches affordable new range of plant-based family favourites to cater for UK’s biggest
food trend. 2019. [online] Available through:<https://www.tescoplc.com/news/2019/new-plant-
based-range/>
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