Marketing Strategies of Tesco

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Marketing Essentials

Task-1: The role of marketing and how it interrelates with other functional units of an organisation

P-1 Explain the key roles and responsibilities of the marketing function, using Tesco’s as an example.

Marketing is simply selling strategy product or service to the customers. It is also related with a company’s strategic activity and integrates market understanding to bring products or services to market or even develop a new market for a product, (Berman and Evans, 2013). Furthermore, Marketing is the social process by which an individual and organisations obtain what they need and want through creating and exchanging value with others, (Kotler & Armstrong, 2010). Moreover, it is an organisational function which is set out for creating, communicating, and providing value to the customers in achieving the benefit for the organisation and its shareholders, (Kotler & Keller, 2012).

The nature of marketing is either a science or an art: it can be defined as science because it uses science realism. Alternatively, it uses specific principles and rules for marketing products, or services rather than scientific rules. Therefore, it is not an independent variable as a science or an art rather than it has business functional integrity with other substances, (Mundra, 2010). Furthermore, it includes human behaviour and experience to fulfil daily life things such as need, want, and demand. Therefore, it is understood that marketing is required to meet the demand of the target market in achieving customer satisfaction.

Marketing is a way to present products to target customers in any market. Businesses around the world need to adopt a sustainable marketing strategy to gain competitive advantage over its competitors. Tesco Marketing team has focused to gain competitive advantage by using advertisement, promotional offers, club card, occasional discount, and buy one get one free. It includes with the market research with all aspects of business trend and future planning or opportunities, (Varadarajan, 2010). The goal of Tesco Marketing Strategy is to help clients achieve maximum satisfaction in effectively fulfilling their demands and expectations on product, price, distribution channel and promotional techniques. By using strategic marketing plan, Tesco has gained competitive advantage and becomes one of the world’s largest retailers (Humby et al., 2008).

P2 Explain how roles and responsibilities of marketing relate to the wider organisational context such as sales and warehouse departments so as to maintain the required level of stock.

Marketing mix is known as tactical or operational part of a marketing plan. It is based on 4p’s: Products, Price, Place, and Promotions. Marketing mix is defined as “the set of adjustable tactical marketing tools to produce that strong mix of products, prices, place and
promotion that it wants to target market, (Kotler and Armstrong, 2010)”.

Source: Kotler and Armstrong (2010)

Product: Product is the core element of the business and it is defined as the combination of the goods and services offered by the company with value to the customers, (Kotler and Armstrong, 2010). Product could be tangible and intangible. Marketing department has given total estimate of production and sales ratio as well as sales volume. Tesco sales in the years of 2014-15 was £48.4bn, (Tesco website). Tesco offers a wide range of products including food, clothing, electronics, financial services, etc. It is also offer a grocery delivery service and free music downloads, in addition to more than 40,000 or more products in each section of its retail stores.

Price: Price is one of the most important factor for any business and it represents the monetary value of the product or service which is paid by the customers. It is defined as “the amount paid by the consumer to receive the offering product or service, (Solomon et al, 2009). Tesco has always kept low price when compared to other competitors in the market. That’s why Tesco is regaining 5% extra competitiveness in the marketing, (Tesco website). Tesco tries to keep prices as cheap as possible without reducing the quality of its product or countering the losses. In addition, Tesco uses a club card system to allow customers to collect points that can be converted into cash at the next stage of purchase. It is an excellent price promotion strategy to provide trusted customers additional discounts. This kind of pricing strategy helps to increase sales, without further affecting many profits, reduce prices.

Place: Place is one of the core element of the business and it includes company activities which make the product available to the customers, (Kotler and Armstrong, 2010). It is also included company channel, distribution, and intermediary. Tesco Marketing department gave information about store position by using market analytical research. Tesco has stores in the corner of every area of the England. Tesco has arranged six types of stores in offline business such as Tesco Express, Tesco Extra, Tesco Metro, Tesco Compact, Tesco Home plus, and Tesco Superstore.

Promotion: Promotion is defined as “the knowledge of product undertaken to inform customers and encourage potential customers by the marketers, (Solomon et al, 2009).  Tesco marketing department has an absolute focus on product promotion through sale, advertisement, promotion, public relations, direct marketing, online communication and personal sales. The biggest advantage of Tesco is its low price. It separates from other supermarket chains. Tesco has many interesting offer to their customers throughout the year. It is very easy to find these grocery stores in the way of any roaming customer, such as “half price”, “buy one get one free”. In addition, Tesco Club card uses the services to offer customers extra discounts as mentioned earlier.

Marketing Process:

Marketing process is the way of research is to identify market opportunities, strategic planning, and developing marketing mix. It has been identified for target marketing which is the centre of the marketing process. The process of marketing is given below:

  1. Analysing marketing opportunities
  2. Marketing Strategy
  3. Marketing Mix

Analysis marketing opportunities

The first stage of the marketing process is to meet the customer’s demand for a competitive advantage. Market Opportunity is important in the planning process and it is making a long-term opportunity to improve business performance. It is an essential marketing tool for evaluating the business opportunity to run a marketing information system and allows companies to determine market opportunities about their customers, competitors and environmental changes.

Marketing Strategy

To succeed today’s competitive market, companies have to focus on the customer. They will offer customers more competition than competitors and win. Since the company cannot satisfy all the consumers in a market, they should split the total market to choose target market and develop better strategic competition for the selected parts (market positioning). Market segmentation is a market divider in different needs, characteristics or different behaviours that can separate buyers with separate products or marketing solutions with different needs. And targeting the market is organized a product occupy relative to a distinctive and desired place to compete with consumer consumers’ minds. With a product positioning, a company’s first potential competitive advantage on which to locate the location needs to be identified.

The roles of Marketing:

The roles of marketing can be different and varieties regardless of work. In some cases, the marketing manager’s role, for others that create relationships and prosperity, on the basis of B2B or B2C. The main features of B2C which includes Product innovation, Profit maximisation, Large market orientation, and Brand identification. On the other hand  B2B includes Relationship build up, Maximisation of the value, Focused on niche market, and Personal relation rather brand identity.

  1. Relationship Vs Transactions

B2B is to establish a trade relations and strategy. It is required interpersonal skills and supported by a sales oriented philosophy, because of each action must be contributed to the funnel sales, (Turnball and Valla, 2013).

On the other hand, B2C is more focused on transaction, selling products, and increasing brand recognition. Companies can strive for long-term customer relationships, but for the most part, this relationship is not personal.

2. Value versus efficiency

B2B’s skill is to work. Retailer works with goals through techniques and to give an overview of their products and their industry. The necessary expertise to do this work is to have a general sense of the specific knowledge and possible experience of the industry.

More related about B2C contact brand value offers. The customer has the most comprehensive product range, whether the money will be saved from the buyer or offer the best production and luxury content. The innovation and brand skills required to have an almost intuitive feel to develop brand value.

3. Need Vs want

B2B marketers are involved in a separate market of potential customers who need products and services of their brand. This may be protect or increase the income, but there is a strong business case to look for. The role of B2B marketing expert customer analysis, understanding customer needs, and adapting a solution-based approach strategy and marketing strategy, (Anon, 2004).

Traders make B2C partially needed for their products through brand development. With a single decision maker, the purchasing process of the client itself is not necessarily rational. In fact, B2C purchasing decisions are often based on emotions that feel toward the buyer’s brand. Lifestyle issues and market segmentation are important skills for merchant B2C to understand the use of multi-channel data.

4. Less vs. More

B2B markets for a relatively small numbers of potential customers. Strategies may include direct marketing between employed e-mails, social media or in person, but such online PR can be such indirect method.

B2C marketing has huge potential markets, so the challenge is available in a crowded market. This can be search marketing, including social skills paid for PPC and B2C. These techniques require specific skills, often special.

M-1: Analysis the roles and responsibilities of marketing in the context of the marketing environment. You have to look into the capability of Tesco’s as a global brand to build and maintain good relationship with its customers by analysing the effects of micro and macro environmental forces challenging its effectiveness.

Marketing environment is a core element of business success and it can be classified into two ways such as Macro and Micro. Marketing environment has been discussed here through PESTLE analysis.


It is stand for Political, economic, social, technological, legal, and environmental. The following is described how it is related to the TESCO marketing process.

Source: Crossley (2009


Political influence in business is not new rather than it comes from ages before. For example, government has increased VAT rate 17.5% to 20% in 2011 which has impact on Tesco (BBC, 2011, np) and consequently customers content to spend less money, (Crossley et al, 2009). Therefore, sales revenue has gone down and its effect on profit, (Atrill, 2009).


After economic crisis in the whole world, UK government has gradually recover its financial crisis. The economic growth rate is increased 2.7% in 2015, (BBC, 2016). It is positive sign for the government financial statement. It is important factor that during economic crisis people will decrease its spending and shifting choice on low cost products, (Mankiw, 2012).


The number of old people is using internet for online shopping and also connect social. The tastes of the customers will be taken into consideration by Tesco. For example, online shopping by Tesco is a technique for grocery adoption, (Eastmen and Aire, 2004). Therefore, Tesco has responded positively to this social change and the views of customers of an organization can quickly change in products, customers’ purchase services and competitive advantage, (Kotler and Armstrong, 2010).


Technology uses in supply chain operation for Tesco management. Retailers like Tesco develop Supply Chain Management System to achieve competitive advantage and profitability, (Tan, 2001). Tesco may have a chance for this company to be very careful as well as technological improvements. For example, mobile technology has helped enhance the Tesco distribution service because customers have chosen their favourite wine through their mobile (Tomlinson and Evans, 2005), and the e-grocery supermarket industry introduced a disturbing wave, (Wessel and Christensen, 2012).


There are number of laws that affect Tesco products and services in the UK. For example, the government will not be allocated directly to the subsidized farmers (, 2014). Such measures may affect farmers’ ability to meet subsidized, which is set by agricultural standards Tesco and prices agreed with the companies involved in the supermarket sector (Winnett, 2012).


Global warming and foreseeable focus on the press. For example, arctic ice melts in the average temperature rise and it is expected that in 2040 there is a summer without ice. Such types of environmental sustainability can be of greater importance. Tesco adopts a number of measures to protect the environment. For example, Tesco is committed to reducing the use of energy costs and greenhouse gas (Tesco, 2014).

Micro Environmental forces

  1. Supplier: When they hold power, the supplier can control the company’s success. The supplier has the power when it is the only or largest supplier of its products; the buyer is not necessarily a business entrepreneur; Products suppliers are an essential part of finished products and buyers of the company.
  2. Reseller: If the product is marketed by third party vendors or retailers of such retailers, wholesalers, etc., market success is influenced by these third-party resellers. For example, if a retailer is a reputable name, that reputation can be used in Product Marketing.
  3. Customers: To buy customers (to B2B or B2C, local or international, etc.) and to buy products, the market appeal of your products and services will play an important role.
  4. Competition: Those who have similar products and or services are similar to those of your organization, your competition in the market, and the way they are sold should be taken into consideration. How do they affect you in the price and product divide? How do you get good results in this leverage and how to overcome them?
  5. The general public: If your organization has an obligation to satisfy the public. Any action on your business should be considered in terms of the general public and how it is affected. The public power is to help you achieve your goals; only they can prevent them from achieving.

M-2 Being the assistant marketing manager delivering a training session to your employees, analysis the significance of interrelationships between marketing and the functional units of an organisation, including operations, warehousing, sals and human resources.

Marketing is not a special activity for sell but also bigger. It makes sense to the entire company. It is the action of a full force in the viewpoint of the final result that the point of view is to point the customer. The concern and marketing responsibility should, therefore, enter all areas of business, (Peter, 2010). It focuses on goals and objectives through an action plan and supports this plan with an efficient and effective branding strategy. The main marketing goal is to develop business products or services are to get the attention of beneficiaries or consumers. Companies and various organization adopt different marketing strategies according to their needs. For example, if we see a strong link between marketing and production, it indicates that a production company is always looking for value-added opportunities. It guarantees that, to ensure better production capacity, customers will meet the needs. It is emphasised that short and long-term applications have been developed to form production planning, inventory techniques and materials handling. Basically, production techniques must be aligned to marketing techniques. It will have to develop the sustainable financial capability of the organization. Moreover, the simple decision should not be integrated, coordinated production and marketing strategies and linked to business strategies. The new company, decides that in the decision of marketing and manufacturing strategy, Synergy has more closely linked marketing or success to the decision-making business decision in their empirical study.

Thus, the main difference between product or marketing services does not have much more personal contacts when compared to a service marketing product. Marketing services may require customer to meet face to face, or it may mean phone contact with potential customers. The marketing department will work closely with the Operation division to ensure that:

  1. Research and adequate development are designed to meet the needs of current and future customers
  1. The article can be set to set quality and design specifications by the consumer
  2. The amount of order generated by the marketing can be satisfied in the time required for delivery
  3. Set the deadline that will increase the power of the production division
  4. To test the production as soon as possible to ensure a competitive advantage as well as get the product in the market

The Marketing Department will work closely with the Finance Department to ensure that:

  1. There is no budget to meet adequate research, publicity and distribution
  1. To work within their allocation budget. Like all departments, marketing can show profitable
  2. To cover the marketing costs to be more focused and building market share to pay as soon as possible the investment.

The marketing department should ensure that working closely with Human Resource is the expertise and appropriate staff in the right place:

  1. Determine and expand the concepts of new products
  1. To achieve production goals
  2. Create ambitious sales teams and qualified
  3. Many requests will be made for the recruitment of Human Resources Department and training of the entire organization. It will in other departments who balance its marketing obligation.

From the above discussion, it is very clear that all departments are interrelated with the task of marketing and moreover, marketing is not only sales of product or services but it has great impact on business operation and generating revenue. On the other hand, marketing has need fund to continue its campaign and attract customers. Operation department provides business information and finance department help with fund and HR helps with human capital then it goes to the market in achieving customers’ trend into business.

Value Chain Analysis

It is defined as “the link between key value adding activities and their interface with support of activities, (Lynch, 2003)”.  The main components of the value chain are inbound logistic, operational management, out bound logistics, marketing and sales, and service. As it is used in Tesco example is given below:

Source: Lynch (2003)

From the above figure, it is very clear that value chain has been classified into three stages such as Product related activities which includes inbound logistics, operations, and services; secondly market related activities which includes outbound logistics, and Marketing and sales. And finally Support service which is included procurement, technology management, human resource management, and infrastructure.

To create a complete goods of an organisation then it is important to add value to each activity that passes on the lifecycle of that product. The possible value can be obtained in the product development process by adding value to each level. This, it requires the right synchronization activities of all value management and all related activities, or combination in achieving organisation objectives.


Marketing elements means marketing tools which are used to attract customers in achieving business objectives. The elements are consisted on product, price, place, promotion, people, process, and physical evidence. All these elements are related with all functional unit of an organisation. For example, production department literally produces goods or services and operation department places on it to the Marketing department to make a connection with customers. Interestingly, finance department provides all fund for this operation. All 7P’s interrelated with all function only aching organisation objectives.

Task-2: Compare ways in which organisations (Tesco and Marks & Spencer) use elements of the marketing mix (7P’s) to achieve overall business objectives

P-3 Compare the ways in which different organisations (Tesco’s and M&S) apply the marketing mix to the marketing planning process to achieve business objectives

M-2 Evaluate different tactics applied by organisations (Tesco’s and M&S) to demonstrate how business objective objectives can be achieved

Business Objective:

Tesco: Business objectives of Tesco is specific and given below:

  1. Low cost service and good quality of product
  2. Increase sales and generating profits.
  3. Tesco aims to make cheap shopping for the average family
  4. Tesco grocers introduce a wide range of healthier food and products.
  5. Tesco’s aims to expand its sale of organic manufacture to 1 billion pounds over the next five years, (Tesco website) and now it has 6.5% non-food business in the market share.
  6. Tesco wants to provide number one customer service with outstanding delivery in gaining competitive advantage.
  7. Make more diversification in products or services in gaining customer satisfaction

Marks and Spencer: Business objectives of M&S is given below:

  1. Building on our progress with new blog target
  1. Our product should have Plan A product to the Customer by 2020 while they taking decision to buy a product
  2. Help to the customers as unique and sustainable relationship
  3. Encourage and engaged our employee in Plan A
  4. Create an innovative and development culture within the M&S environment
  5. Help to reduce carbon footprint suppliers and customers
  6. Help to reduce recycling packaging system for safe environment

Comparison between Tesco and Marks and Spencer (M&S) 

In this chapter, it has been focused on a comparative study between M&S and TESCO. Interestingly both organisations have some similarities and dissimilarities. The following is given a comparative analysis on brand of the both organisations on the basis of marketing mix 7P’s.

7Ps Tesco M&S
Product: It is main element of the business. Tesco is a retail industry and has 40000 varieties of items including foods, mobile, and banking. It is literally include all combination of goods and services, (Kotler and Armstrong, 2009). It can be classified into three types such as core product, actual, and augment product.

M&S has varieties of product such as clothing, home items, and food.

Price: It is an amount against product or service with market value Tesco is very conscious about pricing in competitive market. They use Tesco club card to get involve more customers. M&S is little expensive than Tesco in some product. However, more 21 million people visit M&S store every week worldwide.
Place: It is very important to enter into new market and attract customers. Tesco has more store than M&S in the UK market. There are six types of Tesco stores like Tesco Express, Tesco Extra, Tesco metro, etc… M&S has more than 700 stores in the whole UK and it is also have some foreign countries stores like china, and USA.
Promotion: It is considered as product knowledge which offer to the customer. It can be used to brand awareness, supply chain and value, and to deliver product information to the customers.  Tesco is using different marketing strategy for promotion such B2B and B2C. In addition, Tesco is also using TV advertisement, newspaper, and club card, discount in occasion. M&S is using variety types of marketing strategies for promotion such as gift card, occasional discount, buy one get one half price etc…. In addition, M&S is also using local news paper advertisement.
People: It includes customers, consumers, and employees. Tesco has large volume of employees around the world. It has focused on the customers to bring in the stores by using B2C and E2C process marketing. M&S has also large volume of employees around the world. It has also emphasised on new customs to increase profit volume.
Process: It is the way of enhance business sale volume in gain competitive advantage. Tesco is using offline, online, home delivery, and store self-service in business process. M&S has online, offline, and home delivery system in business process. But Tesco has more store in the local area.
Physical Evidence: It is defied as the business location and position that where it is operated. Tesco has more stores than M&S. Although Tesco tires are comparatively smaller than M&S. M&S mostly stores are clothing and most of the stores are bigger than Tesco. More interestingly M&S stores are more delightful than Tesco.

Different between Products or services, and Importance of Brand

Tesco and M&S both are very recognised brand especially in the UK market. Therefore, the following is given why branding impact on Product and service two selected companies such as Tesco and M&S.

  1. Brand making product recognition to the customers and customer’s satisfaction whereas product is an item or service offered to the customers in the market for profit. Therefore, a brand is an uniqueness of the company like logo, symbol or name to the customers. It gives product identification in the market.
  2. Brand is increasing customers trust on the product or service. A product is considered as the fundamental want or demand of the customer whereas brand is more than that. For example, Tesco is good for grocery and M&S is more liable for Clothing.
  3. A product can be substitute but a brand is impossible to do that.
  4. A product is produced by the companies but brand is created by the loyalty of the consumers. Marketing department is working absolutely hard to retention customers to create a brand.
  5. A Product is tangible whereas brand is intangible.
  6. Product gives physical satisfaction to the customers whereas brand is giving mental or psychological pleasure to the consumers.

Marketing Plan Process

Marketing plan is most important to business process and development. It has a systematic way to be followed. It is also considered as a critical stage of reaching customers with right approach. The following is given some stages to reach customer correctly.

  1. Analysis: It is first step and need to be done correctly by the marketing manager or staff. It is directly related with business environment in terms of marketing and business updates of the same whole industry, (Paley, 2010).
  2. Planning: It is considered as the second step. It is relatively analysing market, market trends, and position of the market. It is also involved drafting all the activities and process of the business.
  3. Implementation: It is the third stage which means take into force all planning into action. At this stage marketing managers are dealing or using all equipment to perform in bring attention to the customers.
  4. Control: In this stage, all action must be controlled by the marketing manager. It must be monitor under the proper procedural process. In addition, any decision from the planning need to be followed or overlook and making to use for the better decision, (Richter, 2002).

Following these comparisons, we could see that TESCO and M&S are related it’s Marketing performance during the five-year period that was clearly overtaken. But Tesco is considered to be a risky investment market plan more than investing in M & S.

The reasons for the shift from 4Ps to 7Ps and Significance:

Marketing mix is a essential tools to generate a business with its objectives. It helps to study of the business strategy and trend. It is also help to meet customers expectation and desire for the potential goods and services. Traditionally market mix is explained by using 4Ps such as Product, Price, Place, and Promotion. By advancement of technology, business is going highly competitive and customers have more option in the marketing. Therefore, marketing experts put attention how to research more effectively in gaining competitive advantage and make satisfaction to the customers.

In 1960, E Jerome McCarthy was devised 7Ps model for the new marketing mix which is includes Process, People, and Physical evidence. It is really milestone significance for the marketing department because now it is covered a comprehensive approach to the customers.

  1.  Process is helping between organisation and customers in order to product or service delivered procedures.
  2.  People are also focused on the people which is includes employers, employees, customers, consumers, and society.
  3.  Physical evidence is also more applicable to the tangible goods so that organisation can show physical evidence of the products and utilisation process.

M-3 Evaluate different tactics applied by organisations (Tesco’s and Marks & Spencer) to demonstrate how business objectives can be achieved.

Tesco’s marketing strategy is to get back the confidence of brand players. The company is refocusing on strip “every little help” to strengthen its traditional main competitive advantages in the market. Some components such as printing and media advertising, sales promotion, events and experiences and public relations mixing are some of the factors used to communicate this message to the distribution chain.

The Tesco Marketing Strategy uses a print and media advertising as a tested channel for sending marketing communications to current and potential customers. It is important to note that while Tesco has dropped its advertising budget in 2015 compared to the previous year as part of its massive cost-saving initiative, the effect of print advertising and increased media. This is achieved by applying marketing discrimination.

Marketing plans are an important tool for organizations that are in today’s competitive environment. In this concern Marx and Spencer’s current marketing plan will be an effective example, (Beamish & Ashford, 2005). Not only the British retail store as 13 billion Marks & Spencer’s to enter the Australian market, planning, understanding of a well-designed marketing plan can be beneficial for not only organizations but also contributing significantly to the body of knowledge by adding some schools (Evans, 2014). In addition, it will contribute to a creative concept in the field of players and spencer products involving the analysis of effectively and efficiently researchers and other situations in the recent market.

So, before the Marx and Spencer starts its operation, it should be a strategy and well planned business plan that should highlight the advantages and disadvantages of the company.

Task-3: To develop and evaluate a basic marketing plan for Tesco supermarket

P-4 As the Assistant Marketing Manager, produce and evaluate a marketing plan for Tesco.

Marketing Plan is determined by market analysis and offer products, that is, the extent to which considering the appropriate client, fashion, season, sizing, and relevance. Tesco has decided that the European scale ‘national’ specific products will be exported to Europe in an environmental friendly manner, so that there will be another range for local customers. However, before deciding marketing strategies, a detailed market research is taken to examine the concept of a new range, prices, attitude towards Tesco, new alliances with associate, purchasing habits customers. The following is given a basic marketing Plan structure of Tesco.

Marketing Plan for Tesco Plc
Marekting Plan Year 2017
Objectives Introduce with new Customers
Products Over 40,000 items
Customers Human beings and belongings
Competitors ASDA, Sainsbury, M&S food, Morison’s and Others Retailers
Position Leading in the retail marketing
Pricing Competitive and lower
Sales and support Offline and online
Promotion Advertising with the print and electronic media, discount, offer and club card
Action Plan To increase 10% more sales by December 2017.

Source: Created by the Author, (June, 2017)






Marketing Stages:

The main Marketing plan stages are given below:

  1. Situational analysis
  1. Target market
  2. Marketing Implementation
  3. Marketing strategy
  4. Market control

Importance and Value of Marketing Plan

The importance of detailed marketing plans cannot be over emphasized. Marketing products or services are as important as providing. Without marketing, consumers and customers may not know what you have. If they do not know you, they will not be able to buy from you, and this will not earn you silver. A marketing plan: who gives transparency in your market? It makes it easy for customers and clients to find out if they are created to generate results of marketing messages that help organisation and customers. Marketing can do what your product or service is to help in a targeted market. TESCO has taken Ansoff Marketing Mix for marketing Plan and strategies.

Ansoff Matrix for Tesco

Tesco has enjoyed a successful history for the beginning of the year. Today Tesco PLC UK is a successful retailer. Tesco has a series of practical marketing strategies. According to the Ansoff Matrix strategy, Tesco could expand its market and its products to the United Kingdom market and ultimately the diversification strategy was brought forward in front of other rivals, (Ansoff,1989), and is implementing this strategy, Tesco has achieved its competitive advantage over its competitors. In the UK, one of the leading companies in the grocery market. Now Tesco ensures continuous change in the significant market share of retailers in this international market. The following is given the strategy could be applied by
Tesco on the Ansoff Matrix and that vertical integration was successful.

Source: Ansoff (1989)

Market Penetration

Tesco has three-way strategy for market success such as high quality with low price, quality customer service, and using certain advertising and promotion or other marketing techniques, it will be capable policy (Lynch, 2003). The penetration marketing strategy is very important for the Tesco, because the holders of existing holders are cheaper than a draw, (Lynch, 2003). For example, Tesco global expansion strategy responds to meet customers’ highest demand. It is sensitive to the local expectations of other countries, Thailand.

Market development

Tesco plans to enlarge outside its current business environment, the level of new products, distribution channels, and create a new market with the exclusive purpose of attracting customers with support to come along with other strategies. Tesco, UK, producers, mainly in British citizens because they understand the needs of the UK market. This is the exceptional planning which developed Tesco’s new market for its existing products and services.

Product Development

Tesco has strategy to develop its own product and in aching competitive advantage. It covers product, brand, package, quality, quantity, and standardisation.


Diversification is investing on new product, services, and new market. It includes for example, Tesco Banking, Tesco Mobile etc.

Link between Marketing Plan, Objectives, and strategies

The purpose of marketing strategy is to have an explanation that it need to achieve business marketing efforts. Marketing strategy is finalized by the purpose of your business. The purpose of business and marketing strategy will be hand in hand. Marketing Plan is to work on its implementation. The issue is that most people try to get into the perception of “how” first “what” experience has been experienced. This company may end up losing money and resources at both time. Regarding marketing, it still need to identify what and then to dig the way.

Marketing Objectives: To increase market acceptance

Marketing Strategies: Introduction to new market segments.

Marketing plan: Marking the marketing campaign that unfolds and focuses on this particular segment develops.

Without strategies in place, the purpose of marketing remains an elusive fantasy. Similarly, the goal without strategy is like playing a game without a picture of what it means to win. In its behavior to produce each other a favorable and effective marketing campaign of each other. All marketing departments work together so that the purpose and strategy should be implemented. The management team will be able to translate the goals clear and durable. How supervisors implement these steps is not the interpretation of their subordinates. Finally, the subordinate management team must see the value and strategy of achieving the goals.

M4 Ensure that the plan above is detailed, coherent and evidence-based.

  • Expand on your answer on P4 showing what are involved in marketing plan, looking at communicating and attracting customers by referring to the 4Ps strategy to achieve organisational objectives.

Tesco and M&S both are including in retail industry although they have little differences. As a Marketing manager, you always have to focus on the marketing environment, market research, customer trends and business profitable ratio. There are some recommendations which is effective for Tesco and M&S is given below:

  1. Tesco build their brand image with low price and good service compare to Mark and Spencer. So Mark and Spencer must need to create their product with low price and maintains the quality and also need to improve their customer services.
  1. Tesco gets the brand loyalty from customer. Tesco build a club card which made extra benefit for customer. Whereas Mark and Spencer do not have any kind of loyalty card. So they should create loyalty card for customer that give extra benefits.
  2. Mark and Spencer should improve their online shopping systems that helpful for them to create a brand image and also a brand poison in supermarkets.
  3. Mark and Spencer should improve their new product development process with a parent brand name compare to Tesco.
  4. Mark and Spencer should use their aggressive sales force and efficient sales promotion to increase their sales revenue by giving effective features compare to the Tesco.
  5. Mark and Spencer should increase their branches that helpful for customer for regular shopping.
  6. Mark and Spencer should provide product with own label and also maintain the price compare to the Tesco.
  7. Mark and Spencer should maintain using strength, favourability and uniqueness of brand association to build brand image.
  8. Compare to the Tesco, Mark and Spence should using a line extension and category extension to promote the new product with their parent brand name.

D-2 Design a strategic marketing plan that tactically applies the use of the 7P’s to achieve overall marketing objectives of Tesco’s.

The purpose of this work is to present a brief analysis of how the Tesco retail company is using a customer-level approach to mix marketing and its goals. Firstly, we discuss the need for expanding the uniqueness of the service sector and the marketing perspective. Second, an analysis of the effect of the marketing mix of Tesco success. Thirdly, a conclusion and foresight on future challenges is presented. Tesco is probably one of the best examples to thank a successful company on a marketing oriented plan. The adoption of this model can represent the convergence of corporate values in the process of integrating marketing and management strategies to manage all processes that affect relationships with short and long-term customers. (Grönroos, 1982). It makes obviously the Distribution Process as opposed to traditional concepts such as Retail Marketing. As Tesco believes in a costly reward system “Tesco Club card” is a long-term investment for buyers and merchants. However, many writers believe the loyalty program is in vain (egDivett et al., 2003; Worthington, 2000; Rowley, 2000). Former chief executive Andy Bond has said, “The loyalty card is not a loyalty card, they have pricing and promotional strategies! They do not solve the problem of transparency with confidence and a company.”

The theoretical background marketing related to its fundamental contribution to the marketing theory by the conceptual managerial marketing school (MSM) and ideas such as this segmentation and location (Moller, 2006). In light of this, one might wonder whether 4P is generally friendly and willing to contribute to an open debate in the range of marketing concepts or because it is only described the simple method of broader classification described by Borden. It is clear that a fundamental idea is to be invented and the main changes that enterprises and companies will interact in the intervals will be revisited from time to time. However, this idea does not mean that the idea behind 4P is useless today.

A loyalty scheme as a tactical tool to reward subscribers of these arguments can be seen as a result of the scheme. On the contrary, the essential purpose of ‘Tesco Club card’ is to effectively manage valuable data and measure customer’s loyalty through concepts such as repetition, frequency and value (Humbly, et al., 2005). Tesco’s complete Customers value to earn loyalty and is deviated from the original purpose. Tesco has enabled this attitude of about 15 subscribers. To classify sending personalized messages to groups within each segment connected to six-level parts with the possibility of role, it can be combined with more complex ideas of participants and participants, in the marketing mix of the customer’s satisfaction.


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