Lowest guaranteed price across the globe. Get upto 50% off ! Book Now

Strategic Marketing Management - Tesco

University: Severn Business College

  • Unit No: 7
  • Level: High school
  • Pages: 23 / Words 5807
  • Paper Type: Dissertation
  • Course Code: N/A
  • Downloads: 646
Question :

This assessment will cover the following questions:

  • Identify various types of marketing strategies of the Tesco organisation and provide strengths and weaknesses of the organisation.
  • Tesco is a retail supermarket in the UK. Generate the market plan for effective decision-making in Tesco.
  • Analyse the factors that impact the consumer buying process.
Answer :
Organization Selected : Tesco


Strategic planning is an organization's process that provides direction and sets SMART objectives. Marketing, on the other hand, involves activities undertaken to promote the purchasing and selling of products and services, including promotions, sales, and delivering goods and services to other companies. Strategic marketing management is crucial because it helps implement the organization's mission by focusing on the current marketing plan. It creates a strategy to achieve organizational goals and provides effective resources to accomplish the business mission over time. Management allocates limited resources to enhance employee sales behavior and competitiveness.

Management performs functions such as planning, organizing, analyzing, controlling, and coordinating within the organization. It plays a significant role by creating clear and well-defined tasks to accomplish goals and aligning overall business activities, thereby improving employee dedication to achieving business goals. For example, Tesco, a British multinational groceries and general merchandise retailer headquartered in Welwyn Garden City, England, is the third-largest retailer in the world by gross revenue. Tesco offers a wide variety of products, including supermarkets, hypermarkets, superstores, and convenience shops.

This report covers the main types of marketing strategies, including market analysis for building a marketing strategy. It highlights the purpose and benefits of a marketing plan and identifies buyer behavior in the consumer market. Additionally, it addresses marketing approaches in the planning and development of target marketing.


1.1 Major marketing strategies

A company needs effective and easy marketing strategies to launch itself in the market and retain itself for a long period, providing customers quality services they wish to get. The marketing techniques Tesco follows are as follows :

Brand Positioning : The first marketing strategy the company followed was positioning the brand. Focusing at every walk of life firstly Tesco positioned itself as a high-volume low-cost retailer and then re-positioned itself as a brand that not only offers low cost value products but has a range of premium range products too (Lancaster and Massingham, 2017). This increased its customers range enormously.

Awareness : Tesco has created awareness of the brand and productively increased it too. A heavy offline promotion using print ads, TV commercials, etc is done to get maximum exposure to the people.

Customer Acquisition : After the exposure of the brand Tesco focused to acquire customers and turn their loyalty towards the brand. Green Shield stamps, a promotional tool is run by Tesco which rewards people for their visit to its supermarket (Bang, Joshi and Singh, 2016). Recently a digital Clubcard has been launched by Tesco which will increase customers ease to shop at the outlet.


Tesco has launched venture brands by the supermarket to add diversity and enter into FMCG segment. The aim of these venture brands is to create house of brands that can take on the rival companies and boost loyalty to the organization by offering products individual couldn't find anywhere resulting in customer retention.

1.2 Conduct a market analysis for the organization

Tesco is a multinational grocery retailer and supermarket store primarily based in UK. Having expanded its operations in 14 countries, it is one of the largest British retail giants. Below are few PESTLE factors that can affect Tesco with their advantages and disadvantages.

Political Factors:

United Kingdom's decision to leave European union termed as BREXIT will greatly affect Tesco, resulting in scraping of complicated trading regulations in favour of transparent ones, easing international trade but will also get rid of free-trade agreements with neighbouring European countries.

Economic Factors:

United Kingdom's government has announced a reduction in corporate taxes charged from industry's profits. This will surely increase Tesco's profits generated but can also leave a positive impact on its competitor's finances.

Social Factors:

Current social trend that can affect Tesco is that of online shopping, where other stores are more popular. Embracing this trend, Tesco should offer better products online and provide customers with services like flexible delivery, return policy etc. This can boost Tesco's profits and market share significantly but failure to do so will surely hand a potential market to competitors.

Technological Factors:

Changing technological trends such as self-checkout machines can drastically decrease operational and staffing costs. Implementation of these at Tesco will reduce most employee costs (Perera, 2017). But cybercrimes and logical errors within system can lower brand reputation and Tesco staff will have to be trained to manage these self-checkout systems.

Environment Factors:

United Kingdom government's increased efforts to solve environmental issues and implementation of regulations adapting of ways that can make sustainable development possible affects Tesco. Adhering to these changes increases brand reputation and highlights the company in positive public light but increases overall expenses incurred.

Legal Factors:

Tesco has to adhere to various regulations implemented by multiple legal bodies such as labour, employment, taxation laws which can be changed. These help create safe environment for employees, make sure no individual is taken advantage of but implementing these can also increase company costs and make job of management harder.

SWOT Analysis of Tesco:


  • Tesco is the leading grocery store in UK, having higher revenue and sales figures as compared to its competitors.
  • Tesco has a global presence in 14 countries diversifying its market share and entering new markets constantly.
  • Tesco sells all sorts of diversified products, ranging from grocery, clothing, household items to electronics, mobile phones, DVD rentals etc.
  • With around 4000 stores in UK alone, Tesco has been claimed as one of the largest opportunity builders in Europe, employing close to half a million people.


  • Tesco was found guilty in Fraud Trial and Accounting Scandal of 2017 and charged with fines, decreasing brand image.
  • Tesco's exit from Japanese and American markets in 2012.
  • Tesco has also suffered from poor performance of its stores in certain countries, suggesting proper market analysis wasn't conducted prior to beginning operations (Gürel and Tat, 2017).
  • Tesco has been forced into price wars due to pressure from competitors which have decreased some profit margins.


  • Tesco has a significant opportunity to increase its market share and profits by improving its online stores and providing competitive services such as flexible scheduled delivery, better return policy, no delivery charge etc.
  • In underperforming territories, opportunities for a joint venture with or acquisition of a local company can help Tesco gain some market share.
  • Strategic alliances with other popular brands and companies can attract more customers to Tesco and provide them with exclusive products to advertise and sell.
  • With proper market research, emerging markets in undeveloped countries hold untapped opportunities for Tesco to expand their business operations.


  • Increased labour demands with regard to wages or rewards around the world pose a threat to Tesco's pricing strategy.
  • Government policy changes that require Tesco to implement significant adjustments in their operations pose as a threat.
  • Increased competition amongst retailer giants such as Carrefour, ALDI, WALMART poses a threat to Tesco's market share.
  • Increase in prices of raw materials and fuel will threaten Tesco's profitability and force it to implement changes.

Competitors Analysis of Tesco

There are mainly three other companies that can pose a challenge to Tesco's operations and functions in UK, namely ASDA, Sainsbury's and Morrison's. Together these four are often called 'Big Four' in UK (Griffiths, Fenton and Fletcher, 2019.). Analysing Tesco through Porter's five force model tells us that, power of suppliers is low, while power of consumers, competition in industry, threat of substitute products and potential of new entrants in industry, is high.

1.3 New marketing strategy evolved on the basis of market analysis

The market analysis points out certain techniques on which Tesco should work and develop new market strategy to attract new range of customer and increase its market and profit quotient.

Digital marketing : Tesco counts totally on offline marketing and promotion. In this growing internet era digital marketing is very needed for a company. It allows the business to reach highly-targeted individuals in method the traditional marketing cannot provide.

Overhauling product packaging : New packaging designs and branding campaigns for various items of the company were required as repacking of many of its high-quality products were needed at grocery store of Tesco.

Customizing media : The brand needs to focus on individual experience in its revival. Team at Tesco should come up with customization as it is the key to the new world of marketing. It may include door to door print campaigns to a deep discount delivered to an individual on birthday or anniversary. It is preferred to hyper target small shoppers and gain their trust in the company then making a big image. Renew in the strategies of Tesco ensures financial recovery and it is the evidence to the power of marketing.

1.4 Deep evaluation of marketing strategy of the organization.

After the brief study of various marketing strategies of Tesco, now strength and weakness of the same will be discussed further :

Tesco's Marketing Strengths:

Leading grocery retailer: Tesco is the biggest grocery retailer and No.1 supermarket in the UK. Compared to other supermarket in Britain it has higher sales and revenue due to better marketing strategies followed as compared to other chains in Great Britain (Pecot and De Barnier, 2017).

Leading market share: Tesco dominates the grocery retail market of UK with a big market share of 27 %. It has taken lead as a supermarket in Ireland as well since it has started poring a high amount of money in its marketing there.

Diverse geographical location: A steep global presence with more than 6800 stores and 14 countries and three big continents including Asia as well. Demographic based preferences filter were put on the items in the supermarket and this technique as a marketing strategy helped it to evolve across the globe.

Diversified market and product range: Tesco has clothing range, home-ware items, mobile phones business, financial and telecom services and cotton fair trading across the globe. Further diversification of the product and services and including ventures as a part of marketing strategy has made it outshine.

Tesco's marketing weakness:

Financial errors : The company could find no good strategy to decrease its high debts and credit card liabilities among the customers which profoundly affected it.

Low cost strategy : The strategy of lowering the price of valued items of company reduced profit margins for it and thus affecting negatively.

Club card controversy : Tesco winded its Club-card scheme in which points doubled or quadrupled without notifying customers before. It was initially launched to attract new customers.


2.1 Purpose of marketing plan

Marketing plan is a blueprint for an organization which gives an outline for the measures which the establishments have to take for marketing efforts for coming year. There has to be a clear vision and aim which the marketing plan provides an organization so that they can function in one direction. Steps and actions are included in this plan so that companies can find it easier to achieve their objectives and goals (Osuagwu, 2016). Marketing plan helps the company to make a place for themselves in market and get a bigger base of customers for themselves which is a very important factor for organizations.

2.2 Benefits of marketing plan

It is very essential for organizations to have a solid marketing plan for themselves so that they can have a competitive advantage in market. There is a rise in competition in market therefore having a marketing plan in establishments is really important.

Marketing plan gets a sense of direction in organization which is a very important factor for organizations because it will make the productivity of organization increase. For example in Tesco there is a very well maintained marketing plan therefore the demands of customers are met from time to time. Productivity of Tesco has improved rapidly due to having a direction in company (Deepak and Jeyakumar, 2019).

Goals and objectives are being met from time to time since they are being able to take right measures after analysing all factors for marketing plan. Tesco has a huge customer base for themselves which is due to having a strong marketing plan for themselves. Another benefit of having a marketing plan is that there are lesser chances of failure in organization.

2.3 Marketing plans for the organization

Executive Summary

Marketing plan is very essential for Tesco when they are launching a new section in market which is clothing for women. Marketing plan will help Tesco to improve their strategies and techniques in market.


Tesco's aim is to provide the customers with online services and develop shopping experience of customers.


  • To increase sales of clothing for women by 30% till the end of year 2022.
  • To increase the market share by 40% till the end of year 2024.
  • To enhance consumer experience by 10% in upcoming 8 months.
  • To increase the profitability by 50% till the end of year 2026.
  • There will be an improvement and productivity of operations of Tesco by 35% by the end of 2023.


Political Factors

Stable government in country and having foreign trade policies so flexible can be used as an advantage for Tesco and help the organization to expand themselves worldwide with the new product.

Economic Factors

Unemployment rates in UK are falling and income level of people are increasing which can be used as an advantage for Tesco. Tesco will be able to increase their pricing of products due to this factor.

Social Factors

Population is increasing therefore the demand is huge for the new product which Tesco is coming up with. Trends of customers in market are going to be understood and followed so that the new product can reach the customers better.

Technological Factors

To make the innovations and creativity in organization be well maintained, technological changes have to be considered so that they can meet the demands and needs of customers from time to time.

Legal Factors

To maintain the healthy environment of Tesco discrimination and safety factors of employees are being controlled so that the company can have loyal and trustworthy employees.

Environmental Factors

Climate and weather of the country is suitable for transportation of products and resources which are required by company so that Tesco can get a competitive advantage.

Segmentation, Targeting and Positioning

New product of Tesco has already made their segmentation by making clothing line for women. Men and kids section is the further plan for future of the company therefore right now Tesco is coming up with just women clothing so that they can see if this section can be advantage for the company to expand into. The product is going to target for age group between 25 and 60 years. There is a lot of competition in market therefore making the product get online which would attract more customers is a very good factor for Tesco (Rowley, 2016). Positioning of the product will be used by digitalization of the product and having advertisements of the new product so that the targetted customers can get attracted.

Marketing Mix


Skimming strategy would be a preferred option for Tesco to use when they are introducing new product in market so that they can first capture the market with low price. In case the product takes off in market the prices can be increase gradually.


Employees and managements expectations will be met and the culture factors will be considered when the new product is being launched in market.


Quality and design of new product is going to help Tesco capture the market faster because there will be a satisfaction of customers.


Special offers and online marketing is going to be used by Tesco which is attracting a lot of customers and will help the new product as well (Lancaster and Massingham, 2017).


Getting online with this product is a great advantage Tesco to launch themselves in this section. Directing sales, when the company is directly in contact with the customers is more profitable for Tesco since there will be no third party involved.

Physical Evidence

Getting the right raw material for producing comfortable clothing and providing facilities while shopping to customers so that they have a better experience and get attracted to Tesco.


Customers find it easier to connect with the company directly and the queries are easily answered. Most of the consumption of the new product is going to be online.

Financial Sources

There will be a requirement of funds for the organization of €90,000 for the new product which Tesco is going to invest and launch for the broader market base.







Raw Material




Performance Analysis

Market share of the company is high but the new product will take time to capture the market due to high competition in market (Felix, Rauschnabel and Hinsch, 2017). Funds for the company can be taken from personal savings because Tesco has a base in market for themselves and have loyal customers as well therefore capturing the market will not be a problem.

Key Performance Indicator

Return of investment which Tesco will be putting in for making this product work is going to return in a short span of time because of the experience this company is having with new products. Technological changes are coming in Tesco very quickly so that the new product will be able to meet the demands and needs of the customers. To increase the sales the company will have to launch these new products online so that they can attract and generate more revenue.


3.1 Identify the buyer behaviour in consumer market

Buying behaviour can be defined as the customer behaviour which is displayed while purchasing products. In simple word the sum total of attitudes, preferences, impression and decision are taken for influencing consumer behaviour when they purchase products or goods and services in a market. It is a decision procedure and improves consumer engagement by involving in buying and utilization of products (Wood and Jobber, 2016). Tesco is MNC Company which focuses on customers and introduces various products that gives values to customers. By analysing consumer behaviour identifies needs which helps organization to achieve success in organization. Tesco conduct various marketing strategies for analysing buying behaviour in consumer market. Initially, organization creates marketing mix strategy which assists them to understand their needs about product, quality and their services. Marketing mix strategy applies by organization for analysing targeted customers. Thus, organization identities particular customers in consumer market. The targeted audience is Women and targeted product is clothing etc. Identifies by the Tesco for influencing their buying behaviour in global market. Marketer of Tesco conducts consumer buying process for identifying customers.

Consumer buying process

Organization uses consumer buying decision process which is classified into six stages:

Problem recognition: This stage helps organization to identify differences between actual state and desired state. Thus, Tesco easy to identify customer needs for the product.

Information search: To gather information about consumer and customers, Marketer uses external and internal research. In internal research gathers feedback from employees about product strategy while customers and government are considered as external research. Marketer gathers information from the customer reviews about product. Thus, organization gathers information and uses for the further process.

Evaluation of alternatives: Marketer analyses customer requirements in products for example customers wants such kind which gives them a status and values of their money. Clothing product is not single product it posses various categories like male, female, children. Marketer analyse female customer's requirements in clothing sector where finds they require western clothes, traditional clothes (Adams, Freitas and Fontana, 2019).

Purchase decision: Marketing management of Tesco chooses buy alternative which includes product, package, store and process of purchasing.

Post purchase evaluation: This stage is used by the marketer for checking effectiveness of strategy. Marketer examines customer's satisfaction and dissatisfaction which is measured by selling scale in predetermined time.

Types of consumer buying behaviour

Programmed behaviour: Tesco analyses customer behaviour during purchasing. For example if product is high cost as result reduces buying behaviour of customers, and they like to switch another shops who retail product on low cost. To improve buying behaviour, organization offers fix price on product which is affordable for each type of employees. Low cost item enhances buying behaviour of customers.

Limited decision-making: Some customers who purchase products occasionally, to take advantage of these customers' marketer gathers information about them. It helps organization to generate high revenue in season from these targeted customers in consumer market.

Extensive decision-making: Marketer analyses those customers who always go for branded products and requires standard quality. Organization mainly focuses on these customers because they take direct decision when they get different products.

Thus, overall procedures are used by the Tesco to identify buying behaviour of consumers in global market (Liebl, 2018).

3.2 Role of pricing, distribution and communication

Marketing planning helps in determining the pricing, distribution and communication in organization which will help the company function effectively and efficiently.


There are factors which are going to influence the pricing in market planning which are competition, demand, target market, etc. There is a lot of competition in market which is going to create the level of pricing lower than them which will make the company capture the market better and faster (Serrat, 2017). Demand can vary from low to high therefore the companies must know what the customers want so that they will be able to change the pricing accordingly. Customers income and there capabilities of spending also makes a difference in the pricing of products. Example Tesco is coming up with women clothing section and because they have loyal customers and GDP of the country is improving there will be no compromises on the pricing. The quality is high and the services are good therefore the pricing for them will not depend on customers but only on the competition in market.


Direct distribution which the organizations in market are coming up with is a wonderful factor for them because this will get the trust of customers and the company will be able to understand the customers better. Example Tesco is having direct distribution to the customers which will result in making the customers reach the company directly and feedbacks will be taken for the further improvement or for new production in Tesco. Tesco will be getting the product online so that the customers are updated about the product faster and customers will get door to door delivery.


Having a direction in organization is provided by market planning which would result in motivation in organization which makes the employees work harder for achieving the mission and vision of the company. Communication is very important in any organization so that there is a balance in working. There is transparency between the management and employees which makes the improvement in the product take place and the company will be able to reach out to the customers better (Hansen and Juslin, 2018). Communication results in no group conflicts and team work is what is required for having an effective workforce to achieve the goals. Tesco is having a strong communication in the organization which gets a clarity in organization so that they can function better and everyone knows their roles in Tesco which making the working faster and better.

3.3 Environmental factors the consumer buying process

A lot of factors are responsible for the decision-making of customers which are belief's, tradition, trends, attitude, social class, personality, customs, etc. Customers will get attracted to companies which are providing them with high quality and price friendly products. In United Kingdom there is a lot of modernism which has taken place therefore trends ave changes in the country which are going to affect the production level of products (Morgan, Feng and Whitler, 2018). The customers are getting more aware of products and they are getting more selective for products in market therefore it is very important for companies to put all the information in front of them so that they can attract more customers.

Tesco is coming up with women clothing which is having a lot of factors to consider when it comes to understanding the customers. The company is having a new product for women aged between 25 and 60 years old because that is the easiest target for them. Tesco will not just focus on formal or casual wear because they understand their customers and there will be a lot of designs which they would focus on and they will have a lot of influence on production. Meeting the belief's and values of the customers will make the company have a brand image for themselves in market which would result in having a loyal customer base. Lifestyle of customers is changing therefore Tesco has to be more careful and understand them before any changes are got for them. Customers will not take those products which are not meeting their lifestyle and they will not have a good experience making the company not have loyal customers.

Tradition and belief's of people have changed and the women want delivery at home now therefore the companies are getting online so that they can fulfil the needs of the customers for satisfaction. The pricing of the products is also going to be considered for the companies so that they can attract more customers and when the demands get higher the companies can change their pricing (Alvarez-Milán and et.al., 2018). Personality of the customers vary from place to place and from time to time therefore it is very important for companies to understand that and only then produce products so that they can satisfy the customers. Customers need complete information about the product they are taking so that they can feel comfortable purchasing them and they can have a meaningful experience.

3.4 Successful marketing segmentation

There are four important criteria which can be considered for decision segmentation strategy which are accessible, responsive, identifiable and substantial. Accessible is that the companies should be sure that the segmented group they aim for are legally having access to it. Segmentation has to be for products so that the customers can be targetted in a better manner and the company will be able to function in one direction for a long run in market (Tjemkes, Vos and Burgers, 2017).

Valid segmentation has to be so that the customers can get attracted and they will be able to have a better functioning for themselves which is a very important factor. This is very useful when there is a new product which is being launched in market and this will help the business to understand the market and the customers better.

Responsive segmentation there has to be a unique responds in market for the product therefore it is important to do segmentation so that there can be an increase in the productivity in organization (Reed, 2018). Response of the segmentation can make the company improve their product so that the targetted segmentation can get satisfied and the company will be able to have a better revenue for themselves.

Identifiable segmentation is important for the products of the company because there is measurability so that the company can change their segmentation and capture a larger market for themselves which is a very important factor for them. Segmentation is done so that they can understand the customers needs and demands and make the right product accordingly so that there is satisfaction and the company will be able to have a good revenue for themselves.

Substantial segmentation helps in making the company get return to company and investment which has been used in product. There have to be huge segmentations which have to be done so that they can have a better result in market and the customers will get attracted to the company (Amoako, Kutu-Adu and Alomenu, 2018). There has to be confidence on the segmentation which is being used in company and they must have a high stability in it so that they can have better functioning in market.

3.5 Marketing approaches in the planning and development of target marketing

Targeting market is selling products and services to the potential customers so that the experience of the customers can get better and the company can have loyal customers for a long run in market. There are four generic target marketing approaches which are undifferentiated, differentiated, focus targeting and customized marketing.

Undifferentiated marketing is when there is no segmented customers and the company focused on the entire market as one. Example toothpaste does not target for any customer but is a general product.

Differentiated marketing is to satisfy smaller segments in market of customers. There are more than a product which will be present for marketing and this approach will help the company to satisfy the customized for each group (Çengel and Ledo Hernandez, 2019).

Focus marketing is when the product is changed according to customers needs and demands. Targeting is done so that the product can fulfil the needs and demands of the customers.

Customized marketing is done for the customers and according to them completely. Innovations and creativity is also used according to the customers. Requirements of customers have to be understood and a close relationship is required for this targeting to be successful.

Read also:
Marketing and Finance

Marketing Management - Auchan


From the above report it can be concluded that Marketing planning is very essential for organizations in market so that they can have a better functioning for themselves. The competition is increasing therefore it is very important to have a stable plan for the organization so that changes in the company can come easily. Before making any decisions for the company it is very important to understand the internal and external factors which are influencing the company only then the decisions should be made. Direction is very important in organization only then productivity and performance of establishment can get better. Take online assignment help service from Instant Assignment Help. They are the best assignment writing service providers in the UK. Their experts are highly qualified and skilled. They will provide you with a plagiarized free assignment at a low price which will help you in achieving A+ grades. So contact Instant Assignment Help for the assignment writing service.

Download Full Sample
Students have a lot of academic burdens these days that make them seek online assignment help from experts. Therefore, we have created an exclusive list of sample for almost every subject. Our highly qualified experts curated it for your assignment, essay, and dissertation help. So what are you waiting for? Explore the content written by our professionals and go ahead and seek essay writing services UK from our experts. The best part is they are available 24*7 to provide excellent assistance. So, what are you waiting for? Ask our experts, "Can you do my assignment for me, please?" You will see the magic happening in an instant.
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price



    Seasonal seasonal-mobile

    Our unique Features

    24/7 Customer Support

    100% Customer Satisfaction

    No Privacy Infringement

    Quick Services

    Subject Experts

    Innovative Documents

    100+ Qualified Writers

    For Best (Accounting) Assignment Help

    Margott Watts
    2643 - Completed Orders
    Margott WattsView Profile Hire Me
    Joe Preston
    156 - Completed Orders
    Joe PrestonView Profile Hire Me
    Luke Bailey
    168 - Completed Orders
    Luke BaileyView Profile Hire Me
    Jacobs Gaugh
    2356 - Completed Orders
    Jacobs GaughView Profile Hire Me
    View All Writers
    IAH whatsapp

    Limited Time Offer

    Exclusive Library Membership + FREE Wallet Balance