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Analysis Marketing Plan of Tesco Plc

Analysis Marketing Plan of Tesco Plc

Table of Contents

Executive Summary


1. Contextual analysis of the Tesco

2. Customer Analysis (markets, segmentation, targeting and positioning, branding)

3. Competition analysis (major competitors, their strengths and weakness etc)

4. Tesco strategic approach

5. Channel analysis (distribution and communication)

6. Marketing Management Implementation of Tesco Plc

7. Contingency Plan



Executive Summary

This article discusses about marketing-plan developed for Tesco Plc which is the largest retail network of retail food stores in UK. The marketing plan covers various important aspects which are significant for processing the marketing problems connected with internal and the external environment of Tesco.

The article has critically analyzed the situational analysis in which organizational strategy, client’s behavior, Porter’s five forces; the Ansoff matrix (to determine products and market growth strategy), SWOT-analysis and marketing efficiency have been described. In the objective section of the marketing plan, mission, vision, corporate objectives and marketing objectives of Tesco are examined from high angle of perspective and various strategic measures of segmentation, targeting and positioning are suggested to gain competitive advantage. As Tesco constantly faces threats of capturing its market share by nearest rivals, how marketing mix of 7ps, will help Tesco to analyze its current position in food retail sector of UK is highlighted. Assessment of Tesco management also has been given in the marketing plan which includes key parameters of efficiency. Beside contingency plan of Tesco is also discussed. (Clarke, 1994)


Changes occurring in scenario of marketing have been posing problems for all retail companies in-spite of their competitive positions in the market. The marketing plan is revival step for the company to give a new direction for its business.

I have chosen Tesco Plc for the marketing plan which is the largest UK retail trade and operational chinks in field of food retail commerce. Tesco PLC is the global general merchandising and the grocery retail seller. It is the largest British retail from the point of view of global sales and a fraction in a home market.

1. Contextual analysis of the Tesco

Industry analysis: Pestel framework

Political Factors

Operating in globalization conditions with stores worldwide (Tesco now operates in six countries of the Europe, in addition to the Great Britain, Ireland, Hungary, Czech, Slovakia, Turkey and Poland, it also operates in Asian countries such as South Korea, Thailand, Malaysia, Japan and Taiwan). Performance of Tesco is highly under influence of political and legislative conditions of these countries, including the European Union (EU).

For employment, the government encourages stores to provide mix jobs possibilities for employment from flexible, lower paid and local jobs to highly paid, highly skilled and centrally located jobs. Also to cater the demands of the population categories such as the students, working parents and older people.

Tesco understands, that retail commerce has dramatic effect on jobs and people factors (new development of store often saw, how destruction of other jobs in sector of retail commerce as traditional stores leave business or compelled to save the cost to compete), being inherently and local labor-consuming sectors. (Kotler, 2008)

Economical Factors

Economic forces cause concern to Tesco because they can affect demand, costs, the prices and profits. One of the most influential factors on economy is the high rate of unemployment which decreases demand for many goods, negatively influencing on the demand of such goods necessary for manufacture. These economic forces substantially do not depend on the company, but their influence on productivity and marketing maybe deep.

Though the international business still grows, and it is expected, will assist the greater sum on profit of Tesco within next several years, the company still depends strongly on the market of the Great Britain. Consequently, Tesco will be strongly affected with any slowdown in food market of the Great Britain and exposure to market concentration risk.

Social/Cultural Factors

Current trends specify that the British clients have inclined to "one stop" and "volumetric" shopping that is connected with various social changes. Therefore Tesco have increased the quantity of non food items available for sale. (Kotler, 2008)

Demographic changes, such as ageing of the population, an increase of women-workers and decrease in house preparation of meal means, that the Great Britain retailers are concentrating on added value products and services. (Lancaster,2005)

Besides concentration is now moving towards, own labels share of business mix, supply chain and other operational improvements which can lower expenses of business. National retailers are more and more constrained to find new suppliers.

Type of the goods and the services demanded by consumers depend on their social conditionality and their subsequent installation and belief. Consumers become more and more informed on questions of healthcare, and their attitude to meal constantly change.

One of examples Tesco adaptation of its product mix is to accommodate increase in demand of organic products consists. The company also was the first to permit consumers to pay in the form of checks and cash in cash department.

Technological Factors

Technology is a major macro-environmental variable which has influenced the development of many of Tesco products. The new technologies benefit both customers and the company: customer satisfaction rises because goods are readily available; services can become more personalized and shopping is more convenient. The launch of the Efficient Consumer Response (ECR) initiative provided the shift that is now apparent in the management of food supply chains. Tesco stores utilize the following technologies:

· Wireless devices

· Intelligent scale

· Electronic shelf labeling

· Self check-out machine

· Radio Frequency Identification (RFID)

The adoption of Electronic Point of Sale (EPoS), Electronic Funds Transfer Systems (EFTPoS) and electronic scanners have greatly improved the efficiency of distribution and stocking activities, with needs being communicated almost in real time to the supplier. (Lancaster,2005)

Environmental Factors

In 2010 pressure upon many companies and managers has been increased to recognize the responsibility before a society and to operate by which society is benefitted as a whole. With the basic social question threatens sellers of food stuffs were the environmental problems and one of key areas for the companies to operate in socially responsible with maintenance of its reputation.

Therefore, accepting this tendency within the limits of wide ethical positions, to corporate social responsibility of company Tesco concerns ways in which the organizations exceeds the minimal obligations to the interested sides specified by means of regulation and corporate management.

In 2010 the government plans to start new strategy of stable consumption and manufacture to reduce waste, to reduce consumption of resources and to reduce to a minimum damage to an environment. The last the legislation has created the new tax to advertise with a high degree of processing and fatty foods. So-called fat tax directly mentions product Tesco’s ranges which subsequently have been adapted, mentioning attitudes as with suppliers and clients

Legislative Factors

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