Marketing Management Assignment At Tescos Business Commerce Essay

Modified: 1st Jan 2015
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The biggest private supermarket Tesco has more than 360000 employees all over the world .More than 80% of total sales are from England. Tesco runs more than 2,300 supermarkets, hypermarkets, and convenience stores in the UK. Tesco is the market leader in grocery. Tesco also provides the facilities of online market. They are promotion their business with the help of television and other retail based education centre. Tesco operates more than 10 countries including Korea ,China and Japan .They have recently opened their branches in Us .They have expanded their market in four kind of storage range which are

Tesco metro which is established in big city and town. Where we can buy a lot of food items.

Tesco super store, which is wide range of non- food items

Tesco extra is generally food and non food items including the seasonal items. Now days, Tesco is a market leader in UK supermarket sector.

Tesco express has located small areas where we can buy fresh local food.

Swot analysis

Swot analysis is the most important and first stage of planning. It is a feedback mechanism to make new strategies for any organisation. Strengths, Weaknesses, Opportunities and Threats are the four components of a swot analysis. Weaknesses and Strengths are correlated and examine the internal part of the business analysis whereas Opportunities and Threats deal with the external environment of business operation. Weaknesses and strengths refer to aspect of marketing, finance, manufacturing or organisational structure. Swot analysis helps clarifies the objectives of the organisation.

Strength of Tesco

Good reputation among the costumer.

Strong financial support.

Good and healthy environment and low cost policy.

Awareness of brand.

Global market and same production but different quality base on diversity stake holders.

Global leader in online grocery sales.

Diverse range product and 24 hour open.

On line shopping and Diversification

Weakness of Tesco

International brand and local competitors.

Lack of enough self services.

Lack of experiences on local market.

Not good location.

Lack of good quality.

Opportunities of Tesco

A strong customer demand and good services.

Arrival of new technologies.

International expansion.

Increases stakeholders and globalizations market..

Low cost market.

Threats of Tesco

Strong competitive market.

New regulations and increased trade barrier.

High Competition for customers and resources.

Changing social trends.

Marketing Objective of Tesco

The biggest supermarkets might have the following objectives.

More than 20% target in market share.

More than 10% target in terms of operations margin.

Customer sponsorship and encouragements.

Employee motivation and performance management.

Respected corporation(the number of stakeholders who respect Tesco)

Tesco manager must ensure that its sets SMART marketing objectives, which are measurable, timely limited, attainable and relevant.

Marketing Strategy of Tesco

After the market research Tesco manager applied retail strategy to find who their customers are in each market and what they want now and in the future. Tesco execute all the retail process system and trade system of government that enables them to express to the customer. Tesco manager wants to find out the customer needs and satisfaction and he give it to them.

Tesco manager helped to extend a succession of supermarket from being an unbeneficial “also ran” to being market leader with a 33% market share and a 4% base line.

Tesco manager keep together teams of consultant that had developed all the strategies that Tesco and the worldwide leading retailers supermarkets. Tesco flow the retail strategy into their market to find out who their customers are, what they want, but above all can actually deliver consistently to the customer.


Tesco’ has a clear strategy, with growth being pursue from four areas;

The core UK grocery business,


International expansion and

Retailing services such as financial services packages.

Essentially, Tesco is using its heavy firm core to maintain the business instant over as it forge new riskier areas of growth. Pushing further into non-food in the next phase Lidl and Aldi are currently “destroying” the bazaar by selling the products lower cost price. Therefore, Tesco’s basic strategy will have to be cost leadership, unless Tesco manager can successfully differentiate their line of clothing so that they can charge a premium price.

Tesco have adopted an environmental open policy. It will assist them to attain a more environmentally conscious representation .They have continued to lower prices and raise their manufactured goods ranges year on year. That is an example of Tesco cost-leadership strategy as well as capability to lock in customers

any marketing strategy will involve analysing the markets, customer needs and satisfaction, and which products to offer. These strategies are implemented through marketing plans, which involve detailed decisions about factors such as the price and the way of product distributed. So Tesco must decide on its model of entry in terms of, own stores, Internet selling or joint venture with an existing national retailer.

Strategic Analysis of Tesco

Tesco managers face so many obstacles in trying to find out the environments and its threats. First obstacle is environment of Tesco. Environment creates many different influences and it makes sense of this diversity in a way which is direct concern and contributes to make strategy decision. The second difficult is changing new technology and speed of global communication, for analysing the environment we have to auditing the environmental influence on business. It is important that what kind of environment influence have been face in past.

And the extent to which can make only of these more or less significant in the future for any employers and their competitors.

In past analysis we have to analyze its factor and influence on an organization. Such kind of influence is a growing trend of organization towards globalisation and possible future of organization. It helps to consider the existing strategic which might need to change.

Pest analysis


Political factors can have a direct impact on the way business operation. In political factors includes governments regulations and legal issues which defined formal and informal rules

Governments tax policy.

Health and safety law.

New government’s law and policy.

Political situation and government’s stability.

Employment law, politician trade and labour union.

Economic factors

It is true that all business is affected by economic factors of country. Economics factors affected the purchasing power of customers.

Per -Capita income and interest rate.

Trade union and economic condition of nation.

Government lone, money supply interest rates.

Economic crisis.

Unemployment rate of country.

3) Socio cultural factors

Social factors include the demographic and cultural aspects. Social factors direct affected customer and needs and size of customer in potential markets

Mobility of society.

New remarkable change in human life style.

Education level and different culture and society.

Different attitudes and social trends.

Social transfer, Tradition perception and new globalization world.

4) Technological

New changeable technology is being more challenging for any organisations and it is changing the way business operates. Some technological factors that direct related to Tesco are:

The rate of changing technology.

New scientific attitude and miss use.

Nuclear innovation, its fear and effect on globalization market.

The Rates of obsolescence and

Government investment and focus on technology effort.

In 2008 Update on Tesco UK Online Market Share was:

Tesco 27.1%

Asda 10.1%

Aldi (which doesn’t sell online) 9.5%

Sainsburys 6.9%

Waitrose / Ocado on 4.2%

The above table shows that Tesco is more successful and market leader’s organization in UK (in terms of market share)

Business scorecard of Tesco

We can define the business scorecard as performance management tool, which began as a concept for determine whether the first scale outcomes in terms of Tesco vision and strategy.

It helps to Tesco for define the value, mission and SWOT analysis. The business scorecard is base on for perspective;

Financial status of the Tesco.

The internal process of the Tesco.

The level of customer satisfaction of Tesco.

Education and development process of Tesco.

The main area of financial perspective is return on investment, cash flow, return on capital employees and financial results of Tesco. Internal business process shows that number of activities per function, duplicate activities across function, process arrangement and process bottlenecks. In customer satisfaction level we can define quality and delivery performance to customer, customer satisfaction and retention rate and customer overflow in market. Job satisfaction, employee turnover, learning opportunities and accurate level of skill for the job are the area of education and development process.

The implementation of business scorecards

The business scorecard must consequence in:

Enhanced process of Tesco.

Encouraged workers.

Improved information system.

Monitored development.

Huge customer approval.

Improved monetary convention.




Any marketing strategy will involve analysing the markets, customer needs and satisfaction, and which products to offer. These strategies are implemented through marketing plans, which involve detailed decisions about factors such as the price and the way of product distributed. So Tesco must decide on its model of entry in terms of, own stores, Internet selling or joint venture with an existing national retailer

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Tesco is the marker leader in food retail on the current market situation. It more than 2000 supermarket, hypermarkets and convenience store in the UK, Ireland, central Europe and Asia. The objective vision and strategy of Tesco are cleared. Especially the case study is focus on Tesco strategy and its business scorecard, which determine the performance management tools. Business scorecard helps to Tesco for define the value and its four prospective. Tesco has the different marketing strategy; Tesco’s basic strategy will have to be cot leadership and growth. Tesco want to be a bet supermarket in its stakeholder perception so it complies with law and ethnical standard. Tesco maintain clean organized culture and respect to customers.

We can found that Tesco plc marketing strategy is different and sample then other local supermarkets. They flow different policy and management process in each store.


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