TESCO Marketing Principles To Enhance The Business.


Marketing are set of organizations, an action, and procedures for making, communicating, supplying, and exchanging aids that are valued for consumers, clients, associates, and society in general. These are the company actions that are related to the buying and selling process of a product & service. It contains selling, advertising and transporting products & services to people. It is the societal method through which individuals and groups acquire as what they want by creating and replacing products by valuing others (Kotler, 2010).

The requirement of the Project

This project consists of four tasks. In Task 1 various elements of the marketing process and marketing orientation of the selected company will be explained. In task 2 I will give segmentation, consumer buying behavior, targeting and positioning and PEST Analysis. In Task 3 I will give that how products development for sustaining competitive advantage. Products, Price, Place, Promotion, and Service Marketing Mix. And I task 4 I will give the details about Marketing Mix for two diverse parts in customer markets, marketing products Differences and businesses services, difference of international marketing from domestic marketing.


It is a British international of overall variety and grocery and variety retailer. It is headquartered in England, United Kingdom. Tesco was started in 1919 by Jack Cohen. I have chosen Tesco PLC for responding to case study questions (History Tesco plc. 2017).


1. Concept and Process of Marketing:

1.1: Explain the various elements of the marketing process?

Analysis of the market and environment: Tesco strategic tool for conducting analysis of the market and environment contain include SWOT, PESTEL, Value-Chain analysis, Porter’s Five Forces, and others.

Identification of the marketing target: Tesco marks specific population division in the UK and in rest of the countries where Tesco runs its supermarkets.

Setting marketing objectives:  It includes profit maximization for short and long-standing perspectives. It has also increase the image of the brand and its value. 

Dealing with elements of the marketing mix: It is very important in dealing with each elements of marketing mix. Tesco management considers target customers’ desires, wants and other exclusive characteristics.

Reflection, control and revision: Tesco management take this element in a periodic manner to assess the marketing effectiveness levels and also to improving definite marketing strategy features  for changes in internal or external environment(Vision and Strategy Tesco Plc,2014).

1.2: Evaluate the benefits and costs of a marketing orientation for a selected organization?

It is the process that emphases on finding and meeting the hidden or stated requirements and needs of customers.

Benefits and costs of a marketing orientation of TESCO:

Cost: TESCO marketing orientation deals with various ranges of products at reasonable prices. Company has created a great ease for customers by double-checking that a Tesco was recognized to directing the majority of customers. Tesco superstores were opened in numerous urban and suburban areas all over the UK. Tesco has showed money-making as of the scale of economies linked with buying in large quantities and retailing at high volume. This kept the charges low. Market orientation of Tesco is of greater interest, signifying the understanding and response to the customer desires (Vision and Strategy Tesco Plc, 2014).

Benefits: Tesco has a name for innovative information resolutions. For this purpose, its ‘Club card’ loyalty scheme and websites are dominant. Tesco is the UK’s major retailer and consequently has a main customer base for which analysis can be implemented. So, in UK Club card has noteworthy prospective for influencing customer behavior. Club card is not just incorporated with business procedures, however also supports the brand and brand strategy (Vision and Strategy Tesco Plc, 2014).

With respect to consider effective results, it can be stated that marketing orientation is framed to focus and deliver of product design as per customers’ needs and requirements. Different benefits and costs of marketing orientation in Tesco are defined as follows:

  • Customer satisfaction: There are several benefits to Tesco with implementation of marketing. As per products' demands and requirements, development activities develop in chosen enterprise.
  • Desire quality: To get desired quality and services, Tesco must concentrate on quality and standard performance of products.
  • ·         Service and customer care: To consider effective quality in services, behavior of sales person noticed.

Task 2: Concepts of segmentation, targeting and positioning

2.1: Show Macro and Micro environmental factors which influence marketing decisions

Macro and Micro environmental factors Of Tesco:

Macro Environment: It is the condition that occurs in the economy overall, instead of in a specific part or region (Armstrong, Gary, 2012)

Political: As Tesco is one of the largest global companies, so, global factors influence Tesco performance. Unemployment is one of the chief political factors that influence Tesco at large this condition which cuts the actual demand for numerous goods. Recession is another factor that creates unemployment. Tesco create more jobs to reducing the unemployment level.

Economic: Economic factors influence demand, costs, prices and, they concern a lot to Tesco. One of the most powerful factors that influence the economy is high unemployment levels. Company mostly unable to control Economic factors, but they influence the performance and the marketing mix deeply. As global business is still rising, and is predictable for backing Tesco’s incomes in the future.

Social: Social factors involve lifestyle leanings, demographics, customer opinions, attitudes, customer buying behaviors, main events.  Present trends specify that British clients have adopted ‘one-: bulk “and one -stop shopping, trends which is because of many social changes. Tesco has adopted its product mix for accommodating a better demand for organic products.

Technological: Rise in use of internet has exerted a great influence on TESCO. Internet has offered new shape to current shopping style. Tesco provide a delivery service through it helps to provide easiness.

Environment: It is the most important societal issue intimidating food retailers like Tesco. Tesco’s corporate social responsibility (CSR) is concerned with the approaches that organization duties to shareholders specified by rules and corporate governance.

Legislative: Numerous government legislations and strategies influence the Tesco retail company performance of Tesco. Tesco offers its clients a price decrease on fuel purchases though prices drop for endorsing goods (History Tesco plc. 2017)

Micro environmental of Tesco:

It is the company internal environment (Armstrong, 2012).

Customers: Tesco has numerous customers of diverse Social classes and ages.  It is significant for the company for gaining customers loyalty, so they offered numerous services for the keeping the customers involved, like the club cards. Tesco has its superstores ate various stores for its customers convenience. Company sells its products at reasonable prices as compare to its comparing competitors besides company also offered home delivery and on line shopping. So, number of company customers increased accordingly.

Suppliers:  Tesco has numerous local and global suppliers. They also support the small suppliers to develop. They maintain their market reputation and majority of Tesco products can be bought at inexpensive prices. Tesco has power for pushing down the prices that pays to its suppliers.

Distributors: A distributor eases the company for endorsing, sell and give out its services to its customers. Tesco sells directly to the community, they does not cope with local or area distributors.

Competitors: Tesco Chief competitors are Sainsbury’s and Asda as these supermarkets offered similar products to the public, however Tesco has its client’s loyalty by many different ways that help the company in many ways (Our businesses, 2015).

2.2: Propose segmentation criteria to be used for products in different markets

Segmentation of Tesco

Market segmentation:  It includes targeting the market into subsets of customers having joint requirements plus joint applications for the pertinent goods and services (Our businesses, 2015).

TESCO and Market Segmentation

Tesco PLC Is the UK largest retailer stores. It uses segmentation analysis for accepting marketing strategy for future and measures their strengths. Tesco know its segmentation process and that it should be accessible, substantial, differentiable, measurable, and actionable.

For measuring purchasing power, size, and features of every part Tesco Company Put on Club card program. By giving discounts to cardholders  for in return of  swapping their address, name and other specific information and other discretionary questions concerning size, home , children ages and dietary partialities for gaining customer reaction that endorsed Tesco for proceeding further customer segmentation for purchasing behavior ensuing from customer lifestyles and trends.

TESCO focused on attaining the section through all likely methods as the segment Accessibility is very vital in segmentation. Every program is striking for creating the segmentation (History, 2015).

Especially, Tesco segmentation variables are as follows:

a. Geographic segmentation

Tesco works in various international locations.  Tesco marketing division intended on the country administration and countless care towards the particular requirements of each geographic sector.

b. Demographic Segmentation

These are related with family size, sex, age, and life stages, income generation, education, job, social class, etc. The club- card information is related with the data of the similar user, providing the ability to company for classifying customers improved according to their certain needs.

C. psychographic segmentation

Tesco recognized the customer’s psychological desires. Tesco formed numerous lifestyle magazines for varied personalities as Gardener's World, etc.

d. Behavioral Segmentation

Tesco shape an extraordinary knowledge for customers purchasing behavior. This contains knowledge about customer’s time and location of shopping, products utilization time, commitment to definite brands etc. (Bowie & Buttle, 2011)

2.3 choose a targeting strategy for a selected product/service?

Organizations produce diverse products for their clients. For targeting their customer’s organizations follow diverse targeting strategies like differentiation or selected marketing, niche/concentration and mass/ undifferentiated marketing. Tesco is largest superstore working in different locations. Tesco also uses targeting strategy for attracting its customers for its products & services. The Tesco targeting strategy relies on the demographic, psychographic geographic and behavioral fundamentals for an improved direction.  Usually, Tesco follow the undifferentiated marketing strategy because Tesco retail markets are apt for creating products & services for satisfying its customer’s needs and desires. Tesco desires for making everything that every customer catches it pertinent to themselves. Though, according to geographic, Tesco focused more for its entire business as in UK. According to demographic, Tesco concentrated more for more Value collection like in the past years as these range made high profits. According to psychographic, Tesco observe people's changed lifestyle and trends as their Tesco products & services turns according to all tastes and choices. According to behavioral, Tesco club card scheme is very effective, Tesco desirous to follow customer loyalty so Tesco always try to adopt ways for improving its club card scheme for targeting its customers (Bowie & Buttle, 2011)

2.4 demonstrate how buyer behavior affects marketing activities in different buying situations

These are the important factors that affect buyer behavior diverse conditions.

Social: social factors are the sort of factors in which customers is affected by other persons or businesses that influence the customers decision as they accept or refuse the product. Tesco should be aware with the social factors to attract its customer’s loyalty and satisfaction. Tesco should also maintain its competitive pricing to improve sales overall.

Psychological: This factor depends on the single customer who is affected by thought practices, learning, emotional temperament, recognition, and mood. Tesco is discerning new behaviors for increasing output, classify training and growth requirements, and implement rules for attracting customers & employees.

Personal: These factors comprises of situational, life style, and demographic elements. TESCO improve its products & services in different regions according to these factors. (Bowie & Buttle, 2011)

2.5 propose new positioning for as elected product/service

Positioning: It is a process that deals with distinct elements of marketing mix to attracting and target customers in effective way. Tesco also uses a varied variety of positioning strategies for attracting target customer segment.

Functional positioning:  It is linked with increased quality and range of products and services. Tesco sells its Premium range of products & services by using functional positioning. Generally, Products sold by using functional positioning are classy as to Tesco’s products,

Symbolic positioning: It is intended for values, aims and customers goals. This type is used by Tesco about its Fair Trade products variety.

Price positioning:  Tesco apply price positioning for attracting particular customer concerned more with the product price as compared to the other marketing mix components.

Experiential positioning: It is interconnected with the sensory or cognitive stimulation of clients. Tesco practices this for directing clients for beauty and health Products range.

Multi-segment positioning: It is utilized for targeting numerous sectors simultaneously for diverse products. Tesco use this Multi-segment positioning for targeting customer that is extremely cost-conscious. Tesco sells diverse products for targeting different customers who are eager for paying more for quality product (Bowie & Buttle, 2011)

Task3: Understand the individual elements of the extended marketing mix

Appointed as the marketing manager of a Deutsche Bank, I have to make a report on the marketing mix elements and also how it can be used in current scenario (Kotler, 2012)

3.1: Explaining how products are developed to sustain competitive advantage

Competitive advantage?

For particular business, a Competitive advantage can be attained by technology, market share, loyalty & customer service, executive bonuses, worker hire & retention, and vigorous & basic procedures. I am appointed as a marketing manager of a Deutsche Bank. Deutsche Bank takes a competitive advantage on its STP technology. Similarly, single bank takes competitive advantage in the business process over the other banks, processes, practices, approaches and ability for attracting talented people. The other feature of Deutsche Bank of its competitive advantage is its ability for responding to change on an external and internal impact.

Implementation of agile development practice and fast growth practice in IT department will raise the software delivery to the business. For sustaining competitive advantage, Deutsche Bank’ IT organization can use imitation for making innovation. So, the Deutsche bank IT sector should implement a strategy that give facility in creativity, novelty, task oriented project, simple procedure, team and hierarchical control, that sequentially will make competitive advantage for large banks like Deutsche Bank (Deutsche Bank Annual Report, 2016).

With consideration of development of products, competitive advantages are ascertained to sustainability. It is more important to maintain improvement and business performances. It creates attractiveness against competition which is different in every situation. Lower cost advantage is the main consideration to sustain competitive results. Another advantage is product differentiation to develop products and services with qualitative features.

3.2: Explaining how distribution is arranged to provide customer convenience?

Products Suitable distribution emphasis on creating the products and services in enough quantities so, that customer finds it easy to access them. Bank management should keep the physical distribution costs i.e. transportation, inventory, and storage as short as possible.  Deutsche Bank’ put a high-class, intensive, and selective, distribution network, also choosing the suitable dealers. The correct choice of these factors can give some competitive advantage to a bank. For example, bank offered products & services at low interest rates to its public to increase its competitive advantage by adopting suitable ways of distribution else customers would purchase any other alternates that are more convenient to them(Deutsche Bank Annual Report, 2016).

3.3: Explaining how prices are set to reflect an organization’s objectives and market conditions

Deutsche Bank is a foremost financial bank offering many services to its customers. Since its inception, the bank has maintained its pricing policies consistent with the market changes. By keenly observing consumer behavior and leaning, the bank has made many customers friendly price strategies (Deutsche Bank Annual Report, 2016).

Prices set with attracting maximum number of customers in the organization. There are different types of pricing such as premium evaluation, penetration pricing and skimming terms. With the help of premium pricing, chosen business can provide new market to increase revenue. Furthermore, penetration pricing strategy captures whole field to enter into new area with low price. As skimming pricing, helps to attain competitive advantages will be gain with enter new areas as alternative price.

3.4: Illustrating how promotional activity is integrated to achieve marketing objectives

Deutsche bank philosophy is to rise with the risk controlled foundation. So, for this purpose bank make use of many promotional strategies for increasing its customer market. Deutsch bank, Update the modified offers for customers all around the world as promotional promotion strategy of the bank (Deutsche Bank Annual Report, 2016).

In Deutsche Bank, there are different types of promotional activities integrated that help to accomplish the desired results. In the marketing, advertisement is one of the important elements that help to promote effective work performance such as advertisement, personal selling and sales promotion. On the basis of advertisement, chosen business uses television, radio, newspapers, etc. Personal selling consider to made proper connection with customers. In sales promotion, marketing communication is developed with online distribution.

Process: Banks adopted different process to attract their customers. Deutsche Bank automatically refers Credit Cards when the client’s old card gets perished. IT requires a well-organized process for identifying finish dates. The chosen business consider resources that help to produce effective results. For instance: opening an account, buying and selling of shares, etc.

Physical evidence: Physical evidence is the place of delivery. Deutsche Bank, provide perfect physical clean office for its customers as they expect a clean and friendly environment. If the bank is dirty, customers are probable to leave. Physical evidence, consist to building to provide several kinds of services to each customers. As a result, customers feels enjoy and comfortable to use it.

People: People are a vital element of service delivery; recruiting and training the perfect staff is essential for creating a competitive advantage (Deutsche Bank Annual Report, 2016). Various people included that are using services to produce effective work performances.

Task 4 

4.1 plan marketing mixes for two different segments in consumer markets?

Marketing mix is a vital tool used for marketing of different products. Vodafone is one of the world’s highest telecommunication brands.

Vodafone Marketing Mixes:

In this, at chosen business environment two types of segments develop in marketing plan are as follows:

Demographic segmentation

Marketing mix

Marketing plan


As per different age group of people, Vodafone considers their product launching in the UK market.


With the help of penetration pricing strategy, Vodafone attract UK peoples for different income group.


In new areas of UK, product has been sold to attract maximum number of people.


Promotional activities consider the promotion of products and services with using advertisement.

Behavioral segmentation

Marketing mix

Marketing plan


In respect to consider new product or services by Vodafone, different elements must be included such as online account, apps, etc. implemented to attract youth people


In the segmentation, penetration pricing generally implemented attract more people.


Products and services in particular areas develop successfully.


Segmentation advertisement, sales promotion and personal selling help to promote the products and services.

Products: Vodafone provide many products with different opportunities for chat, playing games, send and receive pictures, obtain information about travel and sporting actions, change ring tones, get billing information  The company aim is to  support the customers with their communication needs.

Place: Vodafone operates in above 300 different locations. Company place should be accessible for its customers.

Price: Vodafone prices for its products & services should be affordable and nominal.

Promotion: For promoting produds & servcies comnpany works with other promotional oppurtunites to increse its brand value. Icons like David Beckham work with Vodafone for promoting brand (Vodafone Annual Report, 2016). 

4.2:  Illustrate differences in marketing products Vodafone and services to businesses rather than consumers for UK. Use examples to illustrate your points.

Different organizations create different type of products & services for attracting customers. Company does this by using different marketing strategies. The example of L’Oreal and Maybelline are illustrated here. Both are most famous cosmetics brands creating different type of products & services however use different marketing strategies for attracting their customers. Both brands attract their customers by applying different pricing strategies (Dominici, 2009).

L’Oreal: Company produces many products & services e.g., skin care, cosmetics, make-up, sun protection, hair color, and perfumes.  Numerous L’Oreal products are of high quality so; the companies keep a best pricing policy for those products. Some L’Oreal products are for society average class so; the price of these products is economical. Occasionally, to penetrate in a new market section, company has presented discounts and schemes particularly on initial products. This leads to a rise in sales and resultant in additional incomes (L’OREAL Annual Results, 2016)

Maybelline: Company produces many products & services e.g., skin care, cosmetics, make-up, sun protection, hair color, and perfumes. Maybelline has planned an attractive, stylish, smart, casual, fashionable, and cool image that is daring plus having a classy stance.  It’s pricing policies targets upper and middle-class of society. Its aim is to provide handy cosmetics for each class of woman. Maybelline has approved mid-premium pricing strategy because company offers high quality products (Company Overview of Maybelline, 2014)

4.3: Show how and why international marketing differs from domestic marketing in the case of Vodafone UK.

International Marketing

Domestic Marketing

It includes marketing across the globe.

It includes marketing within the nation or country

International Marketing is not characterized by taxes.

Domestic marketing is not characterized by taxes

Marketing of product & services is done by using different currencies.

Marketing of product & services is done by same currencies.

Government involvement and interference is at high level

No Government involvement and interference

Culture does affect the exchanging of items

Culture of country exerts no affect

Payment mode  includes letter of credit

means of payment include cash, cheques, and DD’s

Degree of Risk is very high.

risk involved but not high

Factors of production (F.O.P) are typically immobile.  It is very affluent and hard to shift land, labor, and capital from one place to another.

Factors of production (F.O.P) are typically mobile. Land, labor, and capital can simply moveable from one location to another at another at small rate.

(Vodafone Annual Report, 2016)


It is concluded that, for business, different Marketing strategies are very crucial components. Different company follows different marketing strategies to run its function. Tesco grocery supermarket management follows different strategies that help to grow its business in different location of the world (Definition of Marketing, 2014).

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