Marketing Planning Based on Marketing Audit

             

                                                                                                                       

[Marketing Planning Based on Marketing Audit]

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Introduction

Tesco is one of the largest business retailer of the UK. Its supermarket chain is operating in more than 11 countries of the world. Business environment of the Tesco is revolutionized on the basis of the strategic business policies and decisions. It was just a medium level grocery store in earlier years of its establishment but in 1970, an expansionary strategy was introduced in the business environment of the company that led to the opening of Tesco stores in all parts of the UK. In 1990, company secured top position in the market by implementing successful marketing and business strategies that helped it to gain a competitive edge in the retail business. This company is operating in an oligopolistic market structure. (Pratley, 2016)There are approximately 28.5% market share of the Tesco, and more than 500,000 employees are working in its business environment.  Number of the stores of Tesco are 6,784 which are present all over the world. Tesco as a leader of the UK supermarket had earned a revenue of £62.284 Billion in 2015. Factors affecting business operations of the company are managed by using effective strategies which are also capable of collaborating with the changing business trends as a result of increasing globalization. (Dudovskiy, Tesco Business Strategy and Competitive Advantage, 2016)

Marketing Strategy of the Tesco

Marketing strategies adopted by the Tesco are capable of enhancing maximum customer’s satisfaction and these also appeal a large number of the customers due to vast range of its products and their availability under one roof. Its marketing strategies are focused on introducing the products to the targeted customers. And these are also able to generate high profits and revenues. Main areas of the business which are focused by the Tesco’s marketing strategy are analysis of the market segmentation, marketing mix, micro and macro environmental factors affecting business operations of the company, and competitive factors prevailing in the supermarket. Company also carries out a detailed market research before undertaking any business expansion project or introduction of a new product line in the market.

Company has also introduced lot of changes in its business structure by altering business policies and strategies. Quality of the products and services of the Tesco is also revolutionized over a period of time due to the changes in the consumer’s consumption and purchasing behavior. Branding strategy of the Tesco is very effective as it helped it to achieve a high end image in the supermarket. One of the brand director of the Tesco called it a democratic brand of the super market, and its main focus is customers’ satisfaction. Management of the company is focused in building brand image from inside out. Marketing strategies of the Tesco are also enhancing competitive prices of the products which are reasonable for the customers. Its business strategies are also aimed at obtaining the feedback of its customers on regular basis so that their opinions about the improvements in the services and quality of the products. And this feedback also helps in establishing a strong relationship with the customers.

Marketing Plan of the Tesco

Tesco has established a new marketing plan for the introduction of a new aspect of the business in its market. Marketing plan of the Tesco included various factors and components which are helpful in the successful expansion of the business at new location. An effective and detailed market research has been carried out by the company which helped to devise a strategic marketing plan for the establishment of a new market of the Tesco which will be a Prime 5D Centre Ltd and it will be capable of providing indoor virtual reality and 5D experiences to the consumers. Virtual reality equipment will be helpful in modifying product line of the business, and it will also contribute in the expansion of the market of Tesco. There are greater chances of the successful establishment of the new business line of Tesco because globalization has increased need of the technological products and services all over the world. It will be also a great opportunity for the business of the Tesco to increase its revenue by introducing innovative virtual reality equipment.

Marketing plan of the Tesco is composed of goals and objectives of the introduction of a new technological center which is a Prime 5D Centre Ltd encompassing all the products and services of the technological industry based on 5D experiences. Marketing plan of the Tesco includes allocation of the resources, actions plans, and market targets. PESTEL analysis, SWOT analysis, marketing mix, market segmentation and SMART objectives of the Tesco are also included in its marketing plan.

Components of the Marketing Plan of Tesco

Important elements of the marketing plan of the Tesco are described in this section.

1)    Analysis of the Internal Business Environment of the Tesco

Strengths of the Tesco

·      Supermarket leader in UK

·      Online operations of the business are effective and efficient

·      Possessing a strong portfolio

·      Using and effective marketing tool i.e. club card.

     Weakness in Tesco Business Environment

·      One of the scandal in 2015 declined financial performance of the company,

·      Increasing reliance on the market of the UK,

·      Employees morale is also diminished.

      Business Opportunities

·      Expansion of the business operations in international market,

·      Enhancing a compatible position in the financial services industry of the world,

·      Establishment and enhancement of the effective marketing and business strategies,

·      Establishment of the new technological business center based on 5D technology and advanced virtual realty equipment.

·      Technological modification in the business will increase revenue and productivity.        Threats to the Business of Tesco

·      Fluctuations in the currency can effect financial stability of the business.

·      Emergence of the new supermarkets in a competitive way.

·      Issues related to the ethical compliance.

·      Losing the ability to enhance cost effective leadership position in the market due to increasing global competition. (Dudovskiy, Tesco SWOT Analysis, 2016)

2)    Analysis of the External Factors of Tesco Business Environment

Analysis of the external environment of the Tesco business will help in finding that how effective marketing strategies of the Tesco will be in the expansion of the business at Zagreb. STEEPLE analysis is carried out and its main components include:

·      Social Factors: as customer want a supermarket that would be providing all the household needs so nonfood and food items of the Tesco are capable of meeting this demand at the new place of expansion too. Demographic factors prevailing in the Zagreb are also analyzed for implementation of the marketing plan.

·      Technological factors: online retailing services, electronic funds transfer system and electronic shelf labelling, and RFID technology will be helpful in meeting global need of the business. Needs of the globalized technology will have also an impact on the establishment of the technology center.

·      Environmental factors: aim of the Tesco for the reduction of the carbon footprints will help in the achievement of the environmental sustainability. Its waste management techniques are also effective in enhancing business operations of the company and its virtual reality equipment will be also used by complying environmental rules and regulations.

·      Political factors: political stability of the in different parts of the world is also an important prospect for the expansion of the business of Tesco.

·      Legal factors: various legislative rules about the incorporation and establishment of the virtual technology center of Tesco will be also complied. These rules will be useful in enhancing reliability of the business.

·      Ethical Factors: direct dealing with the customers and establishment of the trust of the customers by providing high quality products, and complying with the cyber laws will be also helpful for the new business.  

·      Economic Factors: economic factors including consumption, purchasing and demand pattern of the consumers of the new business location will be analyzed for the successful establishment of the business.

3)    Target Market Segmentation

Market segmentation is an important process which is used for the development and implementation of a marketing plan that would be capable of achieving shared vision and mission of the organization. Tesco has carried out an effective analysis of the different segments of a market based on the technological innovation and these include geographic segmentation, demographic segmentation, psychographic segmentation, behavioral segmentation, and market positioning.

Tesco has also used segmentation, targeting and positioning strategy for the development of the effective marketing plan for the establishment of the Prime 5D technology center. Technological changes as a result of the globalization in various parts of the world and use of the new innovative technology based on 5D and advanced virtual reality equipment are also analyzed by the company. Technological markets which can be high yielding, and contribute in the potential growth of the Tesco supermarket will be chosen for the establishment of the Prime 5D center. Some of the important marketing factors are also analyzed by the management of the Tesco and these are measurable, accessible, actionable, sustainable, differentiable and substantial for the establishment of technological center in Tesco supermarket. (Joseph, 2016) Mass marketing strategy of the Tesco is also aimed at targeting consumers according to their requirements and demands for the VR equipment and 5D technology. (Dudovskiy, Tesco Marketing Mix, 2016)

Positioning of the targeted market by analyzing other technological competitors of the market and branding goals of the business of the Tesco will be helpful in achieving maximum satisfaction of the consumers. Selection of the effective pricing strategy is also dependent on the positioning of the targeted market. 

Marketing Mix of Tesco

Marketing of the Tesco is also based on effective analysis of the various components of the marketing mix which are product, place, promotions, processes, place, physical evidence, and price. Virtual reality and 5D technology needs of the consumers are considered for the introduction of new products and service line in the business. (Hobbs, 2015) Pricing strategy will be settled by considering the technology market requirements. Places for the establishment of the 5D Prime center will be considered after analyzing technological needs of the consumers. Different promotion strategies will be also used by the Tesco marketing department for the introduction of its new business center at various outlets. Company has also gathered physical evidences by carrying out market research based on globalized technological demands. People of the selling and distribution departments of the company are also trained for the provision of the services in the technological center of the Tesco. Process of the marketing will be able to enhance maximum customers’ satisfaction. (Swamy, 2011)

Marketing Matrices and Financial Projections

Marketing matrix of the Tesco will be used in the introduction of the club card services and customers’ satisfaction strategies related to the services available in the 5D Prime center of the Tesco. It is based on the various factors like customer cost acquisition, marketing % of the customer cost acquisition, ratio of customer lifetime value, payback time, customer orientation and impact of the marketing on customers. Financial projections for the establishment of the 5D Prime center along with new VR equipment and 5D technology are also settled the company. And these include budgets, timeline, investment costs, and returns analysis on the basis of the financial position and performance of the company. (Volpe, 2013)

Conclusion

Marketing strategy and marketing plan of the Tesco is based on the strategic decision making process and effective strategic policies, and these will be useful in the successful establishment of the 5D Prime center having indoor virtual reality services based on 5D technology. Marketing strategies of the Tesco are primarily focused on the achievement of the satisfaction of customers and to meet their technological demands.

Bibliography

Dudovskiy, J. (2016). Tesco Business Strategy and Competitive Advantage. Retrieved 12 15, 2016, from http://research-methodology.net/tesco-business-strategy-and-competitive-advantage/

Dudovskiy, J. (2016). Tesco Marketing Mix. Retrieved 12 15, 2016, from http://research-methodology.net/tesco-marketing-mix/

Dudovskiy, J. (2016). Tesco SWOT Analysis. Retrieved 12 15, 2016, from http://research-methodology.net/tesco-swot-analysis/

Hobbs, T. (2015). We must get our marketing mix right, admits Tesco, as sales decline slows. Retrieved 12 15, 2016, from https://www.marketingweek.com/2015/06/26/we-must-get-our-mix-of-marketing-right-admits-tesco-as-sales-decline-slows/

Joseph, S. (2016). Tesco marketing revamp helps lift Christmas sales. Retrieved 12 15, 2016, from http://www.thedrum.com/news/2016/01/14/tesco-marketing-revamp-helps-lift-christmas-sales

Pratley, N. (2016). Tesco can't be faulted on strategy so far. Retrieved 12 15, 2016, from https://www.theguardian.com/business/nils-pratley-on-finance/2016/apr/13/tesco-cant-be-faulted-on-strategy-so-far

Swamy, K. (2011). Tesco Clubcard - Metrics and Success Factors. Retrieved 12 15, 2016, from http://stat-exchange.blogspot.com/2011/12/tesco-clubcard-metrics-and-success.html

Volpe, M. (2013). The 6 Marketing Metrics & KPIs Your CEO Actually Cares About [Cheat Sheet]. Retrieved 12 15, 2016, from https://blog.hubspot.com/blog/tabid/6307/bid/34054/The-6-Marketing-Metrics-Your-CEO-Actually-Cares-About-Cheat-Sheet.aspx#sm.00011ct0rf2oyfbxwjm1qs3naarip