Tesco Company’s Marketing Planning

Tesco has experienced a steady growth tendency over the years. The firm faced several obstructions arising from the economic slumps as well as the ever-changing advancements in technology. However, Tesco diversified its products in the global economy to meet the demands of their clients. Therefore, Tesco adopted a different strategy in its marketing planning. The marketing planning of the company changed over the years, taking into consideration the needs of the market as well as the organization strategies.

The organization changed its marketing activities from conventional marketing planning to strategic sales planning where the promotion plans are integrated within the wider organizations tactical plans. The strategic marketing planning involves putting into perspective the current and future situation.

The situation analysis is done through reviewing the history of the company’s marketing planning that includes the past achievements as well as pertinent analytical review putting into consideration specific factors that have contributed to the current success of the company marketing plans.

The capabilities of Tesco to carry out marketing planning

Over the years, Tesco has developed the required competency in marketing planning. The success of the company amid increased levels of competition could not be attained without putting in place appropriate marketing planning procedures.

Moreover, the company has introduced into the market various products through the application of diversified marketing mix derived from suitable market plans. Therefore, the company has capabilities and competencies to conduct marketing planning.

The marketing environment and analysis of the internal factors and external factors

Tesco’s marketing environment encompasses both the internal and external factors that influence its operations. The business’s cultures, as well as its assets, form the significant segment of the interior setting.

On the other hand, the operational situation of the business such as dealing with its customers, rivals, work market, financial sectors, and the company’s delivery channels forms the exterior environment of the business. Also, the socio-cultural, political, and economic pillars form the foundation of the firm’s macro-environment.

Moreover, the technological, legal, and ecological aspects are critical influencers of the internal operations of the company. In other words, the firm has the capability of influencing its internal business operations. However, the company is faced with an uphill task of controlling the external environment in which it functions.

Therefore, it is critical for all business organizations to devise strategies that enable efficient operations (Porter, 2001). Tesco UK, just like other global organizations, has a culture of analyzing its strengths, weaknesses together with the prospects available. The company also has to analyze the potential threats that it is likely to face and the ways to mitigate such threats.


Political aspects

Over the years, Tesco has achieved major developments in its operations, making it a global organization. As such, the company must adhere to the regulations set out around the globe, specifically in the European Union. The company offers retail sales of its products as well as providing goods containing its trademark. The organization also recognizes the importance of the workforce in its operations.

Therefore, the firm employs a labor-intensive approach in manufacturing, delivery, vending, and the promotion of its products. In essence, the firm has been able to offer employment prospects to people from all levels around the globe ranging from low skilled to the highly skilled labor force. Through such opportunities, Tesco has played a major role in aiding the governments to bring down the levels of joblessness in the society.

Further, the escalating expansion of the operations of Tesco across the world has come with its pluses and minuses. For instance, it has the effect of generating employment or compelling new business ventures to shut down or reduce their revenue scope to sustain their survival in the market. In other words, fair competition between firms is beneficial to the customers since they are presented with a variety of brands and lower prices.

Economic Issues

Business operations are often influenced by the fluctuating business cycles. For example, swinging GDP from high to low gets rid of the scrawny firms out of the market as the established organizations endure the economic slump and continue experiencing the growth. Tesco has been able to encounter the economic practicability as well as flexibility during downturns. In other words, the firm is one of the grocery stores that have continued to register success during economic depressions.

Further, the company has to deal with escalating cases of diminishing buying power of the clients during economic downturns. Tesco has shown a steady augmentation in its global operations over the past. However, with the bulk of its market existing in the UK, it has to encounter the hard times associated with the slump.

Socio-cultural aspects

Many British clients have embraced bulk purchasing since it is expedient and saves time. As such, Tesco has taken into account the present tendencies in consumer demands. For instance, Tesco has expanded the manufacture and storage of non-food stuff ranging from clothing to stationery. Due to the ever-changing aspects of demography such as aging population and increased woman professionals that has translated into an increased need for taking away meals, the firm has expanded the provision of packed meals to its clients.

Technological aspects

The application of information technology has proven successful in the operations of Tesco, thereby reducing its costs, increasing revenue, and enhancing client fulfillment. Through the technological applications, Tesco’s supply arrangement can offer convenient delivery of groceries to the customers’ doorway. Further, Tesco’s Club Card arrangement enables the firm to examine the trends of consumer purchases. Moreover, the firm has registered maximized sales through the adoption of various technologies such as Radio Frequency Identification, CCTV cameras, theft prevention scanners, intelligent scale, and wireless devices, among others.

The SWOT Analysis


The company’s trademark forms its major strength. The firm has branched out its operations in different nations around the globe, thereby increasing its presence. Despite the diminishing trends in the overall transactions worldwide, the company continued to see an escalation of its sales globally at a rate of about twenty-five percent.

Further, the company received several honors due to its working to the expected values as well as offering preeminent vendor services. The increased expansion of the company’s stores in several nations is also added strength. Moreover, the company operates loyalty card schemes to its clients that can be redeemed to offer daily trips, holidays as well as extra points or cash totals for customers.

Tesco’s own-branded products ranging from the up-market finest to low-price value, have proven useful in covering diverse classes of products including beverage, monetary services, Tesco mobile, and clothing.


The economic depression currently experienced affects the soaring expenses associated with livelihood and diminishing earnings in the hands of the public. Tesco is likely to experience a reduction in the demand for its products due to reduced earnings. Further, in maintaining its status as a price leader in the UK, the firm has to charge lower prices, which in effect squeezes its margins. The other weakness that Tesco encounters arise from the fact that numerous retailers are merging and offer stiff competition.


The ever-changing expertise has greater effects on the client purchase tendencies. Tesco has a responsibility for regular appraisal of its products to meet the expectations of the customers. Further, the slump in the economy is likely to initiate joblessness and decreased proceeds.

The outcome would divert the company’s attention from lower-priced basic commodities to higher priced commodities, thereby restructuring the pricing system. Tesco also faces the threat of competition from Wal-Mart that has been pursuing the motive of invading the market. Also, the steady increase in the cost of raw materials is a concern for Tesco since it has an impact on the company’s revenue.


Tesco has the prospect of takeovers and acquisitions, thereby enlarging its global operations. Also, the company has a prospect of developing the number of its customer base through the application of its technological prowess. Further, there is a prospect of immense online business development, including catalog purchases through the application of an online facility, thereby providing a large customer base. As a result, the firm will be able to achieve increased revenue margins.

The main barriers to marketing planning and the ways of overcoming the barriers

All business organizations regularly stumble upon many obstructions in their rational chains that define the firms’ promotional objectives. Further, the organizations face obstacles in the drafting of the marketing plans to realize such objectives.

In this regard, the complex exercise presents the firms with several barriers. Just to begin with, the current norms and regulations relating to the societal, legal, cost-effective, political, technical, and moral aspects hinder the promotional forecast of firms through placing parameters on the business conduct (Porter, 2001).

Also, through regulations, the business is unable to compare its promotional strategies with the competitors. The existing labor laws on the minimum wage rates have the effect of preventing the appointment of personnel to carry out client preference surveys. The barriers can be prevailed over by modifying the marketing plans to align with the prevailing external environmental conditions.

In every organization, the performance of the personnel is controlled by the diverse values, norms, and attitudes shared by the firm’s workforce. Therefore, organizations that successfully embrace the bureaucratic culture face the likelihood of failure to carry out schemes that influence unanticipated positive conditions (Dibb & Simkin, 2008).

Further, an organization’s failure to comprehend the compassion of diverse cultural aspects of its clients initiates imperfect promotional plans. The organizations must consider the cultural sensitivities of the customer before advertising the products.

The behavioral attributes of the personnel, such as ego clashes and conservative board, play a major role in influencing the organization’s marketing map (McDonald & Wilson, 2011). From this point of view, a conventional promotional team is likely to embrace caution and time tested advertising approaches that increase returns and ensure growth.

Conversely, groups consisting of peril takers are innovative and can devise strategies aimed at improving the market share. Also, the behavioral aspects’ obstructions of marketing plans are manifested through the deficiency of executive support as well as cross-sectional participation.

Inadequate knowledge in marketing has always been the outcome of defective marketing plans. In other words, the promoters are unable to comprehend the requirements of the target markets, products, and their rivals in the market (McDonald & Wilson, 2011). Further, the inadequacy of proficiency circumvents the marketing teams from assessing the changing patterns of consumer purchases and requirements such as eye-grabbing visuals as well as phrases that enhance clients’ responses towards the organizations’ products.

Resource constraints concerning time, people and funds have proved to be a huge obstruction to marketing planning. In essence, the successful operations of any business organization are accompanied by the use of resources to sustain their existence (Dibb & Simkin, 2008).

Noteworthy, financial crises to a firm have the effect of compelling the organization to resort to low-priced options that in turn lead to the provision of a take away worth for funds. Further, an inadequate number of personnel to initiate the promotional drives would lead to disregard of the most effective marketing approaches such as door-to-door campaigns.

The executive can do away with the barriers experienced in marketing planning through effective communication of the directorial plans. As such, the business can focus on future threats as well as the expected opportunities.

Further, through effective communication, the company creates coordinated activities, thereby enhancing collaboration among different stakeholders of the firm (McDonald & Wilson, 2011). Moreover, the firm must keep up with the current advancements in the technology involved in the development of products to reduce costs.

Marketing plan for Tesco clothing

Aims and objectives of the marketing plan

The aims of the marketing plan for Tesco are both financial and non-financial. The financial objectives are to increase the company revenue by 25% and to acquire funds to spread out the operative capabilities of the company. The non-financial objectives include going into a novel geographical market and introduction of new products line.

Core competencies

Tesco is planning to utilize its core competencies that include quality product offerings, reduced pricing, as well as reputation to attain a competitive advantage.

Situation analysis

The company will take cognizance of the situation analysis as presented above while introducing the product into the market. In other words, the company will utilize its strengths to take advantage of the opportunities available as well as to tackle threats that come from the external environment. The company will also take into consideration the competitors in the clothing market.

The target market

The product will target active consumers, particularly between the ages of 18 to 30. Demographically, the consumers are well educated mostly single and have increased annual earnings of $100 to $1200. Even though these groups of consumers have better earnings, they are price sensitive. Therefore, the company will tend to offer the products at reasonable prices.

Marketing mix

The company will apply the marketing mix that includes the product strategy, distribution strategy, promotional strategy, as well as the pricing strategy. All these strategies are in line with the company general marketing mix. The product strategy will focus on the merchandise quality as well as the specifications of the customers. The company will be manufacturing clothes in accordance to the clients’ specifications.

On the distribution strategy, the cloths will be marketed on the company-expanded stores around the world as well as in its distribution channels. The company will also utilize its well-developed sales promotion strategies to advertise the products. The products will be priced depending on the average income of the consumers as part of its wider pricing strategy. Other sections of the marketing plan, such as the financials, the set targets, marketing strategies are integrated within the general strategic marketing plan of the organization.

Marketing strategy based on the marketing mix variables

Tesco’s marketing mix includes its product, price, place, and promotion variables that it combines to realize the response it aims to achieve in the market. In this regard, the firm should embrace the cost leadership strategy. Under this tactic, the firm can offer its products at lower prices across diverse locations around the globe.

The strategy is most suitable for Tesco since it is capable of controlling the operation expenditures as well as offering prices that are competitive in the global market, thereby accruing high proceeds. Through the strategy, the company can apply promotional techniques that are highly valued by the customers. In other words, the firm presents the consumers with products that have special attributes required by the consumers.

As such, the company can create product devotion among its customers, thereby ensuring inelasticity in its prices on the part of purchasers. Further, embracing the cost leadership strategy enables the firm to improve its interior operations to be more efficient, enabling the organization to endure the external demands. Therefore, Tesco is presented with the prospect of regular relations with the diverse sectors in the macro-environment.

Ethics in marketing and the ethical issues in marketing

In the operations of every business, there are sets of codes of positive behavior provided to shape up the management choices of the firm. In other words, the business organizations have to apply the principles of equality and moral privileges in promotional decisions, deeds as well as observations.

An organizations prospect of attaining high returns and long-term achievements depend on its ability to carry out fair market practices as well as prompt response to changes in the market. However, several concerns have been raised in the marketing sector.

First, many organizations have used deceptive marketing techniques such as omissions, misrepresentation, as well as hoodwinking practices. As such, many customers have been deceived by the promotional methods that expose them to believe that they acquire more worth from the advertised services and products (Payne & McDonald, 2012). However, over the years, many consumers have been able to acquire a greater magnitude of information about businesses and their products making them more cynical of the promotional methods.

Another ethical concern arises from the use of nasty materials as well as obnoxious advertising performances. For instance, when the customers view the adverts on televisions, radio, and publications as unpleasant, a negative image of the company’s brand is created.

The perception of the clients on the company’s products creates pressure on the vendors to terminate the promotion of the product. Therefore, the companies have a duty of screening and editing all the promotional contents before communicating them in the media and other channels.

Issues have also been raised on poor quality products that do not assure what is advertised. Therefore, a business that undertakes the promotion of poor quality goods develops a character that is associated with poor products (Loudon & Wrenn, 2006). Further, the organization may find itself in danger for legal proceedings. Also, the distribution processes associated with pressuring vendors to purchase the company’s products are immoral practices.

Effects of consumer ethics on marketing planning

In each market economy, the satisfaction of the customers’ requirements enables the company to gain competitive advantages over its competitors. To achieve the advantage, the firm must win the trust of its clients by behaving morally. Further, the company has to embrace the promotion practices that are considered moral and tolerable to the consumers (Loudon & Wrenn, 2006).

As such, Tesco organizations are becoming insightful of the views raised by the consumers over their products. Also, the firm has been compelled to undertake the measures to protect their consumers’ privileges to expand the transactions.

Tesco has been doing away with the persistent and high-pressure adverts as well as long television commercials. Conversely, the firm embraces marketing methods that are appealing to consumers from diverse demographic backgrounds (Loudon & Wrenn, 2006). Further, there has been the introduction of consumer protection laws containing instructions that firms apply in their advertisements.

The laws regulate the contents that are suitable for particular groups of consumers. With the escalating multiplicity of consumers, marketing techniques are being designed to meet the needs of an assortment of purchasers segments with similar attributes (Payne & McDonald, 2012). As a result, Tesco has been able to assess its contents before disseminating them to the target consumers.


Dibb,S & Simkin, L 2008, Marketing planning: a workbook for marketing managers, Cengage Learning, Farmington Hills, MI.

Loudon, D & Wrenn, B 2006, Marketing planning guide, Routledge, London.

McDonald, M & Wilson, H 2011, Marketing plans: how to prepare them, how to use them, John Wiley & Sons, Hoboken, NJ.

Payne, A & McDonald, M 2012, Marketing planning for services, Routledge, London.

Porter, M 2001, Competitive strategy techniques for analysing industries & competitors, The Free Press, New York.