PRESENTATION: MARKETING

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 Table of Contents
Introduction ..................................................................................................................................... 3

Strategies within 4Ps by Tesco ....................................................................................................... 3

Understanding of organizational value creation ............................................................................. 4

Analysis of appropriate environment of marketing environment ................................................... 5

Conclusion ...................................................................................................................................... 6

References ....................................................................................................................................... 8

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Introduction

The marketing environment is known as establishing the ability of a company to serve its
customers which is a combination of internal and external forces. In the case of Tesco, their
effective product, price, promotion, and place strategy has been developed as per the internal and
external factors which ultimately help them to create organizational value.

 Establishing the ability of a company

 Combination of internal and external forces
 Effective product, price, promotion and place strategy

Strategies within 4Ps by Tesco

Product

The variety and versatility of products are another significant aspect for the company which is
effective for targeting and acquiring a huge number of customers. While discussing about customer
perspective, the quality and features of the products are differentiated broadly (Fozer et al. 2017).
Designs and brand warranty are the main concern for the company along with reliability and
effective service. therefore, Tesco has become a strong brand name for UK consumers and they
have adapted the culture of supermarket retailing in comparison with the local retail market.

 Variety and versatility

 Quality
 Features
 Reliability
 Service

Price

The company has incorporated a cost leadership strategy for acquiring its diversified and potential
consumer market in the UK. As opined by Bohari et al. (2017), providing products of high quality
at low price is known as cost leadership which is effective for acquiring mass market. however, to
some extent, this low-cost leadership strategy has influenced the business outcome of the company
in the current market as the high profile customers are not attracted.

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  Low-cost leadership
 High-Quality product
 Economic pricing

Place

Tesco Superstore, Tesco Extra, Tesco Express and Tesco Metro, these are the main distribution
market. both the main city and countryside are having Tesco stores effectively. Fozer et al. (2017)
stated that both online and offline stores are the key features of the retail industry in order to
incorporate the vast market. however, the physical retail stores are predominantly present and this
is more popular with the customers in comparison with online retail stores (tesco.com, 2019).

 Tesco Superstore
 Tesco extra
 Tesco Express
 Tesco Metro
 Online and offline service all over the UK

Promotion

Developing a strong brand image is the prime need of the company in order to promote their
business. For this reason, the company is charitable events, television advertisements and
hoardings for advertisements. Additionally, the company is also conducting business operations
as a global online retail store. Along with this, the loyalty card which is known as ‘Tesco Club
card’ is included for targeting and segmenting customers (tesco.com, 2019).

 Online
 Charitable events
 Television advertisements
 Hoardings

Understanding of organizational value creation

Tesco is creating organizational value by managing their relationship with both internal and
external stakeholders. With the help of this, the delighted customers can be retail in the company.
For this reason, the customers have become a part of the company's value creation category by
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providing ‘Tesco Club card’ for providing them a wonderful shopping experience. The company
is trying to provide effective extra valued products and services to their potential customers in
order to engage their loyalty towards the organization. Bull et al. (2016) opined that, assessing the
current reality of an organization and evangelized them is a prime concern for an organization to
engage effective value-added services. On the other hand, Brogaard and Detzel (2015) opposed
that, besides customers, another main stakeholder is employees who deserve to be a part of the
organizational decision-making process. For this reason, Tesco engages its employees in different
operations and decision-making process. Being the largest private employees or the UK, Tesco is
creating value by developing transparency, openness, and honesty.

 Managing their relationship with both internal and external stakeholders

 Customers have become a part of company’s value
 ‘Tesco Club Card’
 Evangelized
 Employees in different operation and decision making

Analysis of appropriate environment of marketing environment

Internal:

Tesco is operating in a broad middle mass market in which it has become top grocers and retailers
in lending home markets. For this reason, they have sound internal operations with huge staffs and
employees. The management and supply chain of the company is also very huge which is
influencing the competitive advantage of the company. However, Bull et al. (2016) stated that, in
spite of this, they have significant threats and weaknesses in their business like low-cost leadership
that is ineffective for the high profile customers and targeting them towards the company.

 Biggest retailing and grocery market

 Leading market share
 Largest private employer
 Decrease in operating profits
 Low-cost strategy
 Expanding special discount store Jacks’ business
 Strategic alliances with other brands

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 Joint ventures
 Brexit Referendum
 Competition with supermarket giants like Aldi, Carrefour, Walmart, ASDA and others
External:
The external business environment consists of political, economic, social, legal, technological, and
environmental forces which is affecting the business progress. The country has enriched by huge
amount of FDI and strong as well as a stable political scenario. The economic landscape of the
country is very much sound which is effective for the retail market growth. However, Brexit has
opened a wide door by its chaos and unmanageable business barriers for a certain extent of time
which is influencing the retail market. The UK is having the culture of supermarket chain mostly
and the customers are also well acknowledged the concept. Tesco is operating in different
technologically advanced businesses with online operations and AI, Big data and other
technological opportunities. The company has to consider the following legislation for making its
policies and practice business operations such as Employment Act 1996, Equality Act 2010,
Income Tax Act 2007 and Environment Act 1995 (legislation.gov.uk, 2019).

Political- Political stability, rate of foreign direct investment (FDI), reduced tax rate

Economic- inflation has increased 3.1% in 2017, post-Brexit no-deal

Social- 65.6 million population, sound employee market, high profile consumer market

Technological- technically sound country, availability of technology and staffs

Legal- Employment Act 1996, Equality Act 2010, Income Tax Act 2007

Environmental- Environment Act 1995, lowering carbon footprint

Conclusion

The business outcome can be effectively increased by the help of managing internal and external
markets to achieve sustainability in a competitive market. The company is trying to provide
effective extra valued products and services to their potential customers in order to engage their
loyalty towards the organization. In this way, Tesco has incorporated an effective marketing
strategy that has made them potential for overcoming competition.

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 Managing internal and external market
 Effective marketing strategy
 Extra valued products and services
 To their potential customers
 Engage their loyalty towards the organization

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References

Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of the halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and Space, 9(1).

Brogaard, J. and Detzel, A., 2015. The asset-pricing implications of government economic policy
uncertainty. Management Science, 61(1), pp.3-18.

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.

Fozer, D., Sziraky, F.Z., Racz, L., Nagy, T., Tarjani, A.J., Toth, A.J., Haaz, E., Benko, T. and
Mizsey, P., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS process
alternatives. Journal of cleaner production, 147, pp.75-85.

legislation.gov.uk (2019), UK legislation, Available at: http://www.legislation.gov.uk/ [Accessed

on: 20 August, 2019]

tesco.com (2019), Tesco – Supermarkets, Available at: https://www.tesco.com/ [Accessed on: 20

August, 2019]