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Marketing Plan Tesco PLC Assignment


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 Marketing is a process or activity that is consists of various processes that can be used by the business organization to promote its products and services in target market. In traditional business strategy, business organizations were not concerned about the marketing of their products and services in target market. With the concept of the globalization and competition in market place, this is important for the business organization to focus on the marketing process and marketing plan to improve the sales of company product in target market place. In current time, involvement of digital technology is too much in the marketing process of the business organizations(Timofeeva, 2020). The marketing process that is used by the Tesco Public Limited Company is not that effective as other organization in market place. Major issue with the marketing process of Tesco is related to customer interaction. The interaction rate in the promotions of Tesco public limited company is very low. This is important for the Tesco public limited company to develop effective plan to improve the effectiveness of the marketing process in the market place. This is important for the organization to focus on increasing communication with the customer within the marketing process. Poor communication with customer is affecting relationship between the organization and customer and company is losing its market share in the UK. This is highly important for the organization to develop better relationship with customer to increase performance of organization in target market.

PESTEL Analysis

This is crucial for the business organization like Tesco PLC to analyse the influence of external factors that can affect the operations of organization in both internal and external operations. There is range of external factors that can affect the operations of organization. All the external factors that can affect the performance of organization in target market are categorised in the six different factors for better assessment. PESTEL is an acronym that is consists of initials of six different external factors of business organization(Adamyk, 2019).The external factors that are considered in PESTEL analysis are- Political Factor, Economical Factor, Social Factor, Technological Factor, Environmental Factor, and Legal Factor. This is important for the organization to consider all these factors to develop effective responsive action for organization to avoid the impact of an external factor. The business organization needs to consider all the external factors because these factors cannot be controlled by the business organization.

Political Factor

Political factors for organization mainly consist of changes that are implemented by the government in business laws and guidelines for organizations. All the changes that are implemented by the government need to be followed by business organization to keep their actions free from legal interruption. Political factors for Tesco PLC are positive in the United Kingdom. Government of the United Kingdom is providing different facilities and opportunities to the business organization to run their operations effectively in country. Government is supporting organization to run their business efficiently in market place. The only political issue that is affecting the business of Tesco PLC in market is related to Brexit. Due to Brexit, many organizations are in state of confusion because it is difficult for them to make effective changes in their business policies per the conditions of the Brexit. Tesco PLC is also facing issue to perform business operations in countries that are part of European Union. This is how the impact of political factor is moderate for the Tesco PLC.

Economic Factor

Economic factors for business organization can be explained as impact of influence of local or international economy on the business organization. In the current situation, international economy is facing major crisis due to Covid 19. Due to international transportation ban, many organizations are facing economic crisis. This is highly challenging for the organization to perform business effectively. The other challenge that is faced by the organization in UK market is related to the lack of investors. Due to Brexit, many investors are uncertain about investing in The United Kingdom-based companies. This issue can affect the financial capital of company. This is how impact of economic factor is negative for Tesco PLC. The organization needs to take effective measures to improve the economic performance of company in international market.

Social Factor

Social factors are consists of different factors that affect the internal and external operations of company. Major considerations that are considered in the social factors are- Per capita income of people in country, education level of target customers, population of locality, and diversity in population. All these factors need to be considered by the business organization to develop business operations effectively.Each factor that is considered in the social factor needs to be considered by the organization to keep its business operations successful in market place. Per capita income of local customers needs to be considered by the organization to offer various products to them. Per capita income of people in the UK is good(Grundy, 2017). So, organization can include premium quality products in the stores to attract people of medium and medium upper class. The education level in the United Kingdom is also high. So, this will be very easier for the company to develop workforce. Organization do not have to make more investment in recruitment and selection process of employees. Population and population diversity of UK is also high and this can help the organization to successfully target audience as per their interest. The other factor that is needed to be considered by the Tesco PLC in social factor is related to the population diversity. The population diversity in UK is high and this high population diversity can help the organization to include range of products in the company stores to improve the marginal profit of company and gain more market share. This is how social factors for Tesco PLC are productive in the United Kingdom.

Technological Factor

In current time role of technology is most important for the business organization. Three different factors are considered by the business organization related to technology. These three factors for business organization like Tesco PLC are- Current technology that is used by the organization, technology that is used by competitors and latest development in the technology. All these measures can be considered by the business organization to evaluate the impact of technology on business or organization(Chernev, 2020). Current technology that is used by Tesco PLC is latest in its type. Different technologies are used by Tesco PLC to provide better purchase experience to the customers.Technologies that are used by organizations like Sainsbury, ASDA and Marks and Spencer is not that advanced as Tesco so, it is an advantage for Tesco. The technology that is used by Tesco is also compatible with latest technological developments. This will help the IT department of the company to effectively adapt changes in the technology of the company. This is how Technological Factor is Highly Beneficial for company.

Environmental Factor

Environmental factors are moderate for Tesco PLC. This is highly important for the organization to make positive development in the operations of the organization to meet all the legal requirement of the environment and wildlife protection act. This is also required for the organization to implement various sustainable practices in the operations of the organization to keep operations of organization sustainable for environment.

Legal Factor

 In some previous years, Tesco PLC has faced some legal action due to financial fraud in business operations. This factor is highly challenging for Tesco to avoid any kind of legal action by developing effective policies. This factor is highly critical for the organization.

SWOT Analysis

 SWOT analysis is considered as most effective self-assessment tool that can be used by the business organization to analyse the capability of business organization. The result developed from this process can be used by organization to develop various strategies and practices to improve the performance of organization in target market. SWOT analysis is acronym of Strengths, Weaknesses, Opportunities, and Threats for organization. SWOT analysis can be used for marketing plan for Tesco PLC to develop effective strategies as per the internal capability of organization in target market.


Tesco PLC is the largest retail and grocery store in the United Kingdom. The financial turnover of Tesco is too high in global market and it can help the organization to take risk with different business strategies. Tesco PLC has largest market share in United Kingdom market. It is helping the company to generate higher profit in business operations(Beausang, Hall and Toma, 2017). In the Covid 19 pandemic, the performance of Tesco was efficient and company have registered growth of 10.5% in last three months of 2020. Operations of Tesco PLC are highly based on innovative practices. Internal culture of Tesco PLC is promoting innovative working in business operations.These innovative operations can help the organization to generate higher profitability in operations.The adaptability of change is also high in organization culture. Adaptability to change is effective for the organization to improve the profitability and production rate of company this is how all the strengths are helping the organization to gain higher profitability in market place.


 Major Weaknesses that are faced by Tesco PLC in business operations are- the leadership of the organization is not constant and it is affecting the internal and external operations of organization. Quality control is major issue for Tesco PLC. Company is also facing issue with shortage of goods in the retail store. Tesco PLC is also facing issue in the inventory management process and it is affecting their operations in stores around the world. Some issues are also faced by Tesco PLC with food safety problems. This is challenging for the company to meet the health and safety considerations with their products and services. These weaknesses are currently affecting the operations of Tesco in both internal and external processes.


Opportunities for Tesco PLC are too high on different levels. Due to the pandemic situation, people are avoiding physical purchase process. In this case, Tesco PLC has huge opportunity to develop E-Commerce platform to increase the revenue of organization in target market. High unemployment rates can be utilised by the Tesco PLC to develop their workforce effectively(Fotiadis, Mombeuil and Valek, 2018). Tesco PLC also can look for alternative of the meat to make their operations sustainable in target market. Developing concept of social supermarket can be used by the company to develop positive image in global market. Tesco PLC also can use AI technology to improve its business operations on global level.


This is highly important for the business organization to consider various issues that are threat to the operations of the company. Major threats that are faced by the organization in operation on global level are- Brexit can affect the performance of Tesco PLC in European countries. Brexit and Covid 19 has affected the global supply chain of company. This broken supply chain can affect the profitability of the company(Bouredji, Gupta and Jester, 2020). Economic crisis on global level is also major challenge for organization to maintain profitability in international market. Covid 19 is major issue for the supply chain and physical operations of company. Competitors like ASDA, Sainsbury, and Marks & Spencer are major competitor in local and global market. So, this is important for the organization to consider its performance to get higher benefits in market place.

Porter Five Force Analysis (Competitive Analysis)

To analyse the competitive positioning of organization this is important for the company to stay competitive in target market. Porter Five Force model is considered an effective model to analyse the competitive positioning of company in market place (Porter's Five Forces Analysis Tutorial, 2020).

Threat of New Entrant

This threat is too low for Tesco PLC because of strong financial background and global positioning in global market. These are strong points of Tesco that can help the organization to enter in new market effectively.

Threat of Substitute

Threat of substitute is high for Tesco PLC in market place. Different organization like ASDA, Sainsbury, and Marks & Spencer are providing similar services to the customer. This is important for the company to develop new and effective pricing strategy to effectively maintain the customer base.

Bargaining Power of Customers

Bargaining power of customer is also high because there are different organizations are available in market that are providing similar services to the customers. In this case, organization can focus on key selling points to reduce the power of customers.

Bargaining power of Supplier

Bargaining power of supplier is moderate in case of Tesco. Tesco has entered the manufacturing sector to reduce the bargaining power of suppliers. This threat also can be reduced by increasing number of suppliers or raw material.

Rivalry Amon Existing Competitors of Company

This threat is very high for Tesco. Organization like ASDA and Sainsbury are major threat to the organization. This threat can be further reduced by developing effective pricing strategy to gain larger customer base.


The Aim of Marketing Plan is-

To increase the use of Technology in marketing process to increase the customer base of the company.

STP Plan


In the segmentation process, organization can use geographical segmentation and more specifically demographic segmentation in particular geographic area to target people. This approach will help the organization to target large number of people in local place. This will also help the organization to develop customer base(Opresnik, 2018). In the Geographic Segmentation, Tesco can completely consider the entire UK for business operation. In demographic Segmentation process, company can target families that are consists of two or more than two people.


In the targeting process, Tesco PLC can consider people of all age. For example, Company can select people are 16 to 75 years old. This is how organization can target larger number of audience in marketing process.


In Local UK market, Tesco PLC can position the business operation as best and cost-effective retail and grocery store in local. This image can help the organization to get more customers. The company also can use hybrid-pricing policy to attract people of all age.

Marketing Strategy

There are different strategies that can be used by the business organization to improve the marketing process of business organization(Girton, 2018).There are some changes that can be implemented in the marketing process of the company to attract more customer to buy goods and services from company.

Mobile Marketing- A lot of people are connected to technology in current time. In this strategy, organization can perform mobile marketing to address more people in short time. Mobile advertisements can be used by the company to make the customers aware of the products that are sold by them in market place.

Search Engine Optimization- Search engine optimization is considered as one of the most effective techniques to improve the visibility of their E-Commerce site(Innanmaa, 2020). This strategy is effective to increase the traffic on the E-Commerce site of company.

This how different strategies can be used by the company to develop customer base in existing and emerging market.

Action Plan



Time Frame

Mobile Marketing

Set up creative and effective marketing team to develop content for the mobile advertisement to attract more customers towards the Tesco stores.

From 1 / 02 / 2021

Search Engine Optimization

Hire a third party company to increase the visibility of organization on different search engines.

From 15 / 02 / 2021

Marketing Budget


Expected Cost

Actual Cost

IT Infrastructure

3,000 Euros

2800 Euros

Developing IT Team

2,000 Euros

3000 Euros

Hiring SEO Agency

3000 Euros

2500 Euros

Extra Expenses

1500 Euros

1500 Euros


9500 Euros



This report is providing brief information about the marketing plan of the company. Initially in this report, brief introduction to the organization has been provided in report. The background of organization and marketing process also has been discussed in report. Various situational factors like external and internal factors have been analysed in report to develop effective marketing strategies for the company. In the marketing plan, proper competitive analysis has been made in report to analyse evaluate the competitive positioning of company in existing market. On basis of the situation analysis, effective marketing strategies have been developed for the company to increase market share in the UK


Books and Journals

Adamyk, K., 2019. PESTLE Analysis on Tesco PLC.

Beausang, C., Hall, C. and Toma, L., 2017. Food waste and losses in primary production: Qualitative insights from horticulture. Resources, Conservation and Recycling. 126. pp.177-185.

Bouredji, K., Gupta, R. and Jester, G., 2020. EveryWear Marketing Plan.

Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.

Fotiadis, A., Mombeuil, C. and Valek, N.S., 2018. Designing and implementing a marketing plan. In The Emerald Handbook of Entrepreneurship in Tourism, Travel and Hospitality. Emerald Publishing Limited.

Girton, C., 2018. Creating a marketing plan with a marketing team of one.

Grundy, T.D., 2017. Dynamic competitive strategy: Turning strategy upside down. Routledge.

Innanmaa, K., 2020. A strategic marketing plan.

Opresnik, M.O., 2018, July. Effective Social Media Marketing Planning-How to Develop a Digital Marketing Plan. In International Conference on Social Computing and Social Media (pp. 333-341). Springer, Cham.

Timofeeva, I., 2020. Expansion of the Carrot Kitchen App to London Case Company: Carrot Revolution Oy.


Porter's Five Forces Analysis Tutorial, 2020. [Online]. Available Through.<https://www.visual-paradigm.com/tutorials/five-forces-analysis-tutorial/>.

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