Marketing Management Project Example


Intense rivalry and rapid move of customer preference have developed the significance of marketing concepts and their further development in organizational activities. The current assessment focuses on the different marketing management processes of Tesco UK that cover the marketing mix structure, several competitive advantages, commoditization, and the entire product features and the solution process for Tesco UK. Experiential marketing processes like experiment management and customer relationships within the organization also can be highlighted by this assessment. Tesco UK is a British multinational grocery and general retailer. It is the third largest retail sector in the world that is already measured appropriately by viewing its gross revenue. As a leading retailer in the UK market, the organization has more than 440,000 employees, and they serve more than 2 million customers each week, in their stores and through the online retailing process. The organization has more than three thousand four hundred stores, and a vast number of customers are associated with this organization. In the year 2017, the sales revenue of Tesco UK was about £55.8 billion, and the operating income was more than £1,280 million in the same year.

The Marketing Mix - P's and C's

Marketing Mix: Application of 7 P's for Tesco UK

The marketing mix development process of the Tesco UK organization has been focused on the development of effective strategies that can bring about the success of the organizational venture of Natural Evolution.

Market mix elements



● Design and technology

● Value

● Product Quality

● Brand

● Guaranteed service

● Solves plan

● Usability

● Usefulness


● Internet

● Retail

● Wholesale structure of products

● Local- export


● Sales revenue

● Cost-plus

● Skimming price

● Loss Leader

● Product Value


● Different and special offers for customers

● Gift coupons

● Gifts

● User testing

● Advertising

● Recommendations

● Online marketing

● Social platforms

Physical Evidence

● Recommendations

● Office premises

● Buzz

● Several stories of users


● Service delivery

● Product delivery time

● Complains

● Responses time


● Founders

● Culture

● Customer service

● Employees

● Stakeholders

Table 1: Marketing Mix of 7 P's of Tesco

(Source: Bahl and Chandra, 2018)

From the above table, it is seen that the development of the product is based on organic substances such as product method, technology, brand, and warranty. Therefore, product development has been looked into the functions where the natural materials have been considered as the raw materials for the different grocery products (Gillespie and Riddle, 2015). The raw materials for the products have been chosen fresh from reliable suppliers of fresh foods to cater it the customers with quality. The product development strategy will help Tesco UK to welcome a vast number of customers for them. The stakeholders, employees, and customers are the essential "people" of the organization through which Tesco UK aims to increase its profit margin. In other words, the pricing structure of the products has been decided on the stances of expenditure on the raw materials and the development of the products. The pricing structure of Tesco UK is associated with penetration strategy, loss leader, and the cost plus structure by which the organization will be able to calculate their sales revenue margin and give appropriate product delivery service to their customers (Hutchinson et al. 2015).

However, the product segmentation has been done in a manner where the product prices have been set to be higher than the retail chemical products of Tesco UK. On the other hand, the promotion has been intended to be done in a stature that looks into reaching a large mass to increase brand recognition. Therefore, it can be said that different social platforms like Facebook, and Instagram can be more valuable for Tesco UK to communicate with their stakeholders like customers and promote their brand through those platforms. In context, the placing of the products has been aimed to be done in the specific area of the UK that has less number of competitors. Through the Internet, the online marketing process, and the wholesale process Tesco will get the chance to place their retail product development strategy (Jenkins and Williamson, 2015). Physical evidence can be sent to the customers through the hard copy of product and price details and the product delivery process and customer service process are also perfect therefore they would be able to welcome a vast number of customers within a short time (Leeflang et al. 2014).

Figure 1: Marketing Mix of 7 P's of Tesco

(Source: Leeflang et al. 2014)

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Marketing Mix: Application of 5 C's for Tesco UK

The 5Cs analysis is the essential technique that is mainly used by Tesco UK to conduct its situation analysis. All the research problems, product development, and communication problems can be identified and resolved by this analysis structure.

Target market Activities

● Community of NetPromoter

● Email marketing

● Mobile applications


● Well-architecture website

● Personalised content

● Preferences drove


● Tesco Baby

● Old people care

● Local populations of household

● Charity and ladies' content that more directed toward the housewives


● Security system

● Delivery system

● Trade partners

● Large inventory


● Facebook

● Twitter

● Youtube review videos

● Blogs

● Segmentation of customers

● G+

Table 2: Marketing Mix of 5 C's of Tesco

(Source: Bahl and Chandra, 2018)

From the above table, it can be said that the communication analysis structure of Tesco is associated with the community of NetPromoter, email marketing along mobile applications. Email marketing structure will help this organization to communicate with its stakeholders like investors and their customers within a short time. The mobile application process of Tesco UK mainly helps this organization's customers to select their products through online and the mobile app of Tesco (Leonidou et al. 2018). Therefore, customers will get the chance to avail of their identified products to stay at their home. In other words, the commerce structure of Tesco is also associated with the security system, delivery system, trade partners, and large inventory process that mainly help this organization to team up with different stakeholders in a mutually beneficial partnership. On the other hand, through various social media platforms like Facebook, G+, and Twitter Tesco will be able to promote the different retail products over those platforms and will be able to sell their products over it (Negri, 2018).

Differentiation and Competitive Advantage

The business strategy of Tesco can be recognized and described as cost leadership and the main motto "Every Little Helps" mainly guides their business strategy in a critical context. In the differentiation and competitive advantages factor of Tesco UK, it has been found that economies of scale are the essential advantage that is extensively exploited by Tesco UK due to the massive range of their different operations. As influenced by Palmer et al. (2014), the business strategy of Tesco has traditionally included or involved different experimentation along with several aspects of their retail business such as communication strategy, and product development strategy, and that particular strategy can change the entire retail industry of Tesco in the UK to a specific context. For example, Tesco has been found to gain a certain amount of competitive advantage by being the first retailer to introduce a 24-hour shopping experience along with this Tesco UK has more than thousands of collect and click points all over the country (Ramanathan et al. 2017).

The competitive advantage of Tesco UK is mainly associated with the extent of innovation in their product, pricing strategies along competitors’ business strategies. The major motto of the organization is observed to be the delivery of a wide range of products that are retailed hygienically at a very cheap rate to their customers. The minimum product price of this brand is starting at £8 and onwards. More than 2 million customers mainly connect with this organization regularly to buy products from them through the online app of Tesco UK as well as offline mode to visit the store (as stated by Schlegelmilch, 2016). In other words, it can be said that the organization's management team needs to understand its competitors’ business strategies to grab the highest market position and increase business sustainability. Tesco UK's business strategy and competitive advantage for the short term is aimed at re-achieving the stakeholders' trust in primary or general and customer trust in particular next scandal in 2015 was commercial income. In the competitive advantage factor of Tesco, it has been found that the senior level management of Tesco UK has announced that the economy of sales and product development strategy can be through some set of initiatives and these are:

  • Focusing on availability, price selectivity factor, and service
  • Undertaking an appropriate as well as significant program of different financial disciplines and restructuring
  • Launching some brand new programs of renewal to restore trust in each aspect of the retail brand.

On the other hand, some initiatives have been taken by the senior-level management team of Tesco to reduce the debt volume and increase the profit rate while maintaining competitive advantages and these are

  • Reducing the capital expenditure amount
  • For all the employees replacing identified and defined benefit pension scheme
  • The closure and sale of all three Blinkbox businesses along with Tesco Broadband
  • Review the Tesco’s property portfolio in an appropriate manner

Commoditization and Total Product & Solution Offering

Commoditization in consumer goods of Tesco is mainly taking place everywhere from high street fashion to groceries and homeware. From the commoditization factor of Tesco UK, it has been found that the organization has already recorded its most robust growth in the last seven years boosted by its acquisition of the carrying group and booker cash. Tesco involves E-marketing services having useful websites, banners, and email to build productive relationships with the customers. In the year 2017, the sales revenue of Tesco UK was about £ 55.8 billion, and this was extraordinary for Tesco to increase their business strategy (, 2018). Based on the UK supermarket along with this Irish sale that rose more than 3.5% in the most recent fourth months, it's ten consecutive growth quarter. On the other hand, the group sales revenue structure has increased by more than 1.8%. To maintain the commoditization factor, the organization needs to establish network effects and invest in technology (Steenkamp, 2017).

On the other hand, Tesco UK mainly offers a wide range of retail products to their customers such as Dyson cleaners, Bissell preheat cleaners, different kinds of food products, clothing, and many more. The customer service process at Tesco is very good, and within 24 hours customers’ problems with a product can be solved. If any customer is not satisfied with the product that has been bought by a customer, therefore, the help desk team of Tesco is liable to return the money for those defective products. All the food products of Tesco are very hygienic, and customers can view all the product features with appropriate specifications through the Tesco website and then they will be able to decide on buying any products. All the products can be delivered within 4-7 days to the customers. Along with this, those who mainly buy more than £ 50, Euro will get different discount coupons that they can avail of on their next purchase.


The segmentation factor of Tesco UK is to partition the sorts of clients into four classifications such as geographic, demographic, psychographic, and social, and to isolate the market into smaller gatherings with particular needs, qualities, or conduct; this may require a blended or separate advertising methodology. According to Wood et al. (2016), "For the compelling division, it ought to be measurable, accessible, generous, differentiable, and noteworthy or actionable.

The Geographic Segmentation of Tesco UK

In this geographic segmentation factor, the Tesco UK management team has decided on a particular place like London to promote their retail brand products. The geographic segmentation factor of Tesco is divided into some major units such as states, nations, regions, cities, countries as well as neighborhoods (Steenkamp, 2017). The geographical factor of Tesco mainly helps this organization to understand their different areas of customer's point of view towards any product. The primary motto of this organization is to bring new products such as foods and clothing to rural areas people, therefore, people in those areas will be able to get different retail products at a much cheaper rate than their customers (, 2018). Along with this in the geographical segmentation process, it has been found that the organization mainly promotes its brand in those areas where young people mostly live to increase the brand value and welcome new customers.

Demographic Segmentation of Tesco

From the demographic segmentation factor of Tesco, it has been found that the organization has chosen some different factors such as age, family size, race, nationality, religion as well as education. Demographic segmentation factor will help this organization to understand their customer's income rate to promote their brand and sell their products. Most of the UK people live in London, and the income rate of that place people is very high. Therefore, it can be said that the management team can quickly open a store in the market of London for selling their products. According to Ramanathan et al. (2017), the organization has mainly targeted young aged people for selling different retail products such as clothing, chocolates as well as grocery products.

Psychographic Segmentation of Tesco

The psychographic segmentation of Tesco is divided into groups based on factors such as lifestyle, personality characteristics of customers or people, and social class. According to Schlegelmilch (2016), Tesco UK mainly uses age along with life cycle segmentation to understand their young customers' lifestyle factors. Most of the young, old people in London mostly prefer to wear western dresses. Therefore the primary motto of this organisation is to bring different Western items of clothing for their young aged people and give several discount offers over expensive brands. In other words, according to the lifestyle structure of old people of London, the organization should have brought hygienic food products and healthy drinks for them.

Behavioural Segmentation of Tesco

The behavioral segmentation process structure of Tesco is mainly associated with customers’ attitudes, loyalty factors, and user status. Customer’s attitudes towards any product would help this organization to understand their customer's perspective for buying any high-cost product as well as the low-cost product. According to the geographical factors along with customer’s behavioural factors the organization management team should bring different kinds of retail products of low cost along with high price. Therefore, from the high background people to the middle background people will be able to buy their identified products through an online and offline process (Wood et al. 2016).

Managing the Service Element of Tesco

In the service industry or retail industry like Tesco, they need to gain or achieve higher customer satisfaction. A significant reason for this customer satisfaction process is in today's very highly competitive market each company like Tesco has very excellent products along with a high-level delivery system. However, all can make a significant difference by having an extraordinary service mindset (Wood et al. 2016). Tesco has also maintained its flexibility by providing a lot of information about its services to its customers. The competitive advantage of Tesco UK is mainly associated with the extent of innovation in their product, pricing strategies along competitors' business strategies. Tesco UK gives mostly different retail products to their customers such as high-quality clothing products to their young aged people, for old aged people the organization also brings different hygienic as well as high-quality food products. From the customer satisfaction rate, it has been found that in the year 2017, the price increased by more than 76% because the organization provided high-quality retail products and merchandise to their premium customers (, 2018).

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Experiential Marketing; Customer Relations and Experience Management

From the customer relations and experience management process it has been found that the organization has increased more than 87% sales revenue in the year 2017. The customer satisfaction rate has increased majorly and nearly more than 76% for selling high-quality products through offline as well as online processes. In recent years, Tesco has attempted to make a series of changes that have generally aimed to win the trust of the customers (Bahl and Chandra, 2018). The mobile application process of Tesco UK mainly helps this organization's customers to select their products through online and the mobile app of Tesco. From the customer experience management process it has been found that the organization has provided extraordinary customer service to their aged customers and Tesco UK also returns all kinds of defective product prices within 48 hours to their customers' bank accounts. Therefore the customer can easily communicate with the customer service management team to resolve any problem that can be faced by them.

Use of the Internet in Marketing

According to Leeflang et al. 2014, Internet marketing has been observed to be a profitable and cost-effective method for businesses that aim to attract more customers. The strategies for online marketing become significant for performing different amounts of activities to the companies and have entered the domain of selling with the help of internet media. Online surveys have been conducted of the customers of Tesco, and from the primary data, it has been analyzed that the majority of the customers mainly prefer to go for online shopping. Therefore, it can be said that online marketing in Tesco plays a vital part in gaining the purchasing pattern of customers as the perception of the customers is changing regarding buying the product.

Tesco involves E-marketing services having useful websites, banners, and emails to build productive relationships with the customers. The working relationship has helped the company to gain a presence in the competitive market. The retailing services of Tesco have been increased. Tesco has also maintained its flexibility by providing a lot of information about its services to its customers. Facebook and Twitter have the more significant advantage for Tesco to make a closer relationship with the customers. All these promotional campaigns help to achieve a competitive advantage in the market (Gupta and Verma, 2018).

Pricing and Cost Structure

The budget prepared is presented as follows:

Criteria Date Budget
Planning 3.8.2018-6.8.2018 £8120
Maintenance 7.8.2018-9.8.2018 £11,000
Website design and app design 10.8.2018-12.8.2018 £12,000
Marketing analysis 13.8.2018-14.8.2018 £17,000
Management 16.8.2018-18.8.2018 £10,000
Promotion activities for a new brand 20.8.2016-23.8.2018 £18,000
Evaluation for implementation of marketing tools and techniques 26.8.2018-29.8.2018 £11,500
Implementing the marketing strategies 29.8.2018- 03.9.2018 £20,500
Total £1,08,120

Table 3: Pricing and Cost Structure

(Source: Leeflang et al. 2014)


Developing Brand Vision

Tesco has a clear articulation regarding the brand vision for defining the brand strategies of the company and defining the brand goals that have aimed to establish a strong presence in the minds of the customers. The vision examines the plan for the company as it has gained revenue by 22.03 percent in 2017 and the sales have increased by 4. 5 Percent in 2017

Establishing Brand Position

Tesco has managed to rebuild the trust of its customers by building a strong brand positioning to form a large customer base. It can be said that the campaign of food love stories in Tesco was launched before the arrival of Bellini which was the strategy for positioning its brand for maintaining its approach. Tesco generally ranks fourth in the major supermarkets by recreating its brand values

Communicating Brand Position

In recent years, Tesco has attempted to make a series of changes that have generally aimed to win the trust of the customers. Hence, to gain the belief of the customers, Tesco has increased the number of staff in the supermarket to achieve a competitive advantage. In the year 2017, the sales revenue of Tesco UK was about £ 55.8 billion and the operating income was more than £1,280 million in the same year. Hence, it has recreated an excellent brand image in the minds of the customers by well strategizing its marketing activities.

Sustainability, TBL, and Stakeholders

The TBL process of Tesco UK is mainly associated with social-environment, environmental-economic, and economic-social. The social, and environmental factor of TBL and Tesco is related to environmental justice and natural resources stewardship globally and locally way (Leeflang et al. 2014). On the other hand, the environmental-economic factor is based on the energy efficiency process for enhancing product development strategy. In other words, the economic-social element of Tesco is associated with business ethics and the fair trade of sales revenue. The major stakeholders of this organization are their young and old customers. The target customers of this organization are 15-25 young aged people who mainly like to wear western dresses. On the other hand, the sustainability factors of Tesco UK are climate, sales revenue process, communication strategy with customers, and product development strategy.


Utilizing the assignment, it can be concluded that Tesco is one of the largest retailers in the world; the success has only come through effective leadership management. Every aspect of the business is always monitored to achieve the goals and objectives of the company. The strong decision-making ability generally makes sure that the customers, communities’ suppliers and the staff are treated with integrity and respect.Hire an expert at 'Assignment Help'.

Reference list

Bahl, S. and Chandra, T., 2018. Impact of Marketing Mix on Consumer Attitude and Purchase Intention towards' Green ' Products. A Journal of Research articles in management science and allied areas (refereed), 11(1), pp.1-11.

Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.

Hutchinson, K., Donnell, L.V., Gilmore, A. and Reid, A., 2015. Loyalty card adoption in SME retailers: the impact upon marketing management. European Journal of Marketing, 49(3/4), pp.467-490.

Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.

Leeflang, P.S., Verhoef, P.C., Dahlström, P. and Freundt, T., 2014. Challenges and solutions for marketing in a digital era. European Management Journal, 32(1), pp.1-12.

Leonidou, C.N. and Hultman, M., 2018. Global marketing in business-to-business contexts: Challenges, developments, and opportunities.

Negri, F., 2018. Retail and Social Media Marketing: Innovation in the Relationship between Retailers and Consumers. In Social Media Marketing: Breakthroughs in Research and Practice (pp. 1185-1208). IGI Global.

Palmer, M., Simmons, G. and Mason, K., 2014. Web-based social movements contesting marketing strategy: The mobilization of multiple actors and rhetorical strategies. Journal of Marketing Management, 30(3-4), pp.383-408.

Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network operations and marketing to enhance customer satisfaction. International Journal of Operations & Production Management, 37(1), pp.105-123.

Schlegelmilch, B.B., 2016. Global Marketing Ethics and CSR. In Global Marketing Strategy (pp. 195-220). Springer, Cham.

Steenkamp, J.B., 2017. Global Marketing Mix Decisions: Global Integration, Not Standardization. In Global Brand Strategy (pp. 75-109). Palgrave Macmillan, London. (2018). TESCO UK. Available at: [accessed 11/09/2018]

Wood, S., Coe, N.M. and Wrigley, N., 2016. Multi-scalar localization and capability transference: exploring embeddedness in the Asian retail expansion of Tesco. Regional Studies, 50(3), pp.475-495.

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