Tesco Strategic Marketing

TESCO
Strategic Marketing
MG529 Strategic Marketing – Group Presentation

Presented by :
Cristina Elena Facaoaru – ID 21907937
Nicu-Alexandru Facaoaru – ID 21907938
Vasile Marian Moraru – ID 21907943
Balasubramaniam Balasubramaniam – ID 21901951
Introduction
The presentation will identify

• The objectives of TESCO’s Strategic Marketing
And will cover the following:
o Marketing size and trend date
o SWOT and PESTLE Analysis
o Competitor Analysis
o Stakeholder (and Customer) Analysis
Key Information About TESCO
• Founded in 1919 by Jack Cohen

• UK’s favorite and biggest supermarket
• The brand offers products and services
• Number of employees: 440,000 (2018)
• Annual Revenue: £57,491 Million (2018)
• Profit: £ 1,208 Million (2018)
TESCO
Market Size and trend Date
• Founded in 1919 by Jack Cohen

• UK’s favorite and biggest supermarket
• The brand offers products and services
• Number of employees: 440,000 (2018)
• Annual Revenue: £57,491 Million (2018)
• Profit: £ 1,208 Million (2018)
• TESCO hold over 28.4% of the overall
market share in UK. UK & ROI sales for
2021: £48.8 bn and estimated profit before
tax for 2021 is £825 m
TESCO
The Objectives of Strategic
Marketing
• Improve customer position.
• Cut down price
• Create highly valued brand
• To be strong in non-food business
• International Expansion
SWOT & PESTLE Analysis
• While PESTLE analyses the external factors
that can influence a business, SWOT
analysis focuses on the internal factors,
strengths and weaknesses of a business.
• Business managers use PESTLE and SWOT
analysis to make major decisions.
• By assessing the influence of internal and
external factors on the business, the
management team obtains a comprehensive
evaluation of TESCO as a business.
TESCO’s SWOT Analysis
Tesco’s Strengths
 With a growing number of stores, Tesco is already a
global business: If in 2008 Tesco operated 3,751 retail
stores, now the Tesco network is expanded to 14
countries and includes over 6,966 stores. The addition of
new stores in the operational chain has led to an
increase in the revenue of business.
 Reliable and efficient supply chain and superior
technologies used in the sales process: Using a
simplified business model, efficient waste management
policies and reduced incurring costs, Tesco has
managed to build an efficient distribution network. To
count the products automatically, Tesco has introduced
the RFID - barcode system, a mobile payment
application and advanced M-commerce facilities.
Tesco’s Weaknesses
 Fraud and accounting scandal in 2017: Due to false
accounting statements and misappropriation of profits,
Tesco was accused of fraud and received substantial
fines.
 Financial errors and unfair business practices:
Tesco's financial profits were severely affected by very
large financial debts and uncovered obligations on
credit cards. As it recently turned out, Tesco prevented
the owners from renting their properties to those
supermarkets very close located to its stores, such
restrictions being illegal and unethical.
Tesco’s Opportunities
 Price equalization: As recently announced, for most
items, Tesco has adjusted its prices to those of its
rival Aldi. Using this strategy, Tesco managed to stop
and reverse the loss of market share to Aldi.
 Online sales: This opportunity, along with the
development of home delivery services, will lead to
the growth and modernization of the Tesco business.
Tesco’s Threats
 Fake Farm legal threat in 2017: Due to the
misleading of customers as a result of the selling food
under the false name of "Woodside Farms", Tesco
faced severe legal threat procedures.
 Supply Chain Issues: These issues have determined
that Tesco's operations and profitability to be
threatened by shortages. When its supply chain was
disrupted by a recent health crisis, Tesco was forced
to limit the essential items a customer could buy.
TESCO’s PESTLE Analysis
POLITICAL FACTORS
• Government Regulation: Because the retailer is a
multinational brand and operate its business in different
countries across the world, Tesco should make decisions
according to different government and political regulations.
• Brexit Deal: The Brexit has created an environment of
uncertainty in the business community. The chairman of
Tesco, said that Brexit would increase the prices by 3% to
5%. Even if the deal would include tariff-free, there is
involved administration cost.
ECONOMICAL FACTORS
TESCO
Competitors Analysis
The main competitors of TESCO are:

 ASDA -14.1% of market share
 SAINSBURY – 16.9% of market share
 MORISONS – 10.14% of market share
 WAITROSE
 LIDL – German global retailer
 ALDI – German global retailer

TESCO
Stakeholders Analysis
Internal Stakeholders: employees, managers, board and

executive committee, shareholders.
External Stakeholders: customers, suppliers, creditors,
competitors, government.
Stakeholders have different influences and expectations that can
generate different conflicts. For example, suppliers wait for
payment on time while the TESCO management team tries to
consolidate the company's financial position by delaying payments.
Where TESCO operates, many small shops have closed, which
proves that in some situations, Tesco's activity can negatively
influence small competitors.
High salaries of employees and managers generate lower profits
and may upset shareholders who expect high profits from the
investments made.
Conclusion
To summarize, the retailer Tesco has a huge market

potential in the food industry. Tesco could increase its
revenue and compete effectively with its rivals if it uses
effective marketing tools and strategic decisions-making.
While PESTLE analysis highlights that Tesco is on the top
supermarkets in the UK and around the world, SWOT
analysis point out that processes, controversies and
uncertain economic environment are serious threats to the
company. The company should keep its eyes open for
changing laws and regulations.
REFERENCES
1. Business Writer (2020, June 4). Tesco shares a fall by 6%. The Irish
Times
2. Davis, A. (2018) Competition law – the basics, Available at:
https://www.pinsentmasons.com/out-law/guides/competition-law—the-
basics ( Accessed 27 October 2021)
3. Tesco (2020) Available at:
https://www.tescoplc.com/sustainability/downloads/religious-slaughter-
policy/ (Accessed 28 October 2021)
4. Vizard, S. (2020, March 5). Tesco becomes the first supermarket to
directly price match with Aldi. Marketing Week
5. Weston, P. (2019) Tesco vows to remove one billion pieces of plastic
packaging by end of 2020, Available at:
https://www.independent.co.uk/environment/tesco-plastic-packaging-
waste-bags-environment-trays-lids-a9180691.html (Accessed 28
October 2021)
6. Wood, Z. (2020, February 14). Tesco stopped rivals opening nearby
stores, watchdog finds. The Guardian
7. Wilson, B. (2020, March 8). Tesco limits sales of essential items. BBC
News

Tesco Strategic Marketing

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Tesco Strategic Marketing

Uploaded by

Copyright:

Available Formats

TESCO

MG529 Strategic Marketing – Group Presentation

The presentation will identify

• Founded in 1919 by Jack Cohen

• Founded in 1919 by Jack Cohen

The main competitors of TESCO are:

 SAINSBURY – 16.9% of market share

 MORISONS – 10.14% of market share

 LIDL – German global retailer

 ALDI – German global retailer

Internal Stakeholders: employees, managers, board and

To summarize, the retailer Tesco has a huge market

You might also like