Marketing Plan: Tesco Public Limited Company

Marketing Plan: Tesco Public Limited Company

Executive Summary

Tesco PLC is a public multinational company with its headquarters in the United Kingdom. It was founded in 1919, and has been operational for 96 years. In 1910s, there was an increase in the number of business organizations in the UK, and one of the organizations that sprang up during that time was Tesco (Brown & Turner, 2008). In 1919 and the succeeding years, Tesco was a small retail shop that served customers with products, such as groceries. An increase in the demand of its products led to its expansion into a large supermarket that was ranked one of the best retail companies in the stock exchange market of the UK. A critical evaluation of the strengths, weaknesses, opportunities, and threats by Tesco serves as the foundation of this marketing plan. Moreover, this marketing plan is seen to focus on Tesco’s strategic growth with suggestions on how it can improve the existent customer relationships. The plan also gives suggestions on the development of new products and services targeting various customers. This marketing plan focuses on Tesco’s marketing program, financial data and projections, its marketing organization, the implementation plan of the given suggestions, as well as the evaluation and control of the suggestions or proposals.

Company Description

Historical and Recent Operations

Tesco PLC was founded in 1919 by Jack Cohen when it began as a small retail shop that specialized in groceries. At the time of inception, Tesco served local communities in the UK, and the operations were facilitated by small stalls, which were distributed throughout the UK. The key suppliers to Tesco at the time of inception were small scale farmers living in the UK. In 1939, the company underwent rapid expansion that saw the creation of over 100 stores within the UK (Brown & Turner, 2008). The establishment of the stores resulted in the change of the company’s strategic purpose from the retail of groceries solely to the retail of clothes, books, electronics, furniture, software, toys for children, and petrol products. The retail of these products was accompanied by services, such as internet services, telecommunications, and financial services. In 2013, Tesco saw a significant increase in the number of its employees, which stood at 597,784. The increase boosted its operations and profitability making ranked one of the best retail companies worldwide.

Strategic Focus and Plan


Tesco’s mission is to be the champion of customers in the retail market and industry, while helping them enjoy a better quality of life as well as an easy and simple way of living. Tesco is at the forefront in meeting and satisfying the needs and demands of customers through the retail of products and services that are affordable (Humby et al, 2008).


In the coming years, Tesco seeks to achieve the set nonfinancial and financial goals that are outlined below:

Non-financial goals

  • To introduce new products and services to the retail market
  • To penetrate foreign markets in Africa, Asia, and South America
  • To participate in community programs that will help attract more customers

Financial goals     

  • To obtain more finances to enable the expansion of its stores and the increase of distribution
  • To record an annual increase in revenues

Core competency and sustainable competitive advantage

Tesco aims at using its core competencies in its bid to achieve competitive advantage over close competitors in the global retail market, such as Amazon, Morrison’s and Sainsbury’s. Tesco has successfully developed core competencies in the retail of high-quality products that are recognized by consumers (Ryans, 2013). It has also developed a good reputation among customers as a reliable retailer and has created a sense of community and cooperation among its customers. A sustainable competitive advantage of Tesco is that it has formed strong and long-term relationships with its customers, other retail organizations, and suppliers.

Situation Analysis


Tesco has numerous strengths that include a commitment to high-quality products and strong marketing orientation. It has also established a long-term relationship with its customers and suppliers, and these have boosted its operations and profitability. Tesco’s weakness is that its product line has a seasonal nature that jeopardizes productivity and profitability. The company’s opportunity is evident in the technological advances that have increased efficiency in its operations. However, the company faces threats that include stiff competition from other retail companies, such as Sainsbury’s, Morrison’s, and Amazon (Ryans, 2013). Tesco has also found it hard to control the theft of its trade secrets.

Industry Analysis

Tesco PLC is one of the key companies in the global retail industry, which contributes significantly to the global economy (Hugos & Thomas, 2006). The industry is divided into two categories: hard and soft. Apparently, Tesco is one of the several companies that fall under the soft category, and this is because it specializes in the retail of clothing, groceries, software, and fabrics.

Competitive Analysis

Tesco faces stiff competition from both foreign and local companies, and these include Amazon, which is an online retailing company based in the US, and Sainsbury’s and Morrison’s, which are major retailing companies based in the UK (Ryans, 2013).

Company Analysis

Tesco was founded in 1919 by Jack Cohen with its strategic purpose being to provide the retail services of products, such as groceries although its expansion later saw the retail of clothes, books, electronics, furniture, software, toys for children, and petrol products.

Customer Analysis

Tesco has several customers both in the domestic and foreign markets, and this is underscored by research that indicates that it has over 6 million customers worldwide.


Market-Product Focus

Marketing objectives

Tesco’s primary marketing objective is to develop a better understanding of the demands and needs of customers as well as the satisfaction of the customers.

Target markets

Tesco’s primary target market is women attending to household duties, and this is evident in the sale of groceries, such as fruits and vegetables that are frequently purchased for domestic household chores. The fashionable clothes sold by the company target the youths in the UK and the rest of the world. Moreover, services, such as telecom and financial services are seen to target financial institutions within and outside the UK (Hart, 2003).


Tesco leverages on myriads of positioning strategies to attract target customers and these include functional, symbolic, price, experiential, product, and competitor position (Hart, 2003).

Marketing Program

Product strategy

Tesco retails high quality products that include groceries, clothes, books, electronics, furniture, software, toys for children, and petrol products. The high-quality of the products has ensured the attraction of several customers (Hart, 2003).


Price strategy

Tesco leverages on sensitive pricing to attract customers. The company retails its products at lower prices compared to those of its close competitors.

Promotion strategy

The company promotes and markets its products through platforms, such as internet, print media, and mass media (Hart, 2003).

Place strategy

Tesco distributes its products through shops and retail stores in the UK and other foreign markets, such as North America, South America, Africa, and Asia.

Financial Data and Projections

Historical sales revenues

Tesco Company has recorded huge sales since its foundation in 1919, and this has in turn boosted its operating income, which stood at 3.054 billion Euros in the financial year 2013/2014. The net income of Tesco is seen to increase annually and this is because of the increase in the number of customers.

Financial Projections

Tesco’s 2015 financial projections are shown below:



Organization of Tesco

To market its products and services to customers, Tesco’s marketing organization will focus on the following customer groups:

  • Manufacturing group
  • Consumer product
  • Industry associations group
  • Manufacturing group

Each of the groups mentioned above will be headed by a sales and marketing manager whose responsibility will be to give reports to the marketing director. Moreover, each of the mentioned groups must be created to facilitate the marketing of Tesco’s products within its target markets.

Implementation Plan

Plan to implement the strategies

It anticipated that the implementation strategies will begin at the start of Tesco’s next financial year on February 2016. The implementation strategies are as follows:

  • The creation of the positions of sales manager and marketing director
  • The development of a system of marketing information to oversee the patterns of product purchase and customer satisfaction
  • Analysis and reporting of the results of surveys focusing on customer satisfaction
  • Reestablishment of the objectives of the marketing team for Tesco’s next financial year.

Evaluation and Control

Plan to evaluate and control the strategies

To evaluate and control the strategies mentioned above, there will be a comparison of the actual and planned activities monthly after the strategies are implemented. Second, the created project teams will have the responsibility of determining the necessary changes or operations during the implementation of the strategies identified above.


Brown, M., & Turner, P. (2008). The admirable company: Why corporate reputation matters so much and what it takes to be ranked among the best. London: Profile.

Hart, S. J. (2003). Marketing changes. London: Thomson.

Hugos, M. H., & Thomas, C. (2006). Supply chain management in the retail industry. Hoboken (N.J.: J. Wiley.

Humby, C., Hunt, T., & Phillips, T. (2008). Scoring Points: How Tesco Continues to Win Customer Loyalty. London: Kogan Page.

Ryans, A. (2013). Beating low cost competition: How premium brands can respond to cut-price rivals. Hoboken, N.J: Wiley.