P4, p5

Unit 3 P4, P5 For this assignment, I will explain how the market research that the business conducted helps to contributes to its marketing plan.

A Marketing plan is a way of showing how your marketing strategy and tactics are outlined, when designing a marketing plan you must have collect data through market research, find a target market for your product, describe your product, be familiar with your competition and make sure your product has a unique image, make sure you have mission statement to inform us on who you are selling to, what are you selling and how your selling your product uniquely, choose your marketing strategy then make sure you have a price, position and brand for your product. Importantly make sure everything within your budget, set you marketing goals and lastly monitor your results.

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SITUATIONAL ANALYSIS

Tesco’s strength as a company is that they offer job opportunities, value and finest price and they strong alliance and connections.

Their weaknesses are they have a lot of store in one area and they are protest by the local businesses. Their opportunities is that they have new developments, technologies and market also weak competitors. Tesco’s threats are their consumer’s loyalty towards them, their competitors and disapproval from local community.

STAGE 1

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OBJECTIVES

Tesco expectations is to get a positive mention within 3 months from the local news and positive feedback within 4 months from the customers.

STAGE 2

Unit 3 P4, P5 Their aim is to “create value for customers to earn their lifetime loyalty”.

It is important for the employees to understand Tesco’s main aim and how they can provide their support by improving the business’s success and reputation.

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STRATEGY

To attract customers of different interest, Tesco offers a variety of products due to this it will encourage customers to come back and shop again.

STAGE 3

Another strategy is to build a media relations campaign to target investors, local business and target media such as newspaper and magazine and online new also televisions.

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TACTICS

They do this by understanding customers, making their customer’s needs a priority and act responsible within the communities.

Tesco’s team also expects to be treat with the same respect by working as a team and building trust and

STAGE 4

Unit 3 P4, P5 respect with each other, provide support by listening and having polite manners toward them also sharing experiences and knowledge.

Tesco could update their website and so advertorials or submit a press release.

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ACTION PLAN

Tesco could do a briefing with a local journalist about Tesco or updating new information about Tesco on their website or informing the consumers regarding the plans of Tesco.

STAGE 5

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CONTROL

There needs to be a control in surveying the locals, they must ask questions based on 3 aspect which are the physiological, safety and social needs.

The outcomes should be to see the responds and feedback of the locals.

STAGE 6

A marketing plan involves:   

SWOT analysis PESTEL analysis SMART objectives

Unit 3 P4, P5   

Determine strategy and tactics Implementing strategy and tactics Evaluating effectiveness of market analysis

SWOT analysis of Tesco Strengths        

Increasing market share Insurance Tesco online Brand value Club card Next day delivery UK market leadership Reinforced

With these strengths Tesco will earn their customers trust and they will assurance them that they will give the best service as it can provide. Also supply convenient services for their customers such as next day delivery when doing online shopping which strengthens their global operation. Additionally, Tesco created loyalty package such as club card which is one of their biggest strength in the market as they help their customers help save every day, creating a long-term relationship with customers. In the UK, Tesco is the largest retail group, it has a strong brand name and market leadership. There are more store such as Tesco metro and Tesco express which are small stores located in local area so it is easier for customer to shop.

Opportunities   

Non-food retail Health and beauty Further international growth

Tesco has F&F part of non-food retailing, they have become a global company which is one of the opportunities.

Weaknesses   

Reliance upon the UK market Debt reduction Signs point to serials acquisitions

These weaknesses can cause damage in the marketing strategy. Tesco is reliant on the UK market regardless of it being an international company which cause then will cause the Tesco brunches aboard to stop functioning as there will be a crash in the market. This will make the business loose customers as they won’t be trusted with money.

Threats

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UK structural change could start a price war Overseas returns could fall Wal-Mart and Asda competitions International expansion

Unit 3 P4, P5

PESTLE analysis for Tesco PESTLE stands for political, economic, sociological, technological, legal and environment factors.

Pestle analysis helps recognise what industry an organisation belongs to, it is joined with the SWOT analysis to assess the strengths, weaknesses, opportunities and threats for Tesco.

PESTLE analysis should be engage in as a strategic tool in marketing plan as strategic management is about implementing and articulating decisions which helps an organisation achieve its long term objectives which this analysis does as it is part of the environmental scanning branch of strategic management.

Tesco’s are everywhere, sells to everyone and sells everything which makes it dominant in the UK. PESTLE analysis has contributed to Tesco’s success as it has assessed how it has branded, marketed itself, the current economic climate and the assessment of external factors. Additionally Tesco has taken the implications for customers, employees, stakeholders, associated organisations and its mission statement. The external factors has continuously been examined whether it’s a negative or positive impact.

A PESTLE analysis is useful: 

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Political- TESCO updated with their environmental surrounding so if there is high levels of unemployment due to the credit crunch, they would have realised in advance if they were heading for a recession which they would make them plan ahead.

Economic- Tesco offer varies of products and services from value to finest prices which makes it look attractive to all aspect of the market as they have branded themselves as to selling to everyone. This is why Tesco is fortunate as they have not been badly affected by the recession.

Sociological- this aspect focuses on the considerations such as increase in immigration or increase in young professionals. Due to this, there has been demand for new goods, for example, a single person who is a workaholic, this contributes the new good which are the quick microwavable meals to make it easy for those always on the go.

Technological- this has the most impact on Tesco as the growth of the company was due to the use of the internet for the use of online shopping and to provide their customer a delivery service through their website.

Environmental- Tesco has the reputation to encourage their customers to make low carbon choices and supporting carbon reduction.

Legal- changes within the laws affects businesses, as for Tesco, the changes to the data protection act affects them which mean Tesco has to be careful with their data and all legislation so they can avoid them from going to court.

A PESTEL analysis is important to help the development and the success of the business as there is day to day management of each store, it is difficult to manage the business without knowing the external factors which affected the business.

SMART objectives

Unit 3 P4, P5 SMART stands for Specific- objectives that are stated clearly with who, what, where and when?

Measurable- business uses percentages to see how they are performing Achievable- the objectives need to be something a business can to do for it to be useful Realistic- if realism is not used, the shareholders will be affected if the business has not achieved their goals that has been set due to it not being realistic Time-related- this helps motivated everyone as they will know that there is s deadline that needs to be meant.

Example of objective for Tesco “To sell 20% more dairy products per week in the next year” Product life cycle of Tesco The product life cycle has four stages which are introduction, growth, maturity and decline.

The cycle begins with the product entering the market, as purchasers know about the product, profit begins to increase, and organisations are required to invest in the brand image. Sales declines as the sales have been saturated. Each stages varies as the marketer decisions changes.

Tesco’s product are in the product lifecycle, for example, Tesco’s grated cheese would be in the growth stage due to the fact that the prices are lower, as the trend of their customers buying grated cheese as they it is convenient for them. In addition, Tesco’s pork is in decline because it is unhealthy and now there are better option as they are both cheap and healthier.

What happens at each stage?

Introduction- promote the product to create awareness Growth- there is high speed of advertisement with focus on building brands, products are profitable at this stage and the market share is stable.

Maturity- products passed through the earlier stages are spent longer, the sales increase at a slow rate and then becomes stable due to producers differentiating the products and brands. At this stage there is a greater use of media as the promotion becomes more widespread which means the market reaches saturation.

Decline- this stage means there is a downfall in the market as customers tastes have changed or new products have been introduced. Reducing marketing spending and cutting cost can improve the market.

Unit 3 P4, P5

For this assignment, I will be explaining why the different types of target groups are chosen for different products or services.

A buyer is an individual or a business who purchase something from someone who is selling. A customer is a person who uses a product or service. There are various factors that influences a consumer purchases, the business will need to understand the influences to help them market their product and service effectively. The campaigns that has been produced to tackle these influences are marketing and advertising. It’s important to know who to influence to purchase the item, for example, parents will have influence over the purchasing decision for products that are targeted at young children.

Segmentation is grouping people who has common needs or similar buying behavior. It enables business to target their product at the right customers effectively also identifying the needs and wants of customers and providing them with the products and services which meets their needs.

Ways a market is segmented:  Geographic – region, size of metropolitan area, population density and climates are variables used in segmentation. Businesses that has reginal and national marketing changes their product, advertising and promotion just to meet the need of geographic section.  Demographic – sex, gender, family size, family life cycle, generation, income, occupation, education, ethnicity, nationality, religion, social class are mixture of variables used in this segmentation. Demographic segmentation is the most popular sources when segmenting customer into groups as customers wants are similar due to their age and income.  Psychographic –grouping customers according to their lifestyle. Activities, interests, opinions, attitudes and values are variables used. This approach helps understand what influence purchase decision such as different attitude and expectations.  Socio-cultural – combination of social and cultural variables.

The segment that Tesco used is geographic segmentation as from the location of the store, Tesco serve customers based on the size of the population as its stores are located in urban and sub urban areas.

Segmentation is measurable as the size, levels of purchasing can be measured. For example, Tesco’s target market has approximately 500,000 citizen and its income is higher the rural or sub rural areas. The market segment is profitable to serve which mean it is substantial. Segmentation helps have a better brand management as it allows you manage your marketing message which provides you to have a unique selling benefit and helps you communicate with the group that is looking for it. Lastly, it’s a more effective as it narrows you target audience which means you might need to use less advertising and promotion channels. It helps you reduce sales cost as it allow to use less distribution channels when segmenting a market because your target audience could buy in similar ways and at similar locations.

The purpose of segmentation is to make specific groups of people believe that your business is that best one to satisfy their needs and wants by generating higher sales volumes. Also allows you to develop products at lower cost by only picking a certain group of people wants instead of providing varies products to multiple of groups. A restaurant that services on Italian food than having an international menu that needs to buy, stock and prepare different types of food. This is an example of segmentation providing economies of scale Targeting Targeting is deciding which potential customer segments the company will focus on. Tesco uses mas marketing targeting strategy which is a strategy that focus on the common needs of customers than what the difference are. Tesco doesn’t differentiate the type of customer

Unit 3 P4, P5 they serve. They serve all types of customers as they are known to have a lower prices products.

Example of target customer segment for Tesco Product – Tesco’s own brand TV Segmentation

Target customer for Tesco’s brand TV

Region

UK and 13 other countries

Density

Rural and urban

Age

All age

Gender

Males & females

Income

Low and middle income

Occupation

Students, employees, professional High school, technical, bachelors

Education Social status Family size Lifestyles Personality

Working class, lower middle class, middle class Single person, extended and nuclear families Traditionalist and contended conformers Easy-going, determined

Tesco provides rich customers with high range and branded products, for middle class customers, they offer cheap prices and Tesco’s brand products and for lower middle class they provide value products which are the cheapest product.

Positioning To position the act of the company’s design, it is important to image the place of the company in the target market. The goal for this act, is to influence the consumers mind to maximize the benefits to the company.

In Tesco’s advertisement, it has “cheapest price everyday”, this indicates that Tesco position itself as a low price retailer. This strategy attracts customers as they will come and visit the store to see the lower price product which makes it successful in the industry. Another strategy they use is the loyalty program. This program includes customer gaining point according to how much they spend then after Tesco will send out vouchers which are worth the same of how much they have point the customers collected. This position Tesco as a retailer that cares for their customer.

Branding

Unit 3 P4, P5 A brand is the identity of a service, product or business, it has many form such as a symbol, sign, name, colour combination or a slogan. A brand makes it easy for the customer to recognize the business, with the brand, customer will decide if they will want to buy the product or use the services base on how it looks. Additionally, its lets the customer know if the product is good or bad. The brand is important because once a customer is attracted to the brand, they are likely to come back for the product or service.

Relationship marketing Developing long-tern relationships and trust with customers. Tesco purpose is to earn their customers loyalty. They promote deals and sales of their product through emails, this helps them build a relationship with their customers.

The relationship markets helps Tesco to achieve the aim. The main objective is that the existing customers receive the main information from Tesco. The information is regarding the deals on the products, especially those who have a club cards. The club cards stores the history purchased items, this increases the loyalty between Tesco and the existing customers. This shows the customers that tesco is good at knowing at what the customers want as Tesco send deals on specific items the customer usually purchase. The main aim of relationship marketing is meeting the needs of the customer. An example Tesco tries to meet the customer’s needs using relationship marketing is the Tesco website advertising holiday seasons such as Christmas and Easter.

Tesco can achieve their aims and objectives through the relationship marketing method as it always make sure that their customers know about old product that are on discount and new products. Additionally, they can achieve their aims by advertising latest deals to customers online which can help Tesco gain higher sales and profit.

PRODUCT The products Tesco provide are food, clothing, electronics, financial services, product line cater and every possible thing that customers need. They have grocery delivery services and free music to download. There are variety of choices that they provide, for example, brand, regional produce, type, international cuisine and other choices that don’t leave customer lacking.

PRICE Tesco try to keep the prices as low as possible without reducing the quality of the products.

It’s important for Tesco to keep their customers happy. The low prices of the Tesco supermarket chain in Britain leaves supermarkets like Sainsbury behind. The raise in the prices were expected as it has become well established. The increase of energy kept on going but the expectations are maintained to the lowest costs possible.as the large stores has the prices lowered further, the smaller stores the product costs a little more due to higher. The Tesco has a club card system allow the customers to get points together. Later on the points can be converted to money later.

PLACE Tesco is located in UK, Hertfordshire. They have many stores that are spread worldwide.

Online and offline are the two main distribution channels. The offline forums are Tesco express, Tesco extra, Tesco metro and etc. customers that feel uncomfortable with big stores like Tesco extra go to smaller stores like Tesco Express which is easily accessible for customers. The online forum is Tesco official website.

Unit 3 P4, P5

PROMOTION

Tesco has its low prices which makes it outstand from the supermarket chain, this is the reason why its brand is expanding due to the fact that it is reducing cost and standing by their words, which increasing its profit. The types of promotion Tesco use are TV advertisement, offers discount, sponsor charity events and etc. They also make it easy for their customers to see offers such as ‘buy one get one free’ or ‘half price’. This make customers feel like they are saving money so they will purchase the product. The club card service is the way Tesco provides its discount which helps them know the pattern of demand of its customers which lets them know if the market doing well. They segment their market and build their strategies through the help of this.

PEOPLE

The sales assistant in Tesco is contributed to the success of the company. The colleague privilege card is one of the way Tesco earns their customer loyalty as it helps them save as you earn and buy as you earn.

PROCESS

For Tesco, the process is about keeping their customer happy by giving them quick services, they do this by making their employees pay attention to the customers’ needs and solving their issues within the store.

PHYSCIAL ENVIRONMENT Tesco does not see the point of wasting money on furbishing it store, they want their store just to be clean attractive so it easy for the customers to find the product they want as it is well categorized. Their offers are placed in front so the customer can spot it easily, this helps their financial resources as customers are buying more then they need. Additionally, the website is simple and easy to use.

BIBLIOGRAPHY – www.neilstoolbox.com https://www.stuvia.co.uk/doc/105408/p5--why-groups-of-customers-are-targeted-forselected-products--unit-3 http://www.netmba.com/marketing/market/segmentation/ https://www.ukessays.com/essays/marketing/tesco-aims-and-objectives-relationshipmarketing-techniques-marketing-essay.php http://www.slideshare.net/GucciAJJA/p5-5026874 https://www.ukessays.com/essays/marketing/case-study-tesco-marketing-strategiesmarketing-essay.php http://research-methodology.net/tesco-segmentation-targeting-and-positioning-2/4 http://marketplanningwithtesco.blogspot.co.uk/

Unit 3 P4, P5 https://www.scribd.com/doc/46832161/P3-Strategic-Aims-and-Objectives-of-Tesco-PLC https://prezi.com/7hm9snhs-uz2/strategy-for-tesco-metro/ http://www.essay.uk.com/free-essays/business/tescos.php