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Marketing Analysis Of TESCO In UK

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TESCO is one of the well-known supermarkets launched in UK and gives a tough competition to its competitors such as ALDI, WOOLSWORTHS and others, which also offer a wide range of products like TESCO. It is also known as the multinational shop for groceries in Australia. The supermarket in this case also sells retail merchandise to the consumers of all range. TESCO is considered the third largest retailer in Australia after the two super giants mentioned above (Tesco 2017). TESCO saw its existence in 1919 as a market stall and slowly emerged from there. Its name slowly became known to others and appeared to the public in the year 1924. The company stared expanding internationally to other countries in the year 1990s. The products offered by the brand are clothing, electronics, foods, books and others. It has also expanded its market in various types of services such as internet services, financial services and others. The company offered its products in large volume and at low cost. The market capitalization of the brand is about $18.1 billion and is listed in the London Stock Exchange (Tesco plc 2017).

The paper focuses on the internal and external environment affecting the company TESCO and its expansion. Further, it will form a recommendation regarding the target market, marketing mix and product description of the new product that the company is recently aiming to launch.


Target market

Targeting is one of the most important activities of any business while deciding about their marketing strategy and the way it wants to expand in the market. Targeting a market means a way of focusing on the group of people or customer to which the company wants to offer its products (Wirtz and Lovelock 2017). It is only through proper targeting strategy the company is able to design it products and pricing strategy accordingly. This is because a produce produces for the customers and thus targeting or segmenting its customers helps them to move fast with its activities. TESCO too needs to form a targeting strategy for the products it is aiming to launch in its stores. The new product that will be launched by the company will mainly aim at offering the product to the premium customers in the market (Barton 2015). Moreover, it will focus at offering the product to customers of all age range from juniors to the elderly. This is because the company mainly produces grocery products, which is useful for all type of customers.


New Product description

The company is planning to launch a new product in the company for expanding their business as well as customer range. It is planning to come up with the new range of Finest Grocery for its customers. It is done to increase the sales growth of the company and attract a better and much premium shoppers. The new range of grocery includes high quality chilled desert, coffee, red meat, tea, chilled ready meals, continentals and others. The products being introduced mainly include the things that are used by the high standard people that lead a busy life and prefer easy to use and eat foods and grocery items. The prices charged for these products will be five percent higher compare to the price charged by the company in its previous items. This will help them drive more premium customers for their products in different markets (Metcalf et al. 2016).

Marketing Mix for new product

The company also needs to formulate a proper marketing mix strategy for its product to get a better understanding of the type of price, product, promotion and place the company wants t focus (Khan 2014).

Price: The new product that the company is aiming to introduce will be charged a high price compared to its previous grocery items. This is because the products are of high quality and mainly consists of foods consumed by rich society. Thus, there will be a five percent rise in the price of new grocery product compared to the old ones.

Products: The Company is planning to introduce a wide range of Finest grocery products for the customers and will include chilled food items, deserts, ready to eat food and other premium items.

Place: it will be available in all the TESCO outlets all over the world and will be distributed through distribution channels and intermediaries to the supermarkets and the other retail shops. This is because most of the products being introduced are TESCO’s own products.

Promotion: the company has changed its promotional strategy to launch its new product range in the market. It has used online portal to increase the awareness of its new product in the market. It has also focused at Buy 2 strategy in which it offered a pair of products at low price.



Barton, L., 2015. Active Positioning: The Importance of Relevancy. Journal of Marketing Perspectives, 1, p.48.

Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review paper). International journal of information, business and management, 6(2), p.95.

Metcalf, L.E., Neill, S., R. Simon, L., Dobson, S. and Davis, B., 2016. The Impact of Peer Mentoring on Marketing Content Mastery. Marketing Education Review, 26(3), pp.126-142.

Tesco plc. 2017. Tesco PLC. [online] Available at: [Accessed 12 Sep. 2017]. 2017. Tesco - Online Groceries, Homeware, Electricals & Clothing. [online] Available at: [Accessed 12 Sep. 2017].

Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World Scientific.

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