Unit 19 Marketing Planning Assignment - TESCO

Unit 19 Marketing Planning Assignment - TESCO

Unit 19 Marketing Planning Assignment - TESCO


Diploma in Business

Unit Number and Title

Unit 19 Marketing Planning

QFC Level

Level 5


The current assignment consists of two tasks. First task deals with marketing planning and its changing perspectives. It deals with the organizational capability and organization audit of the chosen organization and its affect on the organization. The last part of the first task describes the barriers towards marketing planning and ways to overcome these barriers. Task 2 of the current assignment deals with the proposal of marketing planning and the process involved in strategic planning. Further it tells ways and techniques for product development. Pricing policies, different communication mix and methods of distribution are also described and recommended. There are several barriers that arise in the course of implementation. The final part of the task gives the details of ethical issues and tells about the consumer ethics affecting the marketing plan.

The organization chosen for the assignment is TESCO. The organization is the leader in chain of food retailing in UK and ranks itself on the third place worldwide. It started way back in the year 1929 in London and in mid 1950’s it was quite popular in UK. In 1990s it started with different new innovations such as opening of new metro and express stores to meet the requirements of people. In mid 1990’s it came up with the introduction of loyalty cards and soon joint ventured with the bank of Scotland. The company has expanded since and since 2000 it has focused on increasing the non food sales through internet and also without internet. (Innovation Leaders, 2016)

Task 1: Compile a marketing audit

1.1 Explain the changing perspective of marketing planning

Marketing Planning- It refers to the process of identifying and developing and implementing the plans to recognize the needs of the consumer in the market and meets their demands in order to earn profits for the company and help the company to run in a better way in long run. It means to identify the needs of the customers and plan accordingly by collecting knowledge of the customers in the market and competition prevailing. The so collected knowledge or information is used to make decisions. (Business Case Studies, 2014)
As described earlier the company is on number 3 position worldwide when it comes to revenues and it is on 2nd position as far as profits are considered, which clearly indicates that how successful the company is and how effective the marketing strategies are for the organization.

System- The organization is ranked among the top companies across the world and the challenges that the company might have to face can be identified with this. The website of the organization provides goods and services to the people across UK. (Kasi, 2016)

Strategy- The organization not only cares for short term goals but also aims at achieving its long term goals to help the business run successfully.

Organization- The organization is the top brands and sells in the country and reason for this success is the 7S’s of Mckinsey, which are as follows.

  • Strategy
  • System
  • Skills
  • Staff
  • Structure
  • Shared values
  • Styles.

Staff- The staff within the organization plays a vital role for the success and the downfall for the organization. Well trained and skilled staff should be hired to provide efficiency. Such people who have complete and proper knowledge about the concepts and plans within the market should be hired. The staff people should posses certain qualities such as proper attitude, truthful nature and integrity.
The company is definitely market oriented. It wants to increase its market share and become a global leader by increasing its sales (Kasi (I), 2016)

1.2 Organizational Capability

Strategic intent- Strategic intent means that what organization wants. The company must be clear in the thoughts that what they actually want to do and the reason for doing the the things must be very clear. The statement “why they want to describes the end results and this known as strategic intent. (Singh, 2014)

Marketing Audit

Strategic reality- This is an organization which helps its customers in guiding through them in the buying and selling of houses. The whole complicated process is dealt with ease with the help of the organization. It is both art and science involved in buying and selling and strategic reality satisfies its customers. (Strategic Reality, 2016)

The company in UK is looking to expand its business by making a huge investment of around 1 billion pounds. The core activity that the company will be looking is make its workers and staff more effective so that they provide excellent results in work and in dealings with he customers. The company is looking to invest 200 million pounds in training and development programs in order to achieve excellence.

The company is also looking for the expansion of its stores to make them more attractive. The company will also loo towards the move of online shopping, and is looking to invest 150 million pounds and provide various coupons and points to its customers. The company has a unique feature of decreasing capital investments. Considering this, the company is looking to increase its expenditures. The company has a image of first mover. The company is looking to increase its products and offerings. It is also looking on Warsaw to open a industry. (JC_jo92, 2013)

1.3 Techniques for Organization Audit

Organization Audit- Organization audit refers to the analyzing and evaluation of the financial records of the organization to get he appropriate picture of the transactions carried out within the organization. The auditing can be done internally, by the employees, or it can be done externally, by the other organization.

Following are the basic audit techniques:
  • Physical examination and count
  • Confirmation
  • Examination of authoritative documents
  • Re computation
  • Retracing book keeping procedures
  • Scanning
  • Inquiry
  • Examination of subsidiary records
  • Correlation with related information
  • Observation of pertinent activities and condition.


Physical count and examination



This means recognize and count the verification of the collected data. The auditor does not have knowledge of the complete things and he is not a expert in all things. It is also known as eye witness. The knowledge so collected is examined and distinguished.

As the name suggests it means to get a written format from someone outside the organization who is qualified enough. It is quite useful technique for the auditor. The verification of various things are done such as accounts receivable & payable, bank balances, liabilities, inventory, advances and investments.


This method is adequate in certain cases if all the preparations are made properly and in advance to get the knowledge.

This is sent to the clients concerning their amounts. The drawback for this is that the parties are not under any legal obligation. The auditor is not answered. (Princess, 2016)

1.4 Organization audit of TESCO


Chosen company

Effects on marketing planning



Although the company claims that it does not supports any political party but proofs suggests otherwise. The company has made donations to parties. Senior members of the company tend to be a part of he government specially in case of labor events. TESCO has urged the government to cut down the tax rates in order to increase its sales. Taxes play a major role. Increase in VAT may lead to declining of sales and vice versa. There are other regulations which effects the expansion of the company.



There has been substantial growth for the company throughout many years. Even at the time of recession and financial crises the company has shown slower growth. For many companies, there were losses during this time. GDP has also increased for the company. A growth in the economy will help TESCO as there will be a increase in the disposable income of the customers.



People tend to change their culture and behavior and this has a effect on the company. There has been a decline in the birth rate and the expectancy of people have increased gradually. People nowadays tend to save their time and go for bulk shopping and prefer to go to one stop stores more.



There has been a rapid growth in the technological department of TESCO and it has certainly moved to the internet services and provide eco friendly services. This has certainly provided opportunities for growth. The customers have found more convenient at self service and one stop stores. It has also decreased the labor cost for the company. (Kasi (I), 2016)

1.5 & 1.6 Barriers to marketing planning and ways to overcome these barriers

Organizational culture: Culture refers to the beliefs and attitudes and view of the people towards various things. Organizational culture affects the the outcome in a major way. There are interactions between managers and the workers on planning and strategies and these interactions sometimes go wrong due to the culture prevailing at the workplace. The organization which follows the bureaucratic culture must take plans into consideration which suites its clients and workers in a best way and provide favorable working conditions. Not understanding the culture of the targeted customers may lead to inappropriate marketing plans, thus the organization should make right planning decisions keeping in mind the culture of different people.

Behavioral barriers: The way of behaving in workplace can affect the marketing planning in a great way. The group conservative marketing may choose a different method of marketing to gain good returns and growth which could be different from the group of marketing which is filled with risk takers. They may be willing to take more risks as compared to the conservative marketing team.The organization must do survey and should come up with the best alternative for launching a new product. The top management should provide proper support and should be helping to the teams.

Cognitive barriers: Proper knowledge is very necessary for the plans and avoids the faulty decisions. Members with inadequate skills and knowledge are not able to understand the product and market and eventually fails to meet the satisfaction of the customers.The organization should provide proper training and programs for the efficient and productive marketing planning.

Systems and procedures: Information and appropriate systems are very essential for marketing plans. Guesswork is involved when there is not a proper survey and this may lead to inappropriate plans. Appropriate measures and procedures are essential for an organization. The system should be just to everyone.

Resources: Resources includes funds, individuals and time. The failure and success of an organization and its marketing plans greatly depends on the efficient use of the resources.Barriers of resources includes high production cost, lack of workers and improper time management which may eventually lead to the failure. Therefore, all the resources available should be used very efficiently and in best possible way. (Nayab, 2011)

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Task 2: Marketing Planning Proposal

2.1 New product or service

TESCO in recent years have launched a new variety of healthy and good foods for its consumers. It helps its consumers to control the salt, sugar and fats without bringing any change in the tastes.

Marketing Planning Perposal 1

Marketing Planning Perposal 2

Marketing Planning Perposal 3

This new range has improved significantly meeting the tastes and preferences of the customers. According to the UK marketing Director of TESCO “it is very important for the company to lead a better and healthier lifestyle for its customers. For this we have introduced a new range of products with better taste and surety of food health and provide more choices.”

It includes two alternates for its customers:
  • Healthy living- Good in taste and has less calories.
  • Healthy living- Proper balances of food contents. Preferable foe people wanting to maintain weight and want good and healthy alternatives for their family.

These new ranges also are according to the Public Health Responsibility Deal 2012, meeting the certain requirements and targets about the consumption of salt.The company has used the feedbacks of its customers in this new development making use of the experts in nutrients and other professionals.There are certain offers to avail such as get 3 for the price of 2. No non veg product is there, and neither any non veg food variant is used. Green coding indicates healthier choices. (Tesco, 2015)

2.2 Strategic planning process

Strategic planning- It is a activity performed by the organization to ensure that all the operations are carried out properly and all the employees are working towards the common objective and the betterment of the company and have all the basic necessities towards the changing environment. It ensures that all the resources and energy are fully and efficiently utilized. It is an effort to recognize what a company is all about, what it is doing and serving, why it does so, its future perspectives. (Balanced scorecard institute, 2000)

Vision- The type of company TESCO is, it is described by the 5 key elements of its vision-

  • Global wants and needs.
  • Growing opportunities due to the expanding business environment.
  • Innovation and great deal of ideas.
  • Great share within the local market.
  • Inspiration and winning loyalty of the customers.
Mission statement:

Its retains the loyal people. Its needs to identify its loyal customers in order to achieve its mission. For that, they have made certain cards and clubs and give offers and vouchers to its customers.


These are the goals pf the company. These are for a certain period of time. The objectives of TESCO are interconnected to each other. If the business is not running well, then it will not have the customers it wants to retain. As a result of it, there will be no investors and the final result will be, the company will not be able to meet the expenses of its employee. If the company wants to expand, then it has to meet all its objective to prevail in the long run. (123helpme, 2016)

BCG matrix:

BCG Matrix.

BCG Matrix 2

This BCG matrix is divided into 4 parts and each part determines how much money is to be invested in each category.
Cash cows- These have a high share in the low growth market and should be aimed for higher profits. It is said that investment is a waste in a low growth industry.

Stars- These have a great share in high growth industry. More investment should be made in stars so as to make them the cash cows.

Dogs- They have low share of low growth growth market. They are preferred to be sold as they decline the performance of the organization. They can be used to attract new customers and can be used accordingly.

Question marks- Have a low share of high growth market. The question marks in future, can become dogs or stars. So, they need to be carefully studied and the investment should be made considering the facts carefully. (Szczerba, 2013)

2.3 Techniques for new product development

There are 8 steps involved in the development of the new product. These are as follows:

  • Getting a new idea
  • Screening of this new idea
  • Development and testing of the idea
  • Close analysis of the business
  • Make the development of the idea into product or service
  • Marketing test
  • Advertising or commercialization
  • Final launching of the idea (product or service).
The explanation of 2 of the ways is given below-

Concept development and testing: After the idea is there, it is necessary to get the opinions of others as well. The idea is told to a group of trustworthy people and their reaction is seen and thus test is performed for the new idea. The idea should be such so that the group of people can visualize it. The feedbacks so received can be used to further enhance the idea or concept and the marketing thinking can also be determined. (Duval, 2013)

Advertising or commercialization: After the idea has been laid down, the product or service is ready to be moved in the market. The final decision about the prices of the product is made and various marketing plans are discussed upon. The distribution channel is briefed and the product or service is finally ready to the launched in the market.

2.4 Justifying Recommendations

2.4.1 Pricing Policies

Pricing policy means that how an organization sets the selling price of its product or service considering the prevailing competition, cost involved in production and the value of their product or service. It is a very important characteristic for a company as it is helpful in determining the profits and losses for the company. There are different types of pricing methods used. These are as follows:

  • Premium pricing
  • Penetration pricing
  • Economy pricing
  • Skimming pricing
  • Psychological pricing
  • Neutral strategy
  • Captive product pricing
  • Optional product pricing
  • Bundling pricing
  • Promotional pricing
  • Geographical pricing

Economy Pricing- Economy pricing involves less cost. This feature of low cost attracts the customers as the market is quite sensitive and competitive. It is suitable for TESCO as this pricing policy suites its product in best way and the company wants to acquire large share of the market and wants to become a global leader. (Bhasin, 2015)

2.4.2 Distribution Methods

Distribution method or distribution channels refer to the complete chain involved in the whole process of reaching or the product or services to the final consumers. The chain includes wholesalers, retailers, distributors, internet, etc. There are four different types of distribution methods or distribution channels-

  • Direct Channel
  • Indirect Channel
  • Selective Distributive Channel
  • Intensive Distributive Channel

Direct Channel: This method refers when the producer wants to sell the goods or services directly to the customers. All the intermediaries are removed from the channel in this method. All the functions are performed by the manufacturer itself. It tries to meet the customers by-

  • Own retail or super stores.
  • Door to door selling
  • Through internet
  • Direct sales.

TESCO has been moving towards selling through internet and building the loyalty of its customers. This would suite best as it wants to be a global leader in terms of revenue and profits. (Zkjadoon, 2016)

2.4.3 Communication Mix

It can be referred to as the particular mix of public relations, personal selling, advertising, sales promotion and direct marketing. These are also the various elements of the communication mix.

Marketing commnunication mix

The core element of communication mix for TESCO is public relations. As told earlier, the organizations aim at retaining the loyalty and loyal customers. It tries to increase the profits with better customer relations. (Next, 2015)

2.5 Barriers to implementation

Apart from poor funding and timing, unwanted products and services, the other four barriers are as follows:



1.The terms strategy and tactics are different, and they are often confused as same.

There are several strategies like mobile and media strategies and customer related strategies and tactics should be such so as to support the strategies.

2.Little emphasis are laid upon positioning and differentiation of the product or service.

The product should be positioned well enough in the minds of the customer and differentiated.

3.No proper coordination

There should be proper coordination among the employees of the company and proper attention should be paid.

4.Confusion among the customers and ultimately gets to loose the customers

The consumers should be provided with appropriate details about the product and should be made clear about their confusion. (Coleman, 2012)

2.6 Ethical issues and solutions

Ethics- These are the values and morals that a business organization needs to follow and perform within the limits or ethics. Every business or company face certain ethical issues. It has to perform within the codes of conduct. The ethical issues can be as follows-

  • Fundamental issues
  • Diversity issues
  • Decision making issues
  • Compliance and governance issues

Ethical issues


Fundamental issue- The industry lacks integrity and trust within the organization. There are also times when the customers are not dealt properly.

The affairs of the company should be handled with honesty and commitment and every customer should be treated properly.

Diversity Issues- There are different culture prevailing and expectations of different people are different.

There should be diversity in the workplace, training programs should be adequate and growth opportunities should be provided. (Oster, 2016)

2.7 How consumer ethics effect your marketing plan?

The consumer ethics and factors that affect the marketing plan are as follows:

Demographics-This tells about the population and demographic condition of the areas and plans accordingly for the consumers.

Economic conditions- The current and future economic conditions. Factors such as inflation, unemployment, tax rates and other factors.

About the market- The size, potential and growth opportunities within the market are considered and consumers are benefited accordingly.

Market potential- Strengths and weakness of the competitors.

Market share- It represents the total number of consumers that are buying the product of the company.

Present customer composition-The culture and ethics of the consumers affects the company. Education, disposable income, occupation, habits, etc. tend to have an effect on the company. (National association of realtors, 2016)


The above assignment is about the company named TESCO and its changing perspective in planning within the last 10 years. It tells about the organizational capability and organizational audit of TESCO and various techniques of audit. The last part of first task gives a detailed study of barriers in marketing planning and ways to overcome them. The second task of the assignment includes the development of new product and techniques for new development. It includes the strategic planning process comprising the vision, mission, objectives and BCG matrix of the company. Further part of the assignment consists of the pricing policies, distribution methods and communication mix. The last part includes the ethics of business and consumer ethics.


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