Marketing In Practice Assignment Sample
Introduction
In the age of globalisation, market expansion is a prime concern for international business companies and this reason, marketing strategies are highly required. Tesco is one of the popular companies and the company has intended to expand its market in Malta, and for this reason, the business environment based on the application of Political, Economic, Social and other factors through the PESTLE framework needs to be evaluated effectively. In addition to that, intended marketing tactics, customer engagement plan, marketing challenges, and the marketing mix are also evaluated in boosting the marketing practice based on the part of Tesco.
Organisational overview
Tesco Plc is one of the popular multinational groceries based in the UK and offers a great range of products as well as aimed to serve customers every day with affordable, sustainable and healthy food. Tesco has operated 4,752 stores in an international range and the entire operation of the company is supported by approximately 3,30,000 colleagues to provide opportunities for consumers for enjoying a better quality of life (Tesco, 2023). In 2022, the operating profit of Tesco is £2,560 million which had escalated by 65.5% from 2021 and inclusion and diversity propels the pace of progress within the unfettered competitive scenario.
Marketing Plan
Outline the market environment for Tesco Plc.
PESTLE analysis
Political
The macro business environment is crucial and a stable political government has offered great support to expand the market and good political relationships with neighbouring countries also have provided a positive impact. From the research, it has been stated that Malta is a republic as well as a democratic country and the Parliamentary system has been followed within governance while Prime Ministers, the President and other ministers have led the country (Gov.mt, 2023). Müftüler-Baç, (2019) demonstrated in the investigation that following the European Neighbourhood Policy has helped Malta in improving its relationship with neighbour countries such as Cyprus which positively amplifies the scope of business.
Economical
For the expanding business of Tesco Plc, the economic factor is important as it has played a great role in boosting the business which also has positive effects on the national economy. The current Gross Domestic Product (GDP) is 17.74 billion and the escalation within GDP has implied the good financial condition of Malta and it positively supports business expansion (Worldbank.org, 2023). In recent times, the inflation rate of the country is 6.2% which is comparatively low and it may decrease the purchasing power of consumers while innovative strategies help grocery retail chains to grab the attention of consumers (Take-Profit, 2023).
Social
In any country, a growing population has prominently contributed to expanding business, though Malta is a small country while its population has escalated effectively. Considering the investigation, it has been stated that Malta is an island country and the population of the country is approximately 4,20,00 which is rising day to day. (Veenendaal, 2019). In the country, the market share of food which includes grocery is $978.10 million in 2023 and the demand of the market is projected high due to an increasing growth rate of 4.38% it also depicts a fair chance of business expansion for Tesco Plc (Statista, 2023).
Technological
Technological infrastructure plays an important role within a nation and increasing engagement of technologies positively helps in improving the operational quality. In addition to that, eGovernance has reflected the strong planning culture in Malta and the country has provided attention to improving the quality of operation for the organisations within the country along with the foreign companies (Europa.eu, 2023). In recent times, the Digital Economy and Society Index published by the European Union (EU) has ranked 5th out of 28 member states and it also states the technological progress within the nation (Trade.gov, 2023).
Legal
In any country, legal laws are important for expanding business for foreign companies and legal harassment may lead towards failure, and for this reason, evaluation of legal aspects is important. Malta is a prime trading partner in the EU and following the trading rules of the EU may help Tesco in improvising its business operation while the country has possessed 31.6% of the EU’s total export (Privacyshield.gov, 2023). In addition to that, foreign companies have to collect Trade Service Division License, Common Agricultural Policy License, and EU licence to expand their business in Malta and it may also create trade barriers within the country (Trade.gov, 2023).
Environmental
Sustainability plays an important role within the macro environment analysis as it provides a great range of impact on the business as Malta has taken several initiatives to reduce the carbon footprint. In addition to that, Tesco Plc has taken several initiatives which positively support in improvising the quality of operation and it also helps in overcoming the environmental related issues in Malta.
The Intended market position of Tesco Plc.
In Malta, there are several companies which are posing a real threat to Tesco Plc and for overcoming the unfettered competitive scenario, effective strategies related to marketing are crucial. Market positioning is one of the critical parts of marketing strategy and it helps in determining to a large extent what consumers think is being offered to them and it also helps in targeting along with segmenting the market. In the market of Malta, there are several competitors such as Lidl, Valyou, Scotts, Park Towers, PAVI, Smart supermarket and many more and the positioning of a company is determined based on two separate dimensions such as quality as well as value. In addition to that, based on the above map, it has been stated that Tesco Plc has taken a position under affordable range and high quality which helps in grabbing the attention of consumers despite the presence of so many rival companies.
Different market channels
Marketing is important in recent times, and Tesco may have followed omnichannel marketing which integrates as well as the cooperation of several channels helps in interacting with consumers. Yrjölä et al., (2018) demonstrated in the research that Omni-channel marketing has created an advantage of boosting the relationship with consumers in foreign countries and it helps in providing consumers seamless cross-channel experience. In the traditional form of marketing, Tesco Plc may follow bricks and mortar marketing which positively helps in interacting with consumers and grabbing the attention of targeted consumers after launching its operation. On the other hand, during the launching time, the grocery retail chain may provide attention to digital marketing which effectively helps in reaching more consumers in the country. Approximately 92.1% of the population in the country has been acknowledged as social measures and for this reason, the application of social media marketing may become comparatively more fruitful. Mason et al., (2021) mentioned in the article that the sudden outbreak of the pandemic has provided a great opportunity to acknowledge the changing behaviour of consumers and that social media marketing become popular in the international range. In addition to that, with the help of social media marketing strategy, the purchasing intention of consumers may have been influenced which positively help in expanding the market within the country.
Apart from digital marketing, based on print media along with broadcasts challenges, the marketing of the company has also been boosted in market entry strategy. In a highly competitive scenario, the application of omnichannel marketing along with a unique market positioning strategy such as providing offers, and discounts positively the company influencing the targeted audience. In Malta, therefore, integration of marketing strategies are highly essential to increase awareness regarding the products and service of Tesco Plc which positively reflects on the financial turnover of the company.
The Intended marketing tactics
7P marketing mix
Product
Tesco has offered a great range of products related to grocery and the company has aimed to offer healthy products to improve the quality of life of the targeted audience. In addition to that, following the standardisation for product development has also provided great support to Tesco in bringing satisfaction among consumers in the international range in an effective manner. Apart from packaged food, Tesco has offered other fresh food items and top-quality products of the retail business chain may attract the attention of consumers within the market of Malta effectively.
Price
Price is another important factor within the marketing mix because the price range of a product has a direct relationship with the purchasing decision of the consumers. In addition to that, Tesco has aimed to offer healthy products in an affordable range to the consumers and the adoption of penetration pricing strategy effectively helps in grabbing the attention of consumers. On a particular note, penetration pricing strategy refers to setting the price range of products low at the initial stage without compromising the quality of products while it also helps in taking competitive advantages effectively.
Promotion
The process of promotion aims to establish communication with the base of customers to convince them for buying the product and also convince them regarding the pricing policies of the company. The promotional activities of respective companies include public relations, advertising, and the overall marketing strategy of the organisations for the effective launch of any new product. It has been identified that marketing activities such as distribution, product, and promotion have the ability to influence the overall purchase decisions of customers which ultimately affects customer satisfaction (Yusuf and Matiin, 2022). TESCO Plc may use traditional media and print advertising, social media marketing, and celebrity endorsement strategy and may also provide discounts and offers to manage the promotional activities of the company for increasing the overall customer engagement rate of the company in Malta.
Place
The place of the marketing mix refers to the route or channels by which goods move from the source of origin to the end user which includes distributors, wholesales, retailers and intermediaries. It has been identified companies need to manage location strategies effectively to help the customers to find the products easily which may facilitate customer loyalty and customer satisfaction concurrently (Sudari et al., 2019). TESCO Plc has to gain access to the remote locations of Malta to reach the last potential customer and make the product available and accessible for the customers of Malta.
Packaging
Packaging may be treated as the most important P of the entire marketing mix as it has the ability to influence the other Ps significantly which aims to represent the products of respective organisations in an attractive way to positively influence the purchasing decision of customers. It has been identified that the concept of packaging is not associated only with the protection of goods, but it has become a tool for marketing which influences the trends of consumers in terms of making purchases (Alhamdi, 2020). TESCO Plc may avoid the use of plastic in its packaging process which may further help in driving environmental sustainability within the business operations of the company in Malta.
People
The people component of the marketing mix indicates the individuals or groups who are indirectly or directly associated with the marketing activities of respective organisations in order to enhance the overall process of marketing. The management of the people aspect of the marketing mix leads towards human interactions which play a significant role in affecting the perceptions of customers regarding the quality of service and help in gaining a competitive advantage in the operating markets (Darmawan and Grenier, 2021). TESCO Plc may have to manage its people such as the marketing team, sales team, distribution team and others in order to occupy an advantageous place in the market of Malta.
Process
Process in the marketing mix indicates the series of steps which facilitate respective organisations in terms of recognising the problems of customers, analysing the opportunities related to the market, and helping in the creation of marketing materials to enhance the process of marketing. TESCO Plc may have to manage the after-sales service of the company and may further have to resolve the issues of customers in real-time for gaining a higher market share in the Malta market.
Customer Engagement Plan
Forming a customer engagement plan refers to the strategies of respective organisations, in this case, TESCO Plc for the effective improvement in customer satisfaction and increase in the overall development of customer loyalty concurrently. It has been identified that customer engagement is a behavioural manifestation centralised to the respective firms which is beyond purchase and results in motivational drivers (Barari et al., 2021). Effective following the components of the digital marketing funnel may help in improving the overall degree of customer engagement for TESCO Plc in the region of Malta. The marketing funnel is the representation of the customer journey which is visual in nature and helps in learning regarding the purchase decision of customers for increasing the accumulated degree of customer engagement for respective organisations. It has been highlighted that the digital marketing funnel aims to support the capitalisation of cultural heritage by drawing attention, stimulating desire, raising interest, and generating actions related to goods, services, activities and events (Veghes, 2020). The components of the Digital Marketing Funnel consist of awareness, consideration, conversion and loyalty and the goals of respective brands are to inform, convert, attract, and engage customers in each stage of the funnel which enhances the overall degree of customer engagement.
Sharing the vision, mission and stories of TESCO Plc may help the company to increase the overall degree of customer engagement through the effective formation of a shared vision for the company. On the other hand, increasing the degree of personalised interactions, providing free benefits to the customers, and collecting and resolving feedback effectively may help TESCO Plc to improve the quality of customer engagement in terms of operating the market of Malta. It has been identified that Customer Engagement represents strategic imperatives, especially in the case of highly interactive services which facilitate competitive advantages and cost reductions concurrently (Rather et al., 2022). Hosting customer engagement events which are virtual may help TESCO Plc to engage with its customer base effectively which may further help in improving the accumulated brand reputation and image of the company in the market of Malta. Moreover, setting up a collaborative roadmap regarding the product of the company may have the ability to increase the degree of customer engagement for TESCO Plc for managing its business operations successfully in the market of Malta.
Conclusion
The purpose of the report was to form a customer engagement plan for TESCO Plc in terms of conducting business operations in the market of Malta and the report outlined the market environment for the company through PESTLE analysis. In addition to that, the report formed a market positioning map for TESCO Plc and evaluated Omnichannel marketing from the perspective of TESCO Plc to enhance customer engagement. The report logically evaluated the mode of the 7P marketing mix and suggested customer engagement plans for TESCO Plc through the use of the Digital Marketing Funnel Model and found that sharing the vision, and missions of the company has the ability to improve the overall degree of customer engagement for TESCO Plc for operating in Malta.
References
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