Environmental And Marketing Analysis Of Tesco

Environmental Analysis

Tesco Plc is a retailing organization that offers many goods and services to their consumers. It was established in 1919 London by Jack Cohen. In the current era, it offers their services in different countries like Hungary, Ireland, Malaysia, South Korea, Thailand, Turkey, Slovakia, Poland, India, United States of America, United Kingdom, and China. Furthermore, this organization is the largest relating organization at the global level. This organization primarily concentrates on the grocery retailers. This report discusses environmental factors with respect to the UK It also presents the current marketing strategies of Tesco. This report also recommends the strategies that could be used by Tesco for getting higher competitive benefits to the Tesco Essentials.      

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The environmental analysis is a significant factor for evaluating the condition of the country and gets a reliable outcome. The PESTLE analysis is an effective technique as it would assist to understand many factors that could directly impact on the business like political, social, environmental, economic, and legal. Further, it is analysed that Tesco offers their facial cosmetic products to their consumer at the global level. Hence, the organization has needed to understand different technologies that could be effective for gaining their competitive benefits in the specified time (Philip, et al., 2017). 

The retailing organization operates globally hence worldwide political factor could directly impact on the performance of the organization. It considers many factors like legislation acts, tax rates, and country stability. The government encourages to the retailer for increasing possibilities of a job for their local population due to financial instability (Villeneuve and Pasquier, 2017). Tesco gives their best contribution to increasing employment possibilities, which could enhance demand for their goods along with diversifies their employees. In addition, it is also examined that the government of the UK is stable that could favorably impact on the business. Further, existing government party of the UK facilitates the organization to launch grocery products and services, which would be effective for Tesco to obtain higher profit from Tesco Essentials.     

There are certain factors that could affect a business like demand, costs, prices, and profit as ta hey are a major concern for Tesco (Baker and Saren, 2016). Hence, an organization might be aware of any modification in policies like modification in taxation and other components that could impact on the growth of the organization.

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In addition, it is also examined that the economic condition of UK is improved as compared to the last record hence it can be said that Tesco would get higher competitive benefits from Tesco Essentials in the market of UK. Further, Tesco could also imply two significant strategies like internationalization and diversification as it would lead the company to get higher success. Moreover, it is also found that Tesco has concentrated on promoting their goods and services by considered digital tools and marketing strategies due to declining household’s income levels of organization (Bagozzi, et al., 2018).        

Political Factors

Due to variability in the social modification, developments demonstrate that consumers of the UK have motivated towards the one-stop and bulk shopping.  Hence, Tesco has improved in the numbers of grocery products and services. Furthermore, it is also evaluated that sale of goods and services is depended on attitudes and beliefs of consumers. In the current era, consumers are health conscious hence organization should consider this factor in their products and services as it would lead to an impact on the consumers buying behaviour. Furthermore, it is also evaluated that the market of UK is favourable for Tesco Essentials caused of health-conscious people. It would also be effective to retain their consumers in the least time and cost (Agnihotri, et al., 2016).      

The modern technologies have offered various opportunities to the organization in getting higher competitive benefits. The UK has used modern technology that could be beneficial for the firm to aware their consumers with respect to the o products and services of the firm (Järvinen and Taiminen, 2016).  In addition, it can be illustrated that approximately 65% of the population has used smartphones that could also beneficial for the Tesco as it would be capable to deliver their services by online sources. Another advantage is that the organization would also be capable to cover approximately 65% of total population as it would also be a big achievement for the company. Thus, it is analyzed that the UK market technology also demonstrates the favorable situation for Tesco Essentials.   

The environmental factor could also directly impact on the growth of the firm. The government of the UK has made many policies and laws with respect to water wastage and pollution in securing the health of people as well as atmospheres. Further, Tesco also concentrates on the wastage of water and other resources as it could be imperative for the organization to effectively deal with the UK market (Brown, 2016).           

The government policies could also directly influence Tesco performance. The government of the UK makes many policies with respect to the code of practice, wages laws, working hours, safety security law, and employment law for the individual of UK. Hence, Tesco should consider each law to make an effective relationship with the consumers of the UK and get higher positive benefits (Baker, 2016). Further, it is also analyzed that if Tesco considers rules and regulation for Tesco Essentials then they would get benefits and retain their position for long-term.    

Economic Factors

The marketing mix strategy could enable the organization to promote their goods and services among a large number of consumers. This strategy considers many components like product, place, price, and promotion. It will be discussed as below:

There are mainly three factors that are used by Tesco like Grocery, Financial, and Food facial cosmetic products for their potential as well as new consumers for the specified place. Tesco Essentials is brand of Tesco that offers facial cosmetic to their specified consumers. Furthermore, this company has considered many components like structures, superiority, packing, brand name, range, and product strategy. It could be imperative to demonstrate new goods and services in an appropriate way. Therefore, it is evaluated that these factors could be effective for making a positive image among consumer’s mind (Homburg, et al., 2017).

Price is another important strategy that could be effective for any business it directly impact on the financial condition of the firm. Tesco Essentials offers quality facial cosmetic products to their consumers hence they charge higher as compared to their market players. Moreover, it can also be evaluated that organization is concentrated on medium and higher class of people to offer their goods and services. They mainly concentrated on the quality of goods and services as compared to the quantity (Kowalkowski, et al., 2017).  Moreover, it can also be evaluated that higher cost could be easily afforded by the middle and higher class if the organization provided unique quality goods and services. Thre are certain strategies that are considered by Tesco Essentials like penetration strategy, product line, and competitive pricing strategy to influence a huge amount of consumers and retain them for long-term (Guesalaga, 2016).    

Place strategy could imperative for increasing huge amount of consumers along with an improvement in the profitability and sale in the upcoming period. Tesco could imply Business to Consumer method to deliver the products of Tesco essentials in the specified country. The organization could select this strategy as it allows their consumers to directly deal with consumers and get a reliable outcome. In addition, direct communication and deal with consumers could offer an opportunity to enhance the profitability of the organization in the upcoming period (Kireev, et al., 2016). 

Promotion approach is used to decide the methods that could be effective for improving the sales revenue of the firm. On the basis of existing condition, it is evaluated that social media can be an effective promotional technique as compared to the other promotional techniques. It could assist Tesco to directly converse with their potential as well as existing consumers with respect to their goods and services. It could also be effective for the accomplishment of the organizational task. There are the different method by which a company could influence a huge amount of consumers in limited time and cost. These are Facebook, Instagram, Twitter, LinkedIn, emails, and Snap-chat (Wang, et al., 2016). It can also be imperative for making a favorable image with their consumers in the upcoming period. It can also be evaluated that positive relationship could increase demand for goods and services. Furthermore, Tesco could easily attract their consumers by offering a discount on specified products and services. Apart from this, the organization could also use the online method to communicate with consumers and obtain higher profit by increasing demand for products and services.

Social Factors

There are many factors that are considered by Tesco as it will aid the organization to obtain higher competitive benefits like product quality, unique features, higher availability, online services, and discount facility. These are discussed as below:          

The organization provides quality products to their consumers as it would be effective for retaining consumer in the least time. It is also stated once an organization would be capable to be satisfying their consumers then they would obtain higher competitive benefits. Further, quality of goods and services could also make enable company to make a positive relationship with their consumer (Luca, et al., 2016). 

Unique features of the organization could lead the firm to get a reliable outcome. Tesco offers fresh products and services to their consumers as it could be effective for making a positive relationship with specified consumers in the least time and cost. 

Tesco offers their goods and services by considering the online sources that would enable them to offer their goods and services in the least time and cost. It could be imperative for offering goods and services of a firm to their desire consumer on their expected time. In addition, it is also examined that online service enables the organization to attract a large number of consumers by saving their time as well as cost (Klincewicz, 2017).          

Tesco offers many discount facilities to their consumers as it would be effective in attracting a huge amount of consumer. The discount scheme could enable the organization to increase their revenue in the limited time frame. Further, it is examined that the discount scheme also directly impact on consumers buying behaviour as, it would be effective for the Tesco to get higher competitive benefits (Achrol and Kotler, 2016).      

BCG Matrix is an effective technique for gaining the understanding with respect to each brand of the firm. It is analyzed that a large organization may face challenges at the time of dealing with their consumers. The BCG matrix facilitates organization to determine their actual situation of the firm by evaluating their market share as well as marketing growth. It considers many factors like Start product, Question mark product, cash cow product, and dog product (Burns and Dewhurst, 2016).          

The Star product demonstrates higher market share and higher market growth of products and services. It is analyzed that the market of UK is star Tesco petrol. The profit is increased by 11.9% with the trade of product products sale.      

Technological Factors

The question mark products and services demonstrate the higher market growth but low market share. Tesco insurance products and services come in question mark product as it could be a negative impact on the market share. It demonstrates the higher market growth of but low market share.

It is lower market growth and higher market share. It is also addressed that cosmetic products come in this area. It is also analyzed that Tesco Essentials brands comes in cash cow part as, it leads Tesco to obtain higher market share.

Dog product demonstrates lower market growth with lower market share. Tesco Film club is Dog product herein Tesco has needed to diversify their products and services in the least time and cost. It is analyzed by higher competitors market and lower growth. Thus, it can be said that an organization should need to make a strategy for this products and services to get higher competitive benefits.    

The market segmentation, targeting, and positioning could be imperative for improving brand image and market share of the firm in the upcoming period. By considering STP, Tesco could spread the awareness of goods and services among potential consumers. It could also support to make a clear outline before launching goods and services in the marketplace. Through this, Tesco will make their outline by considering many factors like consumer types, particular location for delivering goods and services, product cost, and promotional technique caused by increasing demand of goods and services (Zhao, et al., 2016).          

The market segmentation could play an imperative role in identifying an appropriate market for the company to deliver goods and services to their specified consumers. There are two factors that could be considered by Tesco Essentials at the time of segmentation like demographic factor and psychographic factor. The demographic factors consider many components like age, education, gender, marital status, and occupation (Moreno-Izquierdo, et al., 2016). In addition, it is examined that segmentation could lead Tesco essentials to gain their financial performance of the firm. Furthermore, Tesco essentials also consider the psychological factor could in which organization concentrate on certain factors such as attitudes, opinions, social class, and values of consumers. It will help to simply increase the market share of the firm.      

Tesco essentials has mainly targeted on those consumers who believe to have quality and fresh products rather than quantity. Further, it is analysed that cosmetic product purchasing by consumer in larger amount as it could offer an opportunity for the organization to get higher benefits by selling Tesco Essentials. The primary purpose of selecting urban area consumers is that they can spend more on any goods and services. Tesco can imply “healthy- wealthy people” as a slogan for influencing a huge amount of the consumers in the least time and cost.       

Environmental Factors

The target marketing strategy is an effective tool to determine a strategy for operating business process in the least time and cost. Through this strategy, Tesco essentials has considered marketing mix strategy caused by boosting the financial performance of the firm. In addition, Tesco essentials have implied a concentrated marketing approach to influence a huge amount of consumers in the upcoming period (Stead and Hastings, 2018).

Positioning also plays an imperative role in improving the organizational performance in the upcoming period. Furthermore, it can be evaluated that once an organization could make a positive image among consumer’s mind then they could be capable to attract a huge amount of consumers in less time and cost. Tesco could use the scratch card to make a unique image of the firm in the market. Further, Tesco can also offer a discount on purchasing Tesco Essentials, as it would also attract a huge amount of consumers. It could lead to increase the market share and attract a huge amount of consumers in the upcoming period (Kraus, et al., 2016).       

The recommended goal and objectives for Tesco Essentials are discussed as below:


The goal of Tesco Essentials is to increase the demand of the consumers.

SMART objectives

  • To increase the revenue of Tesco Essentials by 30% in the upcoming 6 months
  • To increase the sale of Tesco Essentials by 35% in the upcoming 7 months
  • To enhance the online presence of Tesco Essentials by 20% in the upcoming 3 months
  • To enhance the profitability of Tesco Essentials by 30% in the upcoming 6 months

Tesco should use price strategy as it would enable them to maintain the cost of Tesco Essentials. Through this strategy, Tesco could offer Tesco Essentials at a low price as compared to their market players, which would lead to getting higher success in the market of UK. In addition, it is also examined that if Tesco will offer their goods and services at higher prices than it would increase possibilities of higher employee turnover. The organization should make innovation in their goods and services (Datta, et al., 2017). Further, it is evaluated that creativity and innovation could support to gain the productivity of the firm at the global level. In addition, it is evaluated that the price strategy could also enable the form to make their unique image in the marketplace and enhancement in a number of consumers in the least time and cost. It will also aid Tesco to increase their revenue in the specified period. Apart from this, it is also evaluated that an effective planning could be imperative for gaining the attention of consumers. There are certain sources that could be considered by the organization to retain their consumers like higher quality, higher consumers value, reasonable prices, and convince. It could lead the firm to obtain a reliable outcome by increasing their market share (Kraus, et al., 2016).       

Legal Factors


With respect to the above discussion, it can be concluded that Tesco has made a cost-effective marketing strategy for Tesco Essentials as it would lead to getting a higher market share in targeted time and cost. In addition, it is also evaluated that price strategy could endorse domestic as well as international products and services. In addition, it is examined that Tesco also uses potters five force models is used as it would enable to understand the external factors that would negatively impact on the organizational growth. It can also be suggested that the organization could use the BCG matrix to understand the existing situation of the firm.


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