Marketing mix of Tesco – Tesco marketing mix

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What is marketing mix?

The marketing mix is one of the most widely discussed marketing topics. A number of elements together constitute a marketing mix, however, Edmund McCarthy has identified the four key elements of the mix namely product, price, place and promotion. The marketing mix actually is the set of actions that companies develop and implement in order to promote their products and services to the target audience. This article focuses on the marketing mix of Tesco.

Introduction to Tesco

Tesco is a leading retailer in the world. Approximately 460,000 people work in Tesco, and the company has 6,809 stores around the world. It serves millions of customers every week, in its stores and online. It operates in the UK, Ireland, China, India, and many other countries. Tesco has its largest operations in the UK with over 3500 stores and over 310,000 colleagues (Tesco Plc, 2017).

Marketing mix of Tesco – Tesco marketing mix

This article analyses 7Ps of Tesco (Product, Price, Place, Promotion, Process, People, and Physical Evidence) and explains the company’s business & marketing strategies.

Products of Tesco

Tesco provides a wide variety of products including food, clothing, stationary, cosmetics, electronics, financial services etc. With its ever expanding product lines, Tesco caters to every possible need of customers. The company sells products from great brands in almost every product line. It has its own products too. Everyday Value, Tesco Lotus, Tesco Value, and F&F Clothing are some of Tesco’s own brands.

Prices and pricing strategies of Tesco

Cost leadership is Tesco’s pricing strategy. As a result, the company maintains as low price as possible for its products and services without any compromise with quality. Tesco enjoys economies of scale and works continuously with it suppliers to make the supply chain efficient to reduce prices. Fierce competition from companies such as Aldi and Lidl in the UK market also impacts on the pricing strategy of Tesco.

Place/Distribution channels of Tesco

Like many other retailers, Tesco uses two main channels of distribution namely online and offline. It has 6,809 offline stores around the world. The offline stores of Tesco are of six different types e.g. Tesco Express, Tesco Extra, Tesco Metro, Tesco Compact, Tesco Homeplus and Tesco Superstore. The online business of the company is called Tesco Direct.

Promotional strategies of Tesco

Tesco has a strong brand image which helps its promotional activities significantly. The company uses television, newspapers, and other media outlets to take its message to its customers. In addition to advertising, Tesco uses other forms of sales promotion. For example, it often provides buy one get one free offers for some of its products. Tesco has a loyalty card as well. Tesco Clubcard owners get points each time they shop which they can redeem to get discounts. They often get personalised discounts and offers as well.

Processes in Tesco

Process refers to a set of activities performed in order to achieve something. According to Baltzan & Philips (2008), business process is a standardized set of activities that accomplish a specific task, such as processing a customer’s order. In Tesco’s offline stores, customers pick up their products and go to customer assistants to pay. The can also use self-service machines to make payments.

People of Tesco

Approximately 460,000 people work in Tesco. Tesco has a great number of customer assistants who play an extremely important role in the success of the company. The employees are very competent and Tesco invests a huge amount money and time in employee training and development. The reward schemes for employees are very good in Tesco as well.

Physical evidence of Tesco

Physical evidence or environment includes but not limited to all the tangible representations of a company such as furniture, aprons, menu, brochures, letterhead, business cards, reports, signage, and equipment. Tesco has an excellent logo, and makes efficient use of colours. Offline stores are easy to navigate with all products well categorised which make it easy for customers to find their products. The Tesco website is also fantastic in its look and easy to operate.

We hope the article on the ‘Marketing mix of Tesco – Tesco marketing mix’ has been helpful. You may also like reading SWOT analysis of Tesco. Other relevant articles you may be interested in are:

Marketing mix of Sainsbury’s

Marketing mix of Coca-Cola

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Last update: 17 March 2018

Further Reading/References

Kotler, P. and Armstrong, G. (2012) Principles of Marketing, 14th edition, London: Prentice Hall

Lancaster, G. and Reynolds, P. (2004) Marketing, 1st edition, New York: Palgrave Macmillan

Tesco Plc (2017) About us, available at (Accessed 27 May 2017)

Photo credit: Tesco Plc

Author: M Rahman

M Rahman writes extensively online with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He is a graduate of Leeds Metropolitan University and London South Bank University.