Marketing audit that would support a marketing plan


The purpose of this assessment is to produce a marketing audit that would support a marketing plan. The audit should be produced for a company (or business unit) of your choice in one sector from; food retail, gaming, fragrance or charity and should focus on one country only.

Assessment Task

Conduct independent research using quality sources fully referenced to provide the evidence to support your analysis e.g. Mintel, MarketLine Advantage, ABI Global, newspapers, journals, company websites etc.

This Marketing Audit is limited in scope and should contain the following areas: (A full Audit, based on Kotler’s format, can be seen in Appendix 1 of this brief)

  • Macro analysis (PEEST)
  • Micro analysis (market, customers and competitors)
  • Internal analysis (strategy, functions, productivity)
  • One-page TOWS matrix and key strategic challenges summary
  • Appendices (up to 4 sides of supporting information/analysis, not included in word count which must include the Company Overview)
    Appendix 1: One-page Company Overview to include; name, type, size, key competitors, customers, products/services. Specific area of focus for your audit – company or business unit and country.Appendix 2: supporting Macro model/framework application Appendix 3: supporting Micro model/framework application Appendix 4: supporting Internal model/framework application


Executive Summary

This report has provided an overview and a detailed analysis of the marketing audit through a strategic focus on the Tesco Plc. This is categorised as the largest retailer in the UK. In the marketing audit which is applicable for the future marketing plan, it has analysed, identified and appreciated issues and challenges in their internal and external business environment. Different tools have been used in the analysis.  It has been recommended that Tesco Plc need to put more efforts in building their brand, ensuring they withstand the highly competitive market and having a more structured strategy of attracting and retaining their customers.  They must also focus on regaining their client reputation by clients and employee satisfaction which would generate and promote the level of consumer confidence particularly if the consumers and employees recommend the company to others.



Table of Contents

1.0 Introduction. 4

2.0 Marketing Audit 4

2.1 Brief Literature Review.. 4

2.2 Macro-Analysis (PEEST) 5

2.3 Micro Analysis. 6

2.4 Internal Analysis. 8

2.5 TOWS Matrix and Key Strategic Challenge Summary. 9

3.0 Conclusion and Recommendations. 10

References. 12

Appendices. 14

Appendix 1: Company overview.. 14

Appendix 2: Macro model/framework application. 15

Appendix 3: Micro-model/ framework application. 15

Appendix 4: Supporting internal model/framework application. 16





1.0 Introduction

In the contemporary business environment, the market function is increasingly pressurised to establish and implement business-focused approaches and strategies for marketing and harnessing the overall business effectiveness. According to Lipnická and Dado (2013), many organisation have a feeling that their marketing strategies need regular reviews and overhauls but lack knowhow to proceed. Despite such organisations having a concrete annual marketing plan, policies and operations, they are not reoriented to adopting to changing business environments and opportunities.  As noted by Al Fahad et al. (2015), through marketing audit, it is possible to conduct a systematic evaluation of overall plans, objectives, strategies, activities and organisational structure and marketing staff.  In this regard, this report presents a marketing audit of Tesco PLC in UK.  This is the leading retailer with 30% of the market share in the UK (Tesco plc, 2019).  In UK, Tesco PLC operates in distinct formats including Express, Extra, Supermarkets, Metro, Home Plus, One Stop, Bank, Booker and Dunnhumby. Despite its success in all these areas in terms of return on investment, profitability and market dominance, there is a need to develop broad marketing plans and strategies which can be identified through a marketing audit. Through this, different threats and opportunities in their internal and external environment have been identified using the Kotler’s format.

2.0 Marketing Audit

2.1 Brief Literature Review

Philip Kotler who is considered as the originator of marketing audit holds the view that an entity must periodically revise their strategic practices by specific control instruments including marketing audit. This is affirmed by Al Fahad et al. (2015) study that notes that Kotler defines marketing audit as an examination of the micro and macro-environment, marketing objectives and strategies all focusing on major strategies in an entity not only those generating issues. As a result, Lipnická and Dado (2013) noted that the marketing audit leads to the creation of a marketing plan is organised. Further, the marketing audit offers a strong analysis influencing and supporting corporate and marketing decisions. At the end, Wu et al. (2015) has noted that all the information sourced from the marketing audit is adopted to create an image on the effectiveness of their marketing department in different areas performance in specific areas such as strategic and tactical planning, program development and implementation, budgeting and resource allocation, market, customer and competitive analysis, measurement and reporting.

According to Kotler (2011) study that evaluated on Kotler’s contributions on the marketing theory and practice, it was evidenced that the marketing audit follows different steps which include an analysis on the internal and external environment of an organisation. The areas of focus are as shown in figure 1;

Figure 1: Areas of Marketing Audit

Source: Kotler (2011)

2.2 Macro-Analysis (PEEST)

Marketing activities in any organisation is influenced by the existing government laws and regulatory bodies’ practices. According to Brandquartery (2019), macro-analysis include strategies set in place in ensuring that marketers have awareness of and abide by the regulations. The PESTLE/PEEST analysis can be used to evaluate the macro-conditions that influence an entity and their strategic implications on business operations. Regarding Tesco Plc, this tool is used to analyse the political, environmental, technology and legal factors.

Political Factors– Tesco Plc operates in different countries in Asia and Europe. This influences the operations of Tesco headquarters in the UK as they are exposed to multiple political factors. Also, in UK, the factors that influence their operations include tax rates, current and impending legislation, political instability, unemployment rates and economic conditions in their countries. Further, the current Brexit politics affect the organisation operations as UK is passing through economic hard times (Guardian, 2019).

Economic Factors-Labour costs in UK influence Tesco PLC operations. For instance, the annual wage bill of the company is GBP 4.5 Billion. As of 2018, the UK minimum wage rate has increased by 4.4% for 25 years old and onward (Gov. UK, 2019). This significantly increases the overall costs of Tesco in million pounds. Other factors include the increased borrowing cost in UK influencing their brand reputation and cost leadership strategy.

Social Factors– Over time, consumer spending has changed in UK significantly. There are tough schedules with requirements of same day and fast delivery with flexible goods return policy (Tesco Plc, 2019).  The demand of goods equally linked to the client’s beliefs and attitudes with obesity being a significant issue that Tesco plc is attempting to fight with consideration on changing behaviour and demand for organic food (CCH, 2019). PWC report indicate that 65% of UK customers are loyal PWC (2017) hence the need for Tesco to positively leverage on creating closer ties and direct connection with all clients.

Technological factors-In the past, Tesco suffered from issues of poor client experience and horsemeat scandal (Guardian, 2013). Besides, advancement in technology such as RFID technology, online mobile payment system called PayQwid has positively contributed to regaining of clients trust.

Environmental Issues– In the UK, there has been an increased demand from government regulators to address issues of the environment. In this case, Tesco encourages their clients to shop online and participating in fuel-saving routes with a collection of unwanted plastic bags from clients and recycling them. Currently, Tesco cuts its carbon emissions by 13% annually (Edie, 2018).

Legal Factors-in 2016, legal action had been taken against Tesco by 17 employees based on age and gender discrimination (BBC, 2016). Workers are frustrated by low pay rates in nights and bank holidays shifts. Also, Tesco has suffered cases of misleading investors and paid GBP 129 million for settling the legal action (Guardian, 2017).

2.3 Micro Analysis

Please click the paypal icon below to receive this report for only $15