To achieve a substantial share in the market, it is indispensable for Tesco plc to have some effectual

objectives that are focused mainly on SMART pattern (specific, measurable, attainable, reliable
target). Corporate and marketing objectives for the firm should be both customer and business
oriented that is promising from the business point of view. These are as follow:

Corporate Objectives

To progress the staff in an efficient manner.

To line up the training of the staff which help the improving and the business Operations?

To capitalize on the consumers approval by rising the reaction rate.

Marketing Objectives

To reach the to the leading position in retailing industry.

To increase the market shares up to 40% in the upcoming 12 months.

To increase the ratio of achieving sales up to 70 to 80% in the upcoming 12 months.

Ansoff matrix in tesco

Market penetration strategies of Tesco

By using market penetration strategies i.e. selling existing products to existing markets, Tesco has
been able to expand its business well since its inception. This strategy has helped it increase its
market share and the usage of products by existing customers. Competitive pricing strategies, and
ad campaigns, have been very useful to help Tesco implement the market penetration strategies
efficiently. Tesco also often comes up with special offers on many products with a view to increasing
the sales (Tesco, 2020). However, it should be mentioned that while special offers increase sales,
they may also squeeze profit margins.

Market development strategies of Tesco

Tesco has implemented marketing development strategies i.e. selling existing products to new
markets or regions very well. From the UK, it has expanded to many countries around the world. It
announced in July 2019 to open 750 new stores in Thailand over the next three years (Andrews,
2019). It is worth mentioning that Tesco’s market development strategy has failed in some cases e.g.
its stores closed in the US, China, South Korea and Japan; however, Thailand is proving to be a
different and successful story.

Product development strategies of Tesco

Tesco has developed over the years a very good number of its own label products to sell to its
existing markets. Like many products from top brands, Tesco has its own and sells both versions to
cater to different market segments. This product development strategy has been very useful for
Tesco. If it did not come up with its own versions of products, suppliers of top brands would have
had more power in any negotiations. However, it is also worth mentioning that developing new
products is usually costly.

Diversification strategies of Tesco

Diversification strategies are usually very difficult to implement. Selling new products to new
customers is not an easy thing. Tesco started as a grocery business and over time it diversified into
many areas. Credit cards, mortgages, and insurance products are some of the notable examples.

However, it is worth noting that Tesco failed in some of its diversification strategies. For instance, it
bought Giraffe restaurants in 2013 for £48.6m. However, it did not work out and eventually Tesco
sold it with a loss in 2016. Likewise, it bought 80% stake in the online video shop Blinkbox
Entertainment in 2011. However, the business made heavy losses and it was sold to TalkTalk in
January 2015 (Morris, 2016).