Digital Marketing Strategy for Tesco

Digital marketing strategy
Assessment 2

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Overview of Tesco and Online strategies followed.........................................................................3
Situation Analysis............................................................................................................................3
Environmental analysis and marketing audit..............................................................................3
Linking Digital Business with Digital Marketing Strategy.........................................................6
Formulation of objectives...........................................................................................................7
Designing implementation plan..................................................................................................7
Budgeting....................................................................................................................................9
Monitoring and control.............................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Introduction
Digital marketing strategy refers to the plan which helps a business organization in
achieving their particular marketing objectives via effectively selected online channels of
marketing like earned, paid and owned media (Kingsnorth, 2019). This report will focus on the
digital marketing strategies of Tesco which s a British multinational organization that retails in
general merchandise like home and food products as well as grocery. The company operates over
7000 supermarket chains across the globe and is headquartered in Welwyn garden city, England.
In the present times, Tesco has focussed on tapping into new markets through the digital
marketing strategy, such as the signature campaign ‘every little helps’ which proved successful
in the engagement. Tesco has also been creating new product lines and shifting towards online
methods by heavy investments (Aiello and et.al., 2020). This report will aim at the overview of
digital marketing process, create a digital marketing campaign for Tesco after situational
analysis.
Overview of Tesco and Online strategies followed
Tesco is one of the largest retail store that offers groceries, accessories and other products
in UK sector. Their main competitor are Asda, Sainsbury and Marks and Spencer. Tesco has
been investing in digital marketing in order to gain competitive advantage and expanding its
operations across various markets around the world as well as diversifying their products line to
offer more to consumers through retail stores. As, online marketing is the modern marketing
techniques that is been followed by every company. Tesco also adopt the marketing technique
and strategies is made to promote the company brand and their products. Tesco had focused to
increase their online presence in the market and willing to increase the online shopping by
consumers. To increase the online presence, company had created the website for shopping,
mobile app and social media handles to connect with their customers.
Digital marketing process is the wide term to evaluate the steps taken to achieve the
digital strategies. The process help to assist content, schedule post and help to engage with
audience which is the part of digital marketing strategy.
Situation Analysis.
Environmental analysis and marketing audit
Environmental analysis is extremely significant for understanding the current situation of
the market where an organization operates and plans to expand the operations or diversify the
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products. It helps in the understanding of decision-making in various business situations as Tesco
depends upon precise decision-making abilities. Studying the market through market audit helps
Tesco in selected the best options in the market plan and aim at growth and success of the
company.
SWOT analysis
 Strengths: Tesco has higher sales and revenue when compared to other organizations in
terms of successful campaign through digital marketing. It leads in the market share
through digital marketing campaigns that had been promoted extensively. Tesco is
continually promoting its online shops and investing in digital marketing campaigns. The
stores are highly diversified and various categories of stores are there such as Tesco extra
and Tesco home plus as well as Tesco metro for premium items. (Gürel and Tat, 2017).
 Weaknesses: Digital marketing campaigns had failed in US and Japan which made Tesco
closed its operations and stores. . Tesco has also been experiencing a decrease in its
major operating profits in the recent times and has been having various financial errors
due to high credit liabilities. Tesco has tried to maintain a low cost strategy which
although made it a supermarket leader in the UK but reduced its profit margins.
 Opportunities: The major opportunities for Tesco is growing and further expanding the
Jacks business which is a new discount store that has shown high growth, which can help
Tesco in competing with low cost competitors such as Lidl and Aldi. Developing
strategic alliance with other companies can offer many opportunities for Tesco as it can
start new products lines and thus new digital marketing strategies as per them (Vallati,
and Grassi, 2019). The company can also expand in emerging markets such as Asian
countries, South Korea and turkey (Fatricia, 2017).
 Threats: The major threats that Tesco faces in the current times are being vigilant with its
digital marketing campaigns as it receives backlashes from the public in case it becomes
disrespectful. Post Brexit referendum, various trade deals and the cots and taxations poses
a threat for Tesco. Another threat is excessive competition among the supermarkets such
as Walmart, Asda, Carrefour, and Sainsbury’s (Tirawatnapong and Fernando, 2018).
Pestle Analysis:
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