An Analysis on the Effectiveness of Internal Marketing Strategy of a Retailer

DISSERTATION

ABSTRACT
Studies in past, particularly in regards to effectiveness of internal marketing strategy of
retailers has been built by ample number of researchers. Basically, internal marketing strategies
has helped business organisations in hitting their targets. Over the years, marketing department
of companies that are performing business at international level has developed strategies so that
employees could effectively stay motivated towards their jobs. Here, it can be said that a range of
strategies like compensation, bonus and more some of ideas that has helped companies like
Tesco Plc in meeting their goals and objectives in specified time frame. Including this, the reason
that came in front of considering this topic is that, over the years business firms has been dealing
with high employee turnover ratio and these all took place due to less motivation given to staff
apart from their staff. Therefore, this issue has raised ample number of problems for TESCO and
impacted negatively upon overall performance level.

ABSTRACT.....................................................................................................................................2
TITLE - “An Analysis on the Effectiveness of Internal Marketing Strategy of a Retailer”. A Case
Study on TESCO PLC.....................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
1.1 Overview of the study......................................................................................................1
1.2 Background of the company.............................................................................................2
1.3 Aim of the research..........................................................................................................2
1.4 Objectives of the study.....................................................................................................2
1.5 Research Questions..........................................................................................................3
1.6 Rational of the study ........................................................................................................3
1.7 Research Structure............................................................................................................4
CHAPTER 2 : CRITICAL LITERATURE REVIEW.....................................................................6
2.1 Introduction of Literature Review....................................................................................6
2.2 Main Body........................................................................................................................6
Theoretical and conceptual understanding on the concept of internal marketing strategies in
the context of retail sector..................................................................................................6
Relationship between investment in internal marketing efforts and employee performance
within the organisational value chain................................................................................9
2.3 Conclusion of literature review......................................................................................13
CHAPTER 3 : RESEARCH METHODOLOGY..........................................................................14
3.1 Introduction of Research Methodology..........................................................................14
3.2 Main Body......................................................................................................................14
3.2.1 Research Philosophy...............................................................................................14
3.2.2 Research Approach.................................................................................................15
3.2.3 Research Strategy ..................................................................................................15
3.2.4 Research Choice ....................................................................................................15
3.2.5 Sampling.................................................................................................................15
3.2.6 Time Horizon..........................................................................................................16
3.2.7 Techniques and Procedures and research instruments ...........................................16
3.2.8 Data Sources...........................................................................................................16

3.2.9 Research Ethics.......................................................................................................17
3.2.10 Research Limitation..............................................................................................17
3.2.11 Research Reliability and Validity ........................................................................17
3.2.12 Research design....................................................................................................18
3.2.13 Data Collection Techniques..................................................................................18
3.2.14 Data Presentation Techniques...............................................................................18
3.2.15 Data Analyse techniques.......................................................................................18
CHAPTER 4 : DATA ANALYSIS...............................................................................................19
4.1 Introduction of Data Analysis........................................................................................19
4.2 Main body of Data Analysis...........................................................................................19
THEME 1: Knowledge about internal marketing................................................................23
THEME 2: Internal marketing develops positive impact on retailer..................................23
THEME 3: Benefits TESCO PLC can get through internal marketing...............................24
THEME 4: Internal marketing helps in enhance employee performance in TESCO PLC . 25
THEME 5: Different ethical issues related to execution of internal marketing strategies...26
THEME 6: Importance of employee performance at workplace.........................................27
THEME 7: Different internal marketing strategies retailer should be used.........................28
THEME 8: Internal training impact on the employees innovation......................................28
THEME 9: Different ways TESCO PLC should use to improve employees loyalty...........29
THEME 10: Internal marketing develops positive impact on employee loyalty.................30
..............................................................................................................................................31
THEME 11: Different issues related with internal marketing..............................................31
..............................................................................................................................................32
THEME 12: Ways to overcome from the internal marketing issues...................................32
REFLECTION......................................................................................................................34
CHAPTER 5: RECOMMENDATIONS AND CONCLUSION...................................................35
REFERENCES..............................................................................................................................38

TITLE - “An Analysis on the Effectiveness of Internal Marketing Strategy of a
Retailer”. A Case Study on TESCO PLC.
CHAPTER 1: INTRODUCTION
1.1 Overview of the study
Internal marketing can be defined as an effective promotional strategy, which is used by
business organisations to promote their products and services within the workstation among
staff. Basically, this is being done to enhance overall employee engagement in a company, which
helps in attaining specific goals and objectives in much effective and efficient manner. In other
words, internal marketing is said to be or considered as a philosophy management that stays
linked with staff members as these are the individuals who needs to have all the knowledge
related to organisation's products or service. This is said to be a step, which is required by every
single business organisation that is performing business in retail industry. With the help of this, a
company could effectively encourage, attract, create and retain talented employees that may aid
them in sustaining or gaining competitive advantages.
Along with this, there are ample number of strategies that can be utilised by a business
firm and these are : brand authenticity, product marketing, internal communication, employers
branding, project branding and so on. TESCO Plc is one of the famous United Kingdom's
multinational retailer, which was found in the year of 1919 by Jack Cohen has been taken into
consideration in this research in order to get deeper knowledge related to internal marketing
strategy and their uses. Customer's mindset basically gets changes on a regular basis related to
products and services offered by business organisations. This affects overall performance level
of a company like TESCO Plc and it is required for them to make alterations among goods in
order to gain customer's satisfaction. Away with this, internal marketing strategies or consists
with high range of benefits and these are : satisfied customers, compliances with protocols and
standards, positive and effective employee engagement, higher job satisfaction, enhanced
motivation level and so on. With the help of this, TESCO PLC or any other business organisation
performing at international level will gain ample number of competitive advantages and this
would aid them in sustaining in today's crucial business environment.
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1.2 Background of the company
One of the United Kingdom's multinational retailer named as TESCO coming under top
and big four supermarkets of this nation. Basically, this firm was found by Jack Cohen in the
year of 1919 and it is headquartered in London, UK. This company has helped United Kingdom's
grocery sales to improve with three other famous retailers and these are Sainsbury's, ASDA and
Morrisons. Basically, these four have combined market share approximately to 73.2% in the year
of 2015. TESCO PLC is offering it's customers with high range of products and these are :
furniture, clothing, electronics, toys, internet, software, financial service, telecom services and so
on. On the other hand, if it is talked about staff members that the company is having around
472,000 staff members that are performing well and helping business organisation in sustaining
within the market for a longer period of time.
In present time, if it is talked about this business firm than the company consists with
high range of internal marketing strategies and these could be anything from e.g. programs,
product, price, communication and distribution. If it is talked about all these strategies then these
are fundamental and significant techniques which will boost the TESCO's relationship with both
staff and customers and hold them for long time and keep up solid connection with them.
Principle job of workers in the association is to pull in huge number of customers by giving
quality products and ventures at moderate cost. In past few years, company was dealing with
decline among their productivity and profitability, the reason that came in front was staff
members of TESCO were less motivated and due to this,
1.3 Aim of the research
Primary purpose of this investigation is “To analysis the Effectiveness of Internal
Marketing Strategy on Retailer”. A Case Study on TESCO PLC.
1.4 Objectives of the study
 To develop a theoretical and conceptual understanding on the concept of internal
marketing strategies in the context of retail sector.
 To determine a relationship between investment in internal marketing efforts and
employee performance within the organisational value chain.
 To analyse the relationship between employee loyalty to the internal marketing initiatives
from retailer.
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 To examine ethical issues faced by TESCO PLC during implementation of internal
marketing strategies.
1.5 Research Questions
 What are the reasons for international marketing?
 What are the routes to international marketing?
 What is the importance employee performance?
 How does internal marketing strategy relate to employee performance in the context of
retail sector?
1.6 Rational of the study
Basically, the reason behind conducting research is to develop effective strategies to
enhance the inner capabilities of a business organisation like TESCO PLC to could help them in
sustaining within the international market for a longer period of time. On the other hand, another
reason that came in front i.e. internal marketing basically aid a retailer in enhancing overall
performance, loyalty and engagement. Therefore, this could be considered as one of the effective
strategy, which will not only improve the knowledge of research but it will also aid readers too.
With the assistance of this, an investigator could easily perform all the tasks in specified
time frame and this may aid him in meeting the favourable outcomes for the chosen topic.
Another reason that came in front i.e. researcher has his own interest of performing the research
on this chosen topic, where employee performance could effectively be improvised with the help
of internal marketing strategy. Over the years, internal marketing strategies has taken lead over
other promotional activities within business firms that are dealing in retailing industry. On the
other hand, it has been found that most internal marketing efforts provide incentives for their
staff members to attain their specific daily and monthly targets. Away with this, it can also be
said that, it is much required for business firm's like TESCO Plc that this incentive for
something, which majorly motivates different range of people. It was mentioned in a survey
where wagers have asked with the question that, what sort of bonuses they require the most from
a business firm. This is where, they mentioned that nearby the holiday seasons. Basically,
survey has given favourable outcomes related to best motivated individuals through making
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more money and least motivated by company parties. Information like this is important for
companies trying to create an enthusiastic workforce. Through this, TESCO Plc could sustain
within the market for a longer period of time, within today's competitive business environment.
(Sources : Internal Marketing, 2012)
1.7 Research Structure
Introduction : This is being considered as one of the crucial section in a research.
Basically, this sets aim, objectives, research questions and other related details to the chosen
topic. In present context, where investigator has taken into consideration of the topic i.e. an
analysis is going to be performed with the help of internal marketing strategy of a retailer and i.e.
TESCO Plc. On the other hand, it is also said that this section if developed inappropriately, then
it is may be possible that results would not come clear in the end.
Literature Review : Literature review section, mainly consists with information that has
been presented by researchers in the past. Basically, researcher in present context will be
considering different range of books, journals and different articles which are a part of secondary
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Il
lustration 1 : Internal Marketing