MAR021-2: Tesco's Marketing Communications in the Digital Age

This report provides a comprehensive analysis of Tesco's marketing communications in the digital age. It begins by examining Tesco's overall marketing approach, including its shift towards digital marketing, use of humor, and creation of new product lines. The report then analyzes Tesco's digital marketing elements, such as advertising, email marketing, and social media marketing, using the SOSTAC model. A competitor analysis is conducted, comparing Tesco to Morrison's, ASDA, and Sainsbury's, highlighting the importance of cost leadership and understanding the UK's political, economic, and social environment. Finally, the report offers specific recommendations for improving Tesco's digital communications strategy, including launching engaging social media campaigns, creating targeted digital marketing strategies, and reaching audiences through personalized emails. The report concludes by emphasizing the importance of brand image and customer service in attracting and retaining customers.

Marketing
Communications in the
Digital age

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Undertake an analysis of a given brand and its associated target audience...........................1
TASK 2............................................................................................................................................3
Analysis of the organisation’s three closest competitors in the market.................................3
TASK 3............................................................................................................................................5
Specific recommendations on the digital communications strategy......................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is basically the process of designing and maintaining an environment in which
individuals working together in groups efficiently accomplish selected aims. The marketing
is considered as the fundamental element in the company’s long term objectives and aims. In
addition to that marketing decisions plays a very important role in the organisation.
Marketing communications basically involves the media and message which is used by the
marketers in order to communicate with the target markets. The marketing communications
involves sponsorships, traditional advertising, direct marketing, presentations etc. In this
report, Tesco has been chosen as the organisation. Tesco is a supermarket chain based in
British founded in 1919 and headquartered in Welwyn Garden City, United Kingdom. In
this report, it involves how the traditional and new digital marketing communications
disciplines are used by the organisation and in which manner these are deployed, dependent
on the brand and the target audiences. Moreover it involves, the new methods of the
marketing communications and also has developed an integrated marketing communication
plan which utilises various digital methods.
MAIN BODY
TASK 1
Undertake an analysis of a given brand and its associated target audience
Marketing basically involves a selling strategy that involves a service or product to the
customers. It also involves a organisation’ strategic activity and integrates market understanding
which involves services or products in order to develop a new market of their products. In
addition to that it involves a process through which companies and individuals obtain what they
need through creation of value. In context to Tesco, the organisation has been active with its
marketing in a well manner as compare to their competitors (Quaye, 2021).
Tesco marketing approaches:
Shifting towards digital marketing: When it comes to businesses, every organisation
wants to invest in billions in marketing and many organisation lacks as compare to the Tesco’s
market share. The organisation invest heavily in radio, cinema , press and TV. As per the figures
it had been determined that the there is a shift of 1:1 in advertising spending from traditional
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marketing to digital marketing efforts. This depicts that the organisation has spender 30% of its
total revenue on digital marketing. It also allows the organisation to reach high targeted audience
which could not be achieved because of traditional marketing( Juska, 2021).
Tapping into relevant humour :
When it comes to Tesco, the organisation has a very recognizable, stable but corporate
marketing strategy which is basically known as “every little helps” strap line. Due to the
accounting scandals and wake of the house meat, company’s reputation was terribly harmed in
2013-14. Afterwards the company has began to try new forms of marketing strategies through
various campaigns on festivals. Through using various commercial actors in their
advertisements, the organisation was able to keep up a familiar spirit among audiences and
customers (Chan-Olmsted, 2019).
Creating new product lines :
In past years, the company launched a new product line that involved new farm based
brand products. Through their rebranding of products that organisation attracted customers who
previously do not value the company’s offerings. The brand focused on reducing the prices of
customers that resulted in increase in sales of farm and fish products.
When it comes to Tesco, the company’s strategy basically involves manipulating the
marketing mix elements in order to create a competitive benefit which basically involves a
positive effect on its sales. The organisation offers a variety of products and involves products
such as electronics, food, clothing, home decor and various other products and services. In
context to Tesco, the company’s vision statement basically involves fulfilling the demand and
satisfying its customers, committed colleagues and shareholders. The main objective of the
organisation is to satisfy its stakeholders. The organisation is based on the simple mission is to be
the champion of its customers (Waller and Waller, 2019).
In context to Tesco, the organisation used media and print advertising in order to attract
and send advertising and promotional messages to its customers. The company basically relies
on the various promotional offers in order to retain existing customers and attract new customers.
They usually uses “buy one get one free” offers in both their online and offline stores.
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Digital marketing basically involves the publicity of services, products and facilities of a
particular brand or company with the support of various digital marketing platforms. There are
various elements of digital marketing which involves social media marketing, influencer
marketing, internet, ecommerce marketing, display advertising etc (Lee and Cho, 2020). The
major difference in the traditional way of marketing and online marketing is that it exploits all
the modes of communicating and helps to reach wider audience in lesser time. The digital
marketing plan of any organisation plays a very important and effective role in integrating with
the offline mode of communication which involves email and phone. In context to Tesco, the
organisation uses SOSTAC model as its digital marketing model. In this model, the company in
order to successfully organise a digital marketing plan firstly understand the situations of the
organisations. In context to Tesco, the organisation uses various digital marketing elements
which involves :
Advertising: It basically involves the means of communication with the customers related to the
service or product. It basically involve paid promotion. In context to Tesco, the organisation
spends huge amount of money and involves celebrities for the television ads.
Email marketing : It involves sending advertising and promotional messages to the prospected
customers. In context to Tesco, the organisation sends mails and promotional messages to its
customers on various occasions and festivities.
Social Media Marketing : It basically includes the key component of the digital marketing
which involve various social media platforms such as pinterest, instagram, face book, YouTube
etc. In context to Tesco, the organisation uses and conducts various campaigns in order to attract
large number of customers.
TASK 2
Analysis of the organisation’s three closest competitors in the market
The organisation being the UK’s largest grocery firm basically has three closest
competitors which involves Morrison’s, asda and Sainsbury which are also known as the Big
Four in the united kingdom (Berkowitz, 2021).
ASDA: It is basically a wholly owned subsidiary of the parent company Wal-Mart. The
organisation has around 584 supermarkets and 635 retail locations. The organisation also
operates in the larger format superstores and offers a variety of products which includes
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furnishings and clothing. The company’s competitive strategy basically prioritizes of maintaining
the lowest prices in all the Big Four U.K grocers. The company is also focusing on improving its
online sales channel and store layouts in order to attract more and more customers.
Sainsbury’s : It is considered as one of the second largest grocery chain and has its operations in
around 1418 locations. As per the reports and customer surveys, the organisation is considered
tp be one of the highest quality grocers. The organisation is involved in charging premium prices
for grocery products. In order to increase the engagement of consumers, the company is focusing
on experimenting with its product categories, store layouts and promoting in store banking
services (Cairns, 2019).
Morrison’s : It basically has its operations in around 50 convenience stores and approximately
492 markets. The organisation is mostly involved in food production and is working harder in
order to improve its efficiency through reduction in prices. In addition to that the organisation
has adopted a capital expenditure budget. While competing with these organisations, Tesco in
order to maintain competitive advantage need to control its operating costs and that could be only
done through cost leadership in order to generate high profit margins.
In context to Tesco, the organisation need to improve its overall digital strategy as per the
current UK social, political and economic environment. When it comes to digital strategies even
the bigger companies faces issues and challenges. One wrong move can lead to threatening the
brand’s reputation. In context to Tesco, the organisational multiple scandals and questionable
investment decisions has resulted in huge losses for the organisation. In order to effectively apply
its digital strategies the organisation need to deeply understand the UK’s Environment and also
all its political, social and economic factors which involves:
Political Factors : In context to company , the business operates worldwide and is highly
inclined with the show of the company . It include acts of legislation, tax rates and stability of the
nation where it operate. In context to Tesco, in order to successfully implement its digital
strategy, need to consider the political factors.
Economic Factors : It involve a variety of factor which are the point of worry for the business
which involves prices, profits, leverage costs and demand. In context to Tesco, the organisation
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need to consider various economic factors while applying its overall digital strategies
(Kabakchieva, 2021).
Social factors: It involves a assortment of social trends and change that has inclined the
consumers of UK. In context to company it has increase the sale of its non food items as
nowadays consumers are well aware of health issues. In context to Tesco, it is very important for
the organisation to consider all the social factors in order to apply digital strategies in order to be
successful in its operations (Popkova, 2020).
TASK 3
Specific recommendations on the digital communications strategy
Digital communication plays a very important role in today’s world. Before the era of digital
communications, the organisations had to relief on bill board advertising, TV , radio and
print media. In order to be successful in digital communication, community managers,
marketers, public relations need to use various techniques and tools in order to connect and
attract new consumers through right type of campaigns. In order for Tesco to build a strong
digital communication across the world there are some of the strategies that need to followed
by the brand. For the organisation to improve its digital communication strategies in the
coming five years and to build a strong brand image need to consider following
recommendations:
Launching a engaged social media campaigns : In today’s world, social media plays a very
important role in connected with family, friends and brands through various forms of
context. The organisation need to use various platforms of social media such as YouTube ,
twitter, face book and etc in order to conduct various campaigns and connect with the
brands.
Creating digital marketing strategies : It basically involves investing in advertising
campaigns through various digital channels that involves advertising in the form of banner
ads, social media advertising, native advertising, influencer advertising etc( Lievens and
Verdoodt, 2018).
Reaching audiences through emails: It basically involves reaching out prospective
customers through mails. In context to Tesco, the organisation in order to reach customers
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need to reach them continuously reach through inboxes. The email content basically
involves birthday or anniversary messages, discount offers, personalized recommendations,
surveys etc. In context to Tesco, the organisation need to focus on improving its brand
image and to clear their name from illegal cases in order to be successful in future
operations. In addition to the company need to generate awareness and to let the customer
know about their values, services and products. Moreover , the organisation can conduct
various campaigns that can help in inspiring the customers through their overall digital
marketing techniques. The company can deliver better customer service through answering
real time questions of customers that will help in attracting more and more customers
(Rainnie and Dean, 2020).
CONCLUSION
From the above report it had been concluded that marketing is basically the process of
designing and maintaining an environment in which individuals working together in groups
efficiently accomplish selected aims. The marketing is considered as the fundamental
element in the company’s long term objectives and aims. In addition to that marketing
decisions plays a very important role in the organisation. Marketing communications
basically involves the media and message which is used by the marketers in order to
communicate with the target markets. The marketing communications involves
sponsorships, traditional advertising, direct marketing, presentations etc. In this report, it
involves how the traditional and new digital marketing communications disciplines are used
by the organisation and in which manner these are deployed, dependent on the brand and the
target audiences. Moreover it involves, the new methods of the marketing communications
and also has developed an integrated marketing communication plan which utilises various
digital methods.
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REFERENCES
Books and Journals
Berkowitz, E. N., 2021. Essentials of health care marketing. Jones & Bartlett Learning.
Cairns, G., 2019. A critical review of evidence on the sociocultural impacts of food marketing
and policy implications. Appetite, 136. pp.193-207.
Chan-Olmsted, S. M., 2019. A review of artificial intelligence adoptions in the media
industry. International Journal on Media Management, 21(3-4). pp.193-215.
Juska, J. M., 2021. Integrated marketing communication: advertising and promotion in a digital
world. Routledge.
Kabakchieva, T., 2021. ONLINE COMMUNICATIONS AND THEIR ROLE IN BUSINESS
SALES. Trakia Journal of Sciences, 19.
Kusumasondjaja, S., 2019. Exploring the role of visual aesthetics and presentation modality in
luxury fashion brand communication on Instagram. Journal of Fashion Marketing and
Management: An International Journal.
Lee, H. and Cho, C. H., 2020. Digital advertising: present and future prospects. International
Journal of Advertising, 39(3), pp.332-341.
Lievens, E. and Verdoodt, V., 2018. Looking for needles in a haystack: Key issues affecting
children's rights in the General Data Protection Regulation. Computer Law & Security
Review, 34(2). pp.269-278.
Popkova, E. G., 2020. Digital economy: Complexity and variety vs. rationality.
Quaye, E. S., 2021. Cultural Values and Marketing Communications in Emerging
Markets. Marketing Communications in Emerging Economies, Volume I. pp.31-73.
Waller, D. S. and Waller, H. J., 2019. An analysis of negative reviews in top art museums’
Facebook sites. Museum Management and Curatorship, 34(3). pp.323-338.
Rainnie, A. and Dean, M., 2020. Industry 4.0 and the future of quality work in the global digital
economy. Labour & Industry: a journal of the social and economic relations of work, 30(1),
pp.16-33.
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Sharma, P., 2020. Book review: Carlos Gill. 2019. The End of Marketing: Humanizing Your
Brand in the Age of Social Media and AI.
Luo, X., 2020, December. Design of full-link digital marketing in business intelligence era with
computer software Edraw Max. In 2020 Management Science Informatization and Economic
Innovation Development Conference (MSIEID) (pp. 364-367). IEEE.
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