Digital Marketing Strategy Report: Tesco's Campaign Analysis

This report provides a comprehensive analysis of Tesco's digital marketing campaign, examining its strategies, objectives, and implementation plans. The report begins with an introduction to digital marketing campaigns and their importance, particularly for a major retailer like Tesco. It then delves into a detailed situation analysis, utilizing both SWOT and PESTEL frameworks to assess internal and external factors influencing Tesco's marketing efforts. The analysis covers strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, environmental, and legal factors. The report also explores how Tesco links its digital marketing strategy with its digital business, focusing on platforms like Facebook and its official website. It outlines specific, measurable, achievable, realistic, and timely (SMART) objectives for the campaign, along with an implementation plan that incorporates segmentation, targeting, and positioning, along with a marketing mix. Finally, the report includes a budgeting section and concludes with a summary of findings and recommendations.

Digital Marketing Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Digital Marketing Campaign...........................................................................................................3
Step1: Situation Analysis.............................................................................................................4
Step 2: Linking digital marketing strategy with digital business................................................6
Step 3: Formulate Objectives.......................................................................................................6
Step 4: Implementation Plan........................................................................................................7
Step 5: Budgeting........................................................................................................................8
Step 6: Measuring the campaign..................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital marketing campaigns are the most successful methods or the approaches for reaching
the potential customers but also are considered as the time consuming and costly method which
does not provide any guarantee for giving the positive ROI. These are online strategies in which
the goal is to promote the product or service of the business which is done by increasing the
traffic, engagement and the conversions (Bala and Verma, 2018). Tesco is the renowned retailer
headquartered in England, UK. It is also considered as the market leader in UK dealing in
groceries, financial services, consumer goods and telecoms and in many other countries in which
it operates. This company has become the third largest retailer in the world and it considers its
marketing the most important tool for its rapid success (Tesco, 2021). The report will focus on
the digital marketing campaign which is organised by the company along with performing the
internal and external analysis of the company.
Digital Marketing Campaign
Overview of digital marketing process
Digital marketing process consists of various steps in implementing and achieving the
digital strategies. This helps in scheduling the posts, engaging with the audience and to curate the
content as well. The main reason behind the rapid success of Tesco is its large customer base and
its strategies. For increasing the number of customer, the company organises digital campaigns
on various occasions like Father’s day, Mother’s Day etc. The company uses various platforms
like Facebook and Twitter for building stronger and effective relationship with the customers and
to aware them about the changes made by the company regularly regarding its products and
services. Tesco is the world’s largest online grocer with an annual turnover of one billion pound
through the online platforms in UK (Mandal and Joshi, 2017). Using these platforms, the
company also started providing the online services. The company used various platforms for
implementing its online marketing strategy such as banner ads, websites, opt-in e-mail. Mobile,
TV, m-commerce e-tools etc. This is how the company is striving hard to build its web business
by harmonising the customers’ power. The company also initiated the Friday Frenzy promotional
campaign on the widely used social networking platform known as Facebook for promoting its
clothing which also helped in gaining the results in form of 40,000 customers per week. The
company also organised viral marketing campaign which helped in creating product awareness
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and buzz for the multinational company. The company focus on following steps to develop and
implement digital marketing campaign for increasing the customer base and profitability of the
company.
Step1: Situation Analysis
This is used for analysing the internal as well as external factors in business. It also allows
the company for conducting the market research for evaluating the growth which is projected,
defining the potential customers, assessing the competitors and evaluating the business’ state. In
order to analyse the internal factors and its impact, SWOT analysis is the most effective model
and for analysing the external factors and its impact PESTEL analysis will be used.
SWOT analysis
It is a framework which helps to analyse the strengths, weaknesses, opportunities and
threats of the company. Tesco make use of this analysis as it helps in building what the company
does well, addressing the areas where the company is lacking, minimising the risks and taking
the great advantages of opportunities for success.
Strengths: The major strength of the company is its largest market share of 26.9% and its closest
competitor Sainsbury has the market share of 14.9% (Coates and et.al., 2019). The company also
faced a rapid growth even at the times of pandemic through its online sales. Its continuous
innovation helps it to attract majority of the customers.
Weaknesses: The Company faces some sort of complaints regarding the improvement in the
quality of products and distribution. There is also shortage of products in the panic time. Dealing
in wide range of products, the company sometimes fails in adhering to the guidelines for food
safety and faces major effects for this.
Opportunities: The high unemployment rates sometimes become the opportunity for Tesco
because it can be the place where people can find jobs. The demand for plant based sources was
increasing in UK which gave the opportunity to Tesco to produce the alternatives of meat and
thus promoting sustainable business. Tesco can leverage the trend of the online sales so that the
customers can be facilitated even at the times of crisis or pandemics. The company can bolster ist
online presence.
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Threats: The major threat to the company is due to Brexit which imposed many restrictions on
the trade and supply chain. The competitors of the company are also considered as the threats
and these include Sainsbury, Morrison, ASDA, Waitrose and many more which always try to
lead Tesco by developing and implementing innovative strategies and policies.
PESTEL analysis
This is basically a tool or a framework which helps in analysing and monitoring the
macro-environmental factors and their impact on the performance of the organisation. This can
be used either at the time of starting a new business or extending the business at new location or
foreign market. This helps in analysing the impact of the external factors such as Political,
Economic, Social, Technological, Environmental and Legal factors.
Political: The major political factor which affected the operations and sales of Tesco is the
Brexit which imposed restrictions on the supply and trade from other countries. As the company
operates in many different countries, it needs to follow the regulations which are prevalent in the
country at that time.
Economic: Tesco must be aware of the taxation policies so that can be facilitated by the same.
The economic condition of the communities impact the sales of the company as when the
economy of the country is less stable then the company has to lower its pricing of products. The
prices of the daily products must be set by keeping in mind the economical pressure and the
existence of the inflation (Rosnizam and et.al., 2020).
Social: These factors describe the needs and preferences of the community according to which
the company has to produce and distribute the products. The people of UK are preferring the
organic food as they became more health conscious so Tesco in order to attract the customers
need to produce the organic and sugar free food.
Technological: The Company needs to stay relevant according to the changing technology.
There are various ways which Tesco can follow in order to influence the customers which are
online shopping, promotions through social media etc. The company has to take various
initiatives like pairing up with e-commerce companies like Amazon so that it can become able to
revolutionize the way in which retail shopping is done.
Legal: The policies imposed by the government affects the operations of the company. The
company must adhere to the local as well as international market laws for the smooth functioning
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of the company. The company can be penalized for any practice which is wrong in front of the
law.
Environmental: Tesco needs to take various initiatives for making the society sustainable and
improving the environment. The waste must be reduced from all the processes of the company
such as production, packaging etc. The use of non-biodegradable materials must be completely
eliminated and instead of the using plastic for packaging process, the biodegradable materials
must be used.
Step 2: Linking digital marketing strategy with digital business
Digital business is basically creating new business designs through blurring the physical
and digital worlds. These businesses make use of technology for creating new value in the
models of business, internal capabilities and customer experiences which supports the major
operations of the company. Tesco also focuses on developing and implementing its digital
marketing strategies through various online platforms like Facebook, Twitter along with the
official website of the company as follows:
Facebook: This is the most commonly used social networking site which is used by majority of
the people across the world and the major thing about this is that people of all the class use this
platform and Tesco makes use of it efficiently to update its customers about the changes which
are made in the company regarding the services and products (Sundaram, Sharma and Shakya,
2020). The company also update its customers regarding the offers and the discounts which are
offered by the company at different times.
Website
The company also update the customers regarding the upcoming events through its
official website which helps in making the customers aware of all the facilities given by the
company to the customers. The details about the new products are also highlighted in the same.
Step 3: Formulate Objectives
Objectives are the aims or the goals where the business owners want their business to reach
in future. These must not be made randomly but there must be a thorough analysis of the market
as well as the strategies of the company so that the outcomes can be predicted. Tesco being a
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multinational retailer of food as well as non-food products like clothing etc. also developed some
objectives. These must be SMART which means Specific, Measurable, Achievable, Realistic and
Timely (Kumar and Singh, 2017). The company also has some specific objectives behind its
digital marketing campaign which are as follows:
 To improve the conversion rate of the organic traffic by 40% by December 2021.
 To receive 30,000 visitors per month from social networking sites like Facebook and
Twitter by the end of the year.
 To reduce the bounce rate below 50% for all the sources of traffic by November 2021.
 To implement those strategies that can return 20% of the visitors by the year end.
Step 4: Implementation Plan
This is basically an act of executing any plan, method or decision. These are used for helping the
company for supporting the strategic plan which are created by the same. The implementation
plan developed by Tesco can be made by making use of Segmentation, Targeting and
Positioning and the marketing mix regarding the digital campaign (Cocco, 2017).
STP
Segmentation
The company will follow the demographic segmentation which will be based on age,
gender, marital status, sexuality, ethnicity, occupation, education etc. so that the company can
produce the products accordingly. The digital marketing campaign will be organised according
to the segments made on the basis of the given factors.
Targeting
Tesco target mainly the young people from the age group of 15-35 which can help in
increasing the sales of the company as the people belonging to this age group will be attracted
more towards the products of Tesco.
Positioning
The marketing mix will be used to position the product for targeting the customer
segments which can be proved to be valuable. The organic products will be marketed. Training
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will be provided to the employees, the online platforms will be used to perform digital marketing
campaign, good delivery of products and services will be done, physical evidence will be on the
online platforms like Facebook and Twitter. The pricing of the products will be low to attract the
people of all the classes. Various offers and advertisements will be used by Tesco as digital
campaigns which can help in gaining competitive advantage among the competitors such as
ASDA, Sainsbury etc.
Step 5: Budgeting
Budgeting is the process which deals in describing the revenue and the expenses which can
be used for plan in future. This helps in maintaining the financial stability of the company as well
as achieving the objectives.
Particulars Cost
Search Engine optimization £100
Business blogging £200
Social media marketing £300
Email marketing £200
Conversion optimization £500
Influencer marketing £600
Email marketing tool £500
Outreach tools £600
Content creation tools £600
Project management and collaboration
tools
£700
Contingent fund £700
Total £5,000
Step 6: Measuring the campaign
Tesco can measure the digital marketing campaign by making use of digital marketing and
search engine optimization metrics (SEO). The company can cite the traffic on various platforms
like emails, social networking sites, organic traffic on the website and even the referrals. Bounce
rate can be measured by analysing the number of visitors who land on the official website of the
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company (Charlesworth, 2020). Click through rate can be used which will help in analysing the
frequency at which the search listings are able to generate the clicks through the website.
Conversions can also be used for measuring the likes of subscribing bookings, purchases etc.
CONCLUSION
The above report focussed on the digital marketing campaign which is going to be held by
Tesco which a renowned retailer in UK performing its operations in many countries. It
highlighted the 6 steps of the campaign including the situational analysis, linking the digital
strategies of marketing with the digital business, objectives for the campaign, implementation
plan for meeting objectives, budget and the ways to measure the campaign.
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REFERENCES
Books and Journals
Bala, M. and Verma, D., 2018. A critical review of digital marketing. M. Bala, D. Verma (2018).
A Critical Review of Digital Marketing. International Journal of Management, IT &
Engineering. 8(10). pp.321-339.
Charlesworth, A., 2020. Bt. bm. 524 Digital Marketing A Practical Approach.
Coates, A.E. and et.al., 2019. Food and beverage cues featured in YouTube videos of social
media influencers popular with children: an exploratory study. Frontiers in
psychology. 10. p.2142.
Cocco, A., 2017. How internet of things is impacting digital marketing: Samsung case: Family
hub refrigerator.
Kumar, Y. and Singh, S., 2017. Recent Adavencement in the field of Digital Marketing: A
Review.
Mandal, P. and Joshi, N., 2017. Understanding digital marketing strategy. International journal
of scientific research and management. 5(6).
Rosnizam, M.R.A.B. and et.al., 2020. Market Opportunities and Challenges: A Case Study of
Tesco. Journal of the Community Development in Asia. 3(2). pp.18-27.
Sundaram, R., Sharma, D. and Shakya, D., 2020. Power of Digital Marketing in Building
Brands: A Review of Social Media Advertisement. International Journal of
Management. 11(4).
Online
Tesco, 2021. [ONLINE]. Available through :< https://www.tesco.com/>
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