Digital Marketing Strategy Report for TESCO: Analysis

This report presents a comprehensive digital marketing plan developed for TESCO, a major global grocery retailer. The report begins with an introduction to digital marketing plans, emphasizing their role in aligning with organizational strategies and customer focus. The main body details the digital marketing process, including research, planning, implementation, measurement, and optimization, with a specific focus on TESCO's social media campaigns using Instagram and Twitter. The report then explores TESCO's online strategies, highlighting their e-commerce platforms and customer-centric approaches, such as loyalty programs. A thorough situation analysis, incorporating SWOT and PESTEL frameworks, assesses TESCO's internal and external environments, identifying strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, environmental, and legal factors. Competitor and market analyses are also conducted, examining Sainsbury's as a key competitor and evaluating market size, profitability, and opportunities. The digital business and digital marketing plan section outlines TESCO's digital presence and strategies, including the use of social media and newsletters. The formulation of SMART objectives is presented, alongside discussions on implementation and control measures, including the use of KPIs. The report concludes by summarizing the key findings and recommendations for TESCO's digital marketing efforts.

Digital marketing
Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Digital Marketing process............................................................................................................3
Company online strategies. .........................................................................................................4
Situation analysis. .......................................................................................................................5
Competitors Analysis...................................................................................................................6
Market Analysis...........................................................................................................................7
Situation analyses with Digital Marketing. .................................................................................7
Digital business and digital marketing plan.................................................................................7
Formulation of Objectives...........................................................................................................8
Implementation and control in DM..............................................................................................8
STP Approach..............................................................................................................................9
Marketing Mix.............................................................................................................................9
Budgeting and Measures............................................................................................................10
CONCLUSION .............................................................................................................................12
REFRENCES.................................................................................................................................13
Books and Journal......................................................................................................................13

INTRODUCTION
Digital marketing plan is considered as a document which comprises of the short term and
long term strategies of the company. It involves certain concepts such as goals of the campaign,
investment and marketing strategy, timing management and so on. These plans will help the
company in attaining their organisational strategy which consider the customers as their starting
point (Du Plessis, 2017). The other departments of the company are also linked together in order
to execute the digital marketing plan. This report is based on the development of a digital
marketing plan for TESCO. Along with this, there is a proper analysis and execution of digital
campaign in the external environment of TESCO.
MAIN BODY
Digital Marketing process
Digital marketing process enables the planning and execution of the digital marketing
strategy in the business environment of the organisation. The digital marketing campaign in this
relation is the use of social media platforms in order to enhance the customer base. TESCO have
designed a campaign in which they are using Instagram and Twitter as their main tool to target
the audience in the marketplace. With this, the company will take advantage of the international
and national food days and will showcase their product with the promotional coupons for the
customers. Also, with this the company can develop effective newsletter in order to enhance the
customer engagement towards their brand. The digital marketing plan is as follows: Research: The first process of the process is to research about the market factors, Tesco
will first analyse its strength and legal requirements to come up with online sale. Plan: the company will formulate a plan in which they oversees their capabilities and
resources which could be use effectively to run the digital marketing campaign. Implement: After formulating plan, Tesco will move to execute it by various promotional
strategies like YouTube, Twitter, Facebook. Measure: In this process, the company will measures the operations by providing
effective leadership training to employees both online and offline based. Also
measurement will be done by KPI indicators.

 Optimize: under this process, various new strategies will be reciprocate with the old ones
to acquire new digital channels and resources.
Company online strategies.
TESCO is one of the major groceries retailers which are currently operating 2,318 outlets
across the globe. The company offers their inclusive services through internet and online
services. Tesco.com, tescodirect.com and tesco.net are considered as their ways of selling
through E-commerce. This helps the company in maintaining their customer base by tailoring
their services according to the demands of the customers. Also, TESCO uses techniques in order
to analyse the customers past shopping behaviour. The company is focused towards developing
strategies such as introducing loyalty cards for their customers.
TESCO follows many strategies for enhancing their business operations across the globe.
Some of them are as follows:
 TESCO have introduced clubcards for direct marketing of the products. This helps the
customers in for choosing the products from the place of their convenience.(Ghai and
Rahman, 2018).
 TESCO have also implemented many promotional offers for attracting large customer
base towards their brand.
Hence, these are the strategies used by TESCO for sustaining and enhancing their market
share with increased profitability. Also, these strategies will develop efficiency and effectiveness
of the workforce in a competitive industry (Bhatnagar, R., 2019).
Situation analysis.
TESCO works at a global level and in order to analyse the situation of the working
environment the company needs to use certain methods and techniques such as the SWOT
analysis and PESTEL framework. These methods analyses the external and internal environment
of the company.
SWOT Analysis
strength: The brand image and quality products of TESCO are considered as their major
strengths (Hemsley, 2018). Along with this, TESCO have enough financial resources which
helps them in development of innovative products.

Weaknesses: The company might have limited budget which will create up obstacles for the
implementation of the plan. There will be a risk of duplication of ideas by the competitors of
TESCO (Gupta and Rathore 2020).
Opportunity: TESCO can expand their business operations in diversified fields with new
economic environment (Huque 2017). Also, the company can develop new innovative products
to satisfy the customer needs.
Threat: Competitor is the major threat for the company as they can slow down the process of
marketing plan (Ho and Wang, 2020).
PESTEL Analysis
PESTEL analysis is done in order to identify the threats and weaknesses in the external
environment of the company. As the marketing plan of Tesco will be implemented in the
external environment it is important to analyse it properly. It can be explained as follows Political Factors: These factors involve the legal laws and the foreign rules which have
negative influence on TESCO. In some countries like Iran Facebook is banned which will
create obstacles for the marketing campaign of TESCO. Because of Brexit the trade
relations with European union was broke which resulted in major impact on trade
relations as several duties were raised as well as declined even. Brexit was a cause
because of disruption among the political parties and due to that production houses faced
challenges (Jain and Nehru 2017). Economic Factors: These factors involve the level of income of customers a
demographic area. These have an negative influence over the marketing plan of TESCO
due to the affordability issues of the customers (Kaushal and Sharma 2020). Social Factors: These factors involve the culture and social behaviour of the customers.
These have a positive influence over the marketing campaign of TESCO as the customers
are more focused towards the social media trends (Johnsen, 2017). Technological Factors: TESCO aims at introducing latest technological trends in their
marketing campaign which will attract large number of customers (Maddele and Babu
2016). Environmental Factors: TESCO introduce the plan which will reduce the carbon
footprints and the waste from the external environment. Along with this the company
promotes healthy and economical services.

 Legal Factors: TESCO complies with the legal responsibilities towards the customers
and the workforce. These involve fair pay, compensation and many more legal rules
(Harkai, O., 2017).
Competitors Analysis
This is a framework which deals with analysing the strength and weakness of the
marketing plan of the competitors. The campaign involves the effective use of social media
platforms and newsletter to attract the customers. Also, the major competitor of TESCO is
Sainsbury’s. The first step of this analysis is the industry scope. The grocery industry has a wider
scope (Kawira, Mukulu and Odhiambo, 2019). With this, TESCO must focus on implementing
their strategy properly. The next is defining the competitor namely Sainsbury’s. Then the
customers for whom the campaign is launched are the youth and the women’s. The target
audience expects that TESCO will provide them a range of offers which will enhance their
purchasing power. The strengths of TESCO are their quality products which they offer at lower
prices. The marketing plan generates awareness about the products of TESCO. In this relation,
Sainsbury’s also adopt promotional techniques in order to attract large customers from
diversified section of society (Diab, E., 2017).
Market Analysis
Market analysis is used to analyse the market area in which the marketing campaign will
be implemented by the company. TESCO analyses the market area, the market size, profitability,
and opportunity availing in the industry. This helps in developing the marketing plan and the
strategies properly which will result in enhancing the market share and profitability of TESCO.
Along with this, TESCO defines the success criteria of their plan in front of the investors. Due to
which the workforce will get motivated and work hard for the implementation of the plan in the
marketplace (Keegan and Rowley, 2017). Also, TESCO focuses on the analysis of target
audience and the cost structure prevailing in the market.
Digital business and digital marketing plan.
Tesco operates at a global level that has transformed them into a leading brand. Also, the
company offer their product at a digital level which has enhanced their brand recognition. Today,

the customers prefer to adopt the convenient methods of purchasing (Marjan, Bruce and
Mitchell, 2020). So they adopt digital means to purchase the products. The plan of using social
media platforms Instagram and Twitter along with the newsletters will generate awareness about
the brand product. This will help them in sustaining their existing customers and attracting the
potential customers in a large base. With this, the company will be able to introduce them in
digital world. This will enhance their efficiency and effectiveness in the external environment.
TESCO uses Twitter and Instagram in order to introduce the new product and generate high sales
with the help of promotional marketing campaign. These social media platforms will help
TESCO in capturing large customer base and sustaining them for longer duration.
Formulation of Objectives
The objectives of the plan are realistic and attainable in nature. These are designed in order to
motivate and encourage the workforce to achieve the objectives of the marketing campaign
(Miftakhova and Lutovinova, 2019). It is important for a company to develop clear and
measurable digital marketing objectives. As these objective will design a way for the company to
reach their marketing goals.
SMART Objectives
 To analyse the online market demand of the online customers by using survey method.
 To use the social media platforms to advertise the products of company.
 To increase online sales from 10% to 20% in next 3 months.
 To record and analyse the feedback of the online customers regarding the products in
order to satisfy them.
 To increase the profits by introducing new product development.
These objectives must be attained by the workforce properly. Also, the resources and the
diversified departments must work collaboratively in order to make the campaign successful.
Tesco is going to considers all these objectives with effective way and make appropriate use of
online channels. These all are related with smart objective of the companies to run the campaign
successfully (Nadler, A. and McGuigan, L., 2018).

Implementation and control in DM.
Implementation of the marketing plan might be difficult for the company if it is not
properly executed then they might not be able to achieve the objective. Implementation of the
plan involves promoting the product on social media platforms like Instagram and Twitter along
with the introduction of an effective newsletter which will promote the product of TESCO. The
implementation must ensure but all these steps and phases of the plan are being followed
properly. Control and evaluation of the plan considers the qualitative and quantitative tools to
analyse the implemented plan (Nixon, 2020). The marketing plan can be control by setting the
benchmarks against them the current performance of the plan will be compared. This will
highlight the discrepancies of the plan and the company can devise strategies in order to
eliminate them. Also, TESCO adopts the measures such as KPI’s in order to control the market
budget and the market share. The comparison will also help in defining the time frame under
which the company can achieve their goals of the marketing campaign. The qualitative and
quantitative methods will define the factors without affecting the marketing plan in the external
environment. The Qualitative factors include customer satisfaction on the other hand the
quantitative factors considers sales and the customers increased (Maina, C.N., 2017) The market
for TESCO is very wide as it has catered both aspects, virtual as well as physical. Through
various timely surveys performed by teams o0f TESCO through both the modes have proved
very efficient as they have helped in catering demands of consumers. Along with this company is
also using social media platforms which is very helpful as major population is persuaded by this
technology and has proved very effective in increasing the demand of products offered by
TESCO (Madhuri 2018). It allows its users to give suggestions and cater information from social
websites. They aim to increase their mainly online sales and for this there are many policies
framed which are executed in an appropriate manner so that in next quarter at least 10-20% sale
is increased. It is highly important for organisation to work on suggestions which are given by
consumers and rectify them so that the consumers are satisfied and trust is maintained.
STP Approach
Segmentation: Segmentation technique is used to divide the target audience on the basis of
the culture geographical and demographical locations. TESCO uses this technique in order to
analyse the behavioural variables of the targeted audience which include youth and female
customers. Segmentation helps the company in approaching the targets customers group

effectively and evaluate their needs and expectations which will provide them a huge advantage
over their competitors.
Targeting: The next step is to target the best customers that will enhance their market
share in the industry. TESCO aims at targeting the customers with the help of PESTLE
framework. TESCO aims at targeting the customers through regular Instagram post which will
provide them product information (Onobrakpeya and Mac-Attama, 2017).
Positioning: This technique involves that the marketing strategy must help in positioning
the products of the brand on the top of the customer’s preference. With this, TESCO aims at
promoting the products on the basis of their qualities which will attract the customers. TESCO
uses their USP in order to position themselves in the competitive industry.
Marketing Mix Product: The products offered by TESCO involve the grocery items, kitchen products
and so on. The company sells effective product with highlighting their unique selling
point. TESCO have developed their USP by treating the customers the way they like to
be treated. Along with this the company promises to deliver exceptional services. Place: The Company operates at global level in which they analyse the customer’s
preferences effectively. Tesco operates at domestic and international level and try to
satisfy the customer’s needs efficiently (Susanti, N., 2018). Price: The Company sells the products at affordable prices due to which the customers
purchase the products on a large scale. TESCO sets the prices after analysing the market
trends and studying the customer buying behaviour (Poddar and Agarwal, 2019). TESCO
adopts cost leadership strategy for attracting the customers. This is based on attaining
competitive advantage by providing lowest cost to their customers. Promotion: The promotion technique which is widely used by the company is the digital
marketing technique. As this technique have helped in enhancing the customers of
TESCO (Agrawal 2020). Physical Evidence: this involves the sale of services which are intangible in nature.
Many organisations are selling them in order to satisfy the expectations of the customers.

 People: The workforce of the company is their front line officers who deal with the
customers. TESCO hire employee who have high convincing power which can be utilised
to increase their sales and revenues (Bali, Swain and Wallentin 2017).
 Process: The Company adopts smooth ways to deliver their products safely. TESCO uses
strategist that will help in reaching the customers easily (Ghosh and Mog 2020). The
company focuses on providing an effective individual experience to their customers.
Budgeting and Measures
Budget is a required documents or format for an organisation which describe and allocate
each cost which organisation going to consist for new products, promotion, distribution or others.
An organisation needs to prepare an appropriate budget that will minimize the cost and
maximize the profit for that instance, Tesco needs to allocate budget in such a manner which
makes maximum investment for making the product and service available into online market,
also technological investment includes software and SEO optimisations that, it would help in
boosting sales. Tesco will require to have maximum $50000 to run the campaign successfully.
Measures: Organisation functions and its productivity is not necessary to be accurate of
effective without maintaining proper control into the operations. In relation with digital
marketing campaign there is enormous need to measure digital performance of the company by
being active on websites and other channels. Also, ensure to earn maximum followers and traffic
on social channel so that chances of online sale will be increase. In order to make measure Tesco
will be using effective tool KPI indicator:
KPI indicator: This indicator is a performance checker by making through various
points into consider. It as a most popular performance checker used by many companies to get
an exact overview of companies position into new product. Here tesco, will be measuring the
points to check how their digital marketing campaign will become successful in the long run.
Revenue growth: the first indicator reflect the sales or revenue growth which is the main
purpose of the company ton earn maximum revenue. By developing digital marketing campaign
sales measurement will shows how the Tesco in productivity and compare past sales from the
present online sales.

Income sources: The next best indicator that put influence on companies sustainability is
the income that is the main goal. Tesco will measures all the income sources through which it
could gain better income. Income would generate by online sources as well as online investment
through stakeholders and shareholders.
Working capital: it is the next requirement of company which would be settled and fully utilize.
It is that capital which Tesco will use in their day to day operation. Working capital must be used
into most prominence use of company so get no wastage of money will be left.
As a result sales and performances of TESCO were heightened as proper compliance of rules and
regulations became effective. When the strategies and regulations were followed properly, it
resulted in enhancing performances of employees as they were working in a better environment
with reduced mental pressure (Sabat 2019). This increased their motivation in participating in
several activities and tasks which were performed.
CONCLUSION
From the above report it can be concluded that digital marketing plan is necessary to ensure
continuous growth and success of an organisation. Many companies’ adopts different marketing
strategies to enhance the customer base which will ultimately increase the profitability and
productivity in the near future. TESCO adopted the usage of social media platforms mainly
Instagram and Twitter in order to enhance the customer engagement. The marketing campaigns
are developed after properly scanning the external and internal environment of the organisation.
Along with this, the competitors and the market industry are being effectively scanned before
defining the objectives of the marketing plan. This helps in enhancement of the growth prospects
of the company with the effective implementation of strategy towards the attainment of the
objectives of the plan.

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