Digital Marketing Strategy for TESCO: A Comprehensive Report

This report provides a detailed analysis of TESCO's digital marketing plan. It begins with an introduction outlining the importance of digital marketing plans and their role in achieving organizational strategies. The main body delves into the digital marketing process, emphasizing TESCO's use of social media platforms like Instagram and Twitter, and the development of newsletters to enhance customer engagement. The report includes a situation analysis using SWOT and PESTEL frameworks, competitor analysis, and market analysis to understand the external and internal environments. It also covers TESCO's online strategies, formulation of objectives, implementation and control methods, the STP approach, marketing mix, and budgeting considerations. The report concludes with a summary of the key findings and recommendations for TESCO's digital marketing efforts, highlighting the importance of adapting to the evolving digital landscape and leveraging various marketing tools for success.

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:
 Situation analysis: TESCO aims at analysing the working environment in which they
will implement the digital marketing strategy. The company uses SWOT analysis and
PESTEL framework in order to analyse the core strength of the digital plan.
 Define Objectives: This phase depicts that the company must define their objectives
while developing digital marketing plan. TESCO uses 5S to define the objectives of their
digital marketing. These are namely; sell, serve, speak, save and sizzle.
 Strategy and tactics: In this phase the company must develop effective strategies in order
to attain the objectives in the competitive environment (Gartanti, Triwardhani and Putra,
2020). TESCO considers the chief strategies.

 Action: In this phase, the company implements the policies and strategies efficiently.
TESCO focuses on managing the risk efficiently in order to implement the marketing
plan.
 Control: This phase involves the monitor and control techniques adopted by the company
for the marketing plan. TESCO follows the performance tools and KPI's technique for
identifying and eliminating the discrepancies associated with the campaign.
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.
 TESCO have launched click and collect feature which offers products through
multichannel. It provides equal opportunity to the customers to pick up the products from
any of the Tesco store available near them (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.
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
STRENGTHS WEAKNESSES
 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.
 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.
OPPORTUNITIES THREATS
 TESCO can expand their business
operations in diversified fields with
new economic environment.
 Also, the company can develop new
innovative products to satisfy the
customer needs.
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.
 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.

 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.
 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.
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.
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.
Situation analyses with Digital Marketing.
Situation analysis provides an overview of the internal and external environment of the
company which helps in the development of marketing strategies. TESCO uses SWOT
framework and PESTEL analysis to develop and implement an effective marketing plan which
will enhance their productivity profitability and brand recognition in the external environment.
Along with this, it is necessary to analyse the competitors and the market area in which the plan
will be implemented. TESCO also analyses their competitors in order to identify their
weaknesses. In addition to this, TESCO investigate the current trends properly before designing
the marketing campaign.
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 market demand of the customers by using survey method.
 To use the social media platforms to advertise the products of company.
 To increase the sales from 10% to 20% in next 3 months.
 To record and analyse the feedback of the 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.
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.
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.
 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.
 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.
 Process: The Company adopts smooth ways to deliver their products safely. TESCO uses
strategist that will help in reaching the customers easily. The company focuses on
providing an effective individual experience to their customers.
Budgeting and Measures
The company aims at developing the financial budget for the plan in such a way that it will
be approved by the investors easily. TESCO uses many financial tools to develop their budget.
These tools help in allocating the resources of the company properly towards the attainment of
the objectives of the marketing plan (Purcarea, 2019). The resources required for the plan is the
development of the website for further promotion of TESCO’s products. Along with this, there
are ways which are used by the company to analyse the performance of plan. TESCO use market
research and online survey method to analyse the performance of the marketing plan in the
external environment. This helps in identifying the customer perception regarding the products
of the company. These measures will help in satisfying the customers and also generate leads for
the sales enhancement. The company will also be able to get new ideas for the development of
the innovative products and the industry. With this, it will help in saving the resources and the
funds of the company for the future purpose (Yeow, Soh and Hansen, 2018). This highlights that
the company is focused towards maintaining the sustainability. This also helps the company and
investing their funds towards implementation of the marketing plan.

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.