E-commerce & Digital Marketing: Tesco's Strategy & Performance

This report provides a comprehensive analysis of Tesco's digital marketing strategies, comparing online and offline marketing concepts and examining the key consumer trends driving digital growth. It assesses digital tools available to marketers, contrasts e-commerce and digital marketing platforms with physical channels, and develops a digital marketing plan to build multi-channel capabilities. The evolution of omni-channel marketing is explained, and measurement techniques and performance metrics in digital marketing are evaluated. The report concludes with a set of actions to improve performance in digital marketing, emphasizing the importance of adapting to changing technology, customer preferences, and communication channels to maintain a strong digital presence and attract potential customers.

Digital marketing.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Present an overview of the digital marketing landscape and compare online and offline
marketing concepts......................................................................................................................1
Determine and analyse the key consumer trends and insights that are fuelling the growth of
digital marketing.........................................................................................................................2
Assess the key digital tools and hardware that are available to marketers in contrast to ‘bricks
and mortar’ and other physical channels.....................................................................................3
Examine the development of e-commerce and digital marketing platforms and channels in
comparison to physical channels.................................................................................................4
Develop a digital marketing plan and strategy to build
multi-channel capabilities...........................................................................................................5
Explain how omni-channel marketing has evolved....................................................................6
Determine and evaluate the measurement techniques and performance metrics in digital
marketing.....................................................................................................................................7
Present a set of actions to improve performance in digital marketing........................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Digital marketing refers to advertising the products and services of the company on
online platforms or through internet. It includes channels such as websites, social media, mobile
app, email, etc. It is a cost friendly method of marketing which provides better opportunities and
reach to companies. It is important for the companies to make sure that they are adopting
methods of marketing which can provide them quantitative measures and are also user friendly.
As digital marketing helps companies in having a wider reach it is a tool which is specially
beneficial for start ups and small businesses as it will help the companies in reaching to a wider
audience and will also help them in analysing the taste and preferences of the consumers (Hung,
2019). The company can get results in measurable terms while using digital marketing tool. In
context to Tesco, it is British multinational groceries and general merchandise retailers. The
company was founded in the year 1919 by Jack Cohen. The company is presently headquartered
in UK. He company has global presence and is currently working in more than 11 countries. In
this report, the benefits of digital marketing along with the difference between online and offline
channels of marketing is given. The report also covers the comparison between e commerce and
digital marketing platforms as well as physical channels.
MAIN BODY
Present an overview of the digital marketing landscape and compare online and offline
marketing concepts.
Digital marketing refers to an activity which helps the company in promoting their goods
and services online and try to attract as much potential customers as possible. The digital
landscape is a collective name for websites, social networks and mobile devices (Kakour., 2020).
These are specifically the tools which helps the company in promoting and selling the products
and services of the company. It helps the company in reaching to the audience worldwide. It
provides opportunity to companies to promote their goods and services without spending much
cost. The difference between online and offline marketing is given below:
Online marketing Offline marketing
It generally focuses on content that the
company is depicting to its customers through
The focus of offline marketing is generally on
the products and services of the company.
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their platforms. They do not give focus to the content that the
company is using.
Online marketing platforms are highly cost
effective. The company can target the market
audience efficiently.
Offline marketing includes high costs and also
involves much more time as compared to
online marketing.
Online marketing gives measurable results to
the company and also helps the company in
reaching to the potential buyers all in one
place.
Offline marketing does not provide results in
quantitative terms(Sultana., 2020). It is not
possible for the company to analyse whether
the company is in the right direction or not.
It provides a wider reach to the company with
the help of internet and will help the company
in attracting large amount of traffic on the
website of the company.
In terms of offline marketing, the company
have a limited reach to its audience and will
have to invest huge investments in the
planning and organising of marketing
campaigns.
Determine and analyse the key consumer trends and insights that are fuelling the growth of
digital marketing.
The first step of an effective marketing is communicating with the potential customers of
the company. If the company is communicating through online channels then automatically the
company will be able to communicate with large numbers of audience through social media
platforms, mobile phones, internet, etc. the markets of the company is highly dynamic and the
digital marketing field is also very dynamic (Bheekharry, 2020). The online platform helps the
company in keeping pace with the taste and preferences of the company and as the cost is also
very low, it becomes the best way for the company to promote their goods and services. Some of
the trends and insights which provide fuel to the growth of digital marketing are:
Changing technology: One of the major trends that are providing growth to the digital
marketing is changes in the way of advertising and promotional campaigns of the company. It is
important for the company to make sure that they are using trending methods to attract customers
so that they can reach to their potential customers or market segment.
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Changing customers: The needs and wants of the customers can change overnight.
Digital marketing will help the company in being updated and will also help the company in
providing latest offerings of the company in real time (Sohail and Balaraman., 2018, September).
With the increase in the number of internet users as well as smart phone users, it is important for
the company to make sure that they are having a strong digital presence as it will help them in
reaching to a large number of customers.
Changing trends: The changing trends of the market will enable the company to have
digital presence. The people nowadays requires personalized information or options so that they
do not have to waste their time. It is important for the company to make sure that they are
providing personalised information to the users so that the customers can find whatever they
want. It will help the company in attraction potential customers who needs the products of the
company.
Changing channel of communication: There is a significant change in the way
customers communicate with the companies. It is important for the company to make sure that
they are using appropriate channels to communicate with their customers so that they can have a
better interaction with their customers (Sihi., 2020). The company can use various approaches to
interact with their customers such as e mails, social media, blogs, online ads. The major aim of
online platform is to make sure that correct information is reaching to the customers of the
company.
Assess the key digital tools and hardware that are available to marketers in contrast to ‘bricks
and mortar’ and other physical channels.
There are different tools which can help the company or the marketer in marketing their
products effectively and efficiently. It is important for the company to make sure that they are
choosing the right marketing channel when it comes to advertising the products and services of
the company. It is important to understand that in order to engage people online the company
needs to make efforts so that they can bring potential traffic on the website of the company
(Saputri and Kurniasih., 2020). Similarly in Brick and Mortar, the first impression of the
company matters a lot. It is important for the company to make sure that they are creating a good
first impressions on the customers of the company while dealing with them as it will increase the
chances of sales for the company. The three digital tools are given below:
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Websites: It is one of the major source through which the company can attract large
number of customers. It is important for the company to make sure that it is providing proper
information to their customers through their website and is bringing right traffic in the website of
the company. It will increase the engagement of potential customers with the products and
services of the company.
Email: Another method through which the company can reach to its potential customers
digitally is email marketing. It is a cost efficient and highly effective method through which the
company can attract potential customers. It is one of the widely used methods of marketing and
involves high level of segmentation.
SEO: it is important for marketers to make sure that in order to bring traffic to the
website of the company they are using effective Search Engine Optimisation method so that the
customers of the company can easily reach to the potential customers of the company (Rusu.,
2019). It will help the company in attracting customers who are looking online the same products
and services that the company is offering.
Examine the development of e-commerce and digital marketing platforms and channels in
comparison to physical channels.
Digital marketing is one of the most important tool that the company can use in order to
attract large number of customers and to make sure that correct information about the workings
of the company is reaching to its customers. Traditional marketing on the other hand includes TV
commercials, newspaper advertisings, leaflets, etc (Peruta and Shields., 2018). In present times,
the key technique that the company can use in order to promote their products and services is to
make sure that they are using a balance of both the digital as well as traditional marketing tools.
Sometimes a powerful TV campaign can provide major benefits to the company where as
sometimes social media marketing of the company becomes most effective marketing technique
for the company.
Digital marketing Physical channel
Pros It makes targeting possible for
the company. The company
can easily target the potential
customers and it will also
The physical channels of
marketing creates a powerful
impact on the minds of
customers. It is easily
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provide more option to the
company to engage with the
customers. One of the most
important advantage is that the
result of digital marketing will
be in quantitative terms.
memorable. Traditional
marketing are also permanent
in nature.
Cons The digital marketing efforts
constantly evolves as the
markets of the company are
dynamic. Digital marketing is
less permanent which means
that they are not for a longer
duration of time (Patro., 2021).
Sometimes people may feel
that the digital ads are little
annoying for them which is
nota good sign for the
company.
It is a costly method and is
also promote absolutely no
direct interaction with the
customers at the time of
marketing of product and
services. The results of
physical channel is very hard
to measure as they is no way
the company can find whether
they had advantage or not from
the campaign.
Develop a digital marketing plan and strategy to build
multi-channel capabilities.
Company overview:
Tesco is a British multinational groceries and merchandise retailers. The company was
founded in the year 1919 by Jack Cohen. The company has presence in 11 countries and is one
of the most successful supermarkets chain in the world. The company is headquartered in United
Kingdom. The net operating income of the company is £3.005 billion.
Mission:
The mission of the company is “we make what matters better, together”. The aim of the
company is to provide quality products to its customers at affordable prices. The company
clearly states that they believe that everyone is a part of the success of the company.
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Vision:
Tesco vision statement is “to be the most valued business by: the customers they serve,
the communities in which they operate, their loyal and committed colleagues and their
shareholders.”
objectives:
 To increase the sales of the company by 10%
 To increase the online presence of the company.
 To enhance the competitors advantage of the company.
STP:
Segmentation: The company has its presence in more than 11 countries and are present
in rural as well as urban areas. The company does not segregate their customers on special basis
as the company is providing products of basic necessities which is requirement of large
population.
Targeting: The targeting customers of the company is generally youth and working class
people. The company try to attract middle income groups of the society (Baines and et. al.,
2021). as the company tries to provide affordable goods to the customers, targeting right
audience is most important for the company.
Positioning: There are several types of positioning that the company uses for their
products. For example, functional positioning is used for Tesco finest range products, symbolic
positioning is used for the fair trade of the company, etc.
Competitors analysis:
Some of the major competitors of Tesco is Sainsbury, ASDA, Morrison, Aldi, etc. these
are some of the major competitors of the company. Some of them are the big five companies and
the largest supermarket chains of UK. The supermarkets of the company is gaining popularity
day by day and is providing competitors advantage to the company. It is important for the
company to have competitors advantage as it will help the company in increasing the sales and
profitability of the company.
Explain how omni-channel marketing has evolved.
A few years ago, the company liked the fact that if the customer are not ready to involve
in a chat then they can opt for any other channel to contact to the customers. It is known as multi
channel approach and will also help the company in becoming more creative and efficient. It
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includes, email marketing, social media marketing ,text messages, etc (Ajiambo., 2021). it will
help the company to initiate a chart with the customers and will also help the company in
providing information to the customers. These techniques were costly for the companies and
were also very cumbersome. The staff of the company find it very hard to manage the system
efficiently and the company were also not able to handle the agents as it was becoming
inefficient for them to handle everything solely. Online marketing was a whole new concept for
companies and they were trying to cope with the trend. Then it slowly evolved to omni channel
marketing approach which is a whole new journey for the customers as it was more dynamic,
non linear and accessible than ever before. It was a seamless experience for the customers and
connects them with a single centralized routing system which helps the company in attracting
more customers (Nazarov and et. al., 2019, December). This channel no longer requires agent
which can help the company in reducing cost as well as modify the channel and can provide
better experience to their customers. In case of Tesco, the company make sure that they are
providing 360 degree view of interaction to their customers which not only help the customers in
having better experience and will also provide better opportunities to the company to interact
with their customers without involving much cost.
Determine and evaluate the measurement techniques and performance metrics in digital
marketing.
One of the major advantage of digital marketing is that the results of the efforts of the
company is actually measurable in qualitative terms. The company can make sure that the digital
marketing campaign of the company is going ion the correct direction and is efficient., it will
help the company in making slight changes in the strategy of the company and make it more
suitable for the potential customers of the company. Some of the major measurement techniques
and performance metric is given below:
Total Site Visits: The company can identify the number of visitors that visited the
website of the company by the marketing efforts of the company (Si and et. al., 2021). It will
help the company in identifying whether the marketing efforts of the company are in right
direction or not. In case of Tesco, the company has their own official websites which helps the
company in attracting potential customers.
Traffic by Sources or Channels: The company can identify the source or the channel
through which they are attracting the right customers for the company. It is important for the
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company to make sure that they are having the right sources so that they can attract large number
of audience for the products and services of the company (Bernstein., 2021). In case of Tesco,
the major source of traffic for the company is social media platforms and digital marketing
campaign which helps the company in attracting large number of audience.
Number of New Visitors versus Number of Return Visitors: The company with the
help of digital marketing can identify what are the number of potential customers that are new on
the website of the company whereas what are the number of the customers that are returning
again. In case of Tesco, the company can make sure that the marketing of the company is having
wider reach as it will attract new customers.
Present a set of actions to improve performance in digital marketing.
There are various number of actions through which the company can improve their performance.
In case of Tesco, the company adopts several methods through which they can enhance the
digital performance of the company and some of them are given below:
Focus on Conversion, Not Just Leads: The focus of the company must be on the
conversation with the customers and not only in converting the leads generated (Ferreira., 2020).
One of the most effective method through which the company can increase the sales of the
company. It will help the company in increasing the profitability of the company.
Create an ultimate buying journey: It is important for the company to create an
extraordinary experience for the customers so that they can retain their customers. It is important
for the company to make sure that they are creating a loyal customer base which the can increase
the sales of the company and ultimately the profitability of the company.
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CONCLUSION
From the above report, it is concluded that digital marketing plays an important role in
the sales of the company. Marketing techniques of the company can help the company in
reaching to its potential customers and will also make sure that the company is having a loyal
customer base. Digital marketing is a cost efficient method of marketing which is also having a
wider reach. It will help the company in attracting large number of potential customers and will
also make sure that the company is having competitors advantage in the market with the help of
effective marketing techniques.
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REFERENCES
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dissertation).
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