An Analysis of Internal Marketing Strategy Effectiveness at TESCO PLC

This dissertation analyzes the effectiveness of internal marketing strategies within TESCO PLC, a multinational retailer. The study explores the impact of internal marketing on employee performance, loyalty, and engagement. It delves into the theoretical and conceptual understanding of internal marketing in the retail sector, examining the relationship between investment in internal marketing efforts and employee outcomes. The research employs a mixed-methods approach, including literature review, data analysis, and case study methodology. Key themes include the impact of internal marketing on employee motivation, ethical considerations, and strategies for enhancing employee loyalty and innovation. The findings offer recommendations for improving internal marketing practices within TESCO PLC and similar retail organizations, aiming to improve employee retention and overall organizational success. The dissertation also explores the challenges and issues related to internal marketing strategies and suggests ways to overcome them.

DISSERTATION

ABSTRACT
Studies in past, particularly in regards to effectiveness of internal marketing strategy of
retailers has been built by ample number of researchers. Basically, internal marketing strategies
has helped business organisations in hitting their targets. Over the years, marketing department
of companies that are performing business at international level has developed strategies so that
employees could effectively stay motivated towards their jobs. Here, it can be said that a range of
strategies like compensation, bonus and more some of ideas that has helped companies like
Tesco Plc in meeting their goals and objectives in specified time frame. Including this, the reason
that came in front of considering this topic is that, over the years business firms has been dealing
with high employee turnover ratio and these all took place due to less motivation given to staff
apart from their staff. Therefore, this issue has raised ample number of problems for TESCO and
impacted negatively upon overall performance level.

ABSTRACT.....................................................................................................................................2
TITLE - “An Analysis on the Effectiveness of Internal Marketing Strategy of a Retailer”. A Case
Study on TESCO PLC.....................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
1.1 Overview of the study......................................................................................................1
1.2 Background of the company.............................................................................................2
1.3 Aim of the research..........................................................................................................2
1.4 Objectives of the study.....................................................................................................2
1.5 Research Questions..........................................................................................................3
1.6 Rational of the study ........................................................................................................3
1.7 Research Structure............................................................................................................4
CHAPTER 2 : CRITICAL LITERATURE REVIEW.....................................................................6
2.1 Introduction of Literature Review....................................................................................6
2.2 Main Body........................................................................................................................6
Theoretical and conceptual understanding on the concept of internal marketing strategies in
the context of retail sector..................................................................................................6
Relationship between investment in internal marketing efforts and employee performance
within the organisational value chain................................................................................9
2.3 Conclusion of literature review......................................................................................13
CHAPTER 3 : RESEARCH METHODOLOGY..........................................................................14
3.1 Introduction of Research Methodology..........................................................................14
3.2 Main Body......................................................................................................................14
3.2.1 Research Philosophy...............................................................................................14
3.2.2 Research Approach.................................................................................................15
3.2.3 Research Strategy ..................................................................................................15
3.2.4 Research Choice ....................................................................................................15
3.2.5 Sampling.................................................................................................................15
3.2.6 Time Horizon..........................................................................................................16
3.2.7 Techniques and Procedures and research instruments ...........................................16
3.2.8 Data Sources...........................................................................................................16

3.2.9 Research Ethics.......................................................................................................17
3.2.10 Research Limitation..............................................................................................17
3.2.11 Research Reliability and Validity ........................................................................17
3.2.12 Research design....................................................................................................18
3.2.13 Data Collection Techniques..................................................................................18
3.2.14 Data Presentation Techniques...............................................................................18
3.2.15 Data Analyse techniques.......................................................................................18
CHAPTER 4 : DATA ANALYSIS...............................................................................................19
4.1 Introduction of Data Analysis........................................................................................19
4.2 Main body of Data Analysis...........................................................................................19
THEME 1: Knowledge about internal marketing................................................................23
THEME 2: Internal marketing develops positive impact on retailer..................................23
THEME 3: Benefits TESCO PLC can get through internal marketing...............................24
THEME 4: Internal marketing helps in enhance employee performance in TESCO PLC . 25
THEME 5: Different ethical issues related to execution of internal marketing strategies...26
THEME 6: Importance of employee performance at workplace.........................................27
THEME 7: Different internal marketing strategies retailer should be used.........................28
THEME 8: Internal training impact on the employees innovation......................................28
THEME 9: Different ways TESCO PLC should use to improve employees loyalty...........29
THEME 10: Internal marketing develops positive impact on employee loyalty.................30
..............................................................................................................................................31
THEME 11: Different issues related with internal marketing..............................................31
..............................................................................................................................................32
THEME 12: Ways to overcome from the internal marketing issues...................................32
REFLECTION......................................................................................................................34
CHAPTER 5: RECOMMENDATIONS AND CONCLUSION...................................................35
REFERENCES..............................................................................................................................38

TITLE - “An Analysis on the Effectiveness of Internal Marketing Strategy of a
Retailer”. A Case Study on TESCO PLC.
CHAPTER 1: INTRODUCTION
1.1 Overview of the study
Internal marketing can be defined as an effective promotional strategy, which is used by
business organisations to promote their products and services within the workstation among
staff. Basically, this is being done to enhance overall employee engagement in a company, which
helps in attaining specific goals and objectives in much effective and efficient manner. In other
words, internal marketing is said to be or considered as a philosophy management that stays
linked with staff members as these are the individuals who needs to have all the knowledge
related to organisation's products or service. This is said to be a step, which is required by every
single business organisation that is performing business in retail industry. With the help of this, a
company could effectively encourage, attract, create and retain talented employees that may aid
them in sustaining or gaining competitive advantages.
Along with this, there are ample number of strategies that can be utilised by a business
firm and these are : brand authenticity, product marketing, internal communication, employers
branding, project branding and so on. TESCO Plc is one of the famous United Kingdom's
multinational retailer, which was found in the year of 1919 by Jack Cohen has been taken into
consideration in this research in order to get deeper knowledge related to internal marketing
strategy and their uses. Customer's mindset basically gets changes on a regular basis related to
products and services offered by business organisations. This affects overall performance level
of a company like TESCO Plc and it is required for them to make alterations among goods in
order to gain customer's satisfaction. Away with this, internal marketing strategies or consists
with high range of benefits and these are : satisfied customers, compliances with protocols and
standards, positive and effective employee engagement, higher job satisfaction, enhanced
motivation level and so on. With the help of this, TESCO PLC or any other business organisation
performing at international level will gain ample number of competitive advantages and this
would aid them in sustaining in today's crucial business environment.
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1.2 Background of the company
One of the United Kingdom's multinational retailer named as TESCO coming under top
and big four supermarkets of this nation. Basically, this firm was found by Jack Cohen in the
year of 1919 and it is headquartered in London, UK. This company has helped United Kingdom's
grocery sales to improve with three other famous retailers and these are Sainsbury's, ASDA and
Morrisons. Basically, these four have combined market share approximately to 73.2% in the year
of 2015. TESCO PLC is offering it's customers with high range of products and these are :
furniture, clothing, electronics, toys, internet, software, financial service, telecom services and so
on. On the other hand, if it is talked about staff members that the company is having around
472,000 staff members that are performing well and helping business organisation in sustaining
within the market for a longer period of time.
In present time, if it is talked about this business firm than the company consists with
high range of internal marketing strategies and these could be anything from e.g. programs,
product, price, communication and distribution. If it is talked about all these strategies then these
are fundamental and significant techniques which will boost the TESCO's relationship with both
staff and customers and hold them for long time and keep up solid connection with them.
Principle job of workers in the association is to pull in huge number of customers by giving
quality products and ventures at moderate cost. In past few years, company was dealing with
decline among their productivity and profitability, the reason that came in front was staff
members of TESCO were less motivated and due to this,
1.3 Aim of the research
Main aim of this research is “To analysis the Effectiveness of Internal Marketing Strategy
on Retailer”. A Case Study on TESCO PLC.
1.4 Objectives of the study
 To develop a theoretical and conceptual understanding on the concept of internal
marketing strategies in the context of retail sector.
 To determine a relationship between investment in internal marketing efforts and
employee performance within the organisational value chain.
 To analyse the relationship between employee loyalty to the internal marketing initiatives
from retailer.
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 To examine ethical issues related to the implementation of internal marketing strategies
in the context of TESCO PLC.
1.5 Research Questions
 What are the reasons for international marketing?
 What are the routes to international marketing?
 What is the importance employee performance?
 How does internal marketing strategy relate to employee performance in the context of
retail sector?
1.6 Rational of the study
Basically, the reason behind conducting research is to develop effective strategies to
enhance the inner capabilities of a business organisation like TESCO PLC to could help them in
sustaining within the international market for a longer period of time. On the other hand, another
reason that came in front i.e. internal marketing basically aid a retailer in enhancing overall
performance, loyalty and engagement. Therefore, this could be considered as one of the effective
strategy, which will not only improve the knowledge of research but it will also aid readers too.
With the assistance of this, an investigator could easily perform all the tasks in specified
time frame and this may aid him in meeting the favourable outcomes for the chosen topic.
Another reason that came in front i.e. researcher has his own interest of performing the research
on this chosen topic, where employee performance could effectively be improvised with the help
of internal marketing strategy. Over the years, internal marketing strategies has taken lead over
other promotional activities within business firms that are dealing in retailing industry. On the
other hand, it has been found that most internal marketing efforts provide incentives for their
staff members to attain their specific daily and monthly targets. Away with this, it can also be
said that, it is much required for business firm's like TESCO Plc that this incentive for
something, which majorly motivates different range of people. It was mentioned in a survey
where wagers have asked with the question that, what sort of bonuses they require the most from
a business firm. This is where, they mentioned that nearby the holiday seasons. Basically,
survey has given favourable outcomes related to best motivated individuals through making
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more money and least motivated by company parties. Information like this is important for
companies trying to create an enthusiastic workforce. Through this, TESCO Plc could sustain
within the market for a longer period of time, within today's competitive business environment.
(Sources : Internal Marketing, 2012)
1.7 Research Structure
Introduction : This is being considered as one of the crucial section in a research.
Basically, this sets aim, objectives, research questions and other related details to the chosen
topic. In present context, where investigator has taken into consideration of the topic i.e. an
analysis is going to be performed with the help of internal marketing strategy of a retailer and i.e.
TESCO Plc. On the other hand, it is also said that this section if developed inappropriately, then
it is may be possible that results would not come clear in the end.
Literature Review : Literature review section, mainly consists with information that has
been presented by researchers in the past. Basically, researcher in present context will be
considering different range of books, journals and different articles which are a part of secondary
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Il
lustration 1 : Internal Marketing

research related to the chosen topic. Through this, maximum benefits will effectively be pulled
out in specified time frame considering the secondary approach. Along with this, this section is
also going to be enclosed with both perceptions of researchers, where critical analysis of the data
will be presented and this will aid in enhancing the knowledge of the researcher in specified time
frame. All the questions that has been developed by investigator in regards to the topic, will be
answered considering the perceptions and other details given by researchers in past.
Research Methodology : This section basically helps a researcher in conducting the
investigation in a rightful manner. This is where, investigator takes into consideration of
different range of methods, analysis, ethical considerations, philosophies, research data
collection tools and other elements as well that aid investigator in making the investigation much
more authentic in nature.
Data Analysis : In this phase of investigation, researcher mainly analyse the collected
data from both primary and secondary research methods. Through this, effectively results are
being gained by investigator in a short span.
Conclusion and recommendations : This is where the actual conclusion of all the
information and data is basically performed. In this section, all the results that came in front gets
presented. On the other hand, recommendations is also something which this section carries in
regards to both research and the chosen topic. This section of the investigation will directly aid
researcher in enhancing the knowledge of both investigators and readers as well.
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CHAPTER 2 : CRITICAL LITERATURE REVIEW
2.1 Introduction of Literature Review
Literature Review can be defined as academic information, which is presented with the
both current and past knowledge. Along with this, it is also consists with substantive findings
and theoretical along with the methodological contributions on a chosen topic. On the other
hand, literature review basically consists with ample number of secondary sources, which could
be anything from books, journals, magazines and so on. Basically, this section do not stays based
on original sources like survey, questionnaire and so on that comes within the primary research
methodology. Along with this, if it is thought in a different way then literature review could be
done on the basis of both comprehensive and detail summary of investigation, that has been
performed in the past by different investigators. In present context, where the investigation is
being performed on the chosen topic and i.e. effectiveness of internal marketing strategy of a
retailer. On this, investigation will be done by researcher considering different range of sources,
which could be anything from scholars, books, journals and so on. Away with this, literature
review is also carries a range of elements like objectively, describe, clarify, enumerate and
evaluation done on a range of previous studies. This phase, mainly being performed among
objectives and questions that has been developed considering secondary sources. On the other
hand, objectives that are being developed in present investigation are going to be presented with
a range of factors and these are given underneath :
 This section consists with different range of elements, which mainly has helped
researcher in pulling out favourable outcomes related to the chosen topic and i.e.
effectiveness of internal marketing strategy of a retailer, which is TESCO PLC.
 Literature review also pulls detailed analysis and finds the information among previous
gaps that researchers has not been identified.
2.2 Main Body
Theoretical and conceptual understanding on the concept of internal marketing strategies in
the context of retail sector
As mentioned by Alexandra Twin, (2019), marketing helps a business organisation in
promoting products and services at international or national level. It has been found that,
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marketing mainly consists with different range of elements and these are promotion, selling
strategies of services and products to consumers or to other business organisations. It can be said
that, all the range of activities along with different range of attempts, that internal marketing
strategies has given ample number of opportunities to business organisations that are performing
services at international level. This has helped them in sustaining within the competitive business
environment and this attracted number of consumers. On the other hand, it is also said that
keeping advertising introducing within the business environment of different products and
services has helped customers in purchasing the best product or services in specified time frame.
Along with this, the basic point of advertising is to discover what customer want and breaking
down whether it is conceivable to convey it at the reasonable or right cost. Internal marketing
ideas, mainly helps a business firm in maintaining the customers needs, enhances the number of
benefits, improvise number of deals and beat the challenges as well. There are for the most part
five marketing ideas that undertaking receive and execute. This idea for the most part related
with creation, item, selling, showcasing and cultural promoting. All these are basic and
significant for the achievement and development of an organisation like TESCO PLC.
As per the comments give by Margaret Rouse, (2019), internal marketing is mainly
consists with promotion a range of objectives, services and product to workers within the
organisation. Along with this, the main purpose of internal marketing is to enhance employee
engagement with the organisation's objectives and fostering brand advocacy. This sort of
marketing basically takes staff members of a business organisation within the retail industry as
targeted customers. On the other hand, internal marketing precise over inner relations between
staff members from every department of TESCO PLC.
This type of advertising carries recognition as a method of managing and it is utilised by
the association for promoting all their arrangements to every worker. In other words, internal
marketing is also being considered as a progressing procedure, which happens within the
workstation and engages or adjusts labourers at whole administration levels to reliably convey a
delightful client experience. Main task of internal marketing is to make gratitude and attention to
the business' points and quality. Here, it can also be said that marketing (internal) also causes a
business organisation like TESCO PLC to motivate staff members in a much effective and
efficient manner. This helps company in grabbing good position within the market where it is the
responsibility of workers to perform in achieving all the long term objectives and destinations for
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grabbing a good position within the market. As given by Kristina Allen, (2019), internal
marketing strategy is specifically just not antithetic from the outside marketing strategy but this
could also be considered as story, which impacts on a range of actions that could help TESCO
PLC in meeting all the requirements in specified time frame. But, there is difference as well
among both internal and outside marketing strategies where in internal marketing targeted
individuals stays employees and on the other hand, if it is talked about outside marketing strategy
the targeted public stays customers that are looking forward to fulfil their specific needs. All
these are major internal marketing strategies which will help an organisation to promote their
products and services to their employees. Considering all the above information, it was also
mentioned by Jemma Smith, (2019), that retail industry is continuously playing a much effective
and efficient role for economic conditions of UK. It includes any organisation or individual
involved with marketing and selling of products or services to customers in direct manner. This
sector includes department stores, shops, supermarkets, market stalls, door-to-door sales people
and online retailers as well. Including Big 4 Supermarkets in the year of 2017, sales which was
generated by retail industry of United Kingdom was approximately to £395.00 billion. According
to the John Spacey, (2017), internal marketing introduces as a use of marketing techniques or
tools to deliver internal communication. Including this, if it is talked about various internal
marketing strategies that are present for retail business industry then these are presented
underneath:
Product marketing: This implements as a significant internal marketing plan that the
retail industry uses to promote their products first to workers and then to consumers. It is goods
or product marketing, distribution, delivery and sales. It is also separated from either the brand
design and design process in which new ones are studied and lunched. Afterwards, workers have
good understanding of the goods of the company and then manufacture those items for
consumers. This could be understood with a good example where, TESCO PLC wants to
introduce a new smartphone on the market, they will pay their workers this device for the first
time and evaluate their input on this phone. after it they manufacture such a service for the
consumers that will benefit the company by growing its market share and profits.
Internal Communications: To provide information, using strategic interaction,
advertising tactics and marketing. It's another significant internal business strategy that TESCO
PLC is following to provide its staff with detailed information about both the goods and services.
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