Analysis of Marketing Communication for Tesco: A Report

This report provides a comprehensive analysis of Tesco's marketing communication strategies. It begins with an introduction to marketing communication and its purpose, followed by a literature review that explores integrated marketing communications, branding, and the AIDA and Elaboration Likelihood (ELM) models. The report then delves into a market environment analysis, examining the UK market, key competitors, and market trends such as the rise of digital stores and social commerce. It also assesses environmental factors, including political, economic, social, and technological influences on Tesco's operations. The report concludes with a critical analysis, discussion, and recommendations for Tesco's marketing communication, offering insights into how the company can adapt to market changes and maintain its competitive edge.

Marketing
Communication

Table of Contents
INTRODUCTION...........................................................................................................................1
Literature Review...................................................................................................................1
Market environment analysis.................................................................................................4
Critical Analysis and Discussion............................................................................................7
Recommendations..................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing communication is considered as the means which is adapted through firms for
conveying messages regarding goods as well as brand they sell, whether directly or indirectly to
consumers with the aim to influence them to purchase. It aids firm to move their products,
services as well as ideas from producers to end users and maintain relations with clients and
another essential stakeholders with organisation (Blakeman, 2018). The purpose of marketing
communication is to enhance the consumers by delivering value services and products. As per
the scenario, the chosen company is Tesco, it is the well known British groceries as well as
general merchandiser retailer. Its headquarters is in Hertfordshire, England, UK. The purpose of
this report is to evaluate theories as well as practices associated to marketing communication
mix. Moreover, the application of model and unique solution to business problems are also
mentioned in this report.
Literature Review
According to view point of Bowie, 2016, Integrated marketing communications is
considered as a easy concepts which assures that whole kinds of communications as well as
messages are linked together effectively and efficiently. Moreover this involves coordination the
several components of tools as well as another activities of marketing which communicate with
the consumers of the organisation. Mainly this tools applied for accomplishing the firm's
communication objectives are known as promotional mix. Also, this utilises channels such as
public relations, advertising, personal selling and others.
As per the view point of Dave Kerpen, Branding is defined as the representation of their
firm as a personality. It differentiates company from others. Moreover, this is a marketing
practices where organisation develops a design, name or symbol which is easily identifiable as
belonging to firm. It assists them to find a product as well a distinguish them from competitors
goods or services. Also, this change the how person perceive company's brand and leads new
enterprises as well as enhance awareness of brand. It aids them to makes new clients, maximise
business value, develops staff satisfaction and prides etc (Branding, 2019).
AIDA MODEL
This is considered as the model that is utilised within marketing for describing the
process a consumers goes through into procedures of buying goods. This model is established
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through American Businessman, E. St. Elmo Lewis, in year 1898. This model finds cognitive
stages a person moves while purchasing products. It is a buying funnel in which purchaser go to
as well as fro into every steps for supporting them to make final purchase. It stands for
Awareness, Interest, desire and action. This model is used by TESCO are discussed below:
 Attract attention: Respective stage of AIDA model states that the product of
organisation must attract the attention of their consumer on various grounds. In context of
Tesco they conduct research and development to acknowledge about change in taste and
preferences of consumers so that they can aid relevant features in their product to remain
always competitive in marketplace (Bruhn and Schnebelen, 2017). They focus on quality
and customer satisfaction by applying various tactics such as benchmarking and many
more to maintain quality of products.
 Maintain interest: As per the first stage organisation attract the consumers by different
grounds due to their products and services they offered. To maintain the level of interest
Tesco use after sale services and provide detailed description related to product on their
website to know and reach at large no. of potential consumers.
 Create desire: In it organisation put forces to arouse interest in heart of consumers by
different ways. The main role in respective stage of seller to persuade consumers by
giving information rare features existed in the product. By using the advertisement and
other tools they attract the attention of consumers to remain competitive in the business
environment. In context of Tesco they provide compensation and benefits to sellers with
objective to influence consumer to purchase products and services.
 Take action: As the after completion of the whole process of persuasion it is important
to transfer it into action which is purchase of products and services. It is the ultimate
process in which consumer leads towards buy of products (Eagle. and Dahl, 2015).
Respective model or tool is very much trending now a days and frequently used by Tesco
to attract and retain them for long time their potential consumer by reap important
outcomes.
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Elaboration likelihood model ( ELM ):
The ELM model was developed by Richard E petty and John Cacioppo in year 1980.
Basic concept of this model is about defining about change in attitudes of customers. This model
is based on four groups which can make an appropriate balance between trusting other people
and follow their thinkings. It is so because people know that which message is needed to be trust
and which ones need to discard. Herein , below four groups of this model are demonstrated that
are as follows such as :
 Gullible people , these can be influenced with ease.
 People who have characteristics of leaders and trust on others . As well as these people
have the ability to make others to follow their thinkings and ideas.
 Those people who have firm beliefs along with bad communication skills.
 Opinionated people who can not be influenced in an easy manner. These people have
good thought process and take decision after taking time.
In these four groups of model , this is important to know that message is a crucial factor
that includes some persuasive value. In addition , this model is based on two routes which are
central and peripheral route (Fill and Turnbull, 2016). Below description of these routes is done
that is as follows :
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 Central route persuasion – As per this persuasion if an individual thinks about a message
received for long time period then there is strong possibility of being persuaded.
 Peripheral route persuasion – This can be defined as a kind of persuasion in which a
person can be effected by message only if it is delivered by a special person. For example
advertisement done by a person's favourite footballer of shoes can influence to buy the
shoes.
Market environment analysis
UK market of product or brand
The supermarkets is the leading sector within United Kingdom. This generates higher
sales as well as huge profitability. It sells an enhancing range of non-food products which place
them into competition with a broader scope of retailers in comparison to grocery stores. Over
the past five years this industry have undergone through radical changes. In addition to this,
respective industry is dominated through 4 big chain of super market that are Asda, Morrisons,
Tesco and Sainsbury's. Tesco is a growing retailer which operates their business globally having
headquarters is in England, UK. It have a consistent share over 25% of marketplace. The brand
value of TESCO in all over the world is 9.2 billion USD. Moreover, its brand value in UK is
11.3 billion USD. Tesco's online edible grocery sales value is 4.2 billion USD, grocery banner
sales is 56.4 billion USD, value of sales excluding vat as well as fuel within UK is 37.7 billion
GBP. The number of respective organisation stores within United Kingdom is 3739 (Products
and brands of UK, 2019).
Key competitors:
As Tesco is a growing company within all over the world so it have various competitors
such as SPAR, Walmart, CBA and others. Moreover, Amazon is also considered their
formidable rivals into international market. In addition top this, the main competitors of
respective organisation in United Kingdom market are Morrisons, Waitrose, Asda, Lidl,
Sainsbury, Aldi and many more. The market share all these firms are Asda 15.3%, Sainsbury's
15.9%, Morrisons 10.6%, Lidl 5.3% etc. As per this, the closet competitors of Tesco are ASDA
and Sainsbury's. All this influence their strategic decisions as according they have to make some
strategies like offers and discounts in its products and so on in order to beat its rivals (Key
competitors, 2018).
Market trends
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As trends of the market keeps on changing day by day for fulfilling the needs and wants
of the customers. Within super market industry, some market trends that are forecasts in year
2019 are discussed below:
 Physical stores go digital: Technological stores are also set to change how individuals
shops within stores. In coming year, Physical stores will maximising which may
provides more digital experiences with customers which will help them to identify,
research as well as purchase food in effective and efficient manner (Gabrielli and Baghi,
2016). Moreover, this facilitates them spaces and also an competitive advantage over
online providers. All these influences the respective organisation and sectors strategic
decisions as accordingly they has to utilise various new technology and keep on updated
with it. This is helpful in providing consumers a more informed choice into stores so that
its profitability and productivity get enhanced.
 The rise of social commerce: The development of electronic commerce can outcomes
in new ways of shopping. It have been assumed that social commerce models are
emerging in year upcoming year. With this, suppliers as well as retailers will deliver
targeted marketing and new ways to develop online shopping in more convenient, social
and instantaneous. Moreover, this become easier for social media apps user to identify as
well as book holidays to new places and others. All these influence the respective market
and organisation strategic decisions as they have to put advertisements on all the social
media sites and also developed it in such a manner so that users or customers can easily
purchase products or services from there (Marketing trends, 2025).
Environmental factors
Environmental factors are considered as the identifiable components into economic,
cultural, demographic and others surroundings that effects the operations, sustainability and
growth of firm. It can be both external and internal business (Gambetti and Schultz, 2015). As in
UK, the environmental policy is commitment of company towards regulations, legislation and
another policy mechanism which are concerned with environmental issues. All the factors are
discussed below: Political: In this, the recession is considered as the key spectrum which are recently
impacting whole countries that may drives towards huge unemployment. As a leading
retailers within supermarket large number of jobs are available with Tesco. Thus, they are
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helping in reducing the unemployment levels. As recession occurs so this factor influence
their strategic decision, it have to recruit staff and trained them accordingly. Also, fixed
the price of the products as per the political issues. Economic: These factors are the key concern for respective organisation as they are
focused to leverage cost, profitability, prices etc. So, the firm have to aware about the
changes in policies like changing taxation, planning permission and others that can
impact the finance accessibility (Herman, 2015). As their business are expanding
nationally and globally so the planning permission is an problems which Tesco required
to be aware of because of its continuous expansion. It is largely regulated within UK.
This influence their strategic decision as they have to perform as per the laws related to
planning permission that help them to evaluate the potential success of stores into new
location. Social: These factors includes demographics, customers buying pattern, lifestyle trends
and others impacts purchasing accesses in respect of TESCO like enhancement in
immigration of Eastern Europeans or maximise into young professionals. This, influence
the strategic decision of respective organisation as it have to develop their products
according to maximising Eastern European body for satisfying its customers. Technological: The technology enhancement brings new opportunities for Tesco. The
introduction as well as development of online shopping with home delivery facilities.
Also, the service checkout points has facilitated an ease to consumers that minimises
labour cost (Karjaluoto, Ulkuniemi and Mustonen, 2015). This factors influence their
strategic decision as they has to invest certain amount upon project efficiency for
accomplishing long term goals in order to minimise their carbon footprints. Also, it
utilises online shopping forum Tesco direct. Environmental: With enhanced pressure upon firm for addressing environmental
problems as well as to adapt ways of operations that will benefit society. Respective
organisation is committed to minimise their carbon footprint by 50% by the year 2020.
so, this influence their strategic decision as it has to reduce the waste produced in its
stores through enhancing social conscience in consumers effectively (Pestle analysis,
2018).
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 Legal: Both legislation as well as government policies directly effects the organisation
performance. Such as Food retailing commission suggest a code of practices that had ban
the various current practices like changing cost without notice or demanding payment
from suppliers. These policies influences the strategic decisions of Tesco as they has to
facilitates policies and this influence their decision making as they has to facilitates
consumer price reduction upon fuel it buy and also invest more amount on its grocery
stores.
Critical Analysis and Discussion
Integrated marketing communication is defined as the integration of whole marketing
techniques, resources as well as approaches into firm that enhances the effects upon customers
mind as well as outcomes within enhanced profitability at low cost (Luxton, Reid and Mavondo,
2015). Moreover, it is considered as strategic, collaborative as well as promotional function of
marketing by which a targetted customers receives persuasive, consistent as well as reinforcing
brand messaging into an comprehensive and integrated manner for moving purchaser by
procedures of decision making.
Brand Positioning: Brand positioning is considered as the positioning strategy of brands
with the aim to develop a innovative impression into consumers minds as well as at competitive
market area. It have specific, clear, distinctive as well as desirable in nature from other rivals.
TESCO utilises broad ranges of positioning strategies for grabbing the attention of targeted
consumer segment. Moreover, it position their brands through facilitating valuable consumer
services in effective as well as efficient manner (Pedersen, 2017). As it focused more upon in
store experiences of their clients so that they spend its precious time in its stores.
Communication mix management:
This is considered as the particular methods which is utilised for promoting organisation's
or their products towards targeted consumers. So, some media and IMC tools used through
TESCO are discussed below:
Advertising: Advertising is considered as the elements which is strongly utilised through
brands who has several competitors within marketplace. It needs that firm has creative
advertisement messages. The more impactful as well as innovative messages then there will be
more connection among brands that is advertising as well as customers. So, TESCO utilise this
media and IMC tools by doing television, radio etc. advertisements that assists them in creating
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brand awareness within competitive market. Moreover, this will outcomes according to the
desires (Petersen, Kushwaha and Kumar, 2015). This have to be market oriented as well as have
to reach marketplace without any cost within marketplace.
Positive aspects:
 This is helpful for Tesco in developing awareness into the targeted market place.
 This aids them to reach market area broadly as well as largely.
 Also, this will assists in positioning their products as well as brand image which is useful
to gain the faith of consumers.
Negative aspects:
 The main disadvantages of this is , it deferred revenue expenditure as an outcomes are not
immediate.
 The major drawback of this is that sometimes the misrepresentation of facts about
products and services Moreover, this enhances cost and also results are not so effective.
Internet marketing: from last few years, digital marketing was providing difficult
competition to TV adds and newspaper advertisement as well as have a more spending among
whole media (Shaw, 2016). So, Tesco utilised this particular IMC tools and social media such as
Facebook, twitter and others. As these helps them to gain more revenue from digital marketing in
comparison to newspaper or TV. Moreover, it also aids respective brands to reach the end
customers. All these helps TESCO to enter into private space as well as develop connection.
Positive aspects:
 This incurs lower cost in comparison to traditional or offline marketing so this is the
cheaper IMC strategies for promoting its business as well as another money making
business online.
 It is helpful in obtaining a international presence through internet marketing respective
organisation can gain the new opportunities as well as develop themselves to compete at
international level.
Negative aspects:
 This IMC strategies enhances complexities into marketplace.
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 Also, this restrict the face to face contact due to which respective organisation can able to
lose few of its clients to its traditional rivals who involves strong tactics of consumer
services.
Recommendations
As per the above, it have been recommended that Tesco is facing the problems of
planning permission for expanding their business in larger area so they have to considered the
legislation and laws of that places that is helpful in evaluating the potential success of stores into
new location. Moreover, it is also suggested that they has to utilise more integrated marketing
communication strategies from developing their brand effectively and efficiently (Shen and et.
Al, 2016). That are it has to use Personal selling, sales promotion and others as this help them to
encourage its clients for choosing particular brands and also helpful in interpersonal
communication among sales person as well as prospects.
CONCLUSION
As per the above report, it have been concluded that marketing communication is helpful
in moving their products, services as well as ideas from producers to end users and maintain
relations with clients and another essential stakeholders with organisation. Moreover, two
models are utilised such as ELM and AIDA which aids them to finds cognitive stages a person
moves while purchasing products. In addition to this, some integrated marketing communication
strategies are applied such as advertisement, internet marketing and others that assists firm to
create awareness and develop brand positioning.
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REFERENCES
Books and Journals
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Bowie, D and et. al., 2016. Hospitality marketing. Routledge.
Bruhn, M. and Schnebelen, S., 2017. Integrated marketing communication–from an instrumental
to a customer-centric perspective. European journal of marketing. 51(3). pp.464-489.
Eagle, L. and Dahl, S. eds., 2015. Marketing Ethics & Society. Sage.'
Fill, C. and Turnbull, S. L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Gabrielli, V. and Baghi, I., 2016. Online brand community within the integrated marketing
communication system: When chocolate becomes seductive like a person. Journal of
Marketing Communications. 22(4). pp.385-402.
Gambetti, R. C. and Schultz, D. E., 2015. Reshaping the boundaries of marketing communication
to bond with consumers.
Herman, H., 2015. Marketing communication model in social network Facebook. Information
Management and Business Review. 7(4). pp.42-45.
Karjaluoto, H., Ulkuniemi, P. and Mustonen, N., 2015. The role of digital channels in industrial
marketing communications. Journal of Business & Industrial Marketing.
Luxton, S., Reid, M. and Mavondo, F., 2015. Integrated marketing communication capability and
brand performance. Journal of Advertising. 44(1). pp.37-46.
Pedersen, P. ed., 2017. Routledge handbook of sport communication. Routledge.
Petersen, J.A., Kushwaha, T. and Kumar, V., 2015. Marketing communication strategies and
consumer financial decision making: The role of national culture. Journal of
Marketing. 79(1). pp.44-63.
Shaw, S., 2016. Airline marketing and management. Routledge.
Shen, G. C. C. and et. al., 2016. Effective marketing communication via social networking site:
The moderating role of the social tie. Journal of Business Research. 69(6). pp.2265-
2270.
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