Research Project: Tesco Promotional Strategy Impact Analysis

This research project investigates the impact of promotional strategies on the organizational performance of Tesco PLC, a major UK retailer. The study explores various promotional tools such as social media, advertising, and internet marketing and their effectiveness in influencing customer satisfaction, market share, and profitability. The research includes a literature review examining the existing knowledge on promotional strategies and their impact, followed by a detailed methodology section describing the research design, data collection methods, and analysis techniques. Primary data was collected from marketing managers at Tesco, while secondary data was gathered from books, journals, and online articles. The findings reveal that social media and internet marketing are key promotional strategies used by Tesco. The research concludes with recommendations for enhancing Tesco's market performance through improved promotional tools, and identifies areas for further study. The report also includes data analysis and discussions on the effectiveness of promotional strategies. The research project is structured with an introduction, literature review, methodology, data analysis, and conclusion, providing a comprehensive analysis of the topic.

Research Project
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
CHAPTER 1: INTRODUCTION ........................................................................................................3
1.1 Research project description......................................................................................................3
Rationale and background of the study............................................................................................3
1.2 Research aim and objectives......................................................................................................4
1.3 Literature review........................................................................................................................4
1.4 Research methodology...............................................................................................................5
1.5 Structure of the project..............................................................................................................6
CHAPTER 2: LITERATURE REVIEW .............................................................................................6
2.1 Introduction................................................................................................................................6
2.2 Literature review........................................................................................................................6
CHAPTER 3: METHODOLOGY .....................................................................................................10
3.1 Methodology, methods and techniques....................................................................................10
3.2 Sampling..................................................................................................................................12
3.3 Data collection.........................................................................................................................13
3.4 Ethical considerations..............................................................................................................13
CHAPTER 4: DATA COLLECTION AND ANALYSIS...................................................................13
4.1 Data collection.........................................................................................................................13
4.2 Data analysis and discussion ...................................................................................................15
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS........................................................20
5.1 Conclusion...............................................................................................................................20
5.2 Recommendations....................................................................................................................21
5.3 Areas for further study.............................................................................................................21
References..........................................................................................................................................22
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INTRODUCTION
A research is start with a research question which highlights an issue and puts a question in
front of a researcher to conduct an investigation to solve that problem. Research investigation is a
detailed description of a particular issue or a topic. To carry out a study, the researchers use different
methods, tools and techniques. In the present time, there are various factors which affect the
organizational performance of a company either in positive or negative manner. In this context, p-
promotional strategy is one of the elements that affect organizational performance of the firm. The
present research is based on impact of promotional strategy on organizational performance of Tesco.
The objectives that will cover under the present study will be formulation of research specification,
implementation of research project within agreed procedures and to specification, evaluate research
outcomes and many other things.
CHAPTER 1: INTRODUCTION
Title: Impact of promotional strategy on organizational performance: A case on Tesco PLC, UK.
1.1 Research project description
At the heart of business, the increase level of competition attracts attention of customers
towards the goods and services (Truss and et.al., 2013). In this respects, each company needs to
build a more attractive strategy and action plan to survive in market and beat the competition. One
most effective attractive end users attention towards commodities is promotion (Holroyd, 2012).
But sometime, not effective utilization of this technique has negatively affected the performance of
organization. Therefore, determining the impact of promotional strategies on organizational
performance has a wide scope of investigation.
Tesco is one of the British multinational grocery and general merchandise retailer in UK.
Further, company is well known in the market for range of products it offers to its target market.
Moreover, in the entire market competition level is rising due to which it is necessary for enterprise
to indulge into effective promotional practices so that business can easily grab the range of
opportunities being present in the business environment (Du Plessis and Barkhuizen, 2012).
Rationale and background of the study
One of the main reasons behind carrying out the present study is to understand the
effectiveness of promotional strategies in enhancing organizational performance. Further, the entire
research is based on promotional tools being employed by Tesco so as to know whether they are
effective or not (Jiang, 2014). Apart from this, promotion in the form of advertising, social media
and other effective sources are contributing business in gaining competitive advantage and have
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assisted to become leader in the market. Moreover, it has supported customers to know about
product range of Tesco and can be influenced easily (Goddard and Melville, 2004). Performance of
company has been improved in the form of rise in profitability level along with market share which
is beneficial for each and every activity being carried out by Tesco in the market.
1.2 Research aim and objectives
Aim: To assess the impact of promotional strategy on organizational performance: A study on Tesco
Plc UK.
Objectives
Following are the objectives being developed for the present study which are as follows:
 To identify the key promotional strategies used by retail companies
 To assess the impact of promotional strategy on performance of Tesco To recommend the effective ways through which Tesco can enhance its market performance
through better promotional tools
Research questions
Following are the range of research questions for the present research which are:
1. What are the key promotional tools being employed by retail businesses?
2. What impact do promotional strategies have on performance of business?
Factors that contributed in research project selection
Large numbers of factors are present that contributed in selection of research project
(Bhattacharyya, 2009). One of the main factors is raising level of competition in the market where it
has become difficult for businesses to sustain in the market and due to this reason they have started
to focus on promotional tools such as social media, advertisement and other effective sources so as
to share proper information with target market. Second factor is declining performance of
businesses where they are not able to identify the appropriate source through which information can
be shared with customers such as promotional tool having worldwide coverage (Creswell, 2013).
1.3 Literature review
As per the views of Holroyd, 2012, promotional tools adopted by firms in the modern era
directly play a crucial role in enhancing their market performance (Holroyd, 2012). Further, without
effective promotion it is not possible for any business to develop awareness in the market.
Moreover, it is well known fact that customers are information seeker and without obtaining
relevant data regarding product it is not possible for them to take purchase decision. However
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argued that O'Boyle, 2015, in the present time, there are many types of promotional strategies and
most of the time, companies don't know which one is more suitable for their product promotion
(O'Boyle, 2015). So, due to this, firms face various issues in which one of them is organization
performances. According to Jiang, 2014, social media as one of the promotional tool is widely
adopted by business and through this it has become possible for businesses to satisfy requirement of
its target market in efficient manner (Jiang, 2014). Apart from this, companies are able to respond
towards the changing need and trends of customers. As per view of Keller and Price, 2011,
promotional tools are effective enough for providing competitive advantage to the businesses and
support them to deal with the range of challenges being present in the business environment (Keller
and Price, 2011). No doubt, the entire retail sector is highly competitive but due to proper sharing of
information with customers businesses are able to survive in the market. However argued that
Muijs, 2011, promotional practices of company build internal strength of the enterprise where it is
possible for organization to serve its customers in better manner (Muijs, 2011). Apart from this,
without effective promotional strategies business cannot know overall requirement of its customers.
1.4 Research methodology
For conducting the present study in appropriate manner various tools and techniques have
been employed (Daniel and Sam, 2011). Descriptive design has been undertaken where main stress
is on providing description of the topic being chosen. Data has been collected from both primary
and secondary sources. Primary data has been collected from 20 marketing managers working in
Tesco and secondary one through books, journals and online articles. Further, sampling size of 20
managers has been considered through purposive sampling. Inductive approach has been employed
where results move from specific to general as entire research has been carried out from point view
of Tesco (Fiegen, 2010). Positivism philosophy has been used and for analysing information
qualitative technique has been used where different themes have been formed.
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1.5 Structure of the project
Activity in week 1 2 3 4 5 6 7 8 9
Writing Research Proposal
Reading various literature
Finalizing the aim and objectives
Drafting literature review
Collecting secondary data
Analyzing secondary data
Developing research approach
Drafting research methodology
Developing questionnaire
Arranging the interview
Conducting the interview
Accumulating the data
Drafting findings
Analyzing data
Completing remaining chapters
Submitting it to tutor and awaiting for feedback
Revising the draft
Printing and binding
Submitting
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is a short description of previous published research topics that are used by
the research in his current study for reference. There are various reasons which show the need of
literature review such as effectively understand the topic, determine knowledge gaps that help in
future investigation, compare current findings with previous outcomes, etc. (Rasula, Vuksic and
Stemberger, 2012). The present investigation is relating to impact of promotional strategy on
organization performance of Tesco. Under this section, the various literatures will be compared to
carry out the study in the right direction and meet the objectives of the research.
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2.2 Literature review
Importance of promotional strategy
According to Tuten and Ashley, 2011, promotion is a key element that put benefits of
products and services in front of customers in an appropriate manner (Tuten and Ashley, 2011). A
well designed promotional strategy ensures long term success of the organization, attract more and
more consumers and assure profitability of business. It allows the companies to reach out the end
users in the most effective way. Similarly, Narendran and Narendranathan, 2013, has stated that a
promotion strategy communicate a complete brand image to the customers via different platforms
such as radio, television, social media, etc (Narendran and Narendranathan, 2013). It is a voice of
the firm that send out to the consumers for letting them know about current services and products.
Without promotion, it is not possible that a brand can get the attention of target market. On the other
hand, Theaker, 2013, has asserted that “promotional strategy helps the organizations to understand
the needs of the consumers and develop the services according to it” (Theaker, 2013). A loose
promotional tactic unable the business to analyse the demand and wants of the end users as well as
meet the gaps between demand and supply. So, it can be said that promotional strategy is more
important in order to get success in the marketplace and achieve business objectives.
Key promotional strategies used by retail organizations
As per the view points of Demiray and Sever, 2011, “product or service promotion is one of
the important and essential thing for an organization for getting brand in front of the public and
attracting new customers” (Demiray and Sever, 2011). With the help of different ways, now, the
companies are promoting its services in the target market most effectively. Some of the firms use
single promotional strategy and some of them use more than one technique for promotion. In this
respect, Baker, 2014, has explored that “contests are frequently used promotional strategy to
promote a brand between the consumers” (Baker, 2014). Under this method, for promoting brand, a
logo and name of the company put in front of the public by organizing the events. By doing this, it
can be easy to grab the attention of the customers to purchase the goods and services. But Ferrell
and Hartline, 2012, has stated in contrast of above statement that “social media is most appropriate
promotional strategy that presently follow by many of the companies” (Ferrell and Hartline, 2012).
Social media websites such as Google +, Facebook, Twitter, LinkedIn etc offers a facility to the
companies to promote services and products in more effective manner as compare to contests. It
connects the firm with across the world of potential customers and understands the needs of
consumers.
On the other hand, Demiray and Sever, 2011, has asserted that “mail order marketing is a
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part of promotional strategy” (Demiray and Sever, 2011). The decision of purchasing of the goods
have already fixed in the customer mind. But by providing more information to the end users about
the commodities, the decision of their can be made more accurate and appropriate. Along with this,
by offering a free product in the exchange of information can attract the attention of the target
market and influence them to use services of company. In this context, Tuten and Ashley, 2011 has
found in this research that “sales promotion and public relations are more effective techniques of
promotional strategy” (Tuten and Ashley, 2011). Both the methods have directly developed a
relationship between organization and customers and attracting the target market to show the
interest in purchasing of the goods. Therefore, the evidence shows that there are different types of
promotional strategies that use by the retail organizations for promoting their brand in front of the
target market.
Benefits of promotional strategy for retail organizations
According to Boachie-Mensah and Dogbe, 2011, “for an organization there are many
benefits which they get with the help of promotional strategies” (Boachie-Mensah and Dogbe,
2011). Promotional strategies are been used by the retail industry in order to achieve their desired
goals and objectives. In this context, Du Plessis and Barkhuizen, 2012 has stated that there are the
benefits which retail organizations get through promotional strategies in which one of the is
customer perception” (Du Plessis and Barkhuizen, 2012). There are many promotional strategies
which are been used by the organization in order to attract customers. However, with the help of
promotional strategy, organization tends to develop curiosity among customer’s mind. In addition to
this, customers get attracted to the offers which have been provided by the organization.
On the other hand, Narendran and Narendranathan, 2013 has asserted that “revenue growth
is most important benefit of promotion strategy for retail organizations” (Narendran and
Narendranathan, 2013). In a retail industry, there are different types of product which are been
provided to customers. In this context, promotional strategies are very helpful in increasing the sales
and profitability. Further, through different types of strategies firm attain competitive advantages
and aim at attracting customers and competing effectively with competitors. But Theaker, 2013 has
argued that “there are many organizations which provide similar products and services and they also
make use of different strategies which enable to attract customers” (Theaker, 2013). It helps the
organization to retain customers and also enable to increase customer’s loyalty.
As per the point of view Singh, Darwish, Costa and Anderson, 2012, “in today’s highly
competitive and increased competitive advantage it is becoming highly essential for companies to
go through the better promotional strategies” (Singh, Darwish, Costa and Anderson, 2012). On the
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basis of these strategies they are able to attract huge base of customers towards their organization
and enhance loyalty among them. However, Truss and et.al., 2013 have stated that “it is becoming
highly essential to select best tools for promotion through which worldwide consumers can be
attracted. There is an intense competition among retail business within UK” (Truss and et.al., 2013).
For the same, retail business are requires enhancing their consumer base by making quality products
and adopting quality promotional techniques. There are several benefits associated with the
selection of appropriate promotional strategy such as increasing customer base, increased value
perception etc. In addition to this, it also helps in increasing revenue and growth as well as
profitability. With the help of increasing number of customers retail industries can easily enhance
their profit margin (Demiray and Sever, 2011). It develops their positive brand identity in the mind-
set of customers and easily raises their business profile with the same.
Impact of promotional strategy on performance of retail organizations
According to Boachie-Mensah and Dogbe, 2011, “promotional strategy has made positive
impact on performance of retail organization” (Boachie-Mensah and Dogbe, 2011). With the help of
application of it, it becomes easy to create an interaction between firm and target customers. It assist
in understand the needs and demands of the customers and meet them in effective manner. Along
with this, it helps in promoting brand in between the end users and influences them to buy the
services. By doing this, it has increased the performance level of retail companies. On the other
hand, Du Plessis and Barkhuizen, 2012 has stated that “the effective promotional tactic help the
organizations to raise the performance level” (Du Plessis and Barkhuizen, 2012). For example, with
the use of social media method, company has placed daily updates on various social media website
like Facebook, Twitter etc with the aim of creating interest of customers on firm products and
services. They become more aware about the services of the firm and increase the sales of the
products. The overall impact of this is on performance of retail organization which has risen with
the time. So, it can be said that promotional strategy has made positive impact on retail companies.
Effective and new promotional tools by which Tesco can raise performance level
According to Singh, Darwish, Costa and Anderson, 2012, “Tesco should more effectively
use internet marketing as a promotional strategy for improve performance of organization” (Singh,
Darwish, Costa and Anderson, 2012). By placing creative and attractive ads on internet pages, it
should be easy to get the attention of the customers and create a good brand image in their mind. It
will help in raising the performance level of Tesco. On the other hand, Truss and et.al., 2013, has
suggested that “sponsorship is one of the best promotional tool to increase performance level of
Tesco” (Truss and et.al., 2013). By sponsoring an event which can be either social event or sports
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event, organization will effectively promoting the services and products in front of the consumers. It
will help company to grab the attention of the customers and influenced them to buy the services
and other commodities of the Tesco. It will increase the sales of the goods and create a new image
in the target market. The overall impact of this is on organization performance level which will
significantly improve.
CHAPTER 3: METHODOLOGY
3.1 Methodology, methods and techniques
Research design:
Research design is a organized plan to conduct an investigation according to the set plans and
objectives. Selection of research design may affect the outcome of the study either in negative or
positive manner. For conducting the present research in an effective manner, various tools and
techniques have been employed. Descriptive design has been undertaken with the help of which it is
possible to provide description of the topic being undertaken. The reason of selecting the following
research design is for gathering the information, the researcher needs to interact with the
participants who will take part in questionnaire.
Research philosophy
Research philosophy assists the investigator to carry out an investigation in the right
direction. The present study is based on to analyse the impact of promotional strategy of Tesco PLC
organizational performance. Research philosophy has divided into two parts: positivism and
interpretivism. Positivism research philosophy emphasizes on objectives of the investigation rather
than the subjective concept of theme. But interpretivism is based on subjectivity of the
investigation. For addressing the aim of present study, researcher has selected positivism research
philosophy because few objectives have been made by the scholar for achieving the outcomes.
Research approach
For carry out an investigation, it has important to select right research approach because it
may affect the final outcome of the investigation. Deductive and inductive are two research
approaches. The main difference between both of them is use of hypothesis and theories. If the
investigator use hypothesis at the beginning of the research then it will called deductive research
approach but if hypothesis is absent at the starting of the study then the scholar will use the
inductive research approach. For addressing the present research, the researcher has been use
inductive research approach because there is not any kind of hypothesis frame at the beginning of
the investigation. Further, inductive approach has been considered where results move from specific
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to general.
Research type:
Further, the entire research is quantitative in nature as information is present in numeric form
(Daniel and Sam, 2011). Main advantage of using quantitative technique is that data is easy to
collate and it is placed in a form of chart. Apart from this qualitative research is also present where
its main advantage involves researcher gains more knowledge and its disadvantage involves
research method is quite time consuming (Bhattacharyya, 2009). Through this study it is quite
possible to gain understanding of the underlying results and it directly provides insight to the
problem. Apart from this, through qualitative research it is possible to know about the perception of
people from whom information has been gathered. The entire research has been carried out from
point view of Tesco and on the basis of results recommendation has been provided to entire retail
sector (Kriz, Gummesson and Quazi, 2013).
Data collection instruments:
In the present study main stress is on identifying the impact of promotional strategies on
organizational performance for which information has been gathered from the managers working in
Tesco and due to this reason questionnaire has been used as a method. Along with this, for
collection of data questionnaire has been used through which perception of respondents can be
known easily. Through this method it is possible to accomplish aims and objectives of the study.
The questionnaire which has been developed by the researcher for the present investigation is as
follows:
Questionnaire
Demographic information
Name: _____________
Age: _________________
Gender: ___________________
1. Which are the target age groups of product users of Tesco?
 10-20
 20-30
 Above 30
 All age group
2. What promotional strategy has used by Tesco for promotion of products?
 Advertisement
 Public relationship
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 Social media
 Internet marketing
 Sales promotion
3. How has the target customers reacted to Tesco product promotional strategies?
 Strongly satisfied
 Satisfied
 Neutral
 Dissatisfied
 Strong dissatisfied
4. At which extant, do you think that current promotional strategies of Tesco have positively
impacted organizational performance?
 Strongly agreed
 Agree
 Neutral
 Disagree
 Strongly disagree
5. In which aspect, organization performance of Tesco can be measure after using promotional
strategies?
 Increase profit margins
 Improved market share
 Meet customer satisfaction level
 Raise in sales of services
6. Are you satisfied with the criteria that has used by Tesco for measuring organizational
performance?
 Yes
 No
7. Please suggest new promotional tools by which Tesco can improve organizational performance.
____________________________________________________________________________
3.2 Sampling
It is considered as one of the most important part of the study where respondents are selected
from whom information is gathered. In the present research main focus is on determining the impact
of promotional tools on performance of business (McMillan and Schumacher, 2014). Therefore,
marketing managers of Tesco have been considered as sample from which primary data has been
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