Social Media Marketing and Audience Engagement: Tesco PLC Study

This report examines the role of social media marketing as a tool for audience engagement and promotion of corporate events, focusing on Tesco PLC as a case study. The study investigates how Tesco utilizes social media platforms like Facebook and Twitter to share information about corporate events, build brand image, and enhance market performance. It includes a literature review on the significance of social media marketing, its effectiveness in building brand image, and its influence on business performance. A comparative analysis between Tesco and its competitor, Sainsbury, is conducted to assess their social media strategies. The research employs secondary data analysis and considers various social media theories to evaluate the effectiveness of Tesco's approach. The report concludes with recommendations for Tesco to improve its social media practices, such as updating information regularly and focusing on platforms like Facebook to better engage with its target audience.

ROLE OF SOCIAL MEDIA MARKETING AS AN AUDIENCE
MARKETING TOOL IN ORDER TO PROMOTE CORPORATE
EVENTS: A STUDY ON TESCO PLC, UK

EXECUTIVE SUMMARY
In the modern era social media as a tool has become significant for business as through
this it is possible for business enterprise to develop awareness in the market. Further, it enhances
market performance of company and assist in accomplishment of desired objectives. The main
aim behind conducting present study is to evaluate the role of social media marketing as an
audience marketing tool in order to promote corporate events where Tesco has been chosen as
one of the organization which operates in retail sector. Main motive of company is to enhance its
presence in the global market due to which social media practices are most commonly
considered by organization. On the other hand, for conducting method of analysis the business
operations carried out by Tesco have been considered and they have been compared with its
major competitors in the market. Main competitor of Tesco is Sainsbury where business also
offers retail products in the market. Overall analysis has shown that performance of Tesco is
lower as compared with Sainsbury in the market. Sainsbury’s gross margin, asset turnover,
current, quick ratio is higher as compared with Tesco.
In the present research all research methods have been considered in appropriate manner
where different layers are present which have enhanced efficiency of the entire research. For the
present study data has been collected from secondary sources linked with social media and this
has enhanced efficiency of the study being conducted. Views of different authors have been
considered which with the help of different studies. On conducting the literature review part it
has been found that businesses are directly benefitted through adoption of social media as a tool.
The entire study being carried out has supported in knowing about the effectiveness of social
media practices in sharing corporate events. Further, sites such as facebook, twitter etc are
effective enough in sharing corporate information with those of target market. On the basis of
conclusion there are some recommendations to Tesco such as time to time information shared
with the help of social media sources must be updated; networking site such as facebook must be
used rather than others.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background................................................................................................................................1
1.2 Rationale....................................................................................................................................2
1.3 Research Aim.............................................................................................................................2
1.4 Objectives..................................................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................3
2.1 Significance of social media marketing in promoting corporate events....................................3
2.2 Effectiveness of social media in building brand image of business..........................................4
2.3 Influence of social media on market performance of business..................................................5
2.4 Social media maturity model.....................................................................................................6
CHAPTER 3: METHOD OF ANALYSIS......................................................................................8
3.0 Introduction................................................................................................................................8
3.1 Comparative analysis of Tesco and Sainsbury..........................................................................8
3.2 Analysis of the data collected....................................................................................................8
CHAPTER 4: SYSTEMATIC REVIEW......................................................................................10
4.0 Introduction..............................................................................................................................10
4.1 Comparative analysis...............................................................................................................11
4.2 Issues in comparative analysis.................................................................................................11
4.3 Evidence..................................................................................................................................11
4.4 Social media theory.................................................................................................................14
4.5 Conclusion...............................................................................................................................15
CHAPTER 5: CRITICAL EVALUATION...................................................................................16
CHAPTER 6: DISCUSSION........................................................................................................19
CHAPTER 7: CONCLUSION AND RECOMMENDATIONS...................................................22
7.1 Conclusion...............................................................................................................................22
7.2 Recommendations....................................................................................................................23
REFERENCES..............................................................................................................................26

CHAPTER 1: INTRODUCTION
1.1 Background
In the modern era social media as a tool has become significant for business as through
this it is possible for business enterprise to develop awareness in the market. Further, it enhances
market performance of company and assist in accomplishment of desired objectives. It is
regarded as one of the most effective advertising source and allows company to gain competitive
advantage (Barker, 2013). With the rise in level of competition in the market every business is
facing large number of issues where promotion of products in the market has become difficult.
Apart from this, substitute of products are easily available in the market due to which businesses
have to highlight unique features in the market for growth and development of the company.
Social media as a tool allows business to build its internal strength and management can easily
highlight the range of unique attributes present in the product or service range being offered. In
short, it allows business to strengthen its customer base and leads to accomplishment of desired
aims and objectives. In the entire retail sector of UK various businesses are operating in the
market such as Tesco, Sainsbury and Asda and due to this reason, companies have started to
indulge into social media practices so as to gain fruitful results with the help of this. By
considering the overall benefits of social media marketing its adoption is increasing at faster pace
(Abernethy, 2012). Apart from this, company can easily deal with barriers being present in the
external environment.
For conducting the present study organization chosen is Tesco plc which operates in the
market of UK and well known for the range of retail products it offers to its target market. Main
motive of company is to enhance its presence in the global market due to which social media
practices are most commonly considered by organization. Further, networking sites such as
facebook, twitter etc are used for sharing information linked with corporate events or in any
other form. This has become one of the main reasons behind success of business in the market.
This tool has allowed Tesco to better understand need and requirement of the target market
which change on continuous basis (Poole, 2011). Apart from this, by sharing information
regarding corporate events business ensures whether its practices are ethical and favorable for
the people living in the society or not. Therefore, this also assists in building brand image of the
business and supports company to sustain in the market for longer period of time which is one of
the main objectives of business.
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1.2 Rationale
One of the main reasons behind carrying out the present study is to analyze the social
media practices of Tesco with the motive to share corporate events and other type of information
with the target market. Further, the entire study shed light on the social media practices of
company through which better relationship can be developed with the customers and they can
know about each and every operation carried out by business in the market. Moreover, it has
provided long term benefits to the business in the form of higher profitability level and market
share (Falls and Deckers, 2011). Further, there is no doubt that market where Tesco operates has
become challenging but to operate efficiently on continuous basis company has to build strong
relationship with its target market. In short, it can lead to accomplishment of desired aims and
objectives which is fruitful for business. Developing relationship with target market is must for
business and its absence can adversely influence business operations in the market.
Adoption of social media as a marketing tool is increasing at faster pace where every
company shares crucial information through the networking sites such as facebook, twitter, etc.
One of the key benefit of employing social media as a tool is that it assist business to better
understand need and requirement of target market as social trends changes on continuous basis
due to which it is necessary for organization to comply with the same in effective manner (Wu,
2013). Apart from this, advertising sources such as television and print media have become
ineffective due to which adoption of networking sites for marketing purpose has increased in the
modern era as compared with past. So, this is advantageous for company in every possible
manner and provides long term advantages.
1.3 Research Aim
To evaluate the role of social media marketing as an audience marketing tool in order to
promote corporate events: A study on Tesco Plc UK
1.4 Objectives
Following are the range of objectives set for conducting the present study which are as follows:
 To understand the significance of social media marketing in promoting corporate events
 To assess the effectiveness of social networking sites in developing brand image of Tesco
 To recommend the effective ways through which Tesco can better indulge into practices
of social media for sharing corporate events.
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CHAPTER 2: LITERATURE REVIEW
2.1 Significance of social media marketing in promoting corporate events
As per view of Preston (2012) in the modern era with the rise in level of competition
every business has started to promote corporate events so that it is possible to enhance market
performance (Preston, 2012). Further, one of the main benefit of employing social media as a
tool is that it supports in developing awareness in the market and in turn business can gain
competitive advantage with the help of this. Social networking sites such as facebook, twitter etc
are accessed by each and every individual in the modern era and this has provided businesses
wide platform to share information and knowledge with target market. However, Levinson and
Gibson (2010) argued that sharing corporate events with the target market builds trust and
confidence in customers towards business. Therefore, it becomes easy for organization to
accomplish its desired aims and objectives. Apart from this, majority of the businesses have
developed their own page on networking site such as facebook which has assisted in building
strong relationship with the target market (Levinson and Gibson, 2010). Generally corporate
events are organized by every company on continuous basis and its main purpose differs from
one another. Further, it can be for social welfare or any other purpose and due to this reason
providing customers information in relation with the corporate event is necessary.
According to Baer (2013) engagement of customers with the help of social networking
site is effective where businesses are able to engage its target market in its crucial practices
which are associated with the accomplishment of desired goals and objectives. This is one of the
main benefits obtained by company through social media where they are able to engage
customers in large number of practices (Baer, 2013). In short, it can support company to enhance
worldwide presence where more customers can be attracted towards range of services or
products offered by company in the market. However, Evans (2010) argued that social media
marketing as tool posses characteristics of sharing information on wider basis and its overall
outcomes are also favorable for business. It allows business to retain its loyal customers for
longer period of time and in turn build trust towards firm. Apart from this, it becomes easy for
organization to deal with large number of challenges such as rise in level of competition etc.
Moreover, it is necessary for management of enterprise to ensure that data being shared is
authentic and reliable too (Evans, 2010). Otherwise in case of unreliable information
performance of the business in the market can be adversely affected. Using social media tools
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saves time and overall cost of the business which is also advantageous for company in the
market. Apart from this, business can easily focus on need and requirement of its target market
which is considered as one of the main objective behind carrying out operations in the market.
Therefore, in this way social media marketing is effective enough in sharing corporate events.
2.2 Effectiveness of social media in building brand image of business
As per view of Zimmerman and Ng (2015) social media as a tool is effective enough in
building brand image of company in the market. Further, to know overall effectiveness of social
media the model of social staircase is effective which takes into consideration series of stages
starting from strategy, presence, tools and conversation (Zimmerman and Ng, 2015). All these
stages are followed in proper sequence and allow business to build strong relationship with its
target market. First stage is strategy where plans are developed with the motive to support
business and this has favorable impact on the company. Next stage is presence which is
associated with the value that business will provide to the target market. However Normore and
Doscher (2007) argued that it is one of the most crucial stages as through this company can know
about its target market and their needs can be targeted efficiently. Tools are another stage which
is linked with the techniques through which company can share its brand values. It can be
adoption of sites such as facebook, twitter etc through which information regarding corporate
event or another other can be shared with target market (Normore and Doscher, 2007). Last stage
is conversation where business can easily share information with its customers through adoption
of appropriate tool.
This model has supported in knowing the effectiveness of social media in building brand
image of company in the market. Further, it is the ultimate goal of every enterprise to develop its
brand image which is only possible when social media practices are enhanced. According to
Hinson and Kodua (2012) the practices of social media has supported businesses to build strong
relationship with its target market and has lead to favorable outcomes also. Moreover, it is
beneficial for customers also as through this they are able to know the range of operations carried
out by organization and this has somehow assisted to deal with the challenges present in the
business environment (Hinson and Kodua, 2012). Apart from this, social media as a tool saves
large amount of time where it is possible for customers to respond back quickly on the basis of
information shared with them. Moreover, every business carries out events on continuous basis
due to which information in relation with the same has to be shared by business with its target
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market as it enhances brand image of company. However Vel and Sharma (2010) argued that
networking sites such as facebook and twitter are efficient enough in attracting customers and it
has provided wider platform to businesses so as to share important information with them on
continuous basis. Apart from this, changes taking place in the business environment adversely
affects company and due to this reason companies are required to consider social media as a tool
for promotion purpose (Vel and Sharma, 2010). Further, it has enhanced market performance of
companies in the market where it has become possible to enhance profitability along with the
sales volume. So, in this way indulging into the practices of social media marketing allows
business to focus on its key aim and objectives.
2.3 Influence of social media on market performance of business
As per view of Chernov and Tsetsura (2012) social media practices have positive impact
on the organization where it leads to higher profitability level along with sales volume. In short,
it allows company to gain competitive advantage and in turn it is possible to focus on the major
areas where business is underperforming (Chernov and Tsetsura, 2012). Apart from this, without
undertaking the concept of social media it is not possible for organization to survive in the
market and this can have adverse impact on the brand image also. In short, it has acted as
development tool for the enterprise where market challenges can be faced easily. However
Cox and McLeod (2014) argued that social media practices leads to wider market coverage
where business can easily share crucial information with its target market and through this
favorable results can be obtained easily. Adoption of social networking sites for sharing
information is rising at faster pace as it decreases cost associated with the promotion of goods or
services in the market which is easily possible with the help of social media tools. Apart from
this, corporate events build brand image of business in the market where sharing information in
relation assist company to perform better in the market (Cox and McLeod, 2014). Moreover,
there are some areas present which organization may not be able to perform efficiently.
Therefore, social media also allows company in gaining competitive advantage. On the other
hand, networking sites such as facebook, twitter allows company to create own personal blog
through which interaction with target market is possible and this leads to stronger customer base
of the organization. According to Musgrave (2011) social media practices are effective enough in
building brand image of business and it directly leads to accomplishment of desired goals and
objectives. Apart from this, every company operates in competitive market and to deal with the
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challenges social media tools can be considered for the welfare of business (Musgrave, 2011).
Further, it is well known fact that customers living in the society are information seekers and if
business provides them appropriate and reliable information then it enhances brand image of
company. Therefore, in this way social media as a tool is effective enough to support business in
grabbing large number of benefits being present in the business environment. One of the main
benefits of undertaking social media for sharing corporate event is that content is easily
distributed among all the users and it generates interest in customers towards the information
shared with them. Due to presence of all the unique benefits adoption of social media as a tool is
increasing by all the organizations operating in the market and has allowed gaining competitive
advantage. Moreover, businesses are able to deal with the range of challenges being present in
the business environment (McAuley, 2014).
2.4 Social media maturity model
In order to better understand the concept of social media its maturity model is considered
to be quite effective through which situation of business can be known easily. The model directly
highlights maturity phase of business. Apart from this, it takes into consideration large number of
levels which are Adhoc, experimental, functional and transformation.
Adhoc: It is regarded as one of the most significant level where staff members working in
the enterprise undertakes social media initiatives on their own. Further, this level is considered to
be most effective in accomplishing strategic goals of the company. Employees in the company
use social media for accomplishing their own goals and satisfying their personal needs (Social
media maturity model., 2015).
Experimental: It is the next crucial level where business enterprise accepts social media
and in turn it allows building internal capabilities of the business. The overall initiatives taken by
business are considered to be experimental.
Functional: It is the level at which social media is being undertaken in order to serve the
company. Further, it allows business to carry out its major functions in effective manner and it
directly leads to accomplishment of desired goals and objectives (Wu, Mei, 2013).
Transformation: It is the last stage where concept of social media supports in
transforming organization along with its stakeholders into collaborative network. So, this also
builds business strength and in turn desired goals and objectives can be accomplished easily.
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Figure 1: Social media model
(Source: Social media maturity model, 2015)
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CHAPTER 3: METHOD OF ANALYSIS
3.0 Introduction
For conducting the entire research in appropriate manner it is necessary to select
appropriate method of analysis so that favorable results can be obtained easily. In the present
study main focus is on identifying the social media practices of Tesco with the motive to share
corporate events with customers (Charlesworth, 2014). It has become one of the most significant
tool through which business can easily accomplish its long term aims and objectives. Apart from
this market trends are changing at faster pace and customer’s expectations are rising. Target
market is interested in knowing about the corporate events organized by the business and
information regarding the same satisfies their need.
On the other hand, for conducting method of analysis, business operations carried out by
Tesco have been considered and they have been compared with its major competitors in the
market. Main competitor of Tesco is Sainsbury where business also offers retail products in the
market (Holzner, 2008). Analysis has been done by calculating various ratios which helps in
knowing which business is operating efficiently in the market and on the basis of same
recommendations can be provided to improve overall performance.
3.1 Comparative analysis of Tesco and Sainsbury
Ratio Tesco Sainsbury
Gross margin -3.39 5.08
Asset turnover 1.32 (Annual Report and
Financial Statements., 2014)
1.44
Return on invested capital -23.54 -1.01
Current ratio 0.60 0.64
Quick ratio 0.42 0.48 (Annual Report and
Financial Statements., 2014)
Net Profit 43573 £m 68100 £m
Market share 28.5% 16.8%
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3.2 Analysis of the data collected
Above shown is the comparative analysis of both Tesco and Sainsbury where both the
companies are operating in the same sector. Overall analysis has shown that performance of
Tesco is lower as compared with Sainsbury in the market. Sainsbury’s gross margin, asset
turnover, current, quick ratio is higher as compared with Tesco. Apart from this, market share of
Tesco is higher as compared with Sainsbury. It is necessary for Tesco to take corrective
measures so that market performance can be enhanced easily and in effective manner (Yarmen
and et. al., 2016). Further, to boost profit margin adoption of social media practices is very
important for business and this can lead to accomplishment of desired aims along with
objectives.
This method of analysis considered is very effective for the entire company. Customer
base of Tesco is also strong as compared with Sainsbury in the market as product range offered
by Tesco is much more effective as compared with other business. Tesco strongly focuses on
practices associated with product development which has assisted business to enhance its
worldwide presence in the market (Eriksson and Ingelsson, 2016). One of the main reasons
behind undertaking comparative analysis is to know effectiveness of social media in sharing
information of the company. This tool is effective for the business in every possible manner.
Similarity between Tesco and Sainsbury Differences between Tesco and Sainsbury
Strategies employed by both the companies in
order to strengthen performance are almost
similar
Product range of both the companies are
different
Financial base of both the companies is strong Sainsbury financial performance is stronger as
compared with Tesco
Efficient workforce (Annual Report and
Financial Statements, 2014)
Sainsbury worldwide presence in the market is
high
High use of technological tools Sainsbury strongly focuses on product quality
as compared with other attributes (Annual
Report and Financial Statements, 2014)
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