MG529: Strategic Marketing Campaign Development for Tesco Whoosh

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This report provides a comprehensive analysis of Tesco's strategic marketing campaign for its Whoosh app, a service designed for quick grocery delivery. It includes a market analysis using Porter's Five Forces and SWOT/PESTLE frameworks to assess the competitive landscape and internal/external factors. The report identifies key marketing objectives, such as increasing awareness and sales, and outlines a detailed campaign strategy, including target audience, messaging, and implementation plans. It further explores the marketing and communication mix, utilizing the RACE model and suggests a GANTT chart, budget, and KPIs for effective campaign management. The report concludes with recommendations for fostering continuous customer engagement.
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MG529 Strategic Marketing.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
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INTRODUCTION.
Global marketing strategies aims at developing techniques that coordinates the marketing
efforts of the company while working internationally. Further, the present report is based on
Tesco that is growing multinational grocery retail company in UK and thus study aims in
analysing the market of the Tesco through using various models. Also, these models will analysis
the market size, competitors analysis and internal and external factors that affects the company.
Moreover, the report will identify the key marketing objectives of the campaign through
developing the campaign strategy that will discuss reason for campaign, market opportunity,
target audience etc. further, strategy implementation for digital marketing campaign will be
explained under this report. Moreover, GANTT chart along with suggested budgets and key
performance indicators will also be discussed in detail. Lastly, certain recommendations on
establishing continuous engagement of Tesco with its customers in long run will also be analysed
MAIN BODY.
Presenting the market analysis.
Market size:
It refers to the total market that is covered by the company in particular time frame. Also,
for the online app like Tesco whoosh the quoted firm would aim to cover whole of United
kingdom and other parts of world through creating proper marketing awareness campaign.
Competitors analysis:
Porter five forces model is analysis that would help the firm in identifying impact of
certain factors on conducting operations in the target market. Further, list of factors in this
includes bargaining power of buyers in which it can be said that Tesco ranks low due to large
customer base and market that does not focus more on individual choices and preferences.
Another element is bargaining power of suppliers and in this regard it can be said that Tesco uses
various techniques to acquire raw materials at low costs so that profit margins could be increased
(Sahaf, 2019). However, there are various number of suppliers available in the UK market.
Further, other factor in this model is threat of new entrants and this factor has the least impact on
the quoted firm as it enjoys economies of scale but even though close analysis of new firms is
done on regular basis. Other is threat of substitute factor and in this regard Tesco offers wide
range of products that are likely to be substituted by smaller firms. Last in this is rivalry among
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the competitors and in this context Tesco is having number of competitors in the market and thus
pressure form other rivalries is intense.
Macro and micro economic factors:
Micro are internal to the company and it can be done through SWOT analysis.
Strengths
The Biggest grocery retailer in most
parts of the world.
It has diversified stores in various
regions of UK (Srinivasan and Lohith,
2017)
Weakness
Pressure to maintain low cost strategy.
Earlier Financial errors that affected
profits
Sometimes facing shortage of products.
Opportunities
Growth in the online retail sales.
Use of artificial intelligence in
increasing the sales.
New emerging markets like Turkey,
Indonesia etc.
Threats
Rising costs of conducting business that
affects the revenue.
Supply chain issues that creates
shortages in supply.
Macro analysis can be done through PEST analysis.
Political factor: Due to the ongoing financial instability in various countries Tesco might
be negatively impacted while selling various goods to various regions. Also, taxes might also
increase the prices of goods.
Economic factors: Factors such as import export restrictions might not allow the quoted
firm to increase the market share in systematic manner. Also, high inflation might also affect
demand of the goods.
Social factor: Social trends, changes and attitudes regarding buying certain goods might
create positive and negative impact on the sales of the company. For example: In current era
Selling more organic food products would increase sales of Tesco.
Technological factor: Self checkout points at the store and use of online delivery app
would play positive impact on ensuring growth of the company (PESTLE ANALYSIS, 2021)
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Legal factors: This includes the rules and regulations that are laid down by the
government so that business could function in proper manner. Also, in context of Tesco if rules
are not followed (properly) than it could lead the firm in controversies that might also affect the
brand image of the firm and thus lowers the revenue of the firm.
Environmental factors: More companies are now concerned about the growing
environmental concern and are trying to become more socially responsible. Further, it is seen
that firm like Tesco also focuses on reducing the carbon footprint and analysis the working of the
company operations so that less impact on the climate is done in negative manner (Mushketova,
and Fedorova, 2019)
Customer analysis:
This could be done through applying STP analysis where Segmentation of the market for
Tesco could be done on the basis of geographic, demographic, behavioural and psycho-graphic.
Further, this Tesco whoosh app would allow all age groups of people to consume variety of
goods located in different regions of world (Berman, Evans and Chatterjee, 2018). In targeting
all the cost conscious people who are interested in buying goods at low cots and high quality
would be targeted. In positioning, continuous marketing activities and plans would be undertaken
to maintain the customer loyalty and online sales.
Stakeholder analysis:
Thus, from the above it can be said that most important stakeholders of Tesco are
identified and are prioritized so that online sales goals through Tesco whoosh app could be
achieved easily. Moreover, those who do not have interest in the company are also identified so
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that communication could be established accordingly. For example : Government, suppliers,
customers, employees are important part of this chain and thus are placed carefully under these
heads accordingly.
Identification of the key marketing objectives for the campaign.
The main objectives of this campaign would be discussed as follows:
To create awareness among the target market about new Tesco whoosh app that delivers
goods within 60 minutes of order placed.
To increase sales of the company through allowing people to consume variety of goods
through this app and fastest and easier manner (Blut, Teller and Floh, 2018).
To gain competitive advantage after the pandemic and build customer loyalty and
satisfaction.
Analysing the campaign strategy.
f) The reason for the campaign
The main motive of this campaign is to increase market share of the company through
offering the app that is easy to operate and will helps in increasing the sales of the company.
Further, the campaign will also share the relative information and create more awareness among
the people that are not tech efficient so that better relationship could be established among the
customers (Šedík and et.al., 2018). Also, this campaign will identify the needs of the people
closely so that certain changes in the app could be made easily. Moreover, this campaign will
share certain special packages, discounts and offers to the people so that more people are ready
to use services of the app and thus create more website traffic.
Market opportunity:
In the current era where most of the people are affected badly with the pandemic and also
it has impacted most of the small and large firms thus it is important that firm like Tesco need to
introduce things that allow capturing large amount of markets in UK. Moreover, this app and
campaign would allow people to consume goods variety of goods of Tesco while just sitting at
home so that both time and costs could be saved. Further, grabbing such type of market
opportunities would help Tesco in maintaining competitive advantage in the long run. Moreover,
such type of opportunities in the digital era would add an extra advantage in the growth of the
company in the long run.
Target audience:
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Though Tesco is spread in many regions of the country this campaign would be
specifically made for the people living in and around the parts of UK so that goods could be
made easily available through the new app (Padma and Wagenseil, 2018). Furthermore, mostly
household women, working professionals and students would be targeted specially through this
app so that certain food items could be made quickly available if there is lack of time in visiting
the Tesco stores or else in case of any kind of emergency.
General campaign messaging:
The main motive of the campaign would “ Best products of Tesco delivered in quicker and
safest manner ”. Thus, from the above message people would be keen to develop interest in
knowing the manner in which goods could be delivered on time. Moreover, associating the name
of the company with the campaign tag-line would allow old customers to attract easily through
the established brand name and services offered (Schlegelmilch and Winer, 2020).Thus, it would
state the current problem and explain the action taken by the firm to overcome such challenges.
2- Strategy implementation covering key areas of marketing & communication mix
It is important for marketer to develop the best and most effective digital campaign,
which enable them to generate the awareness about service or product that TESCO tend to offer
to its target market. They may take varied areas into their consideration related to
communication and marketing mix models.
Product-
It is important for TESCO to offer more value via Whoosh System in term of enhancing
customers satisfaction and making their shopping easier. It may effort to add valuable features in
this system that aid in varied term to consumers.
People-
In order to use this system and operate the same in systematic manner, human resource
management in the supermarket may attempt to provide training session to existing and new
candidates. It may enable individual person to use this system systematically.
Promotion-
For purpose of generating awareness about Whoosh system, marketer may utilize digital
marketing channels or sources such as social media, which allow them to aware people about the
same thing at international level.
Place-
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It is quite important for management to offer the service via application from its own
outlet where people may reach on time when they have any issue regarding food or other
products home delivery.
Communication mix-
Advertising-
Marketer may consider this element of communication mix model and take action
accordingly. For example, they may take approach to use radio, television and other traditional
marketing tools & methods that provide varied benefits.
Personal selling-
According to this method, marketer may tend to conduct action in term of marketing of
new system. They may interact with individual customer and aware them about how to use this
system and what benefits they provide to them.
Sales promotions-
In term of discounts and special offering, TESCO may utilize this method of
communication mix model, which contribute to increase profitability and productivity of
business more than its rivals that are operating in same market or sector.
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Public relations-
It is considered as an art of sharing or spreading information about Whoosh system of
TESCO in public domain, so allow marketer to create and interact with target audience. They
may utilize newspaper to conduct this action.
Direct or internet marketing-
Marketer may take approach to use internet marketing which enable them to generate
awareness and gain the attention of all customers toward using new system that Tesco may use to
enhance their satisfaction extent.
Packaging-
This component is also supposed to be an essential part of marketing mix which drive the
attention and concentration of marketer toward gaining competitive advantages in term of giving
and promoting features as packaging of new service.
Illustration 1: Communication Mix
(Source: Communication Mix Components, 2019)
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Channels-
Social media channels such as Instagram, and Traditional methods of marketing like
newspaper.
Time-
1 month require achieving aim of campaign.
RACE model-
With this strategic framework, marketer may conduct effective and efficient digital
marketing campaign planning activities that in turn provide expected outcome to them (Race
Marketing Model, 2020). It may drive their attention toward conducting research, which
considered as key area of chosen concept. Furthermore, marketer may take approach to develop
action plan based on information that they may collect throughout market investigation, After
these actions, according to model, they may take initiative to communicate and evaluate the
success of campaign.
Budget
Documents Cost
Technological development 30000
Market Analysis 15000
Training and Development 19000
Operations 250000
Social media marketing promotion 350000
Total 664000
Key Performance Indicators
KPI's basically defined as methods which tend to provide information regarding the
progress of strategies. It also tends to measure performance so that company being able to
observe, analyse, interpret and able to work accordingly. Different performance indicators
includes:
Revenue Per Click: Also known as pay per click, with utilizing this KPI 'Tesco Whoosh
system' tends to track about the revenue firm gains (Bishop, 2018). Apart from that it also
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provides assistance in measuring productivity, so that company may able to focus on areas of
improvement. Along with that aids in increase effectiveness and profitability.
Client Retention Rate: Brand aims to properly utilize this performance indicator for
making and maintaining long term profitability. It is one of the most crucial metrics as with the
help of this company may able to observe, analyse and track the number of clients visit link.
Company may try use different methods and techniques for gaining customers attention.
Profit Margin: With using this performance indicators enterprise may aim to check and
evaluate about revenue generation. Being also one of the important metrics providing details
regarding how effective the company's social site is earning. With effectively using this indicator
'Tesco Whoosh system' may able to improve their operations and increase their profit margin
with working on areas. Apart from that company also attract new customers and expand their
market share.
Recommendations
This in response to, 'Tesco Whoosh system' may try to incorporate various techniques
and methods which resulting in firm to grow and increase their profitability.
Company can try to use different types of social media platforms which help them to
promote and market on large scales (Cruz Villazón and et.al., 2020). Not just that but also
provides firm to gain new customers and increase their base.
Organization also uses different promotion strategies like utilizing marketing campaigns.
Different promotion strategies help firm with improving online retailing which results in
growth and market expansion as well as capturing market share.
Company also try to increase their product range even more than ever, this will help them
to even attract more customers and help them boost their profit earning even more.
Tesco Whoosh system also can try to provide their customers with interactive U.I. as
effective and impressive interface which maybe easily accessible and easy to use. Along
with that it also helps company to attain and attract customers as people like simple and
useful interface.
Enterprise can also adopt other Key Performance Indicators metrics which help 'Tesco
Whoosh system' even analyse and observe with more precision. This also gives areas
required to improve. Along with that company also try to improve their buying cycle so
that they can provide customers with high standard quality product and increase profits.
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CONCLUSION.
From the above report it can be concluded that Tesco had covered large market area
through continuous efforts and developing global market strategy for expansion. Furthermore,
the report had analysed market analysis of the quoted firm through detailed research on the
current market size, competitors, stakeholders through applying models like pestle, swot, porter
five forces models and much more. Also, key organization marketing objectives related to the
Tesco whoosh online app had also been covered under this report. Moreover, the report had
discussed the campaign market strategy through analysing key factors such as market
opportunity and target audiences etc. Furthermore, the race model had been applied to analyse
the strategy implementation to the firm in meeting certain digital marketing objectives. Lastly,
recommendations for future success to the quoted firm had also been given under this study.
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