Analyzing the Impact of Social Media Advertising on Tesco Sales

This report analyzes the business issues faced by Tesco, focusing on the decline in sales and profitability. It investigates the influence of social media advertising on consumer behavior to identify strategies for improvement. The report explores the effectiveness of digital marketing, aiming to understand how social media impacts consumer buying decisions and suggests strategies for boosting sales. It includes a literature review on social media's role in marketing, a case analysis of Tesco's challenges, and proposes recommendations to enhance marketing efforts and improve financial performance. The study aims to provide insights into how Tesco can leverage social media to attract customers, increase sales, and improve overall business outcomes. The research uses secondary data from various sources like company reports, journals, and websites to analyze the impact of marketing strategies.

Business Project

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
Business Issue.............................................................................................................................5
Rational for selecting the research topic ....................................................................................5
Importance of the study ..............................................................................................................6
Dissertation Structure ......................................................................................................................6
LITERATURE REVIEW................................................................................................................7
Effectiveness of social media advertising for positively influencing the consumers towards
buying the products and services offered by TESCO.................................................................8
Digital marketing Strategies for increasing sales and profitability Effective digital marketing
strategies that can be adopted by TESCO for a continual rise of their sales and profitability. .8
ANALYSIS OF CASE EXAMPLE .............................................................................................10
CONCLUSION .............................................................................................................................15
RECOMMENDATION ................................................................................................................16
PERSONAL LEARNING STATEMENT.....................................................................................17
REFERENCES..............................................................................................................................20

TOPIC: “Influence of social media advertising on Consumer behaviour”.
INTRODUCTION
In present, highly competitive as well as dynamic business environment has created
various issues for companies. Due to increase in competition many companies are facing
difficulty in maintaining concentration on core business activities which has direct as well as
negative effect on their overall performance. There are various issues faced by business entities
due to changes in external factors. Some challenges or issues faced by companies are
uncertainty about the future, financial management etc. Due to continuous change in social
variables many of business entities are facing issues in developing understanding about customer
needs. The major root cause of the issues might be ineffective sales follow up, poor quality of
products or services, inappropriate marketing strategy etc. It is very much important for manager
in an enterprise to address the small business issues before it give rise to other major problems.
The report have focus on identifying the reason for decline in sales of Tesco organisation.
Business entity is among the biggest as well as most reputable brand in the retail sector. But
during last few years there has been continuous decline in sales as well as profitability of
company. Project will include some suggestion as well as few Marketing strategies which can
be adopted by Tesco for increasing sales as well as profitability.
Aims: To analyse the influence of social media advertising on the purchase behaviour of
consumers to increase the sales and profitability of an organisation – A case study on Tesco.
Objectives:
 To understand the concept of social media advertising
 To determine the way in which social media advertising influences the buying behaviour
of customers in TESCO.
 To measure the effectiveness of social media advertising for positively influencing the
consumers towards buying the products and services offered by TESCO.
 To suggest effective digital marketing strategies that can be adopted by TESCO for a
continual rise of their sales and profitability.

Business Issue
Internal analysis of Tesco organisation has been conducted for identifying the business
issues faced by company. The issues which has been found during the investigation procedure
includes continuous decline in sales of an enterprise. The root cause of the issue which has been
addressed during the research is ineffective marketing strategy and selection of inappropriate
channel for promotion of products or services. The business issues is Tesco company is facing
the difficulty in attracting the customers which has led to the decline in sales of an organisation.
In other words, marketing and customer loyalty is the biggest issue faced by Tesco which have
negative effect on the overall growth of Tesco. In addition to this business entity is also not
getting the sufficient amount of return on their investment. Tesco is also facing the issues in
targeting the customer group and facing difficulty in selecting the market for positioning of
goods or services. Company due to sales as well as marketing issues has failed to provide higher
return to shareholders. In addition to this, due to decline in profitability as well as poor financial
performance, company is facing difficulty in providing incentives to its staff which has resulted
into high level of satisfaction among employees. Sales cycles of Tesco is getting longer which
has adverse effect on the effectiveness of an organisation. Root cause of such issue is ineffective
marketing strategy and selection of wrong marketing channel. Other major cause of decline in
sales of Tesco is implementation of discount pricing strategies by competitors firm such as Asda
and Aldi.
It is very much important for Tesco to identify good solution for such issues before it give
rise to big problems. In addition to this, manager in Tesco need to adopt new pricing strategies
and required to concentrate on improving marketing activities, store size etc.
Presently Tesco has increase its number of employees to meet the expectyations of
employees, but still business entity has failed to attract new clients. Special offers and discounts
have been offered by company which has helped in bringing little improvement in sales
performance but still there is no effect on the profitability of an organisation.
Rational for selecting the research topic
The reason for selecting the research topic is scholar intends to identify the root cause of
decline in sales of Tesco. Other rationale for selecting the specific investigation topic is to
identify the way marketing influence the consumer buying behaviour.

Importance of the study
Addressing the business issues especially sales and marketing has significant important, as
these problems have direct effect on the financial performance of an organisation. In addition to
this, the researcher wants to measure the effectiveness of social media in influencing buying
behaviour of customers.
Dissertation Structure
 Company analysis: The company analysis will be conducted in order to identify the
business issues faced by Tesco. It will also support scholar in identifying the root cause
of problem.
 Establishment of Aims and objectives: On the basis of problems the aims and
objectives of research will be established. Aims and objectives will assist researcher in
identifying the activities which are required to be executed in order to reach conclusion.
 Literature review: this section will include the perception of different scholars and
authors about the issues faced by Tesco organisation. It will also include the suggestion
or thinking of different people about the solutions which can be implemented in order to
resolve specific business problem. Literature review part is important as this will assist
reader in developing the understanding about the topic. In addition to this, in present
investigation
 Developing research methodology :This section of dissertation will include selection of
the appropriate methods as well as approaches for executing investigation. Selection of
right methodology for investigation is very much important as this factor have direct
effect on the outcome.
 Collection of data : In present investigation, as it is a secondary research, scholar will
use company report, book , journal, article, websites, annual reports for gathering the
information relevant to the topic.
 Interpretation of data : It will include the detail about the technique which will be
utilised for presenting the information. In present investigation graph, chart, tables will be
utilised for presenting the information.
 Case analysis: This section will include description about the techniques which will be
utilised for analysis the information. Data analysis is considered to be as important
activity in research , as it will support scholar in eliminating unnecessary information.

Elimination of irrelevant facts as well as figures is important in order to make report
understandable by user. In same way, case analysis is very much important in order to
identify the root cause of problem. Case analysis will assist researcher in identifying the
appropriate solution to the problem.
 Conclusion : The conclusion in the report will be based on the case analysis.
 Recommendations: The recommendations will be provided on the basis of case analysis
and also the problem which has been identified during investigation.
LITERATURE REVIEW
ways in which social media advertising influences the buying behaviour of customers in
TESCO.
As per the view of Reiter, McHaney and Connell,(2017), promotion can be defined as the
several marketing techniques implemented by firm in order to add extra value to goods or
services for accomplishing desire business or marketing objectives. Consumer buying behaviour
as an individual attitude, intentions as well as decision related to buying of specific products or
services from particular organisation. Social media is recognised as internet based application
which aids based on ideological as well as technological foundations. This platform enables
companies to create as well as exchange user generated content. Concept of social media
As per the view of Syam and Sharma, (2017), social media can be referred to as online
advertisement which enables business entity to facilitate direct communication with customers
as well as influence them to buy specific products or services. According to opinion of Clark,
(2017), sales promotion can be defined as actions taken by marketers in order to share
information about products or services with customers and to influence them to buy particular
item. The author Kang and Kim, (2017) argues that promotion is an expensive tool that can have
adverse effect on the profitability of organisations. According to the view of Keega and Rowley,
(2017), there are many factors which are considered by consumer before buying any specific
products these are brand loyalty, image of company, previous experience, price, quality of goods
or services, marketing or advertising strategy etc. all these variables have great influence on
buying behaviour of customers. The author states that social media marketing facilitate two way
communication which is very much essential in order to influence people to buy products or
services offered by business entity.

Effectiveness of social media advertising for positively influencing the consumers towards
buying the products and services offered by TESCO
According to the perception of Sigala, (2018), sales promotion techniques or marketing
strategies adopted by the companies have direct as well as significant effect on buying behaviour
of customers. As per the view of Arriaga, Andreu Domingo and Berlanga Silvente, (2017), sales
promotion has an impact on consumer buying behaviour by focusing on promoting occasion. The
author Ramanathan, Subramanian and Parrott, (2017 argued that, consumers promotion
acceptance is based on the out and in store sales promotion techniques utilised by companies. As
per the opinion of Nagle and Müller, (2017), there are mainly two factors which influences
shopper to buy specific goods are other sales physical surroundings and high purchasing power.
The author Lin, Featherman and Hajli, (2017) argued that there are other constituents which
might affect consumer buying behaviour or decisions these are advertisement on social media..
According to the view of Alalwan, Dwivedi and Algharabat,(2017), Promotional strategies
implemented by companies encourages consumers switch to the brand. As per the behavioural
and economic theory Grewal, Roggeveen and Nordfält,(2017), pricing is the factor which has
direct as well as significant effect on consumer buying behaviour. According to the adaption
level theory related to price perceptions, low cost pricing as a strategy might provide benefit for
short time. As customers may utilise brand regular price as a reference and then they are induced
by the lower deal price to purchase the brand. Continuous increase as well decrease in prices of
products or services have negative effect on the buying behaviour of customers. Effective digital
marketing strategies that can be adopted by TESCO for a continual rise of their sales and
profitability.
According to the perception of Ferreira, A.I. and Ribeiro,(2017), social marketing
campaign can be conducted by business entities , as this will assist them in increasing sales and
revenue. As per the view of Ramanathan, Subramanian and Vijaygopal,(2017), social media is
considered to be as an effective tool which can be utilised by the companies for communicating
with clients. The authors also states that Consumers do access to information about goods and
services to be purchased as per need by means of social media to a great extent. According to the
opinion of Young, Robinson and Barkemeyer,(2017), social media can be utilised by business
entities for enhancing customer loyalty. The author states that it is required by the organisation to

focus on delivering the continuous customer support services, as this strategy will support
business entities in retaining customers and it will also help an enterprise in increasing sales.
According to the perception of Hajli, Sims, Zadehand Richard, (2017), by utilising the
social media platform, firm can directly promote their goods as well as services to customers, as
this factor have positive influence on the brand of company as well as buying behaviour of
consumer. As per the view of Kumar, Anand and Song, (2017), business entities by utilising the
social media platform can positively influence people to buy specific products or services. The
author also states that direct marketing will help an enterprise in increasing sales and
profitability. Research executed by Alina-Daniela Mihalcea et al. (2013), reveals that utilisation
of social media sites such has twitter, Linked in and Facebook has helped many retail
organisations in increasing revenue as well as profitability. The facts which discovered from the
study conducted by the author is that social networking becomes profitable for an enterprise in
context of brand exposure, brand awareness and actual sales. As per the view of Felgenhauer,
Klier and Lindner,(2017), business entities by utilising the social media sites can communicate
directly with customers, as this strategy will support them in determining the offers which can be
launched for influencing people to buy specific products or services. The author () argues that
consumers don’t rely on social media advertising as a source for information searching.
According to the perception of Ratana, Kishore and et.al, (2014) who stated that social change in
an organisation is very much important in order to promote positive behaviour of people. The
author states that development of good as well as safe environment in store is very much is very
much important for influencing as well as attracting customers to buy products or services.
According to the thinking of Robertson, J.P.F. and Abatan,(2017), social media
marketing has direct as well as significant influence on the choice of customers. As per the
thinking of author Burke,(2018), Social media marketing supports firm in developing the interest
in the goods. The author also states that social media marketing supports firm in building trust
among customers and also helps in enhancing brand image. As per the view of De Mooij,(2018),
distribution of products sample as well as reducing prices of goods is considered to be as an
effective strategy for attracting customers as well as increasing sales. According to the thinking
of Kumar and Reinartz, (2018), enterprises can attract customers by launching new products, as
this strategy will support them in increasing profitability and increasing revenue. The author
Schwartz, Chriqui and Ammerman, (2017), states that business entities can utilise social media

platform for seeking the feedback from customers, as this strategy will support firm in
identifying the area of improvement. As per the view of Li, Wang and Lin (2018), social media
marketing can help firm in gaining the attention of customers.
CASE ANALYSIS AND DISCUSSION
In the present research study, Tesco case analysis has been taken in which secondary data
has been analysed. With this regard, effectiveness of the present study with using different
themes has been analysed.
Theme 1 Social media influence buying behaviour of consumers of Tesco to increase the
sales and profitability of the enterprise
Interpretation: In order to consider effective results in Tesco, it can be stated that social
media highly influence buying behaviour of consumers. This enterprise is known as largest
grocery retailer in UK so that they are continuously working on the basis of social media
activities. Therefore, profitability will be gain through online shopping of customers. Tough
competition also handle with social media presence and digital marketing which is powerful to
gain several benefits. Furthermore, customers have more believe on products and service quality
so that it would be beneficial to share positive consideration. There are several social media
sources has been used which influence buying behaviour of consumers such as LinkedIn,
Facebook, etc. Facebook shows visual content as retail company so that charity information,
club-card information, questions, etc. included that assists to engage audience.
Theme 2 Facebook is the main element that consider impact to buy products and services
online to increase sales in retail sector business
Interpretation: Tesco takes a similar approach to their Facebook page so that it includes
several visual content for the enterprise that is known as retail. In this regard, it can be stated that
different things must be present that assists to focus on content which includes questions that
engage audience easily. Furthermore, the chosen business also take time to reply their audience
and responding for particular comments for products and services. On company's Facebook page
apps and games also select games that can be check out and like with existing content. Therefore,
it can be stated that it redirect contact numbers with shortcut case and need to take content
quickly.

Theme 3 Presence of social media is very important for increasing sales of the chosen
enterprise
Interpretation: Presence of social media is very important consideration for Tesco to
focus on several activities and functioning of the business. In this regard, different tools and
techniques has been promoted that ascertained through Facebook, Pinterest, Twitter, Google+.
The chosen business is operating with twitter accounts so that they can easily gain shake a riding
crop on separate one for each business unit. There are more than 16 accounts for customer care,
special offers, Club card, etc. successfully implemented in the business. With the help of twitter
feeds, it can be stated that building up large and potential outcomes successfully separate with
brand messages. Customer care of the chosen business is incredibly active and responding to
resolve issues and queries for every hour. It is also available for solving several issues that can be
exists due to changes is customer demand and requirements.
Theme 4 Social media advertising influence brand image of Tesco to develop their
performances
Interpretation: Tesco is one of the largest retail enterprise in UK so that there are
several stores of the business continuously competing to implement appropriate marketing
strategy. With this regard, it can be stated that in international market the chosen business also
attract customers to connect social media platforms. Social media advertising influence to gain
customer attention. In the process, the selected enterprise to gather appropriate feedbacks. The
chosen business need to contain social media to collect appropriate information. Modern style of
communication assist to understand consumers as per choice of customers. In addition to this,
implementation of Club card program with using social media platform assists to increase
customer engagement successfully. There are several twitters exists that promoted to handle
different several units of the enterprise in different areas. Hence, company need to focus on
engage different range of products as per consumer demand. Furthermore, company can also
attract consumers to influence their choices. As a result, the chosen business provides range of
promotional offers to increase customer awareness.
Theme 5 Social media tools encourages consumers for buying products online to develop
sales performances of Tesco

Interpretation: In order to promote desired level of results, it can be stated that setting
up online business in long term process to increase profitability. In this consideration, social
media activities must be consider on customer's perspective. It must be actively consider needs
of customers to design content with appropriate images and content that is related with specific
products. On the basis of customers needs and requirements, it can be stated that best product
quality will be develop that helps to show products and services based on different categories as
per customer convenience. Along with this, for increasing sales of the enterprise it is essential to
focus on motivation to customer interaction. It is one of the best perspective to maintain
appropriate customer profiles. It also provides opportunities to create profile and making first
purchase as well. On the basis of demographic information, customers can identified purchase
system. Furthermore, administer 24*7 customer support so that it is one of the easiest ways to
gain popularity and effective services as well. It also helpful to focus on friendly work that is
understandable by target customers. Multiple payment options are also undertaken that assists to
maintain internet security and develop more desired level of results.
Theme 6 Quality of products in most important characteristics of online shopping in Tesco
Interpretation: In order to increase sales of Tesco company, quality is one of the
important characteristic that implement in online shopping. As a result, it assists to focus on
goals and objectives to perform several functions. Furthermore, it can be stated that desired level
of results will be gain through focus on effective working system. With the help of online
shopping, it can be stated that the chosen business will promote their outcomes to attain more
creativity. Products quality is main advantage that need to be focused to maintain friendly nature
at workplace. With this regard, effectiveness will be develop that is important characteristic of
online shopping.
Theme 7 Facebook is important social media advertising tool to focus on desired level of
results and increasing sales of the business
Interpretation: In order to focus on social media activities, it can be stated that
Facebook is important element that increase sales performance of the business. In this regard,
effectiveness can be generated on desired level of results. Therefore, it would be beneficial to
consider social media advertising tool at workplace of Tesco. This is because, it shows visual
content, blogs by customers, etc. Therefore, it increases selling at high level. Social media is one

of the important advantage which make success and great marketing channel to reduce financial
expenses. Social media program such as Facebook also helps to post regularly and mention cost
to engage users to catch appropriate attention. Best channels also used that assists to drive and
focus on traffic to online. Graphics also used that helps to post images to get several customer
engagement with others. Customer care also assists to attract many users for better promotion to
satisfy clients. Promos and discount also undertaken that stimulate association with positive
emotion.
Theme 8 Employees are strongly agreed with social media advertising tools to increase
their sales
Interpretation: Employees of Tesco are also agreed to focus on mobile responsiveness
that assists to show increasing in sales and positive performances of the company. With this
regard, it can be stated that greater success to internet connection will be develop that create on
website information. Along with this, social media performance will be develop to increase
shopping experience and greater access to internet connection. Due to poor mobile responsive,
Tesco face several issues so that it is essential to focus on layout types that assists to look for
effective and open mobile browsing. Provide idea to customer, it is essential to focus on online
selling which would be beneficial to increase positive experience.
Theme 9 Customers are like to purchase from Tesco to get several benefits from the
organisation to increase sales
Interpretation: Social media influencers are great way to encourage customers and get
proper posting about brand on different activities. With this regard, it can be stated that content
build across the business website. There are several things can be provide to customer
purchasing online that can be support as real time. It increases accurate information which will
be given on time. Good online support will assist to help and increase customer experience as
well. Online shoppers have also opportunities to increase sales of the enterprise with using
different platforms such as YouTube, Facebook, etc. For customers, it is also important to
engage with e-commerce site and incorporate products with social proof. There are several
barriers occurs with purchasing online so that digital marketing is one of the important
perspective that assists to work on tactics to encourage offline purchase in particular store.