MG529 Strategic Marketing Plan: Tesco's Digital Campaign Report 2022

This report outlines a strategic marketing plan and campaign for Tesco PLC, focusing on enhancing its market visibility and competitive edge. It includes a thorough market analysis, covering market size, competitor analysis using Porter's Five Forces, and macro/micro environmental factors via SWOT and PESTLE analyses. The report details customer and stakeholder analysis, defining key strategic marketing objectives for the campaign, strategic digital campaign planning and implementation, and a marketing roll-out plan with a Gantt chart and budget. Key performance indicators are identified to assess the plan's effectiveness, and recommendations are provided for future improvements, emphasizing the importance of online shopping promotion and customer relationship management through digital platforms.

STARTEGIC MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Market Analysis......................................................................................................................1
Market size.............................................................................................................................1
Competitors analysis..............................................................................................................1
Macro and Micro environment analysis.................................................................................2
Customer analysis ..................................................................................................................3
Stakeholders analysis .............................................................................................................4
Organisation key strategic marketing objectives for the campaign........................................4
Strategic digital campaign planning and implementation......................................................5
Marketing roll-out plan...........................................................................................................7
Budget.....................................................................................................................................9
Conclusion.......................................................................................................................................9
Recommendations............................................................................................................................9
References......................................................................................................................................10

INTRODUCTION
Strategic marketing is the concept that use marketing disciplines and organisational
strategy to develop and maintain the a market visibility and competitive edge of the organisation
in the target market (Banerjee, 2017). Marketing campaign is a strategic marketing approach that
aims to promote specific objective of the company through marketing of its products. Basically
they are developed and designed for gaining customer attention. The present report will design
the marketing plan and campaign for the Tesco plc- A multinational grocery and general
merchandise British retailer and third largest erectile in terms of revenue. The company was
established in 1818 by Jack Cohen and is headquartered at Welwyn Garden City, UK. The report
will briefly discuss the market analysis, Campaign strategy, strategic implementation tactics
using different models and analytical frameworks. There is market roll out plan which include
Gantt chart and budget. In the end the key performance indicators are used to analyse the worth
of marketing plan and recommendation are suggested.
MAIN BODY
Market Analysis
Market size
Tesco plc is large size public limited company based in UK. The company has
approximately 360,000 employees within the organisation. As per the recent annual report the
company group sales is £53.4bn and retail free cash flow is £1,187m. The company has around
7000 shops all across the world. The revenue earned by the company in year 2020 is £64.760
billion.
Competitors analysis
Competitors are the threat to any organisation, therefore, in the marketing plan
competitors analysis is the strategy to evaluate the major competitors in order to gain the insight
for their strategy, products, sales, marketing tactics etc (Schiavone and Simoni, 2019). this helps
the business to stay ahead of the competitors. For the effective competitive analysis Porter's five
force model is utilized in context of Tesco plc:
Bargaining power of Suppliers: Tesco Plc is the leading retailer and has large number of
suppliers for its raw materials , food ingredients and much more. This makes the company
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stronger and powerful over the suppliers and creating low bargaining power for the suppliers.
Because otherwise the company can switch to any other supplier easily.
Bargaining power of customers: the bargaining power of customers is high as for Tesco plc the
customers are the priority and so their needs. This brings them in power over the Tesco plc and
due which company reduces the price of their products.
Competitive rivalry: the company operates in huge competitive environment and is competing
with top brands like Sainsbury, Morrisons, Marks and Spencer etc.
Threat of new entrants: the industry is easy to enter in comparison with Tesco plc position in
market it very difficult for new comers to enter the market easily as high financial input is
required.
Threat of substitutes: in the retail market there are many layers that provide the same products
like Tesco and even the Tesco plc provide the alternatives at its own store. This creates high
threat of substitutes (Gyenge and et. al., 2021).
Macro and Micro environment analysis
SWOT ANALYSIS
Strengths Weaknesses
 The global market presence with large
size product portfolio is major strength
of the company.
 The company has very weak innovation
capability as company still rely on its
tradition products for its sale in UK.
Opportunities Threats
 The company has huge opportunity to
expand its online delivery and online
marketing strategy scope using
effective technology advancements.
 The competitors are huge threat for
Tesco because this is risking company's
market share coverage (Tomczak,
Reinecke and Kuss, 2017).
PESTLE ANALYSIS
Political factors: the Tesco is the globalised organisation therefore the political instability of EU
and UK commonly known as Brexit caused huge disturbance to the supply chain scalability of
the company.
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Economic factors: the economic crisis due to the Covid-19 caused huge negative impact on the
sales and operations of the Tesco plc. As lower disposable income reduced the sales of premium
range products.
Social factors: the changing customer trends in food retail sector regarding the consumption of
organic food has created the positive impact for the Tesco by facilitating the innovation and
greater customer demand for such products (Dogu and Albayrak, 2018).
Technological factors: the technological advancements in the external environment has been in
favour of the company as this provided the company an opportunity to grow and prosper through
online delivery through drones and robotics during Covid-19 to have contactless delivery.
Legal factors: the legal compliance is essential for the Tesco plc to operate in different
countries. The legal rules and regulations keep evolving which cause serious problem for the
Tesco to adhere to them regularly.
Environmental factors: the environment always remains a huge concern for the Tesco plc and
its stakeholders. Therefore company has created the sustainability and CSR in its business
operations in order to have good market image. The company has taken initiative of the zero
carbon emission within the company.
Customer analysis
The customers are the reason for the survival of business, high market share, profitability
and much more. In Tesco, the customers are believed as the lifeblood of the organisation. In
order to analyse the different customer type of the Tesco plc the STP model is utilized and
represented below:
Segmentation: In Tesco the customers are parted on the basis of demographic, geographic,
behavioural and psycho-graphic. The customers are divided on the basis of income, age, gender,
the customer group that has behavioural aspect of eating healthy and organic food (Razumova,
2021). The segmentation on the basis of different country and their customer demands.
Targeting: the customers that with every income size and male and female both are target by the
Tesco. Also in Tesco the targeting differs from product to product. For instance for the product
like high price electronics the company target the high income business man and women that are
technology freak.
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Positioning: For Tesco it is essential to create a good and influencing position in market among
the competitors. For this tesco plc use effective marketing strategy and campaign by leveraging
the digital platforms like Instagram, Facebook.
Stakeholders analysis
For an effective marketing plan it very essential to analyse the key stakeholders of the
organisation that are influenced by the activities of the business and also influence the decision
making of the business. The stakeholders analysis is key tool to analyse the stakeholders of the
Tesco plc in accordance to the level of participation, interest and influence in the company. The
key stakeholders of the Tesco plc are enlisted below:
Customers: the customers are the key stakeholders of the organisation as the company every
year invest high amount in reaching to their potential customers as this help them to understand
their needs. They have are high in power but low in interest (Post and Leavell, 2019).
Colleagues: the company's employees are the voice and face of the company. For the Tesco plc
the colleagues feeling, actions and contribution matters alot. For Tesco this stakeholder has high
influence and high interest in organisation. Also they are part of every decision making.
Suppliers; the suppliers of Tesco plc are the committed partners that deliver value with the
quantity and quality of raw materials to company and finished goods to customers. The suppliers
have low interest and low power over the company and its decision making.
Wider society: in this there are government bodies, NGOs, trade bodies, local communities and
other media groups. The society has high power but low interest in their decision making
because the this group of stakeholders must be satisfied and engaged with the company in
positive terms to have good reputation of the company (Razumova, 2018).
Organisation key strategic marketing objectives for the campaign
In context of Tesco, they are having digital campaign where thy promote their products
through various digital sources like social media platforms (Instagram, Facebook, Twitter and
many others), e-mail marketing and many others. They offer their products online and through
online shopping customers can gain many gift vouchers (Forzoni, Buffagni and Guercini, 2019).
The main reason of this campaign is to promote online shopping of customers and maintain a
good relationship with them by solving their quarries and offer them best quality goods which
they need.
Main objectives of campaign-
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 To communicate well with customers and maintain good relationship with them.
 To promote online shopping and their products well to aware their customers through
digital platforms. To analyse the issues of customers and make them correct as soon as possible to maintain
their market reputation.
Market opportunity-
This campaign is having good marketing opportunity as today most of the customers are
switching to online shopping rather than traditional shopping. Customers need to know the
services and facilities of company which they offer through online shopping (ZANICHELLI,
2017). Secondly, having proper communication with customers through digital channels will
also have good opportunity for Tesco to change their products and services according to their
customers needs and wants.
Target audience for campaign-
Tesco's targeted audience for this campaign are those customers who are more familiar
with digital technology and opt online shopping and rate the company through digital channels.
They targeted the age group of 16-34 year customers both male and female (Gyenge and et. al.,
2021).
General campaign messaging- “Tesco is here to solve each and every problem of their customers digitally to build good
relationship and offer best prices and quality to customers as compared to their
expectation”
This is the digital campaign message of Tesco which they share with their customers in
market for the promotion of their campaign and brand.
Strategic digital campaign planning and implementation
It is essential for every company to maintain their good communication with their
customers to build a good brand reputation. In context of Tesco, they are communicating through
various ways with their customers and few of them are mentioned below in context of
communication mix-
Advertising- Here, Tesco advertise their brand and products through advertising it on
TV, newspaper, radio and many others so that household customers will get to know about the
features of their products and brand well and they contact them to use their products (Salwa and
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Ramanan, 2017). Tesco is suggested to mention their contact number in advertisement so that
whenever customer sees their advertisements then they have the option to call them and ask more
about their offered products.
Sales promotion- Here, company aims to achieve short term sales for the company. In
context of Tesco, they have various offers, discounts, coupons and many other facilities for
customers for a fixed period of time like for one week, for ten days or on occasional days.
Hence, this will help the company to attract more customers and increase their sales.
Direct marketing- Here, company opt for online shopping or social media marketing for
their customers. Here, they allow their customers to purchase their products through online
application or through official website. In context of Tesco, they are suggested to allow their
customers to share their ideas and experience on social media so that company can re share it on
their official account of social media platforms such as Instagram, Facebook and many others.
Here, customer can also complain in chat box and Tesco, reply them for the solution of their
problem.
Public relations- It is essential for the company to satisfy their customers well so that
they will spread good thoughts to other customers (Jayaram, 2017). For maintaining good
relation with customers, Tesco focus to provide minimum prices of their products as compared to
their competitors and the quality is also good.
Personal selling- This is the method when the employee of the company directly reach to
customer's location and explain them about the benefits of shopping from their stores. Here,
Tesco's employees and customers communicate with each other through face- to- face. Hence,
here, customers have benefit to clear their doubts on the spot by asking and employees have the
benefit to analyse the attitude and influencing power of customers and then offer them products
accordingly.
Race Model is one of the digital marketing model which help the company to analyse
various ways to improve their digital marketing activities to reach their targeted customers well.
Race model in context of Tesco is explained below-
Plan- It is essential for Tesco to make a effective plan for their digital campaigning
activities so that they can analyse effective direction for them. For the digital campaign of Tesco,
they can plan how they are supposed to reach their customers, how much time they required,
which geographical location they opted to promote their campaign and many others.
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Reach- This is the stage where companies are required to aware their customers that they
exist in the market and they have following products for their customers so that customers can
even get to know about them and think to use their products and services. In context of Tesco,
they can reach their audience by promoting their campaign through social media channels
because they are having global reach (Thrassou, Vrontis and Bresciani, 2018). Secondly, they
can also reach their customers through advertisements and designing their official website in
such a way which will attract customers to use their website to know about the them and their
products.
Act- This element of Race model is related to generate interest among customers and
make them influence to purchase their products and services at once to analyse the quality of
products of company (Schiavone and Simoni, 2019). In context of Tesco, they influence their
customers by promoting their campaign on online mode or offline mode and make their
customers clear about the benefits of having lowest prices in the industry of their products and
good quality of products.
Convert- Here, companies convert the interest of customers into their sales. Hence, when
Tesco get to know that customers are interested in purchasing their products then they help them
to find their required product effectively. Tesco make sure that the customers who is arriving at
their stores or website first time will gain high experience so that they will reach the site again in
future and become their loyal customers.
Engage- Here, company maintain long tern relationship with their customers so that they
will retain their customers. In context of Tesco, they communicate their customers on regular
basis and make them aware about the new product launch through a post of social media.
Secondly, they also solve their customers complaints and quarries as soon as possible through e-
mails to gain their loyalty (Çınar, Yetimoğlu and Uğurlu, 2020).
Marketing roll-out plan
Analysing market needs and wants- 4 weeks
Finding targeted audience- 1 week
Analysing campaign objectives and activities- 2.5 weeks.
Planning digital channel for campaign promotion- 1 week
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Budget
Particulars Amount
Marketing research (analysing customers needs and preference
by reaching from one location to another)
£200
Machinery (purchasing tools and devices for digital campaign
promotion)
£175
Salary of employees £135
Promotion of product and services £90
Conclusion
It is concluded that analysing marketing situations by analysing internal and external
factors of business will help the company to analyse factors for their growth. SWOT analysis is
used to analyse internal factors of company, PEST analysis is used to identify external factor of
company. Porter five forces is marketing model which help to analyse impact of competitors
upon a company and how a company can gain competitive advantage. It is essential for the
company to communicate with their customers through different channels such as social media
marketing, e-mail and many others. Preparing budget for the company will help to control over-
expenses effectively.
Recommendations
 It is recommended that the company must gain opportunity by selling their products
through online mode which is more essential after covid pandemic because most of the
customers switch from tradition shopping to online shopping for maintaining social
distancing.
 It is also recommended to Tesco that they can promote their products well through social
media platforms because it has global reach (Banerjee, 2017). They are required to share
those contents which will not harm the emotions of any community.
 It is also recommended for them to prepare a proper budget for their marketing activities
by taking advice from finance expert so that they will eliminate their expenses on
unproductive activities and focus more to invest on productive activities.
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References
Books and journals
Alvarez-Milán, A. and et. al., 2018. Strategic customer engagement marketing: A decision
making framework. Journal of Business Research, 92, pp.61-70.
Banerjee, S.B., 2017. Corporate environmentalism and the greening of strategic marketing:
Implications for marketing theory and practice. In Greener Marketing (pp. 16-40).
Routledge.
Çınar, K., Yetimoğlu, S. and Uğurlu, K., 2020. The Role of Market Segmentation and Target
Marketing Strategies to Increase Occupancy Rates and Sales Opportunities of Hotel
Enterprises. In Strategic Innovative Marketing and Tourism(pp. 521-528). Springer,
Cham.
Dogu, E. and Albayrak, Y.E., 2018. Criteria evaluation for pricing decisions in strategic
marketing management using an intuitionistic cognitive map approach. Soft
Computing, 22(15), pp.4989-5005.
Forzoni, L., Buffagni, C. and Guercini, S., 2019. Strategic Marketing: From Product Roadmap to
Needs Roadmap Focus, a Cultural-practical Shift. Journal of Industrial and Intelligent
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Gyenge, B. and et. al., 2021. A New Strategic Marketing Management Model for the
Specificities of E-Commerce in the Supply Chain. Journal of Theoretical and Applied
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Jayaram, A., 2017. Smart Retail 4.0 IoT Consumer retailer model for retail intelligence and
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Razumova, S.V., 2018. Strategic Marketing: syllabus for Master's Degree Program in the
Specialization 1-26 81 05" Marketing".
Razumova, S.V., 2021. International strategic marketing: educational-methodical complex
(electronic school-methodical complex) for specialty 1-26 80 05 «Marketing».
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Salwa, C.H. and Ramanan, T.R., 2017. Development of a sustainable strategic marketing model
for self-help groups-an analytical hierarchical approach. International Journal of
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Schiavone, F. and Simoni, M., 2019. Strategic marketing approaches for the diffusion of
innovation in highly regulated industrial markets: the value of market access. Journal of
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