Report on Tesco PLC's Digital Marketing and Strategic Initiatives

This report provides an overview of Tesco PLC's digital strategies. It begins with a background of the company and introduces Porter's Five Forces to analyze the competitive landscape. The report highlights Tesco's use of SWOT analysis for business planning and expansion, including their cloud-based technology and innovative products. It details Tesco's shift from mass marketing to customer-focused campaigns like "Tesco Food Love Stories," and the creation of new farm-based product lines. The analysis covers Tesco's investment in digital marketing, new product packaging, and its competition with smaller chains. The report also discusses Tesco's customized media strategies, such as personalized discounts, and provides recommendations for Target Corporation to adopt similar online marketing approaches, including the implementation of Porter’s Five Forces and SWOT analysis for competitive advantage. The report concludes by emphasizing the importance of online advertising and home delivery services.

TESCO
PLC
DIGITAL
STRATEGIES

INTRODUCTION
• Tesco is a company for general
merchandise and a multinational
groceries retailer.
• Headquarter of Tesco Plc is in Welwyn
Garden City in Hertfordshire,
England.
• Tesco is considered as a third highest
retailer with respect of profits and
ninth highest in world with respect to
revenues.
• Tesco has seven shops in seven
countries spread across Asia and
Europe.

BACKGROUND
• Founder of TESCO were Jack Cohen (CO)
and Thomas Edward Stockwell (TES)
founded the company in the year 1923.
• TESCO was converted into a Public
Limited Company in the year 1947.
• New stores were added by Cohen to
expand their business.
• In 1963, Cohen added GSS (Green Shield
Stamps) with the company, which is a
Trading stamp introduced by GSTSC (Vu
2016).
• Loyalty is provided to its customer that
improved the sales of the company.

INTRODUCING PORTER’S FIVE FORCES
• The framework of Porter’s Five
forces is basically a tool for studying
competition in a business.
• Economics of the industry are mainly
derived, which determines the
intensity of competition in the
market.
• Porter’s five forces mainly includes
forces like threat for a substitute
service and product, threat faced for
established rivals, threats for new
entrants, bargaining power of the
customers and bargaining powers of
suppliers.

TESCO IMPLEMENTED SWOT ANALYSIS
• TESCO mainly concentrates on management
of competition and includes plans for
expanding the business.
• TESCO maintains stability, reliability as well
as sustainability for selling products.
• TESCO has a cloud based technology and has
process development cycles for all the
processes involved in the system (Cushman
and Burke 2015).
• TESCO also have introduced innovative
products that attracts the customers.
• Tesco includes review of business policies,
sales increasing strategies, and includes
quality measure control within the company.

NEW MARKETING APPROACH OF
TESCO
• TESCO has stopped campaigns of mass
marketing that includes discounts or
offers of buying one and getting one
free.
• Customers no longer responded to buy
one get one free strategy.
• TESCO introduced real stories and real
people for marketing strategies.
• TESCO introduced new market
campaign saying “Tesco Food Love
Stories”.

TESCO CREATED NEW PRODUCT LINE
AS STRATEGIC ALIGNMENT TRIANGLE
• TESCO reviewed the marketing mix to
create new product line within the
company.
• TESCO launched new product line that
are farm based.
• The rebranding of the products helped
the company to appeal the customers
who are cost conscious.
• With the decreasing cost of the
products, the sales of the fish and farm
sales were increased in the company.

TESCO SHIFTED TO DIGITAL
MARKETING
• Companies invests billions of money in
marketing strategies.
• About 110 million euro was spent on
marketing by TESCO for its promotional
marketing.
• TESCO is spending about 30 percent of
its marketing revenue for digital
marketing (Wood, Wrigley and Coe
2016).
• TESCO invested marketing revenues in
for advertising on TV, radio, cinema, and
press.
• Digital marketing helps the customers to
know about the products more closely as
the customers are involved with digital

INVOLVED NEW PRODUCT PACKING
• Repacking of high quality of products
in high quality of packing was
introduced by TESCO.
• The TESCO company introduced new
way of packing so that it looked good
to the customers.
• New packing designs and new way of
campaigning the brand as introduced
by TESCO.
• TESCO gives its shoppers an organic
as well as locally sourced feeling for
the products that are sold.

COMPETITIONS WITH SMALLER
CHAINS
• At the beginning, TESCO was free of any
competitors as it was the only company
providing such service.
• But with the competition rising, TESCO has
to focus more and more on the market
shares.
• Establishing the market share is one of the
biggest issue that the company faced.
• To establish a market share, the company
changed its traditional marketing strategies
in to digital marketing (Mollah 2014).
• Many chains of TESCO like ALDI came in to
market, which gave a tough competition to
the company.

INTRODUCING CUSTOMIZING MEDIA
• TESCO has introduced a wide range of
marketing strategies and ideas so that the
customer’s focus comes on this brand.
• The media customizing involves providing
discounts by emails on birthdays and on
special days of the customers and delivers the
product directly to the door of the customer
(Imrie and Dolton 2014).
• The main goal of TESCO was to target a
specific shopper, not the whole market and
get the trust of those particular customers.
• The marketing power includes reinvigoration
of the strategies of TESCO, financial rebound,
and a testament to marketing power.

RECOMMENDATION FOR TARGET
CORPORATION
• The Target Corporation should use an online marketing strategy
similar to that of TESCO .
• The company should implement Porter’s Five Forces model for itself to
mitigate and compete with all its competitors.
• To increase the sales of the company, the Target Corporation should
do a SWOT analysis discussing the strength, weakness, opportunities,
and threats of the company (Müller 2015).
• Target Corporation should advertise its products online and should
have the facility to deliver the products or service at home.
• All the advertisement done should not follow the traditional method of
marketing.