Marketing and Markets in a Digital World: Tesco Case Study Analysis

This case study analyzes Tesco's marketing challenges in a digital world, focusing on issues of consumer trust and brand loyalty. The study delves into Tesco's background as a multinational retailer and explores the theoretical underpinnings of consumer behavior, including consumer culture theory and the theory of planned behavior. It examines the situation faced by Tesco, where a lack of consumer trust has impacted its brand. The case study highlights the importance of branding, and the need to rebuild trust through quality goods and effective marketing. The analysis covers how consumer culture theory can be applied to understand consumer preferences and behaviors in the context of Tesco's marketing efforts. The study concludes by emphasizing the importance of addressing consumer concerns and building strong brand relationships in the competitive retail environment. The case study provides insights into the challenges and strategies involved in maintaining a strong brand presence and consumer loyalty in the fast-evolving digital marketplace.

Marketing And
Markets In A Digital
World: 1

Table of Contents
COMPANY BACKGROUND:.......................................................................................................3
THEORETICAL UNDERPINNING:..............................................................................................4
SITUATION:...................................................................................................................................4
THE CASE STUDY: .....................................................................................................................5
OUTCOME:.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
APPENDICES...............................................................................................................................14

COMPANY BACKGROUND:
Tesco is British multinational grocery store and general marketing retailer company
which is situated in London, United Kingdom. It is one of the leading retailer firm in the world
which offer variety of goods and services to their customers. Also it has seven shops across the
nation and it is one of the famous market leader of the groceries stores which is established in
different countries such as UK, Thailand, Hungary, Ireland. In addition to this, Tesco is operated
and regulated in all over the world where they gain high amount of income and profitability. It is
operated and regulated business more than 4000 stores in all over the world. In current time
period, it has operated 2026 stores in around 13 markets that includes Asia, Europe, North
America and they are successfully enter in the market place (Achrol, and Kotler, 2012). Beside
this, Tesco market share in the United Kingdom has growing rapidly as a result of customer
focused strategy. Along with this, the competitive environment in the UK retail market place is
experienced drastic changes and modifications in the year of 2004 in new products and services.
Along with this, it is one of the largest grocery and commercial store chains in the world
both in terms of number of stores and both in terms of annual income. The international
company is based in United Kingdom which has large number of stores in Europe and the Asian
region. Tesco has provide different type of products and services to their buyers who are willing
to purchase their goods. It is a vital commercial activity and also provide variety of products and
services to their customers. In current time period, the retail market is growing in fast manner
where companies are gain huge income and profit by delivering desired goods and services. In
the year of 2015, there are around $5 trillion sales are reported as selling of different products in
current market place. Retail industry is growing in current period of time that help organisation
in acquiring large number of customers towards new products and services. There are various
retail sellers who are analyse whole market area before introducing a new product for identifying
consumers needs and demand towards commodity (Baker and Saren, 2016).
The major marketing issue occurs is lack of trust among consumer regarding company
brands which create issue and problem in gaining attention of customers. When organisation
does not provide desired goods and services to their buyers and they are not fulfil all promises
which reduce trust (Tesco’s marketing boss on rebuilding trust and why people need brands
more than ever. 2019). If company are offer bad quality of commodities then this will create
major issue on their marketing functions and it is directly impact on consumer trust. In addition

to this, trust is important for retaining large number of customers so firm require to deliver
potential products and services in proper manner. Tesco has face lack of trust issue which
directly impact on their business operations and its functions effectively. There are large number
of customers who are disappoint with their current goods so they are doing work for rebuilding
trust and faith among them. It is the major issue which directly affect on company growth and
success level so they required to develop those goods that are helpful in attracting number of
customers (Baker and Saren, 2016). If company does not provide quality based goods so this will
change the behaviour and taste of their customers towards brands which are offered by firm.
When brands display dishonestly during the period of bad publicity so this will reduces trust
among consumers towards company brands. Tesco need to make desired goods which can easily
fulfil all demand and requirements in better manner.
THEORETICAL UNDERPINNING:
There are various theories which are used for determined and evaluated study matter in
proper manner. Different types of theories used by an organisation for gaining required
knowledge and information regarding specific topic. As per the case, Consumer culture theory
is the study of consumption choices and behaviours from a social and cultural perceptions which
is opposed to an economic or psychological (Green, 2015). This theory refers to identify
consumer behaviour and attitude regarding specific goods and services. It define as the family of
theoretical point of view which address dynamic relationship between customers activities,
marketplace and cultural descriptions. The model is useful in analysing users needs and wants
which is helpful in attracting them towards firm goods and services. It will assist in examining
the views and reviews regarding specific commodities of the buyers. Also it will helpful in
examining psychology of their customer towards company products in the large market place.
Consumer culture is refer as social arrangement where relation between lived culture and social
resources, between meaningful ways of life and symbolic and material resources. It can be used
for identify consumer behaviour, their taste, attitude and preference that can be helpful in gaining
attention of them. Also it is mainly focus on understanding the interrelationship between
different material, economic, symbolise, social relationship and their impact on consumers.
Users are considered as a part of interconnected system of commercially developed goods and
also build good image where they can easily develop relationship with their customers. On the
other hand, theory of planned behaviour is that theory which is links with someone's values,

beliefs and behaviour within an organisation. According to the case study, Theory of Planned
Behaviour is the state about attitude and behaviour towards specific company products. It is
useful in identifying consumers belief and value regarding new goods and services that can be
helpful in fulfilling their all needs in better manner.
SITUATION:
Tesco is one of the international retailing company which offer variety of products and
services to their customers in the large market place. It is situated in United Kingdom where they
operate and regulate their business functions in better manner. They are attracting large number
of buyers towards their new and unique type of goods and services. In an organisation, all the
workers are try to gain attention of large number of customers towards desired goods and
services. But in current time period, they are face some issues regarding lack of trust among
customer regarding company brands (Kelly and et. al., 2015). This will lead towards reduction in
loyalty and level of trust among consumers regarding Tesco products and services. It can be
analysed, there are various company's products in which some harmful substance are occurred so
it reduces brand loyalty among customers.
A brand is the name which has been given to a product and services such that it takes on
an identity by itself. In current market place, there are thousand of products and services which
are being rapidly commodities and brand help company in attracting large number of customers
(Roque and Raposo, 2016). Brand is important for an organisation which create loyalty, faith,
mass market appeal and trust among customers which depend upon how brand is promoted with
the help of marketing, advertisement and promotions. A brand differentiates a product from same
type of other products and it enables it for charge higher premium. It is clear identity and develop
huge faith or trust in their functions. A brand is likely to survive for long time period than just an
undifferentiated products and services.
THE CASE STUDY:
For every company, it is required for develop effective brand which gain attention of
large number of customers. Brand has an identity and strong personality, name, culture, vision,
intelligence and emotion. It can be analysed that such are presented by company owners of the
brand and it required continuously focus at to keep the brand which are relevant for target
customers and sell them desired goods. Tesco is British international retail company which

provide different type of goods and services to their customers in the large market place.
Recently, they are face some issue and problems which occurs due to poor loyalty and trust level
among consumers. In an organisation, most of the workers are perform high quality work for
seeking of attention of large number of customer towards branded products and goods and they
are gain high level of income and profitability (Kerber, 2016). As per the case study, lower level
employees are perform huge work for developing branding products and gain trust. In this, Tesco
stores can applied Consumer Culture Theory which is best suitable for analysing consumer
behaviour and attitude towards company brands.
Consumer Culture Theory:
Consumer culture theory is an in disciplinary field of research to developing a adequate
understanding about consumer choices and preferences and consumer culture that helps in frame
product accordingly. It helps in deep understanding about interrelationship between various
materials in which raw material, economic, symbol and institutional with social relationship and
their potential effects on consumers, market place, on institutions and on society. It is primarily
based on consumption choices and preferences of consumers so that marketers can build their
product accordingly on social and cultural side of consumer. Their is dynamic relationship
between consumer actions, market place and meaning of culture. It also examines emotions,
attitudes and preferences of consumer after buying products and services. In social factors
includes reference groups, their family members and relatives and consumer's status in society.
Further values and interest that learn from their parents. It helps marketers to understand human
methodology with thought process so it helps in build product by analyse their needs. It is most
reliable source to understand consumer needs and preferences so that organisation can build their
products and services accordingly and give competitive advantage also. Further it gives better
understanding about product knowledge and competitors product also.
Consumer culture theory is the field of research focusing on consumption pattern as a
social and cultural practices. It is the study of consumption behaviour and attitude towards Tesco
company products and services. It is helpful in analysing and examining consumer psychology
regarding desired goods that are directly affect on business operations and its functions. This is
required for respective firm is to provide innovative and unique type of products which attract
large number of buyers towards specific commodities. Consumer culture is viewed as social
arrangement in which relations between lived culture and social resources, between meaningful

manner of life and symbolic and material resources where they depend upon market situation. It
is used for identify customers behaviour and attitude which are required while developing new
brand in the market place. Consumer culture their is an interdisciplinary field of research
oriented for develop and formulate better understanding why consumer do what they do and why
consumer culture takes form in proper manner. The theory is mainly focus on evaluating
interrelationship between different material, economic, symbolic, social relationship, institutional
and their effect on consumers, marketplace and society. Along with this, it can be used for
analysing their customers money which spend on material goods in order to attain lifestyle in the
capitalist economy.
In addition to this, there are various factors which directly influence personal buying
behaviour such as lifestyle, economic status, age, personality, occupation and self esteem.
Culture is the way of life for specific group which directly affect on Tesco values, beliefs,
behaviour and acceptable rules and regulations. This can be used for examining psychology
behaviour and attitude of consumers as per this company try to fulfil all requirement in better
manner.
Theory of Planned Behaviour:
It is considered as that theory which is linked with an individual beliefs and behaviour. It
consist with attitude towards behaviour, subjective norms, perceived behavioural control,
together shape an individual's behavioural aims and actions. Theory of Planned Behaviour is that
theory which has to be anticipated an individual's purpose to engage in their behaviour within
specific time period and place. The key component of this model is behavioural intent in which
behavioural intentions are directly influence attitude regarding likelihood that behaviour will
have anticipated outcomes and personal evaluation of the risks in order to gain effective results.
According to the Tesco case study, Theory of Planned Behaviour has been used to predict and
estimate buyers demand and requirement which are necessary while distributing products and
services. The major issue which occurs within an organisation is that due to other company fraud
identified in their products so this will reduces trust and loyalty among consumers regarding
brands. Along with this, it is distinguishes between three types of beliefs such as behavioural,
normative and control (Payne, Frow and Eggert, 2017). There are six constructs which jointly
represents an individual actual control over the behaviour when they select some brand. They

need to know their users attitude and behaviour towards organisation brand. These are described
as under:
 Attitude – It refers to the degree where an individual has favourable or unfavourable
evaluation of the behaviour of interest. It enable consideration of the results or outcomes
which help in performing a person behaviour. In Tescostore, marketing manager
required to focus on their consumers attitude and behaviour because this will help them in
gaining attention of large number of customers. It is required for worker is to make good
and positive attitude while interact with their clients and customers. If they develop
positive attitude and behaviour towards work and reach with set goals and targets in
given time period so they can create good image of company.
 Behavioural intention – It define as a motivational factors which directly or indirectly
influences respective person where stronger behaviour help in performing better work. It
is required for a person is to maintain and clear their views regarding anything. As per the
case study, Tesco consumers are not satisfied with their brand due to lack of trust and
reduction in loyalty regarding company goods and products. This is required for company
is to offer branded goods and services then this will increasing in loyalty and trust among
Illustration 1: Theory of Planned Behaviour, 2018
(Source: Theory of Planned Behaviour, 2018)

consumers. But managers need to analyse their consumers behavioural intention
regarding specific brand and its features. This is required for an employee is to develop
positive attitude and behaviour while interacting with their customers (Peters, 2014). In
addition to this, it is required for Tesco is to analyse their customers behaviour and
attitude regarding specific brand which are distributed among them.
 Subjective norm – It is refers to a belief about whether most of the people approve and
disapprove their attitude and behaviour. Along with this, it is associated with a person's
beliefs where consumers need to maintain their behaviour in better manner. Tesco
employees required to analyse every user behaviour and attitude towards new products
and services. This will directly influence consumers perceptions and attitude regarding
goods and services in better manner.
 Behavioural – This is the major element which explain required changes in behaviour
and it is required for achieving desired targets of the company. Tesco employees need to
make proper changes in their behaviour and attitude towards gaining attention of large
number of customers. Also they need to focus on improving brand loyalty and develop
trust among users. If they are change their consumers behaviour as per the situation so
they are capable to develop good image of brand and create trust among them (Rohm and
et. al., 2012).
 Perceived Behavioural Control – It is refers to an individual's perceptions and point of
view of ease or difficulty in performing the behaviour within an organisation. In this,
consumers are perceived behavioural control varies towards actions and situations in
which a person have different perceptions of control behavioural that depend upon
situations. As per the case study, Tesco develop new and unique type of goods which
create good brand image in the market place. This is required for firm is to examine their
users behaviour and perception towards company brand that are helpful in gaining higher
profitability and income.
OUTCOME:
On the basis of above mentioned assignment, it can be stated that Tesco need to analyse
their consumers behaviour by using different methods and techniques such as promotion,
appraisal, incentives and rewards. Along with this, reduction of brand image and trust level
among consumers is the major issue which directly affect on company productivity and

profitability effectively. The above theory help in identify such type of needs which are
necessary and required for customers within an organisation. As per the case study, these needs
of theory assist in building trust and loyalty among users regarding specific products and
services. This will help them in analysing their users issues and try to overcome with such
problems that occurs in the company. By implementing this theory, Tesco has gain strong
reputation in the market place so they are build and develop connection with customers. With the
help of such theories, company can easily get required outcomes and results in order to gain
knowledge and information about their customers. As a result, firm provide necessary products
which are required by users and also increasing trust and loyalty.
It can be stated that it is successfully implemented in Tesco case scenario where this will
help them in motivated and satisfied their employees for building trust among customers which
make them satisfied in each manner. It can be used for increasing and developing good image of
products in the mind of customers related to unique goods and services. In this, it is helpful in
gaining attention of large number of customers regarding new or unique type of goods and
services in better manner. After using this Consumer culture theory, company can easily
determine and evaluate their buyers demands and requirements regarding goods and services.
With the help of Theory of Planned Behaviour, behavioural achievement are depend upon both
motivation and ability factor which can be measured for analyse consumer behaviour. It can be
helpful in analysing and exploring every user behaviour towards commodities or brand of Tesco.
Along with this, it assist in examining those customers who are willing to purchase such type of
goods and products that are fulfil their needs and demand in proper manner. For this, company
manager can easily analyse their consumers intentions which are demonstrate while supplying
them required goods and services in the market place. Beside this, Tesco required to identify key
audiences and determine major goals and targets. With the help of different methods, they can
easily promote their goods and products among customers such as television, radio, social media
and so more.
CONCLUSION
From the above described report, it can be analysed that Tesco is British multinational
grocery store and general marketing retailer company which is situated in London, United
Kingdom. It is one of the leading retailer firm in the world which offer variety of goods and
services to their customers in the large market place. The major marketing issue occurs is lack of

trust among consumer regarding company brands which create issue and problem in gaining
attention of customers. When organisation does not provide desired goods and services to their
buyers and they are not fulfil all promises which reduce trust. The model is useful in analysing
users needs and wants which is helpful in attracting them towards firm goods and services. It will
assist in examining the views and reviews regarding specific commodities of the buyers. In an
organisation, all the workers are try to gain attention of large number of customers towards
desired goods and services. For every company, it is required for develop effective brand which
gain attention of large number of customers. Brand has an identity and strong personality, name,
culture, vision, intelligence and emotion.
On the other hand, theory of planned behaviour is that theory which is links with
someone's values, beliefs and behaviour within an organisation. Theory of Planned Behaviour is
the state about attitude and behaviour towards specific company products. Recently, they are
face some issue and problems which occurs due to poor loyalty and trust level among consumers.
In an organisation, most of the workers are perform high quality work for seeking of attention of
large number of customer towards branded products and goods and they are gain high level of
income and profitability. According to the Tesco case study, Theory of Planned Behaviour has
been used to predict and estimate buyers demand and requirement which are necessary while
distributing products and services.

REFERENCES
Books and journals
Achrol, R. S. and Kotler, P., 2012. Frontiers of the marketing paradigm in the third
millennium. Journal of the Academy of Marketing Science. 40(1). pp.35-52.
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Green, T., 2015. Flipped classrooms: An agenda for innovative marketing education in the digital
era. Marketing Education Review. 25(3). pp.179-191.
Hagberg, J., Sundstrom, M. and Egels-Zandén, N., 2016. The digitalization of retailing: an
exploratory framework. International Journal of Retail & Distribution Management.
44(7). pp.694-712.
Kelly, B., and et. al., 2015. New media but same old tricks: food marketing to children in the
digital age. Current obesity reports. 4(1). pp.37-45.
Kerber, W., 2016. Digital markets, data, and privacy: competition law, consumer law and data
protection. Journal of Intellectual Property Law & Practice. 11(11). pp.856-866.
Kotabe, M. and Kothari, T., 2016. Emerging market multinational companies’ evolutionary paths
to building a competitive advantage from emerging markets to developed
countries. Journal of World Business. 51(5). pp.729-743.
Leeflang, P. S., and et. al., 2014. Challenges and solutions for marketing in a digital
era. European management journal. 32(1). pp.1-12.
Mulhern, F., 2013. Integrated marketing communications: From media channels to digital
connectivity. In The Evolution of Integrated Marketing Communications (pp. 19-36).
Routledge.
Oliveira, E. and Panyik, E., 2015. Content, context and co-creation: Digital challenges in
destination branding with references to Portugal as a tourist destination. Journal of
Vacation Marketing. 21(1). pp.53-74.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science. 45(4). pp.467-489.
Peters, M. A., 2014. The university in the epoch of digital reason: Fast knowledge in the circuits
of cybernetic capitalism. In Universities in the Flux of Time (pp. 23-45). Routledge.
Rohm, A. J., and et. al., 2012. Brand in the hand: A cross-market investigation of consumer
acceptance of mobile marketing. Business Horizons. 55(5). pp.485-493.
Roque, V. and Raposo, R., 2016. Social media as a communication and marketing tool in
tourism: an analysis of online activities from international key player DMO. Anatolia.
27(1). pp.58-70.
Serazio, M., 2015. Selling (digital) millennials: The social construction and technological bias of
a consumer generation. Television & New Media. 16(7). pp.599-615.
Spiekermann, S., and et. al., 2015. The challenges of personal data markets and
privacy. Electronic Markets, 25(2), pp.161-167.
Verčič, D., Verčič, A. T. and Sriramesh, K., 2015. Looking for digital in public relations. Public
Relations Review. 41(2). pp.142-152.

Online
Maslow's Hierarchy of Needs. 2018. [Online]. Available through:
<https://www.simplypsychology.org/maslow.html>.
The Theory of Planned Behaviour. 2018. [Online]. Available through:
<http://sphweb.bumc.bu.edu/otlt/MPHModules/SB/BehavioralChangeTheories/
BehavioralChangeTheories3.html>.
Tesco’s marketing boss on rebuilding trust and why people need brands more than ever. 2019.
[Online]. Available through: <https://www.marketingweek.com/2018/06/08/tesco-trust-
brands/>.

APPENDICES
PESTLE analysis of Tesco store:
It is the external factor which directly or indirectly affect on business operations and its
functions. This will help them in identify major issues which occurs from external environment.
These are described as under:
Political factor:
 Government stability
 Political attitude towards company
Economic factor:
 Economic crisis
 Increasing in unemployment rate
Social factor:
 Income distribution
 Changes in trends and fashion
Technological factor:
 New innovation and development
 Rate of technology transfer
Environmental factor:
 Environmental protection and regulations
 Reduction in wastage materials
Legal factor:
 Employment legal laws
 Safety regulations
Appendices
Appendices