Improving Tesco's Online Marketing: Strategy and Recommendations

This case study examines Tesco's online marketing strategies, particularly focusing on its online growth since 2010, which has primarily been in non-food items. While Tesco has seen success in international markets like Korea and has implemented initiatives such as semi-automated in-store picking and diversified product portfolios, the study identifies weaknesses in its approach. Specifically, Tesco lacks a strong social media presence for its online merchandising division and hasn't developed a smartphone app like its competitors. Recommendations for improvement include establishing a robust social media presence across platforms like Facebook, Instagram, Twitter, and YouTube to enhance customer engagement and loyalty. Additionally, the study emphasizes the importance of developing a user-friendly smartphone app to improve customer experience, facilitate easy navigation, and provide personalized discounts and offers, ultimately driving sales volume and enhancing customer relationships.

Running head: ONLINE MARKETING CASE STUDY
Online marketing case study
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Table of Contents
Introduction:....................................................................................................................................2
Online marketing by Tesco:.............................................................................................................2
Recommendations for online marketing success:............................................................................3
References:......................................................................................................................................4

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Introduction:
The technological revolution has touched base with each and every aspect of modern
human lifestyle and the shopping business is no exception to it either. Online shopping is the
new face of retail and the organizations all across the world has realized the importance of an
online marketing presence and has amalgamated the concept of online shopping in their business
strategies. However, the online marketing sphere is a dynamic economic entity and with the
ever-rising competition and customer demands, the e-commerce business is in constant need for
modification and improvisation (Roberts and Zahay 2012). This assignment will focus on the
online business attempt of one of the global leaders of retail chain business Tesco and
recommend a few strategies to improve their online business.
Online marketing by Tesco:
Tesco is a UK based multinational grocery and retail merchandise with head quarters
situated in Welwyn Garden City of England. Established in 1919 by Jack Cohen, this company
has grown to be one of the three largest retailers all across the world (Tesco.com 2018). Their
online growth however, has only started significant rise since the year of 2010, however it is
restricted to the non-food sale items. The company saw a steep 30% rise in their international
profits via the online marketing route in the non-food sale items only, especially in Korea. In
order to grow their business further, they have resorted to improving their services by including
semi-automated in-store picking services using local refrigerated delivery vans, diversification of
their online product portfolio, DVD to your door services and e-diet plans. However it has to be
mentioned in this context that the operational statistics of the Tesco.online rely considerably on
the instore advertising and marketing, there is no considerable social media presence of their

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online merchandizing division (Tesco.com 2018). As a result, their strategy for “grabbing
customer attention” is not serving the purpose with efficiency. Along with that, they have not
been able to improve their online shopping interface to a smartphone app like the other online
retail leaders like Amazon.com. Hence these are a few areas where the online marketing strategy
is lacking and requires online marketing recommendations.
Recommendations for online marketing success:
According to the authors, digital communication is one of the most important aspects of
gaining online media success for any company. Social media marketing or establishing a social
media presence is an excellent tool for achieving this pursuit. Hence Tesco will also have to
focus on establishing a brand image in the online media to attract the attention of the online
customers. Elaborating more, authsr have discussed that the majority of the online customers are
inclined towards the social media tools. Hence Tesco will need to focus on creating a brand page
on different social media tools such as the Facebook, Instagram, Twitter and Youtibe to attract
the attention to the online media savvy group of customers. It will help them be connected with
the consumers and will aid in enhancing the consumer loyalty (Berthon et al. 2012).
Another area that the company will need to focus one includes the easy to use app
designs, which has taken over the E-commerce business. The Smartphone friendly app design
provides easy navigation and user friendly interface for consumers to operate and control without
any hustle. This strategy will help in enhancing the sales volume of the company and will help in
attracting the customers with continuous alerts of discounts and offers. Along with that, the
consumers will be able o share their views and grievances regarding the services and will help
Tesco connect with their customers much more effectively and efficiently (Ryan 2016).

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References:
Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing strategy. Business
horizons, 55(3), pp.261-271.
Roberts, M.L. and Zahay, D., 2012. Internet marketing: Integrating online and offline strategies.
Cengage Learning.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Tesco.com. (2018). Tesco - Online Groceries, Homeware, Electricals & Clothing. [online]
Available at: https://www.tesco.com [Accessed 15 May 2018].