Tesco’s Marketing and Business Strategies
Tesco is performing competitively in the market. The company has gained consumer confidence by providing brands that increase sales for the market. The company employs business and marketing strategies that aim to achieve the trust of the stakeholders for its products. Tesco is focusing on an approach that every little helps to strengthen its competitive advantage in the market. Even though the marketing approach has helped Tesco move from a struggling company to a prospering entity, the Tesco brand is tapping into a recognizable corporate strategy. The success of the strapline strategy meant that Tesco deviated from the previous approaches and reviewed its marketing mix. As a result, the company has been launching new product lines of farm brands, rebranding its products such as fish, beef, and pork, allowing itself to appeal to cost-conscious consumers. Also, Tesco has shifted towards digital marketing after investing in the press and radio advertising. Digital marketing allows businesses to reach highly targeted consumers in a better way than traditional marketing.
Impact of Tesco’s Core Purpose on Consumer Behavior
The primary objective for Tesco to put information about its values, core purpose, and code of business conduct is to communicate its commitment to value addition. The information indicates how Tesco does business and captures the difference that Tesco makes in the market, for customers, communities, and employees. Every business has a mission to add value to the life of customers (Tesco Case Study n.d). When customers understand that shopping in the company makes a difference, they feel like they are part of the organization. All these impacts on consumer behavior allowing them to know that Tesco helps them enjoy quality lies and have a better way of living. Customers understand that they can go to Tesco when they want great products at a great value.
Tesco’s Opportunities and Threats from Digital Media
Tesco can benefit from online shopping. The company can benefit from search engine optimization, social media marketing, and content marketing. Therefore, this characterizes the growing trends in digital marketing and improves the sales for the company. The company can grow and upgrade its online platform as part of the way to strengthen its e-business. Through home delivery services, the company can consolidate its digital media and tap into the growing market of consumers who order from home. The threats that arise from digital platforms include increased competition in the retail industry. Several retailers such as Walmart are integrating the correct technology due to their strong financial base. In addition, the changing customer satisfaction and threats of cybersecurity affect Tesco’s business in investing in technology for online business.
The Role of Dunnhumby to Tesco’s success?
Dunnhumby is a customer analytics engine. It helped Tesco and Kroger to succeed in market data research. Dunnhumby is integral to Tesco’s success because it allows the company to keep the purchase data through codes. In addition, Tesco has embraced dunnhumby to manage its data strategy and utilize big data in its marketing and e-commerce (Hutchinson 2019). Therefore, dunnhumby offers customer information to Tesco, which is critical in marketing decision-making.
Digital Marketing Strategy
Tesco should spend at least 30 percent of its marketing revenue on digital marketing. The benefit of this is that it allows the retailer to reach target markets effectively. Therefore, the company could start up a direct offering which will double up as a marketplace that its products in a model such as Amazon’s. The approach will strengthen Tesco’s customer focus and get feedback through the digital marketing process. For this reason, Tesco will promote its brands and connect its products with potential and actual customers using the internet and social media applications.
References
Hutchinson, P (2019). Dunnhumby and Tesco Partnership. Retrieved from http://www.fmcgcentral.co.uk/resources/blog/2019/03/dunnhumby-and-tesco-partnership/
Tesco Case Study. Ward Howell International
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