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Position Paper – Tesco Company


Using social media, Tesco can better target customers based on their preferences and demographics. Companies can target a particular set of people using social media platforms like Facebook and Twitter. This allows Tesco to identify the student group so that it may target them with special discounts and offers (Aiello, 2020). Traders know Tesco as Tesco plc. Merchandise and global groceries are sold here. In terms of global revenue, Tesco ranks as the world’s ninth-largest company. Five European countries are home to the company’s various retail locations. In the United Kingdom, Tesco is recognized as a leading firm and provides significant supplies such as items. According to the corporation, it has a market share of approximately 28%. (De Pelsmacker, 2018).

Approximately $18.3 billion was attributed to Tesco’s market value in 2015. In terms of market capitalization, it is the twenty-eighth largest firm globally. Customers’ impact may be seen through to client retention and service via social media. Companies can use social media platforms to identify their target audience and nudge their target audience through the sales funnel by using these platforms. The best way to raise exposure to your brand is through social media sites like Facebook and Twitter. Use these venues for consumer retention as well.

Digital marketing tool and environmental trends for Tesco

Tesco places a high value on providing a wide choice of products, as well as good customer service. Value, convenience, and affordability are three of Tesco’s guiding principles both in the UK and around the world. In order to keep customers coming back for more purchases, the grocery chain relies on the Clubcard. For decades, Tesco has built a loyal following and a worldwide name because of its dedication to its clients. The appeal of the chain, on the other hand, is based on its reputation as a time- and money-saving alternative. Customer happiness is a primary goal for the company; thus, it places a high priority on customer-focused activities both online and in its brick-and-mortar stores (Shastri, 2021). To save money, Tesco does not slash the quality of its products. Listening to their clients and reducing needless costs is a regular effort for them to maintain their prices competitive. As a result, Tesco adheres to its cost-leadership policy.

Digital marketing strategy for Tesco

Tesco’s strategy is based on the belief that new enterprises can be implemented on a larger scale. A widely accepted marketing approach is to broaden the scope of the product or service being offered. Four Ps: Place, Product, Price, and Promotion are examined by the organization in its fundamental marketing mix. As the company’s products are considered enormous, it is necessary to cater to customers’ diverse tastes from various market segments (Johnson, 2018). In addition to beverages and food, the company’s product line includes frozen foods and bakery items and digital gadgets and video games, pet food, and home decor. In addition, Tesco owns brands such as Tesco Lotus, Everyday Value, and Tesco Value and Clothing (López García, 2019). Managing the costs of Tesco’s products is one of their pricing strategies.

There are various products available at low prices while maintaining their high quality. That makes it more likely to have customers in the area and keep them coming back for more. The company’s supply networks have constantly been seeking to reduce costs. As of 2016, the average cost had decreased by more than 4%. Customer feedback is a vital consideration when establishing both consistent and low prices.

Competitive market

The corporation has also reduced the costs of the pricing. Tesco has almost 7000 locations in eleven countries. Tesco locations, such as the Express, Superstore, and Tesco Metro, offer a wide choice. The company’s marketing campaigns have made good use of the resources at its disposal (Garg, 2020). They’ve been given primary consideration. Tesco’s promotional efforts are geared toward enhancing the company’s global brand recognition while remaining economically sound. The digital marketing mix is enriched by the company’s usage of TV commercials, charity events, hoardings, sponsorships, and endorsement deals. Loyalty club cards are a unique marketing tool used by the business. The card is only available to high-end clients. They frequently benefit from internet deals that offer savings.

Challenges faced by Tesco aggregators in the wake of the COVID-19 pandemic

Tesco’s profits dropped by about a fifth to £825 million last year after the coronavirus epidemic cost the retailer nearly £900 million in additional expenses. According to City experts, sales at the UK’s largest retailer climbed by more than 7% year over year to more than £53 billion. When comparing sales in the United Kingdom and Ireland, the growth was an impressive 8.8%. Profits were affected by an additional £892 million in expenditures to manage online deliveries and cover employees who were off work due of Covid-19 or while self-isolating, which included hiring more workers. (Guardian, 2022).

Role of social media in Tesco Growth

Customers were exposed to Tesco’s “Prices that take you back” campaign, created to challenge discounters across numerous mediums during the retailer’s centennial year. The use of social media by Tesco and the advertising firm BBH was critical in extending the message’s reach and engaging its target demographic. Customers’ wants and needs were gathered through social listening, allowing the company to make more relevant offers. Shoppers were entertained with a competition to discover which throwback food was best, Skips or Frazzles, while Freddo chocolates were reduced to their original 10p price. The strategy’s impact was amplified by selecting products that touched buyers on an emotional level. The activations were a success in generating interest, generating sales, and garnering media attention. They also helped to distinguish Tesco from its rival German bargain stores. Paid and unpaid efforts on Facebook, Twitter, Instagram, and Snapchat all worked well, thanks in part to developing unique creative materials for each service (Week, 2021).

The retailer’s campaign was a success because of its emphasis on emotion, which enhanced the brand’s value and gained attention. Immediate results were achieved thanks to the initiative. (Week, 2021).


Aiello, L. Q. ( 2020). Tesco grocery 1.0, a large scale dataset of grocery purchases in London. Scientific data, 1-11.

De Pelsmacker, P. V. ( 2018). Digital marketing strategies, online reviews and hotel performance . International Journal of Hospitality Management, 47-55.

Garg, P. G. (2020). Examining the relationship between social media analytics practices and business performance in the Indian retail and IT industries: The mediation role of customer engagement. International journal of information management, 52.

Guardian, T. (2022). Tesco profits fall as Covid costs offset sales surge.

Johnson, S. R. (2018). Tesco Bank Wellbeing Case Study. In WELL-BEING Palgrave Macmillan, Cham, 179-188.

López García, J. L. (2019). Digital marketing actions that achieve a better attraction and loyalty of users: . An analytical study ytical study. Future .

Shastri, A. (2021). In-Depth Tesco’s Marketing Strategy – Case Study with SWOT Analysis.

Week, M. (2021). How Tesco used social media to drive emotional resonance. Tesco achieved consumer engagement and sales uplift by putting an emotional spin on a price-driven campaign.


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