Provide A Background To The Organization.

provide A Background To The Organisation2take Two Of The Following

1. Provide a background to the organisation. 2. Take two of the following five concepts: marketing communication, branding, digital marketing, ethics and sustainability, marketing planning. 3. Use theories to reflect on their current activities in each of the two areas (focusing on the UK only). 4. Recommend how the chosen organisation can improve in both areas you have selected. 5. Must include a contextualised critique of the value/usefulness of the tools and techniques used. The critique must be directly related to your evaluation of the chosen organisation, not a standard critique that is available from textbooks or web.

Paper For Above instruction

The selected organization for this analysis is Tesco plc, one of the leading retail chains in the United Kingdom. Founded in 1919, Tesco has evolved into a retail giant with a significant market share across the UK, operating through hypermarkets, supermarkets, and convenience stores. The company's core activities revolve around retailing food, clothing, electronics, and financial services. Tesco's prominence in the UK market is supported by its extensive supply chain, innovative marketing strategies, and customer loyalty programs. In recent years, Tesco has shifted focus towards integrating digital marketing and strengthening its brand identity to stay competitive in a dynamic retail environment.

Background of Tesco plc

Tesco's growth story is marked by strategic expansion and adaptation to changing consumer preferences. From pioneering self-service supermarkets to launching online shopping platforms, Tesco has consistently adapted its business model to meet customer demands. The company's mission emphasizes customer satisfaction, value for money, and sustainability. Tesco's operations span over 3,400 stores across the UK, serving millions of customers daily. Its initiatives include the use of data analytics for personalized marketing, development of private label brands, and implementation of sustainability practices to reduce environmental impact. Tesco also engages in community programs and ethical sourcing, reflecting an integrated approach to corporate social responsibility.

Concept 1: Digital Marketing

Within the UK market, Tesco's digital marketing strategies are pivotal to maintaining its competitive edge. The company leverages its website, mobile applications, and social media platforms to engage consumers and facilitate seamless shopping experiences. Tesco's Clubcard loyalty program exemplifies effective digital marketing by collecting consumer data to personalize offers and promotions, thereby increasing customer retention (Sweeney & Coughlan, 2020). The use of big data analytics allows Tesco to tailor marketing messages, optimize inventory management, and improve customer satisfaction. The concept of omnichannel marketing is central here, integrating online and offline touchpoints to create a consistent customer journey (Verhoef et al., 2017). However, the reliance on digital platforms presents risks such as data privacy concerns, which Tesco must address to sustain trust among UK consumers.

Concept 2: Branding

Branding is a critical component of Tesco's strategic marketing activities. The company has cultivated a strong brand image centered on affordability, reliability, and community engagement. Its 'Every Little Helps' slogan encapsulates Tesco's commitment to customer value and service. The brand's positioning in the UK emphasizes trustworthiness and convenience, especially through private labels that offer quality products at competitive prices (Keller, 2013). Tesco's branding activities extend to corporate social responsibility initiatives, environmental sustainability campaigns, and retail excellence awards, all reinforcing its brand equity. Nonetheless, maintaining a consistent brand image amid increased competition from discounters like Aldi and Lidl remains a challenge, requiring ongoing brand management and innovation.

Theoretical Reflection and Evaluation

Applying Keller's Brand Equity Model (Keller, 2013), Tesco's brand strength hinges on brand awareness, perceived quality, and brand loyalty. Its extensive loyalty program enhances brand equity by encouraging repeat purchases, yet the rise of digital channels necessitates adaptation to new consumer behaviors. Regarding digital marketing, the Technology Acceptance Model (TAM) explains Tesco’s adoption of digital tools—its familiarity and perceived usefulness of the Tesco app and website drive consumer engagement (Davis, 1989). Tesco's ability to adapt these tools effectively has positively influenced customer experience, though challenges like data protection and technological obsolescence threaten long-term success.

Recommendations for Improvement

To enhance its digital marketing capabilities, Tesco should invest further in data analytics to develop hyper-personalized marketing communication that anticipates customer needs. Augmented reality (AR) features could be incorporated into their mobile app to simulate in-store experiences, further bridging online and offline channels (Pantano et al., 2020). Additionally, improving transparency around data privacy align with GDPR regulations will reinforce customer trust. On branding, Tesco must focus on consistent messaging that highlights its sustainability initiatives and ethical sourcing, differentiating it from competitors in a crowded market (Aaker, 1991). A rebranding campaign emphasizing community engagement and environmental responsibility could reinforce positive perceptions and loyalty among UK consumers.

Critique of Tools and Techniques

The use of data analytics and loyalty programs has proved valuable for Tesco by enabling targeted marketing and fostering customer loyalty. However, these tools' effectiveness is contingent on ethical data usage and consumer trust. The critique here is that while Tesco’s data-driven approach enhances personalization, over-reliance on consumer data risks alienating customers concerned about privacy (Culnan & Bies, 2003). The branding tools such as slogans and CSR initiatives are effective but must continually evolve to resonate with socially conscious consumers, especially amid increasing scrutiny over corporate sustainability claims (Porter & Kramer, 2006). Both areas underscore the importance of balancing technological advancements with ethical considerations to sustain long-term brand health and customer trust.

References

  • Aaker, D. A. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name. Free Press.
  • Culnan, M. J., & Bies, R. J. (2003). Consumer privacy: Balancing economic and justice considerations. Journal of Business Ethics, 44(2-3), 143-148.
  • Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340.
  • Keller, K. L. (2013). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Pearson.
  • Pantano, E., Pizzi, G., Ueda, R., & Vegetti, F. (2020). Digital transformation in retail: How AR enhances product experience. International Journal of Retail & Distribution Management, 48(10), 1120-1135.
  • Porter, M. E., & Kramer, M. R. (2006). Strategy & society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.
  • Sweeney, J., & Coughlan, R. (2020). Loyalty programs and data analytics: Enhancing customer engagement. Journal of Marketing Analytics, 8(2), 101-117.
  • Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2017). From multi-channel retailing to omni-channel retailing. Journal of Retailing, 93(2), 174-181.

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