Introduction
Tesco is a multinational grocery and merchandise retailer based in the UK. The company was founded in 1919 in the east end of London. The founder of the company was Sir John Edward Cohen, who was a British grocer at that time. The headquarter of the retail company lies in Welwyn Garden City. According to a survey and report Tesco, the groceries and merchandise retailer company was the largest grocery retailer and was the ninth largest to earn revenue.
To increase earnings the company should have the proper strategy for advertisements and campaigns. The company Tesco is associated with various products that s it manufactures and develops numerous products like books, furniture, clothing, electronic gadgets, toys, financial services, software, internet, telecom services, and many more. In this assignment, an advertisement plan will be proposed for Tesco furniture. Tesco Is also known as one of the famous and popular luxurious furniture manufacturing companies. So, to be more successful in manufacturing, developing, and prodigy more furnaces for their customers they need a proper advertisement strategy and platform. Social media platforms will be most relevant for advertisement in today’s context.
The company can create various videos about the luxurious furniture to telecast it through the media and social media as an advertisement. Nowadays most people are habituated to purchasing products online through reviews from various people on social media. That is why it will be very helpful for the company to meet and communicate with their customers directly by using social media. In today’s context, this is the most relevant and easy way of advertising and campaigning. The Tesco Company should create a particular platform for only luxurious furniture to grow the sales of furniture among people. At last, it can be said that the creation of well-organized and regularly maintained social media content regarding furniture following the need and necessities of the customers definitely can help the company to increase its performance in the market.
Segmentation and targeting
Segmentation defines the different groups within a targeted market to develop the different needs and offerings of each group. The whole marketplace is divided into different segmentations and the targets are also different from the markets and furious with their different needs. The main purposes of segmentation and marketing are to support scarce resources, to make sure the different elements of marketing are designed to fulfill the specific needs of the different groups of customers to fulfill the needs of the company, and allow the different organizations to focus on the different needs of the customers of a different group in a very effective and valid way. And targeting defines the targets of a particular company or organization regarding meeting business needs (Zhao, 2021). Segmentation and targeting complement are for each other. Both the process of segmentation and targeting are function in the same way by targeting different groups of customers. The Tesco Company should create different segmentation among the customers by meeting the targets of the different segments of people and customers.
The main segment and target customers of the company Tesco are the luxurious and aristocratic upper-class people of the UK and to target, these customers Tesco has created various positions, branding, advertising, and campaign platforms. Different markets have different types and different classes of the buyer and they also have different needs. Segmentation and targeting The company should have the ability to segment the needs of the different markets and different groups of people and to have the ability to fulfill their needs. The heterogeneous markets are divided into markets to fulfill the needs of market segmentation and targeting. Profitability, accessibility, and measurability all are parts of segmentation and targeting.
The targeting strategy of the Tesco Company should be very clear and able to meet and fulfill the business needs. And also the strategies will be completed through the use of social media platforms.
There are various ways of segmentation and targeting in different markets to target different groups of customers. A marketer and the stakeholder should be able to find the different ways of segmentation and marketing in different groups of customers and also to understand the different market structures. Geographical segmentation of markets into different geographical regions are states, regions, nations, countries, cities as well as neighborhoods. A company like Tesco should have the ability to segment the markets to meet the needs of the different geographic walk segments of the markets. Most of the companies in today’s world are manufacturing and producing through understanding the segments of the different groups and markets and by targeting them. Demographic segments divide the market to meet the needs of customers of different ages, gender, age, religion, profession, ethnicity, generation, and many more. Demographic segmentation is most popular among the marketing target strategy because it is easier to divide the needs of the customers. Behavioral segmentation defines the segments of the costumes attitudes, knowledge, use, and responses to the products.
Figure: Perceptual map
(Source: Self-created)
Positioning and branding
The word brand contains and defines the name, term, sign, design, or combination of all of these to popularize the products of a particular company among the people. A unique brand helps the company to be different from other companies. A brand is a key to identifying the characteristics and also quality of the products of a particular company. Position works as a complement of branding to help the brand to be popular among customers through advertisements and campaigns. The combination of positioning and branding is very much important to grow the business and to create a vast area and market for the business (Rosnizam et al., 2020). In the case of Tesco company platforms like social media platforms and digital marketing will be more suitable and profitable for the business. The main purpose of positioning and targeting is to attract customers to the brands by warning and informing them about the products of the company. Tesco company especially Tesco furniture has to create a special media platform for positioning and branding to prove the news about their products and furniture. Positioning and branding strategy taken on board is the digital marketing strategy. The brand image of the Tesco Company is created based on the needs and necessities of the customers.
The brand is considered as a logo of a company to make the company unique from other companies. Through today’s market, various companies try to imitate the products from other colonies however the designs of the products can be imitated but the logo is not. A brand and logo are capable of creating a different mindset about the company. The brand Tesco should maintain the brand and position to make an impression strong among the customers.
Positioning and branding works are the weapon for the companies to future forward and complete their work. The basic needs of positioning and branding can be considered as it’s the only purpose in markets to increase the sales of the products through the provide information among the customers. It functions in a business to deprive the ability to grow the business by making them able to meet with the customers.
The brand of Tesco furniture will be able to acquire different positions in the markets to meet the target of the positions and to grow the business (Peeroo, 2019). To convince people to purchase only their furniture the company should be able to make a strong branding and positioning strategy. There are various principles regarding positioning and branding to acquire different positions in the markets through the combination of both physical and digital environments.
There are various competitor companies available as the competitor of eth Tesco regarding manufacturing and selling luxurious furniture. Among them, IKEA and Rio Tinto are very popular and famous. Both of the companies survive in the market for a long time by providing quality products to their customers. In the context of the positioning of the company Tesco IKEA and Rio TYinto are proved in the assignment.
Brand awareness is very much needed among customers to establish the brand in the minds of the customers. Online and social media platforms are very much relevant in branding and positioning because in today’s context social media is the vast and popular platform among users and customers. Tesco can use social media platforms as the branding platform to establish their brand of furniture in the mind of the customers through Face book, Twitter, and Instagram. The brand Tesco has developed and can leverage the advantages from its longtime avail online brands to become an online brand. Tesco uses the online platforms since 1995 to serve the users who are using their online platforms.
Tesco has various opportunities to select various celebrities as their brand ambassador and brand personality by following their requirements of branding and positioning (Ďurček, Nováková and Bučeková, 2022). Appointing a suitable brand ambassador help the companies to popularize their brand among the fans of the brand ambassadors as the people love to use the products the ambassador uses.
The company Tesco has appointed Jamie Oliver as their Brand Ambassador for positioning and branding of their company. He is a celebrity chef and currently serves as the chef in the UK. Tesco appointed him as the brand ambassador to get his customers as their customers and to popularise their products among their fans. In the case of Tesco furniture, Jamie Oliver is a very suitable and relevant personality for positioning and branding the products. At last, it can be said that to implement a proper positioning and branding system Tesco has found out and appointed Jamie Oliver as the brand ambassador.
Communication strategy
Communication in marketing and business strategy can be defined as a process through which a company and an organization truly engage with various audiences and customers. To understand the necessities and the environment of the audiences and the customers every company needs a few strong communication strategies (Volkov, 2020). The responsibilities of the stakeholders lie in making the communication system strong, that is the stakeholder groups work as the medium to bridge the gap between the company and its audiences and the customers. In this assignment, the communication strategy of the grocery and merchandise retail company Tesco will be encoded with suitable communication strategies.
The digital platform of social media is the most relevant platform regarding communication for companies. That is why most of the companies in the current world are involving themselves in popular social media platforms. Tesco has an excellent opportunity to grow its business by including and using social media platforms in its business (Nyame-Asiamah and Ghulam, 2019). Social media platforms like Face book, Twitter, and Instagram have the power to prove information regarding the products of the company to the customers to grow the business.
In the case of a targeted market social media is one of the most effective platforms because through the social media communication strategy the stakeholders of the company will be able to firm out the needs and necessities of the customers to sell the product. Tesco can use the social media platform to fulfill the target of the company by targeting the customers through social media. Advertising, public relations sales promotions, direct marketing, personal selling, and many others can be included in social media marketing to fulfill the targets in the market.
Though social media marketing is very effective for every company there are various advantages and disadvantages regarding social media marketing. On one hand, the advantages are, it will be very easy for the company to get more customers through social media. Tesco has various opportunities and advantages in social media marketing like the process of customer interaction will be very easy, the communication system between the company and the customers will be very strong and the reviewing process will help the company to find out the actual needs of the customers (Monte, 2021). The main disadvantage is security issues, that is both the company and the customers have the chance to face issues regarding security as the social media platforms are not very secure.
(Figure 2: marketing framework)
(Source: Monte, 2021)
The key messages of the company will be successfully and effectively communicated through the usage of social media. If the company Tesco will be able to select proper key messages to attract customers it will be helpful for the company to convey and communicate with their customers through social media marketing and push and pull start. Kaplan and Haenlin pointed out all the ways the company communicates with the customers through various social media platforms to make the customers familiar with the key messages of the company.
The purpose and cause of social media marketing and advertising are to make a strong communication system with the customer to meet the business target. Tesco uses the social media platform to manage the crisis of the company. Brand awareness is one of the most important key roles of social media marketing and advertising to inform the customers about the brand of the company. The key messages should follow the AIDA model.
The communication strategy of social media marketing has all types of messages to the customers such as functional, emotional, and moral to connect the customers both morally and emotionally. The company should have the ability to function to meet the needs of the customers (Jones and Comfort, 2022). Emotional and moral connections with the customers are needed as well as effective in the case of advertising and social media marketing.
Interactive communication methods will be more valuable for the company because in which the company will make the communication strategy more strong. The direct interaction between the customers and the stakeholders will help the company to understand the needs and necessities of the customers directly. An interaction communication strategy is more effective than a linear communication strategy to interact with various customers online through the help of digital marketing.
In the context of identifying a value proposition for the company it can be said the company Tesco should be more attentive to manufacturing quality products than marketing strategies because quality products attract the customers most. That’s the reason grocery and merchandise retailer companies will be more attentive to making quality products to meet both customer’s needs and business needs.
CSR and ethical issues
Theory
Corporate Social Responsibility or CSR is a policy in which a company can play a role that is positive towards the community and also the impact of the business decisions that create an effect on the environment (Priyanti and Dewi, 2019). Tesco as a company takes full responsibility for every decision that can affect the community that the company is serving.
Effect of Climate Change
Tesco is taking a prominent step by reducing their emission and is determined to be a completely emission-free company by 2050. The company is planning to move towards a renewable source of electricity for all its manufacturing units. The company is determined by the policy of reuse and recycling to be an example of change and for a healthy environment.
Future
The future of the company Tesco is very bright in both the CSR, that is corporate social responsibility and ethics (Lehn, 2020). The company includes both CSR responsibility and ethics in the process of manufacturing, developing, and distributing its products to their customer to sustain itself in the future market. Ethics helps a company to increase the belief among their customers regarding the products and services.
Figure 3: Level of CSR Content in Annual Report
(Source: Benghezal and Izadi, 2022)
Charitable Donations
Tesco participates in philanthropic responsibilities in the form of charitable donations. The company poly operated as aesthetically as possible to bring society (Cuervo-Cazurra and Pananond, 2023). This kind of corporate social responsibility is associated with the donations of money to charities, and participation in local projects. Charity and donations will be able to pot a positive impact on the customers of Tesco.
Benefits of CSR(
The company also engaged in healthy living and education, charity, and promoting human rights. CSR activity also increases this company’s market value and increases product sales very effectively. The company highly support local programs and campaign movement to increase social awareness. These great approaches easily attract talented employees and retain staff for more development in the future.
Jobs Within CSR
The CSR activity also increases job opportunities for the UK market. Social responsibility and ethics help to build a sustainable environment in the UK (Moise, 2022). it helps this company to easily increase its promotion strategies by maintaining ethics and CSR management. It identified that the approaches also influence other competitors to involved in these practices and build various job opportunities.
Ethics vs Values
The equal human right and responsible business deals are the core ethics of this company. It also enhances this company’s business process and provides support to easily increase sales factors very rapidly (Cavusgil et al., 2021). The main value of this company is to provide quality services and products to its customers. In addition, the company builds a value-added business workplace with high customer satisfaction. It increases this company’s market reputation and business service in the global market.
Business Ethics
The company believes in providing equal rights to every employee and customer. In regard, Tesco adopted ETI-based Labor code practices. Business ethics is highly dependent on customers’ interests and business objectives. Equal rights and diversity work culture are the business ethics of this company to enhance annual sales in the future.
Code of Conduct
The code of conduct regarding Tesco plc is an honest and open relationship with the employees and line managers. The business follows the codes of honest and honorable dealing with customers and employees that help this company increase sales by $75,491in 2022. The code of conduct enhances this company’s market reputation and builds brand equality in the international market.
Ethical behavior
Tesco commits to buying and selling ethically and highly observes employees’ behaviors in the workplace. The ethical implication became very easy for this company through analysis of employees’ hard approaches during a critical situation (Papaluca et al., 2020). It boosts this company’s management and development process.
Management ethics
The management ethics of Tesco plc is to provide equal rights and the growth of employees based on their annual performance. This management ethics help to improve workplace and employee productivity very effectively. The company handles any critical situation in management with fair approaches. It boosts this company’s management and development performance very intensively.
Factors
Ethical factors and CSR is the most important aspect of this company that helps this company to increase its market shares and development process (Golding et al., 2022). CSR and ethical practices are most vital for this company to boost its management system and development process. It builds healthy interpersonal relationships and a sense of community for staff development. The company got a huge benefit from increased sales and customer loyalty and building cost management.
Importance
There is various positive impacts that arises from effective corporate social responsibility and ethical practices for Tesco company. It plays a major role to increase the sale and brand reputation of this company (Paavola and Cuthbertson, 2022). The marking approaches became very effective because of the CSR and ethical practices of this company. The company builds a community strategy based on important pillars such as CSR and ethical practices.
Ethics and Marketing
The company always maintains its ethics and marketing management during dealing with other business companies. The management of ethics and marketing help to this company to become a multinational retail corporation around the globe (Lan et al., 2022). Those factors are a vital aspect of this company and its internal management system that aslo increases employee productivity and effectiveness. Marketing is another factor for this company to increase its sales factors in the global market.
Ethics in the marketing mix
Ethics have an important part in the management of the marketing of companies. It helps in situations of marketing, product labeling, political advertisement, and marketing to children. The above marketing policies include the addition of ethics as it directly links to the various emotions of the public and also arouses a sense of attachment and resentment among the audience.
Eastern vs Western
Ethics plays a significant role in the cultural difference between the different communities which is the reason behind the differences in values and traditions of the communities (Wainwright, 2022). The economical choices and sustainability methods also deviate from the policies implemented by the different communities.
Recommendations
The company has been implementing various strategies for the implementation of ethics in the company but has some slight mistakes which need to be improved. The following suggestions are being made for the betterment of the condition of the company in conducting ethical management and CSR.
1. The company should be adopting several measures regarding the introduction of a code of ethics.
2. Getting the suppliers on board is also a major way in developing coping better ways of installing CSR policies in the company.
3. Donation of money should be done after proper mitigation of the further expenses and also by the calculation of better methods which will be helpful for them in the manufacture of processes.
4. Commitment should be made by the company to protecting the environment which is necessary to have a more optical approach towards the betterment of the situation.
5. Following a proper health service is necessary for the benefit of the company in providing a more developed approach for the employees in the management of the processes.
6. Greenwashing the businesses is also a major way in developing a better CSR approach towards the betterment of the situation and also it would develop a far better reach towards a successful implementation of the services.
Conclusion
From the above assignment, it can be concluded that no aspect of Tesco has been solely responsible for its success but the different services that it provides are simultaneously significant in the proper processing of the betterment of the company. The company has been involved in several methods which have been the major reason for them in the management of the different services which it provides. The company has been a significant producer of furniture which is also its prime product of them. The furniture company has been one of their major sections on sales and has been improving its shape in providing the company a new emblem in the market. The processes in the various segments of the company have been contributing hugely to the betterment of the processes of the company and have also helped the company in becoming a major name in the industry of furniture producers.
The segmentation process of the company has been very specific which has given the company the power to modulate its strategies and policies depending on the interests of specific segments of customers. The company has also been facilitated by the process as it has been a major reason behind the success of the targeting process of them which has helped in satisfying the needs of the different customers with different approaches. The communication strategy has also been a major reason behind the successful communication of the company with the audience which has increased the customer base of the company. The positioning and branding strategies have also helped the company in maintaining a more organized way to approach the customers and enjoy the benefits out there. It has helped them in having an established brand name in the community which has been the reason behind their complete marketing strategy of them. The CSR policies which have been implemented by the company have also contributed significantly to the process and helped the company in gaining a more important sport in the market. The recommendations offered in the process will also provide a more secure way to generalize their motive. It easily observed that the study describes a deep understanding of the marketing position of Tesco company. The segmentation and CSR plays a great role for development of Tesco branding.
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