Tesco Marketing Communications - Book Report/Review Example

Tesco Marketing Communications Background Tesco PLC is a general enterprise and multinational grocery retailer founded in 1924 with its headquarters in Cheshunt Hertfordshire, England United Kingdom. In Britain, Tesco is the most popular retail chain and the largest. In the recent years, Tesco has been in a position of branching its primary product offering from only groceries as a measure of covering varied client needs. The need to satisfy client needs form the central competence for the Tesco brand and achieves its aims by striving to be the best value retailer in all the markets the company enters. Tesco’s success in recent years can be attributed to various marketing activities in different marketing avenues achieving success for the retail giant and making the business one of the best selling retailers in United Kingdom. These marketing strategies are complex and ensure the company communicates with the consumers well to meet both its needs and those of the consumers. This study aims at analyzing the integrated marketing communications at Tesco with reference to the RABOSTIC planning framework followed by a critical comment on the appropriateness of the media and tools used and the CSR demonstrated by Tesco in its marketing communications. Roles and Characteristics of marketing communications planning Burnett (1993: 241) defines marketing communications as an aim of supporting the marketing plan in helping main audience understand and believe the company’s advantage over its competition (Burnett, 1993: 241). Integrated marketing communications entail the planned marketing and communication methods including public relation tools at an organization. The public relations tools could range from direct mail, newsletter advertising, press releases, media, and sales promotion. Marketing communications planning aims at using different communications channels to meet specific goals for the organization. These goals are achieved by ensuring certain characteristics are adhered to by the integrated marketing communications in an organization, as explained in the following parts of the paper (Pickton & Broderick, 2005). Consistency: ensuring the message provided through different communications channels forming the integrated marketing communications support and reinforces each other and not present contradictory messages to the audience (Duncan, 2005). Continuity: involves ensuring the communications are consistent over time and that the varied channels are connected. Complementary: means ensuring the integrated marketing communications are purposed at meeting a greater goal than the achievements of each communication channel on its own. Each communication plays a part in achieving more. Coherence: ensures that all the different communication channels used by a firm are logically connected (Schultz, 1996A). Consistency, continuity, coherence, and complimentary are the characteristics of marketing communications allowing the organization to achieve its communications goals efficiently and through a variety of channels. Marketing communications planning plays a number of roles in the business including enabling the company to reduce the marketing costs by planning the marketing strategies consisting of communication channels that offer the most efficiency while limiting costs. It also allows for the creation of measures to ensure the channels chosen generate the maximum communications impact that cannot be achieved by either having some of the communications channels or a random choice (Ellwood, 2002: p. 19). Additionally, it allows the organization to make a choice of the integrated marketing communications resulting in effectiveness in marketing communication and the ability of the marketing strategies in the business to generate sales and augment revenue streams for the business. Marketing communications planning allows an organization to provide clarity on the products and services offered by the company. It also ensures the organization chooses the set of information that best describes the product and services and choosing channels to reach consumers effectively. In addition, it allows an organization to make the right choice of communication channels and provide the some consistent message in all the channels. Consistency creates trust and development of the brand that can only be achieved from ensuring all the channels chosen provide consistency to the audience. The other role of marketing communications planning is to provide an opportunity for the business to understand the consumer preference on the communication channels for accessing information on products and services. Role of marketing communications strategy Marketing communications strategy has certain roles to play in the developing and maintaining the brand for example Tesco. These roles include aiding the clients make an association with a brand through information-based, rational, or emotional relationships using imagery and feelings (Van Gelder, 2005: p. 12). It allows a business to communicate the meaning associated with the brand. These are done through the using of different communication channels within the marketing communications strategy like packaging, merchandising, and point of purchase elements (Direction, 2006: p. 23). Marketing communication strategy also allows a business to foster common brand understanding among the wide range of audience (Hasanali et al., 2005: 35). In addition to this, it allows employees to have a common goal in the organization of better performance, communicating with suppliers on their roles of helping the organization to be successful, and making it clear for the shareholders on the mission and representation of the organization (Hasanali et al., 2005: 35). It also provides a business with the opportunity to present an image that is consistent in all the communication channels used. Another role of marketing communications strategy allows an organization to develop internal branding by focusing on ensuring the employees relate to the company’s brand and its values, ambitions, and purpose. Internal branding aim by the marketing communications strategy allows an organization to live up and exceed expectations of the customers (Van Gelder 2005, 56). Marketing communication strategy also plays the role of allowing an organization to have both internal and external communication aiding in the development of a better organization brand (Ellwood, 2002, p. 144). Other roles of marketing communications strategy in an organization include developing trust among the consumers of the business, allows for increased effectiveness of marketing communication, results in brand differentiation, and increases accountability in a business. In addition to this, it allows a business to express the competitive advantage over the competition through tailoring the message to provide specific reasons for the clients to purchase the company’s goods. It also allows the business to build a good corporate image through publicizing charitable actions undertaken by the business. The other role of marketing and communications strategies is to attract talent to the business through ensuring new employees have the knowledge that the company is a good place to work. Additionally, marketing and communications strategy allow a business to inform investors of profits, joint ventures, new products, and acquisitions resulting in awareness creation and alert investors on the company’s accomplishments. Current marketing communications strategy at Tesco with reference to RABOSTIC planning framework RABOSTIC framework is an acronym that stands for Research and Analysis, Audiences, Budget, Marketing Communications Objectives, Marketing Communications Strategy and Tactics, Implementation, and Control. This part of the study uses the RABOSTIC framework to analyze the marketing communications strategy at Tesco and the various ensures used to ensure effectiveness and efficiency in Tesco marketing communications strategy. Research and Analysis Tesco makes a lot of research and analysis on the marketing communication channels to use in promoting and communicating with the audience. The choice of the research channels is dependent on the channels that are most effective and provide synergy for the communication needs of the business. Audiences Tesco aims the marketing communication strategies at audience that range from customers, investors, environmental conservationists, government regulating agencies, society, employees, lawmakers, and the stakeholders. Product and service information through a varied number of channels of communication is aimed at the customers while information on environmental conservation efforts and corporate responsibility are aimed at the society, lawmakers, and government regulators. Lawmakers, government regulators, stakeholders, employees, and investors are the audience for information on the performance, profitability, statutory disclosures, and revenue generation efforts at Tesco. Budget The budget for the marketing communication allow for the use of marketing funds amounting to multi-million pounds to allow the business meet the communication needs of millions of global consumers on the different facets of the business. Tesco realizes the importance of marketing communication and uses a significant budget to make it effective and efficient. Marketing Communications Objectives Marketing communications and objectives at Tesco include increasing the growth of Tesco in the United Kingdom in both sales volume and value. The other objective is to be successful in international retail while achieving another objective of achieving success in both grocery and non-grocery retail. In addition to this, it has another objective that anchors innovation and success at the company that is to develop retailing services and this is evident in marketing communication strategy in terms of Tesco Personal Finance, Teco.com, and Telecoms. These objectives are achieved through varied marketing and communications channels as discussed in the following part of the study. Marketing Communications Strategy and Tactics The different marketing communications strategies evident in the marketing objectives at Tesco are discussed in this part of the study with an exposition of the audience. Advertising: Tesco uses advertising as one of the marketing communication channel and is chosen for the ability of advertising to reach a large audience and its use of simple message allows for better understanding of products and services used by the company (Belch, 1998). Advertising aims at not only building and maintaining consumer awareness of Tesco’s products, but also creating brand awareness, associations, and values through using its capability to reach large audiences (Fill, C. & Jamieson, B., 2006, 172-3). Wright believes that advertising strengthens corporate image and aids in building customer loyalty and allows Tesco to inform, provide facts, and persuade consumers on Tesco’s products and services (Wright, 2004, 383). The other aim of sales promotions at Tesco is to create acceptance of new products by the company owing to the increased innovation and developing new products at Tesco to meet different customer needs and that the company is increasingly venturing in the non-grocery market (Brennan et al 2007, 182-3). Direct marketing: another marketing strategy used by Tesco is direct marketing that entails the use of the records of customers in the database and communicating to them about product and service pricing and other details on the product (Pickton & Broderick, 2005, p 621). Fill (2009) defines direct marketing as all media activities be a business that are meant to create responses and communications with potential or existing customers. Direct marketing is evident in the development of Tesco Club card, which allowed the retail giant to use consumer insight to develop products that meet consumer need s and ensure the customers receive the best products and improving the business. Tesco has been in a position to get 38 million customers on the club card program. This strategy also allows Tesco to interact with individual customers and offer services and products from the data from customer feedback allowing for adaptation of client needs and responses by Tesco ((De Pelsmacker et al 2001, 325). Direct marketing contains as number of channels of marketing communication to the client including direct mail, internet marketing, telephone, posters and press, and catalogs among other direct marketing channels. Direct mail: offering product and service information through client email. Offers a lack of face to face communication and allow Tesco to meet the individual needs of the clients. Enables increased satisfaction and loyalty among the consumers (Hasanali et al., 2005: p. 14). Telemarketing: involves the communication between business to the consumer through telephone and aim at convincing the consumer to make a purchase (Tony, 2014: p. 18). Tesco uses telemarketing to provide additional product and service information and allow the business to have constant communication with the consumers. Personal selling: this is another marketing communication strategy used by Tesco and has been defined as face to face communication aimed at informing, providing demonstrations, establish and maintain relationships with the audience (De Pelsmacker et al 2001, 392). Allows for image building by the company representatives, provision of client feedback, reduce the risk of misunderstanding, allows for message adapting to the client needs, and gain attention (Fill 2006, 279). Social media: Tesco communicates with the audience through Facebook, Twitter, and Instagram through providing new product information, services, promotions, corporate social responsibility, among other pieces o information for the clients. Social media provide Tesco with a cheaper communication channel and allow access to a large global audience allowing for augmented development and success for the business beyond the United Kingdom and Europe. Internet marketing: The other element in the marketing communication strategy at Tesco is the use of internet marketing augmenting the ability of the business to communicate with both the digital and the traditional age consumers in its marketing communication mix. Internet marketing at Tesco is evident in the use of Tesco.com, Club card, Social media, and expansion of product ranges online, Tesco Direct, search engine optimization, Click & Collect service, and Tesco Application use. It has also been monumental in driving the increased growth and success of Tesco showing its importance as part of the marketing communications mix at Tesco. Sales promotion: this is the other marketing communication channel that is used by Tesco in meeting its communication needs. It includes use of brochures, presentation kits, and catalogs provided to sales people and to the consumers. Sales promotion complements Tesco’s advertising and is its aim is increasing short-term sales at low costs than advertising and targets a smaller audience compared to advertising (Fill 2006, 221). Sales promotion aims at offering customers better value for their money and cause an immediate response to advertising at Tesco (De Pelsmacker 2001, 298). Sustainable marketing: the other marketing strategy evident at Tesco is sustainable marketing that entails operating in a manner that is social and environmentally responsible. Tesco operates in a manner that seeks to meet business and consumer needs while preserving the environment for future generations these environmental sustainability actions by Tesco are then published as reports for the consumers acting as channels of communication. Tesco’s publication of a large quantity and value of food thrown to waste totaling 28,500 tons of food wasted allowing the business to show it’s in the front line in calling for a global challenge. Publication the amount of food wasted gave a platform for other retailers to follow suit and ignite debate on food waste and ways of solving the issue. Tesco took the sustainability lead owing to the impacts on the environment caused by food waste. Tesco offers a way to result in sustainability through publishing sustainability data and actions, hence the other marketing platform by the company. Public relations: Tesco has an effective use of public relations in the marketing communications strategy to ensure the company communicates with the society, employees, customers, and other target groups. Fill defines public relations as the management of relationships between organization and stakeholders (Fill 2006, 241). According to De Pelsmacker et al, public relations aims at closing the gap between the organization’s view by the public and the way the company likes to be seen by the public (De Pelsmacker et al 2001, 247). Public relation offers Tesco the chance to communicate to the audience the organization’s beliefs, attributes, and aims aiding in improving the reputation and commitment of the company for success. Tesco uses public relation to reaching a large audience within a fraction of advertising cost. Implementation Tesco implements the communication strategies through having set times for development and printing of information including financials, strategy and review, and corporate social responsibility, among other print outs annually. Other marketing channels are implemented in accordance to marketing needs of the business and sometimes hourly or daily according to the communication channel for example social media is monitored very frequently while television and radio adverts are made periodically. Control The control of the communication marketing at Tesco is done by Board and Executive Committee through testing of the strategy each year. Controls of marketing communications strategy at Tesco are also in the form of executive sub-committees including Compliance, Group Commercial, Socials Responsibility Committees, People Matters Group, Technology, and Multichannel committees. Controls are also done in the form of structured stakeholder engagement programs. Appropriateness of the tools and the media used I believe that the tools and media used at Tesco as elements in the marketing communications strategy are appropriate for the business. The reason for the assertion of the appropriateness of the tools is that they relay receptivity, recognition, relevance, responsiveness, and relationships between Tesco and the audience (Bhatia, 2005 & Schultz, D. (1996B). Corporate social responsibility as demonstrated in the marketing communications of Tesco Through the Tesco and society review that is printed each year for the consumers and other stakeholders of the business, Tesco communicates with the consumers through highlighting the various corporate responsibility measures taken by the company. The 2014 corporate responsibility review (Tesco CRS review, 2014) depicts the main CSR activities as reducing food waste, improving health, and creating employment opportunities (Thorpe, Thursday May 15, 2014). Tesco achieves the CSR activities through a number of ways. These are responsible trading, reducing environmental impact, offering the best employment opportunity, and supporting local communities. The marketing communication at Tesco is printing, “Tesco and society review”, and demonstrates corporate social responsibility by the business. Marketing communication is also used to depict the CSR activities by Tesco through the development and use of the cloudApps, sustainability cloud, and CloudApp’s platform to convey environmental responsibility and compliance. Through providing data on Tesco’s carbon footprint in terms of electricity consumption, refrigerant gases, and gas, heating fuel transport, waste recycling, community engagement, and transport allow the audience to have a good opinion of the company and are a willing to make purchases at the company. This demonstrates the use of marketing communication by Tesco to show the CSR efforts it is taking in environment conservation. Marketing communication depicting CSR at Tesco is the Tesco sustainability program that aims at reducing the carbon footprint in its supply chain by 30% through communicating with the suppliers using Buying club and Tesco Knowledge Hub in making purchase decisions. The sustainability efforts and their being reported on the media and through prints by Tesco allow for sustainability marketing while demonstrating CSR at Tesco (Malkin, Friday, May 16, 2014). In conclusion, marketing communications strategy and planning are very important because they determine the ability of an organization to ensure the business is effective in meeting the communication needs of the audience. The marketing communications channels evident at Tesco include internet marketing, social media, sales promotions, personal selling, direct marketing, and public relations, sustainable marketing, and advertising. The varied channels and strategy used by Tesco are effective in meeting the needs o the business in terms of effective client communication and communication with other business stakeholders. The impact has been the ability of Tesco to augment profitability and success both in the domestic and global market. Marketing communication conveys corporate social responsibility as evidenced by marketing communication at Tesco that relay the main CSR actions of Tesco as reducing food waste, improving health and creating employment opportunities. References Armstrong, G. and Kotler, P. (2013) Marketing; an Introduction, (11ed), New Jersey: Pearson. Belch, George E. & Belch, Michael A. (1998): "Advertising and Promotion — An Integrated Marketing Communications perspective" .Irwin/McGraw-Hill, Boston, Mass. Burnett, R. (2002). International Marketing. Strategy planning, market entry & implementation. Bhatia, C. 2005. Principles of Office Management. Lotus Press. 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