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Tesco's 2021 Christmas Campaign Analysis

This document analyzes Tesco's online promotional campaign during Christmas 2021, detailing its effectiveness and proposing a marketing strategy using the RACE model to enhance Tesco's digital presence. The campaign aimed to reassure customers during COVID-19 by emphasizing product delivery for Christmas celebrations. The paper evaluates Tesco's market position and recommends strategies to improve their online marketing efforts and consumer engagement.
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0% found this document useful (0 votes)
24 views18 pages

Tesco's 2021 Christmas Campaign Analysis

This document analyzes Tesco's online promotional campaign during Christmas 2021, detailing its effectiveness and proposing a marketing strategy using the RACE model to enhance Tesco's digital presence. The campaign aimed to reassure customers during COVID-19 by emphasizing product delivery for Christmas celebrations. The paper evaluates Tesco's market position and recommends strategies to improve their online marketing efforts and consumer engagement.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

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Reference Style: Harvard
Number of words: 3155
ONLINE PROMOTIONAL CAMPAIGN BY TESCO PLC

1
Executive summary
This paper discusses the online promotional campaign of Tesco in Christmas 2021. This paper
reveals each detail related to the online promotional campaign and its effectiveness. After
discussing these aspects, this paper proposes a marketing strategy using the RACE model and
recommend where the company should focus on developing its digital presence.

2
Table of Contents
Introduction......................................................................................................................................3

Background......................................................................................................................................3

Evaluation of the existing market offering of Tesco and its position within the market.................4

Explanation of strategic framework model and proposal of marketing strategy to help improve
the digital presence of Tesco...........................................................................................................6

Conclusion.....................................................................................................................................11

Recommendation...........................................................................................................................11

References......................................................................................................................................12

3
Introduction
With the advancement of time, the concept of marketing strategy has been changing rapidly.
Organisations of modern times are using an online promotional campaign for their marketing
activities (Zéman and Bogdan 2019). Online promotion campaigns have been helping companies
to increase their business operation in a big way. The online promotion campaign of a company
is also helping to reduce the cost of marketing a lot, and the company and such a thing have been
helping organisations to increase their popularity across several countries. An increase in
popularity helps a company to increase its revenue and profitability (Bala and Verma 2018). This
report will discuss the online promotional campaign of Tesco and how the company has been
developing their digital marketing strategy. This paper will also evaluate the effectiveness of its
digital marketing strategy of Tesco. After analysing, all these important aspects of the company,
this paper will propose a marketing strategy based on the strategic framework model to improve
the business operation of the company.
Background
In December 2021, Tesco launched its online promotional campaign named “This Christmas,
Nothing Stopping Us” ([Link], 2021). The company launched this online promotional
campaign before the eve of Christmas. In this campaign, the company tried to show that nothing
could stop them from delivering products to their customer and that customers would be able to
celebrate Christmas with Tesco ([Link], 2021). The online campaign by Tesco shows that
the spread of COVID-19 was a huge issue, and it was a great hindrance to the celebration. The
unprecedented spread of COVID-19 forced the country's government to implement several
restrictions. Such restrictions stopped people to go outside and purchase necessary products for
their Christmas celebration. The online promotion campaign by Tesco highlights that issue and
states that they would deliver necessary products to the house of their consumers and their
consumers would be able to celebrate Christmas properly. That is why the company named the
online campaign as nothing could stop them. The company launched this campaign on various
social media websites and digital platforms like YouTube, Google ads and many more
([Link], 2021).

4
Evaluation of the existing market offering of Tesco and its position within the
market
The UK-based retail giant, Tesco, started its business operation in 1919. From the very
beginning of its business operation, the company has a great focus on its marketing strategy, and
they have been using this strategy effectively from the very first day (Rosnizam et al., 2020).
The company has also been maintaining its digital campaign strategy quite effectively, and
campaigns that the company has been utilising the situation quite well through their online
promotional campaign. The online Christmas celebration campaign by Tesco is also a great
example of how the company utilised the COVID situation in their campaign (Rosnizam et al.,
2020). Now it is necessary to discuss the segmentation, targeting and positioning strategy of
Tesco’s online promotional campaign.
STP analysis
Segmentation and targeting

Basis of segmentation Target consumers

Geographic Region UK

Density Urban and Rural

Demographics Gender Both male and females

Income High, low and middle-income

Age All age group.


Table 1: Segmentation and targeting of Tesco for their online promotion campaign
(Source: Created by author)
The recent Christmas online campaign by Tesco focuses on targeting consumers from different
age groups. The advertisement made by the company is also showing the participation of people
from different age groups. On the other hand, the company try to target both rural and urban
consumers through their recent online campaigns (Barker et al., 2021). The tagline of the
campaign “Nothing stopping us” is also reflecting that nothing could stop them from delivering
their products to their consumers, and it does not matter whether the consumers are from the
rural sector or they are from the urban sector (Porat et al., 2018). In this campaign, the company
also shows that they will deliver each and every need required for the consumers to celebrate

5
Christmas. In their online campaign, they show that from the candle to cookies they will deliver
each important thing required to celebrate Christmas ([Link], 2021).
The online campaign by the company targets both males and females as their campaign is related
to delivering every requirement for celebrating a prosperous Christmas (Ali, 2022). In this online
campaign, the company shows that they will deliver everything according to the requirements of
the customer. People from high, low and middle-income categories were the target customer of
Tesco’s campaign as the campaign Tesco showed that they will deliver products according to the
needs of consumers. The product can be a candle or it can be a costly product. Therefore it can
be stated that the online marketing campaign by Tesco focuses on consumers from different age
groups and different economic backgrounds (Moodley et al., 2020). The online promotion
campaign of the company is based on the celebration of Christmas at the time of COVID-19.
That is why the company focuses on delivering every requirement of product to their consumers
all across the country (Allan, 2022).
Positioning
Functional positioning
This positioning concept is related to enhancing the range and quality of functionalities of
services and products (Lee and Yoon 2018). A company sells its finest products to their
consumers through functional positioning. A company sells their expensive product via
functional positioning (Hancheng, 2020). The online promotion campaign of Tesco is related to
selling products of various ranges to their consumers. Therefore their online promotion campaign
is not in the functional positioning.
Symbolic positioning
Symbolic positioning is very useful for a company to a brand image of them (Tamas and Toth
2018). The creation of an effective brand image helps a company to increase its business
operation. The symbolic position is related to selling a fair trade range of products (Tamas and
Toth 2018). That is why the online promotion campaign by Tesco is not under symbolic
positioning.
Price positioning
Price positioning is related to setting up the price of a product according to its position in the
market (Vlasic et al., 2019). A company can employees price positioning to attract particular
consumer segments who are very much concerned with the price of the service or product

6
compared to other vital components of the marketing mix (Turkeš et al., 2019). The position of
the online promotion campaign by Tesco does not come under the price positioning as they did
not try to attract a particular consumer segment rather they tried to target consumers from all age
groups and consumers from various financial backgrounds.
Experiential positioning
Experiential positioning is related to delivering a stipulated form of experience to consumers by
understanding their desire and needs. When an organisation produces and delivers a particular
product to its consumers according to their needs, then it comes under this positioning (Nath and
Saha 2018). Organisations that deal in the healthcare sector use this positioning to target their
consumers (Galetsi et al., 2020). As the online promotion campaign of Tesco is not related to
delivering a particular form of experience to their consumers rather it is related to delivering
various kinds of experiences to their consumers therefore it does not belong to experiential
positioning.
Multi-segment positioning
It is a type of positioning used by a company for targeting various segments at the same time
with different types of products (Favaro et al., 2020). The online promotion campaign of the
company clearly shows that the company would deliver different types of products to their
consumers for their appropriate Christmas celebration (Wibowo et al., 2020). On the other hand,
the company would deliver products of various ranges to their consumers. Hence, by promoting
its online campaign the company targeted various segments. Therefore the online promotion
campaign of the company comes under the multi-segment positioning (Chae, 2021).
Explanation of strategic framework model and proposal of marketing strategy
to help improve the digital presence of Tesco
From the very first day of its business operation, Tesco has a great focus on improving its digital
performance and digital presence. That is why the company has been trying to increase their
digital performance and digital presence by taking various strategies to attract its consumers
(Soltanifar and Smaihodzic, 2021). The online promotion campaign for Christmas is also a great
strategy of the company for attracting a huge number of consumers in the country. Though the
company has been utilising their digital marketing strategy quite effectively and the strategy of
the company has been helping them a lot to increase its digital presence but they have to focus
more on its digital strategy for increasing its digital presence (Polyaninova, 2021).

7
Though the company has been trying to increase their digital presence by making various online
promotion campaigns, its digital presence is quite limited in comparison to its competitors such
as “ASDA, Marks and Spencer”, and many more (Urquhart et al., 2022). That is why it is
necessary for the company to develop an appropriate digital marketing strategy for their business
operation (Mkansi et al., 2018). This part of the paper will propose a market strategy for Tesco to
develop its organisation’s digital presence. This paper will propose the marketing strategy based
on the RACE model as this model is the most effective model for developing online and
multichannel marketing activities of a company.
RACE Model
The RACE model consists of four important stages of a marketing framework (Aranda et al.,
2020). Those four stages are “Reach. Act, Convert, Engage”. Each stage of this model is very
imperative for increasing the business operation of a company and increasing the brand value of
the company.
Reach
The reach is related to building the awareness of a brand, products or service of a company on
other websites (Smith, 2020). As a brand, Tesco has a great brand value in the offline business
but their brand value in online business operation is not as effective as their offline business. The
company can increase their online presence by promoting its products on its online websites. The
company can also give some alluring offers and hefty discounts on online purchases of their
products. This strategy of the company will be very effective for Tesco to Target a huge number
of consumers and it will increase the reach of the company towards consumers (Al et al., 2019).
The company can also increase their online reach by providing ads for its products and services
to different other websites. It will be one of the most effective methods for Tesco to increase its
business operation (Couth et al., 2018). In the context of Tesco’s new Christmas campaign, it is
necessary to mention that if the company would promote their online campaigning on different
websites or they took the strategy of promoting their products through social media websites or
ads, then it could be more beneficial for them. The company can increase their online presence
and reach by utilising “earned media, paid media, and owned media” (Kunkel et al., 2019).
Earned media
This is a type of media for which a company does not invest any amount. The earned media is
related to reviews, mentions on social websites, sharing on social websites, and many more

8
(Colonius and Diederich 2018). Using this media Tesco can increase its popularity without
spending or investing money. The company can ask their consumers to share reviews about their
purchasing products from Tesco. This thing will help the company to increase its reach to more
people (Vo et al., 2018). On the other hand, sharing experience on various social media websites
is also a great example of earned media. When a consumer shares their experience about their
purchasing from Tesco and they share positive reviews then it will help the company to increase
its reach to a major section of people. That is how the company will be able to increase its reach
(McCarthy et al., 2021).
Paid Media
Paid media is related to the external marketing efforts by a company that involves paid
placement. Those paid placements are “pay per click advertising, branded content & displaying
adds” and many more (Banerjee et al., 2021). The company can use “google ads, and social
media ads" to increase its reach to consumers. Paid media is one of the most effective
components for increasing the reach and brand awareness of a company. With the increase in
brand awareness and reach, the revenue and profitability of a company also increase. That is why
this component will be very beneficial for Tesco to increase its reach to a maximum number of
people and for increasing its revenue (Orbach et al., 2019).
Owned media
The owned media refers to the company’s own apps, website, social media pages, and many
more. A company can use these things effectively for increasing its popularity and reach. Tesco
has been using its owned media properly (Thiébot et al., 2020). The company use social media
websites like Facebook, Instagram, and YouTube for the online promotion of its products and
service. The company can use emails to increase their reach. Tesco can send various alluring
offers to their consumers by sending them emails. Such a thing will be very beneficial for the
company to increase their reach and attract a huge number of consumers (Jain et al., 2019).
Act
The Act in the RACE model is the short form of “Interact”. In this stage, a company encourage
their visitor to interact with them or take an appropriate method of interaction by giving every
information related to their products on their websites (Scarpignato et al., 2022). A company can
also develop an AI-based FAQ chatbot where consumers will be able to get information related
to the product and they can frequently ask any query of them the company. They can also share

9
their feedback with the company by using this chatbot (Grajales et al., 2021). Tesco can also
develop their websites in a way where consumers will be able to find details related to products
and they can search for products according to their requirements. The interaction with consumers
is the first stage of consumer engagement and consumer engagement is very important for
increasing the reach of an organisation to a huge number of people. The company can also
develop a chatbot for getting customer feedback and for knowing their requirements (Goss et al.,
2018).
By knowing the requirements of consumers, Tesco can design their products accordingly, and it
will help them to deliver their products according to the needs of consumers. The appropriate
interaction with consumers can be very beneficial for Tesco in increasing its business operation
(Fava, 2020). The interaction stage is also related to generating leads. It is about transforming the
visitor to the website to the next step from the initial stage. The initial stage is when visitors visit
the website or social media page of the company. When they see alluring offers provided by the
company, they click on the particular link and then enter the website's homepage of the
company. Then after entering the website of the company, consumers can search for products
according to their requirements and they can add them to a cart. Tesco can develop their e-
commerce website in a way where consumers will easily find options like, “search product, view
product, add to cart product” easily (Lloren et al., 2019).
Convert
This step is related to the conversion to sale. In this stage, customers choose whether they will
pay online or offline. Tesco can provide both options to their consumers for their purchase from
Tesco. It will help the company to increase its sales. This thing will be very effective for the
company to get a huge number of the aged consumers also. A huge number of aged people are
not much accustomed to the online payment process and they are more comfortable with offline
transactions. Therefore, this thing will be very imperative for the company to increase their
business operation (Naufal, 2022).
Engage
This stage is related to maintaining a long-term relationship with consumers. To maintain a long-
term relationship with consumers it is very necessary for Tesco to turn their first-time buyers into
loyal consumers. It will be very imperative for Tesco to increase its brand value as loyal
consumers will always advocate the product of Tesco to others (Safanta et al., 2019). On the

10
other hand, the company can also use various marketing campaign assets like emails, websites,
and social media. By using these assets Tesco can make their market campaign and can attract a
huge number of consumers (Bäck et al., 2018).
Measures for success
The proposed digital marketing strategy will be very beneficial for Tesco to increase its digital
presence. It will also help the company in getting more consumers and more revenue. If the
company implements these strategies in their business operation then they will get a huge
advantage in their online business promotion (Urdea and Constantin 2021).
Content promotional calendar

Promotion type Time required

Online promotion 2 to 3 months


● Blog
● Own websites
● Google ads
● Different company’s websites

Social media promotion 1 to 1.5 months


● Facebook
● Youtube
● Instagram

Table 2: Content promotional calendar


(Source: Created by author)
Examples of marketing campaign assets
Tesco can use various marketing campaign assets like emails, blogs, websites, and social media
to increase its digital presence and online business operation (Van, 2018).
Conclusion
In summary, the discussion of this report reveals that Tesco’s online campaign named “Nothing
stopping us” was an effective campaign by the company where they tried to target consumers
from various financial backgrounds and various age groups. The discussion of this report also
reveals that although its Christmas online campaign of Tesco was quite effective and quite

11
beneficial for targeting a huge number of consumers, its presence in online business is quite
limited in comparison to its competitor. That is why this paper proposed a marketing strategy
that will be very beneficial for the company to increase their business operation and its online
presence.
Recommendation
Discussion of the whole scenario reveals that Tesco needs to focus on several sectors to increase
its digital presence and increasing its business operation.
● The management of Tesco should focus on increasing their reach by promoting
campaigns or products on different websites besides their websites. Such a thing will be
very beneficial for the company to increase their online presence, and it will help the
company to increase its business operation (Krajčovič, 2022).
● The development of appropriate interaction channels will also be very beneficial for
Tesco to make an appropriate interaction with their consumer. That is why the company
needs to develop an effective interaction channel. The development of a FAQ chatbot can
be very effective for appropriate interaction with consumers (KUKKAMÄKI et al.,
2018).
● The management of Tesco also needs to focus on effective customer engagement. Such a
thing will be very beneficial for Tesco to increase its business operation and will help to
give them a huge advantage in their online business (Okhrimenko and Hryshchenko
2018).

12
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