Internet Marketing strategy:case study of tesco

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Internet Marketing Strategy

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CONTENT
1. INTRODUCTION……………………………………………………………………..3 - 4 2. THE ONLINE MARKET : CASE STUDY OF TESCO.COM……………………..5 - 12 2.1

Operation of Tesco.com

2.2

Tesco.com: Size and Growth.

2.3

Use of Tesco.com for Research.

2.4

Future forecast of Tesco.com.

2.5

Tesco Online Market segmentation.

3. ANALYSIS OF ONLINE COMPETITORS…………………………………………13 - 20 3.1

Tesco.com website design and usability

3.2

Evaluation of Online promotional activities

3.3

Use of Social media for marketing

4. INTEGRATION OF THE INTERNET WITH THE OVERALL MARKETING
STRATEGY OF TESCO PLC. ……………………………………………………….21 - 24 4.1 Channel strategy
4.2 Market focus
4.3 Cost Advantages
4.4 Differentiation

5. CONCLUSION…………………………………………………………………………. 25 6. REFERENCES…………………………………………………………………………. 26-29

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1. INTRODUCTION
Bill Gate once said “The internet is becoming the town square for the global village of tomorrow” which simply means it is paving way for future opportunities and development in every area of life from its ability to enable communication between loved ones or business associates to its ability to facilitate instant online transactions. Indeed, the internet revolution has opened doors for innovation especially in the business community. New businesses have emerged through it and existing ones have used it to their advantage to expand, drive sales, reinforce and reposition their brands (Willcocks and Plant, 2001). According to Pearlson and Saunders (2006, p.162), the internet supports e-business which is any kind of business activity performed electronically and almost all businesses are incorporating it into their operations to attain competitive advantage and improve effectiveness.

A particular aspect of business which has evolved tremendously through the advent of internet is marketing. According to Olson (2008), the wide use of the internet for transactions has caused it to become a valuable tool for marketing and should be integrated into a company’s strategy. On a similar not, Varadarajan and Yadav (2009) and Porter (2001) are of the opinion that the advent of the internet technology has forced many businesses to re-consider the tactic they use in marketing products and services to customers in order to gain an edge against competitors as it is the new phenomenon making waves in the business community.

Based on this phenomenon termed “Internet Marketing” which is defined as a “Virtual storefront where products are sold directly to consumers” (Kiang et al, 2000), this essay will discuss the online marketing strategy of Tesco Plc.: Tesco.com and its evolution, analyse the online competitors in terms of the website design and effective use of promotional activities; and assess how the use of the internet for marketing is aligned with the overall business strategy of the organisation. One of the reasons for choosing Tesco.com as a case study for this essay is because it is an established Business-to-Consumer (B2C) company and one of the largest retailers in the world providing services in 14 countries, four of which operate online. It has expanded over the years into different markets building a large customer base along with its development (Tescoplc.com (a)). One of the main factors for Tesco’s shift to online sales was to cope with the pace of service delivery and effectiveness in the face of rapid expansion and development (MBS Lecture notes, Holland, (2011)).

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The organisation of the essay is as follows: Section 2 will discuss the Tesco online market. An analysis of online competitors will be made in section 3. Section 4 will discuss the how the internet marketing strategy of Tesco.com has been aligned with Tesco Plc. overall strategy and Section 5 will conclude the essay.

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2. THE ONLINE MARKET: CASE STUDY OF TESCO.COM
Tesco.com is the official online market for Tesco Plc. Upon launch in 2000, it had approximately...
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