BUS7B29 Integrated Communications Assignment Sample
Introduction
Communication is a crucial element of organisations especially for marketing products in the global market that involves the customers. A company has been observed to use various marketing communication channels that enhance the communication level between organisation and customer and improve overall efficiency. The report, in this respect, analyses relevant channels of communication generally used by companies. Moreover, it produces a detailed discussion on the company and industry background of the chosen firm Tesco PLc thereby analysing the type of market it possesses. However, the report essentially highlights the current integrated communication strategy of Tesco Plc that has helped it to develop its business operations.
Company background
Tesco Plc is a UK-based multinational food retail company that sells groceries and has its headquarters at Welwyn Garden City, in the UK. It was established in 1919 by Jack Cohen in the UK and is presently considered to be the largest supermarket within the UK (Tescoplc, 2021).
The retail company in the UK has been an integral part of the UK’s economy thereupon contributing 5.2% to the GDP rate calculation with the most number of graduate employees (Smith, 2021). Tesco has been one of the largest growing supermarkets within the UK retail sector along with Sainsbury, and Morrisons. In the UK, the company has 1878 stores and has planned to open 150 new express stores in the UK over the next three years (Tescoplc, 2020). In addition, it has been found that the company is also associated with other kinds of activities reflecting its operations in the banking sector, and insurance sector. It has emerged from studies that the company has more than 400000 employees around the globe, who work efficiently with the one goal of serving the customers in a better way (Tescoplc, 2020). Furthermore, the company has its stock listed under the ‘London Stock Exchange’ with the symbol of TSCO and a current share price of 273.83 GBX (London Stock Exchange, 2021).
It has emerged from the annual reports of the company that the company has maintained the revenue earnings however only a slight decline has been found depicting a 0.7% decrease in group sales (Tescoplc, 2020). The company has highly developed its communication with the customers in the market thereupon gaining a net promoter score of 29 in the years 19-20. Moreover, the pandemic situation within the whole world has especially made the company focus on online sales of products thereby creating better communication with market customers (Tescoplc, 2020).
Within this discussion, it emerged that the “online grocery customer service ratings” for Tesco Plc improved year on year that followed a strong sales performance depicting high volumes. However, the sales volume decline in the second quarter reflected the company’s decision to maintain a sustainable approach to incentivizing new customers in a highly competitive environment (Tescoplc, 2020). On the other hand, from large shops to small shops, the organisation has maintained communication with the customers and has recently adopted a new marketing and communication strategy of “Little Help plan” that stabilizes the relationship with external stakeholders in the market (Tescoplc, 2020). However, the company has followed the marketing communication tools that assisted the company in reaching potential customers in the market and increasing the corporate value through effective communication.
Current integrated communication strategy of Tesco Plc
Marketing mix relating to communication refers to the process of selecting tools that can be used by companies to communicate with customers in the market thereby strengthening the customer relationship. As per the words of Thabit and Raewf (2018), a marketing mix essentially supports a company in building up effective communication channels that boost sales and help in the overall development of the company. In addition, it has been mentioned by the author that with the use of marketing communication mix, a company can improve customer service that in turn can highly increase customer satisfaction. Integrated communication strategy (IMC) is referred to as the process used by companies that involve marketing mix communication tools that build brand identity and image in the market (Duralia, 2018). The view sheds light on an understanding that it is of utmost importance for organisations to undertake the communication mix that helps in selecting tools to support transparent and effective communication with customers. This, in turn, can highly increase the value of a firm in the global market thereby improving the brand image in the market gaining positive reviews from customers.
Figure 1: Communication mix tools
(Source: Influenced by Wrobleski, 2019)
In accordance with this discussion, it has arisen from studies that there are six major communication tools that are preferably used by global organisations to create communication with market consumers such as digital marketing, advertising, personal selling, direct marketing, sales promotion, and public relations (Wrobleski, 2019). In this respect, it has been found that the concerned company has been relying on four types of communication tools such as advertising, direct, and digital marketing, and sales promotion (Tescoplc, 2021).
Digital marketing
The digital marketing process refers to the marketing of products in the global market with the use of digital platforms. As per the views of Rizaldi et al. (2021), digital marketing involves digital platforms such as social media, and email marketing that essentially helps a company in reaching customers in no time. In addition, with the help of digital marketing, a company is able to establish firm and transparent communication with the customers in the market that helps in the improvement of sales. Following this opinion, a linkage has been found concerning the digital marketing strategy of Tesco reflecting the use of social media profiles such as Facebook, Twitter, and Instagram along with online websites.
At present, the company has highly benefited from an online sales strategy thereby using digital platforms. Moreover, the launching of Booker in the UK sector has exceptionally helped the discussed company thereupon benefiting customers from the technology capability of Tesco (tescoplc, 2020). However, there have been improvements to invoicing, and web analytics which has essentially made the order process simpler for Booker customers.
Advertising
Advertising in recent times has arisen to be a crucial communication strategy or tool for companies thereby helping the companies in providing information to customers, clearing out their doubts related to products, and changing the overall perception of customers thereby influencing them to buy the products (Šķiltere, and Bormane, 2018). Furthermore, in this regard, it has emerged from the annual reports that the mentioned firm has effectively undertaken the advertising strategy thereby reaching the mass audience with the products. As per the words of Wrobleski (2019), advertising essentially helps companies in meeting the basic objective of “inform, persuade, differentiate and remind” the customers in the market about the benefits and features of a product that has been newly launched. In this case, the concerned firm has advertised the products in the market with the help of radio and television, along with newspapers (Tescoplc, 2021). However, this has supported the company in achieving customer attention in the global market thereby improving corporate value.
Sales promotion
Sales promotion strategy of marketing communication refers to the strategy that a company adopts to ensure high revenue earnings with high sales conducted through distributors in the market. As stated by Genchev, and Todorova (2017), sales promotion is considered to be an effective communication tool that impacts the buyer’s decision of purchase through personal communication and a system of market instruments. In addition to this, it has been found that sales promotion assists organisations in increasing consumer sensitivity, thereupon triggering them to switch between brands and enhance the popularity of the brand in the market. In this context, it has been observed that the concerned organisation with the help of incentive schemes has potentially influenced the market distributors in selling more products of the brand thereby defining the features and benefits of the goods. However, this has effectively helped in maintaining the group sales thereby keeping the profitability position of the company intact.
Direct marketing strategy refers to the process where the firm is directly marketing its product to the global customers and interacting with them personally depicting customer service. In the words of Camilleri (2018), direct marketing as defined by the term refers to the direct interaction between customers and organisations concerning the purchasing decision of buyers that are built through websites and digital applications. Creating a linkage between the opinion and reality, it has been found that Tesco Plc has a website where they sell products to the customers. In addition, the launching of Clubcard in 1995 has helped the firm to understand customers in a better way thereby creating a communication channel. At present, there are 19 million households in the UK with Clubcard subscriptions (TescoPlc, 2020). However, the “Little help Plan” has also been effective in constructing effective interaction.
Conclusion
The study brings to the conclusion that Tesco Plc has been focusing highly on maintaining customer satisfaction in the market thereby improving its communication strategies. The company with its improvisation in communication strategies, has launched Booker UK, Little help plan, and club card that helped in creating transparent communication with the global customers in the market.
Reference List
Camilleri, M.A., 2018. Integrated marketing communications. In Travel marketing, tourism economics and the airline product (pp. 85-103). Springer, Cham.
Duralia, O., 2018. Integrated marketing communication and its impact on consumer behavior. Studies in Business and Economics, 13(2), pp.92-102.
Genchev, E. and Todorova, G., 2017. Sales promotion activities–an effective tool of marketing communication mix. Available at SSRN 3089894.
London Stock Exchange, 2021. Tesco PLC Available at https://www.londonstockexchange.com/stock/TSCO/tesco-plc/company-page [Accessed on 27/10/21]
Rizaldi, A., Margareta, F., Simehate, K., Hikmah, S.N., Albar, C.N. and Rafdhi, A.A., 2021. Digital Marketing as a Marketing Communication Strategy. International Journal of Research and Applied Technology (INJURATECH), 1(1), pp.61-69.
Šķiltere, D. and Bormane, S., 2018. Integrated marketing communication as a business management tool in the context of sustainable development. Open Economics, 1(1), pp.115-123.
Smith, J. 2021. Overview of the retail sector in the UK Available at https://www.prospects.ac.uk/jobs-and-work-experience/job-sectors/retail/overview-of-the-retail-sector-in-the-uk [Accessed on 27/10/21]
Tescoplc, 2021. About Us, Available at https://www.tescoplc.com/about/ [Accessed on 27/10/21]
Tescoplc. 2020, Serving shoppers a little better every day, Annual Report and Financial Statements 2020 Available at https://sec.report/otc/financial-report/272297/Annual-Report-2020.pdf [Accessed on 27/10/21]
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case study. International Journal of Social Sciences & Educational Studies, 4(4).
Wrobelski. M.T, 2019. What Are the Six Major Modes of Communication in Marketing? Available at https://smallbusiness.chron.com/six-major-modes-communication-marketing-65083.html [Accessed on 27/10/21]
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