Unit 12
D1
Tesco’s online sales figures show that they have managed to increase the growth of their online
store in previous years by over 20%. On the other hand they did make a loss of over 6 billion in their
annual results which is one of their biggest losses in their history looking at previous years. They
explained this was due to the stores that were struggling and they have had a big decline on the
amount of customers that shop at their superstores; this meant that they had to close over 40 of
their stores as they were not generating enough profit for the business.
However the online business that they run has increased which means that their store is making an
impact and that customers are satisfied and using them to make their purchases. Tesco has showed
that they are very effective with meeting their customers’ needs when it comes to using internet
marketing. One of the benefits to introducing internet marketing is that their store is now 24/7 so
their customers can shop there when it is convenient for them. A lot of people will be living busy
lives with things such as working and children and may not be able to get to the store at opening
hours. Therefore having an online store means that they are able to shop when it suits them which
means that Tesco is not losing profits but getting them online instead. Having the option of delivery
is also a benefit for the business as it means that customers are able to get their shopping delivered
if they cannot manage to get to the store to get it, at a time that suits them. Another advantage for
Tesco having an online store would be that they would have a more extensive product range for
their customers; this would mean that customers would have a wider choice of what they want to
buy and would likely make more sales which make further profit for Tesco. Customers would also be
able to review products online which would be beneficial as Tesco would easily be able to see what
the customers thought and what they could improve on to make the products better, as well as the
experience of shopping online. They will also be able to look at their customers previous shopping
and then would be able to tailor special offers and product emails especially to them so they would
be more interested and likely repeat sales.
Overall, in conclusion I would say that this shows that Tesco is being very effective with how they
use their internet marketing as they have their online store which is easily accessible for customers
and that they use daily to buy their products. They have used lots of different techniques to ensure
that the customers of their business are receiving a good experience and that it is made easy for
them to order their shopping at a time that suits them the most.
Tesco has benefited largely from online marketing in terms of expanding their business and
expanding into a larger target market as they opened up to a wider customer base, examples of this
would be people that could not make it into the store at the times of opening due to working and
people who don’t have accessibility to the store due to disability or no method of transport. Due to
the larger amount of customers they have it would mean that they have also benefitted in terms of
profits and sales more as they would have more customers to make sales. They have ensured that
they are keeping these customers and increasing loyalty buy offering discounted prices and deals
which would make their customers feel more valued and would want to stay with Tesco.
However there are also drawbacks to Tesco using internet marketing. One of these is that the
business would have to do a lot of research to make sure they target the right customers, but this
could be very time consuming and cost a lot of money for the business. Another drawback would be
D1
Tesco’s online sales figures show that they have managed to increase the growth of their online
store in previous years by over 20%. On the other hand they did make a loss of over 6 billion in their
annual results which is one of their biggest losses in their history looking at previous years. They
explained this was due to the stores that were struggling and they have had a big decline on the
amount of customers that shop at their superstores; this meant that they had to close over 40 of
their stores as they were not generating enough profit for the business.
However the online business that they run has increased which means that their store is making an
impact and that customers are satisfied and using them to make their purchases. Tesco has showed
that they are very effective with meeting their customers’ needs when it comes to using internet
marketing. One of the benefits to introducing internet marketing is that their store is now 24/7 so
their customers can shop there when it is convenient for them. A lot of people will be living busy
lives with things such as working and children and may not be able to get to the store at opening
hours. Therefore having an online store means that they are able to shop when it suits them which
means that Tesco is not losing profits but getting them online instead. Having the option of delivery
is also a benefit for the business as it means that customers are able to get their shopping delivered
if they cannot manage to get to the store to get it, at a time that suits them. Another advantage for
Tesco having an online store would be that they would have a more extensive product range for
their customers; this would mean that customers would have a wider choice of what they want to
buy and would likely make more sales which make further profit for Tesco. Customers would also be
able to review products online which would be beneficial as Tesco would easily be able to see what
the customers thought and what they could improve on to make the products better, as well as the
experience of shopping online. They will also be able to look at their customers previous shopping
and then would be able to tailor special offers and product emails especially to them so they would
be more interested and likely repeat sales.
Overall, in conclusion I would say that this shows that Tesco is being very effective with how they
use their internet marketing as they have their online store which is easily accessible for customers
and that they use daily to buy their products. They have used lots of different techniques to ensure
that the customers of their business are receiving a good experience and that it is made easy for
them to order their shopping at a time that suits them the most.
Tesco has benefited largely from online marketing in terms of expanding their business and
expanding into a larger target market as they opened up to a wider customer base, examples of this
would be people that could not make it into the store at the times of opening due to working and
people who don’t have accessibility to the store due to disability or no method of transport. Due to
the larger amount of customers they have it would mean that they have also benefitted in terms of
profits and sales more as they would have more customers to make sales. They have ensured that
they are keeping these customers and increasing loyalty buy offering discounted prices and deals
which would make their customers feel more valued and would want to stay with Tesco.
However there are also drawbacks to Tesco using internet marketing. One of these is that the
business would have to do a lot of research to make sure they target the right customers, but this
could be very time consuming and cost a lot of money for the business. Another drawback would be
