TESCO PLC

Digital HR and Marketing Strategy

Archie Lock
Tesco is the UK’s largest supermarket chain, with 27% market share in December 2020

(Coppola 2021). Tesco currently operates in 13 countries internationally, situated in Europe,

Asia and North America. To maintain themselves at the top of the market, it is crucial that

Tesco adapt to the constantly changing digital HR and marketing strategies. Internally, it is

important to keep employees happy and loyal, as the notion that someone who works for

Tesco, only works for Tesco, is reducing (Moss 2018).

1a/b. In 2018, Tesco finally introduced a digital scheduling system, allowing employees to

pick up shifts, swap shifts and look for overtime online. This was not only more efficient and

beneficial for employees, but employees agreed they wanted a fairer system in place, which is

what they received (Moss 2018). For such a large company, this Digital HR move has

positively impacted thousands of employees, making it easier to balance work around

someone’s life, instead of the other way around. This move illustrates a very strong and

positive Digital HR presence and highlights how much Tesco value their employees.

Recently, Tesco paired up with a tech partner to introduce robots in the warehouse. For

Tesco, the system is significantly improving throughput capacity, and is increasing storage

density by up to 60% (Nott 2020). The availability of using artificial intelligence in the

workplace has been a big benefit to Tesco and proves that they are constantly adapting to new

digital strategies internally. This is an example of how, especially our generation, will have to

be prepared to be completing jobs alongside robots (Giunta 2020, December 16).

The Tesco colleague website provides information on current benefits for employees,

including discounted products, community events and employee benefits such as retirement

plans. One ongoing offer for employees has been a 50% discount on feminine products. The

topic of feminine products being free for all women has become a much larger movement in

the past few years, especially on social media. The fact that Tesco have voluntarily decided to
benefit their female employees because of the ongoing social debate illustrates their efforts of

trying to benefit their employees. As Waddill (2018) states, the combination of social media

and social networking can positively impact every stage of the employee life cycle, including

social learning, employee engagement and employee recognition (chapter 3, p.43). In this

instance, Tesco have recognised a social issue and have decided to provide a discount to

employees to engage with them and illustrate that they care about matters which are not

work-related.

c. Tesco maintains a client-focus through their Digital HR actions, especially when it comes

to efficiency and employee productivity to benefit customers. The introduction of the digital

scheduling system was made to optimize labour models to ensure they can give their

customers the experience they are after (Moss 2018). The pairing with a tech partner to

implement robots working in the warehouse also improved productivity which not only

benefits the company but can always be linked to customers having a smooth experience

when entering the supermarket.

d. As stated previously, the Tesco colleague website provides information on charity work

and community events which highlights the work they do for local communities. The website

also has a health and wellness section. Not only does this reach out to employees, but it also

gives job seekers an understanding of what working for the company will be like (Giunta

2021, slide 24, January 10). By stating information regarding benefits, such an employee

offers and retirement plans, this is an example of dissemination of valuable information

(Giunta 2021, slide 20, January 10). The spreading of this information promotes the company

and gives the company a personality, which in this case, is a very caring personality.

e. These facts are very beneficial and are good examples of what a jobseeker looks for when

trying to find a suitable job. In my case, I remember my interview for my first job at a bakery,

I was given very little information about the company, and was mainly just informed about
the job itself and what I would be doing in my position. To be informed of a company’s

benefits, and to be given an insight of how the company runs and how they treat their

employees is very important information to know before planning on applying for a position.

I hope to find a job with a very close workforce, as well as job security and good benefits. To

be able to receive information like this before applying for a position is very beneficial as I

can find out whether I want to work for a specific company before I even get in contact with

them, and not only does that save time for me, but it saves time for the company too.

2a/b. Tesco are renowned for their ‘clubcard’ loyalty scheme. Customers who swipe their

clubcard after every transaction receive offers that they can use for future purchases. As is the

case in most stores, when asked if you have a loyalty card the most common answer is ‘not

on me’. In 2017, Tesco placed their clubcard app on the Appstore, meaning customers are

less likely to forget their loyalty card since most people nowadays always have their mobile

on them. By promoting this app, customers are more likely to scan their clubcard and reap the

rewards. The investment in switching from a physical card to a digital one increases the

amount of customers receiving offers, which in turn, will result in customers being more

likely to return to the store, which provides Tesco with a higher ROI.

As well as the digital clubcard, Tesco teamed up with Uber and promoted an offer that meant

customers can trade in 50 clubcard points (equivalent of a £50 shop) for a £1.50 uber credit

(Hobbs 2017). This is an example of collusion where Tesco can dip into a non-rivals

customer base to increase sales. As Kotler, Kartajaya and Setiawan (2016) states, a company

can be more competitive if it can connect with communities of customers and partners for co-

creation (ch.1, p.10, para.1). This is a clever digital marketing strategy as Tesco are

attempting to benefit customers even more by offering discounts and credits for a completely

different service that Tesco would normally have no relation with. This is a prime example of
how Tesco are client-focused as they are helping their customers with other aspects of their

lives.

Tesco are also in a prime position when it comes to Search Engine Optimization. When

searching for ‘online groceries’ in the UK, Tesco appears second on google only behind

Ocado, which is an online supermarket that only operates specifically online. For Tesco to

appear above their other supermarket rivals in such a broad google search, it is clear that they

are utilising key words to make their brand as searchable and discoverable as possible

(Giunta 2021, slide 4, January 10).

c. Tesco definitely maintains a client-focus through their marketing actions, a lot of their

marketing strategies, such as the examples I have given, tend to include offers that will

benefit the customer, not only with their grocery shopping, but with other parts of life.

Marketers should figure out how an app can solve the problems. They need to be able to

describe how the app will make customers' lives easier (Kotler, Kartajaya and Setiawan,

2016, ch.11, p.155, para.1). By moving their clubcard to an easy-to-use online app, they have

successfully made it easier for customers to be rewarded with the company’s offers and

benefits.

d. One way in which Tesco uses social media to successfully market their brand is by

working with professional chefs on their Instagram page. The Instagram page ‘Tescofood’

consists mainly of professional chef’s recipes with Tesco foods. Tesco’s typical brand image

in the UK is that it may be the leading supermarket, however it is not necessarily the best

quality supermarket. By working with top chefs on their social media, it promotes a brand

image that the company is of high quality. This is a good example of audience mapping.

Company’s must discover their audience's anxieties and desires, which will define their need

for specific content (Kotler, Kartajaya and Setiawan, 2016, ch.9, p.126, para.4). If a customer

is unsure on the quality of Tesco’s produce compared to another supermarket, the partnering
with professional chefs to improve the brand image of the produce is an excellent way of

marketing their company as a high-quality supermarket, perhaps swaying a customer in their

direction. Another use of social media for Tesco is they make it very noticeable across

different platforms that they are happy to receive enquiries and help customers. This is a

simple yet effective way to provide help for customers in order to ensure a simple process

occurs. This links with the previous point about making customers’ lives easier, it is

important to have a great customer service team in order to keep customers loyal and not

making their life difficult in which customers would consider shopping with a rival company.

e. Since the introduction of contactless payment via mobile, I have on many occasions not

bothered to take my wallet to the store. The introduction of the clubcard app has benefitted

me as I have received offers that I have used which would not have been the case if clubcard

was not accessible via phone. Practicality is a big part of digital marketing; I have no need for

a random card sitting in my wallet when I take my phone everywhere.

6i/ii. After viewing all the Catholic Social Teachings, I believe Tesco abide by all seven of

the teachings. They respect their customers and employees by offering benefits and not

treating them unfairly. Tesco promote the family by not only offering benefits to their

employees but also engaging in the community and taking part in charity events. Tesco also

promote lower usage of plastic to try and reserve the environment, including a charge for

plastic bags and promoting their ‘bag for life’. Their work for the community also highlights

their care for the poor and the benefits they offer their employees illustrate how they respect

the worker. “At Tesco, we believe the answer is a more flexible workforce…flexibility that’s

good for both our colleagues and our organisation” says Nigel Fletcher, Group HR

transformation director at Tesco (Moss 2018). This relates to CST VI: Respect Work and the

Worker, by making sure everyone is treated fairly and that workers ‘are not mere drones’.
Works Cited

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Giunta, C. (2020, Fundamental Digital Trends Shaping HR and Marketing, J-Term). Course
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Hobbs, T. (2017, July 27). What happened to Tesco's big plans for a digital Clubcard?
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