Tesco Marketing Strategy 2025| A Retail Case Study

Before diving into the article, I’d like to inform you that the research and initial analysis for this piece were conducted by Nupur Deshpande. She is a current student in IIDE’s PG In Digital Marketing & Strategy (March 2025 Batch).

If you found this helpful, feel free to reach out to Nupur to send a quick note of appreciation for her fantastic research – she’ll appreciate the kudos!

About the Company

Founded in 1919 by Jack Cohen, Tesco has grown from a single grocery store into a global retail leader. Headquartered in Welwyn Garden City, UK, the brand operates across grocery, retail, e-commerce, and even financial services. With a strong presence in the UK, Ireland, Central Europe, and Asia, Tesco continues to set benchmarks in the retail industry.

At the heart of Tesco’s marketing strategy 2026 is its iconic motto, “Every Little Helps”. A major milestone came in 1995 with the launch of the Tesco Clubcard loyalty program, which transformed its retail strategy by shifting focus from price wars to data-driven customer insights. 

In 2026, with over 22 million active Clubcard users in the UK, Tesco leverages data to offer personalised promotions and loyalty rewards. This approach not only builds stronger customer relationships but also reinforces Tesco’s position as the UK’s number one supermarket, offering valuable retail industry insights for brands worldwide.

Marketing Objective or Business Challenge

Tesco’s 2026 marketing goal is to build stronger customer loyalty by using data to personalise shopping experiences.

The big challenge? Keeping that loyalty alive while facing tough price competition and shoppers who are more value-conscious than ever.

Additionally, Tesco must navigate the growing demand for sustainability and convenience while maintaining a competitive edge in a saturated retail market.

Marketing Channels Used by Tesco

Tesco's marketing strategy in 2025 integrates data-driven personalisation, performance marketing, digital content, and traditional media to maintain customer loyalty and stay competitive in the retail market.

Digital Marketing

• SEO and content marketing to boost organic search visibility and drive traffic.
• Google Ads (Search, Display, and YouTube) to enhance targeted visibility and attract value-conscious shoppers.
• Email marketing and personalised offers to engage with existing customers and increase retention.

Influencer Marketing

• Collaborations with influencers and food bloggers to promote product recommendations and sustainable shopping practices across social media platforms like Instagram and Twitter.

Traditional Media

• Exposure through traditional media, with features in well-known UK publications like The Guardian and The Times.

Retail Media

• Deployment of over 1,000 digital screens and 'Scan As You Shop' ads to engage shoppers in real time. 
  grocerydoppio.com

Sales Channels

• Focus on direct-to-consumer (D2C) through its website and mobile app, while continuing its strong presence in physical stores across the UK and global markets.

This integrated, multi-channel marketing strategy has allowed Tesco to boost customer loyalty and drive sales, even amid price competition.

Tesco Marketing Strategy Breakdown

1. Content Marketing & SEO

• Anchor campaign: “It’s Not a Little Thing. It’s Everything” (replacing Food Love Stories), focused on emotional loyalty.
• Instagram and TikTok featured recipe reels, festive collaborations, and limited-time promotions to engage younger audiences and drive discovery.
• YouTube and Facebook carry longer-form ads that build brand trust and seasonal storytelling.
• LinkedIn generates 47.7% of Tesco’s social traffic, highlighting CSR, sustainability, and employer branding.
• Social accounts for 3.5% of overall traffic, with strong engagement on festive and recipe-led content.
• They have a very strong domain authority, which is 85, which makes them rank high on the search engine.

2. Performance Marketing

• Paid Search and PPC capture high-intent queries around grocery delivery & seasonal promotions.
• Example of keywords: “Tesco Superstore” & “Tesco Supermarket Shopping”
• Retargeting campaigns use Clubcard data to personalise ads, increasing relevance and ROI.
• Paid contributes 3.94% of overall traffic, with retargeting driving repeat visits and conversions.

3. Traditional Media

• Tesco invests heavily in TV ads and outdoor billboards, particularly around festive seasons.
• Campaigns like “It’s Not a Little Thing. It’s Everything” and the 2024 “Icons” logo refresh are rolled out across mass media.
• Traditional channels reinforce brand recall and complement digital activations.

Tesco’s marketing mix combines digital, performance, and traditional channels. Its “It’s Not a Little Thing. It’s Everything” campaign builds emotional loyalty through social platforms and storytelling, while SEO and content marketing strengthen brand visibility. Paid search and retargeting personalise ads to capture high-intent shoppers, and traditional media like TV and billboards reinforce brand recall and complement digital campaigns.

Like Tesco’s Marketing strategy? Explore Walmart India’s Marketing Strategy next!

Results & Impact

UK sales grew 5.1% in Q1 2025, proving promotions and Clubcard offers drove spending. Market share rose to 28%, showing emotional storytelling helped Tesco stand out from discounters.

Brand image improved on value and quality (+65 bps), reflecting the success of the “It’s Not a Little Thing. It’s Everything” campaign. Online sales jumped 11.5%, supported by social media, app, and performance ads.

Tesco Finest grew 18%, showing marketing encouraged shoppers to trade up. 350+ new products launched in early 2025, supported by festive and recipe-led campaigns.

What Worked & Why

Tesco’s marketing approach in 2026 combines multiple strategies to reinforce its leadership in the retail industry. At the core is data-driven value, with the Clubcard delivering personalised deals and the Aldi Price Match providing shoppers a compelling reason to choose Tesco. 

The brand also leverages emotional storytelling through its “It’s Not a Little Thing. It’s Everything” campaign, which shifts focus from price to the emotional value of food, strengthening customer connections. 

Finally, Tesco ensures seamless integration across channels, combining TV for a broad reach with digital platforms for personalisation, creating a unified shopping experience that grows wallet share both online and in stores.

What Didn’t Work & Why

Tesco’s 2026 operations faced several key challenges that tested its market resilience. Digital fragility became apparent when a July 2025 app outage prevented customers from modifying online orders, undermining the promise of a seamless shopping experience. Its heavy UK market dependence leaves the company vulnerable to economic downturns and fierce competition. 

Changes to the Clubcard rewards program, including the removal of in-app payment features, sparked customer backlash despite the program being a core asset. Additionally, Tesco’s low-cost strategy, while driving sales, exposes the retailer to risks from inflation and supply challenges, contributing to a 3.9% decline in profits.

IIDE Student Recommendations: Key Areas for Brand Improvement

Short-Term Marketing Strategies

Data-Backed Discounts That Win Shoppers

• By using Clubcard insights, Tesco can target discounts on essentials where shoppers feel the pinch most.
• This not only strengthens loyalty but also helps Tesco stand tall against discounters like Aldi and Lidl.

Coffee Rewards that Boost Basket Size

• A simple idea, spend above a set amount and unlock a Tesco Café discount.
• This small perk turns grocery runs into mini experiences, encouraging customers to shop more while enjoying a treat.

Hyper-Local Deals that Feel Personal

• Tesco can create deals based on each store’s neighbourhood.
• For example, city-centre outlets could push ready-to-eat meals for busy professionals, while suburban stores focus on family bundles and bulk savings.

Long-Term Marketing Strategies

Global Expansion with Local Relevance

• Tesco should expand with small, locally tailored stores and targeted digital campaigns to test demand.
• Partner with local suppliers for culturally relevant products and use neighbourhood deals and local influencers to quickly build trust.
• This phased, marketing-led approach ensures a strong, sustainable foothold.

Community-Led Loyalty Programs

• Tesco’s ads already capture food emotions, but the next step is turning stories into action.
• By sponsoring school meals, hosting cooking workshops, or supporting local wellness drives, similar to Carrefour’s “Act for Food”, Tesco can build loyalty that goes beyond discounts and campaigns.

AI-Powered Shopping Journeys

• With deeper use of AI and predictive analytics, Tesco can anticipate customer needs, whether it’s a family restock or student meal deals.
• This mirrors Amazon’s predictive retailing, giving Tesco an edge in creating seamless, personalised shopping experiences.