International Marketing: Tesco's Expansion to Australia

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International Marketing

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Table of Contents
1.0 Company Background...............................................................................................................3
1.1 International Market Share....................................................................................................3
1.2 International Position.............................................................................................................3
2.0 Task 1 – Introduction.................................................................................................................3
2.1 International Marketing Mix..................................................................................................3
2.2 International Marketing.........................................................................................................3
2.3 Country of Expansion............................................................................................................3
3.0 SOSTAC....................................................................................................................................4
4.0 Situational Analysis (S).............................................................................................................4
4.1 Micro Analysis: SWOT Analysis..........................................................................................4
4.2 Macro Analysis: PESTEL......................................................................................................5
5.0 Objectives (O)............................................................................................................................6
5.1 Mission Statement.................................................................................................................6
5.2 Organisational Aims and Objectives.....................................................................................6
5.2.1 Think Branding...............................................................................................................7
6.0 Strategy (S)................................................................................................................................7
6.1 Porter’s Generic Strategy.......................................................................................................7
6.2 Application of Strategy to Tesco...........................................................................................7
7.0 Tactics (T)..................................................................................................................................7
7.1 Product...................................................................................................................................7
7.1.1 Product Life Cycle..........................................................................................................7
7.1.2 Product Portfolio of Tesco..............................................................................................8
7.1.3 Boston Matrix.................................................................................................................9
7.1.4 Application Scope to Tesco............................................................................................9

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7.2 Price.....................................................................................................................................10
7.2.1 Pricing Strategies..........................................................................................................10
7.2.2 Pricing Strategy of Tesco..............................................................................................10
7.3 Place.....................................................................................................................................10
7.3.1 Physical and Digital Distribution..................................................................................10
7.3.2 Distribution Strategy of Tesco......................................................................................11
8.0 Action (A)................................................................................................................................11
9.0 Control (C)...............................................................................................................................11
10.0 Task 2.....................................................................................................................................11
10.1 SOSTAC in the UK...........................................................................................................11
10.2 Product...............................................................................................................................11
10.3 Price...................................................................................................................................12
10.4 Place...................................................................................................................................12
10.5 Evaluation..........................................................................................................................12
11.0 Task 3.....................................................................................................................................12
11.1 PESTEL Findings..............................................................................................................12
11.2 Standardisation/ Adaptation and Glocal............................................................................12
11.2.1 Advantages and Disadvantages..................................................................................13
11.3 Approach to be Undertaken by Tesco...............................................................................13
Reference List................................................................................................................................14

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1.0 Company Background
The United Kingdom based organisation Tesco is known for its grocery retailing, merchandising
as well as retailing across major global regions of the world.
1.1 International Market Share
The organisation holds a total market share of 28.4% in the global retail business landscape, with
operational base spread across 7000 locations all across the globe (Tesco PLC, 2019).
1.2 International Position
The international business position occupied by Tesco in the retail sector is identified to be third
in terms of size. On the other hand, the position is considered to be ninth when taken into
consideration in relation to revenue earning capacity across each and every diversified
operational units (Tesco PLC, 2019).
2.0 Task 1 – Introduction
2.1 International Marketing Mix
International marketing mix comprises of several instruments that organisations use to
accomplish positive purchase revenue through operating in a global market. Primarily it
comprises of product, price, promotion and place (Lee and Carter, 2011). However, since it
encompasses global business environment, international marketing mix can be recognised to
consider socio-cultural and legal factors along with the four basic factors.
2.2 International Marketing
International marketing is the process associated with application of marketing tools and
techniques in relation to successfully accomplishing the customer needs and demands located
across diversified geographical locations of the world. It results in organisations to broaden the
marketing strategies to every nation in which the organisation operates (Czinkota and
Ronkainen, 2013)