Global Marketing in Tesco: A Comparative Analysis

This report analyzes the global marketing strategies of Tesco in the UK and Japan, including market selection criteria, methods of market entry, and review of marketing strategies. It highlights the differences between the two markets and recommends further expansion in the UK market.

AS2 – Investigative Report

Executive Summary
This report is based on global marketing in Tesco trading company context. Below report
include the; differentiation between Tesco in United Kingdom and Tesco in Japan, in this
comparison there are various elements such as; criteria of selection which includes the
demographics, spending power of customers, infrastructure, language and lifestyle to analayse
the various factors in organisation and helps in improvement and development. And company
evaluate the methods of market entries such as; directing exporting, licensing, franchising,
partnering, joint ventures, buying a firm and greenfield investment these techniques analyse the
different factors which helps in improve performance. Company reviewing the marketing
strategies in this organisation use various strategies like social media, making video content and
leverage influencers. In conclusion this report covered that global marketing helps in
promotional and marketing activities of goods and services at international level. The new
strategies helps in explore new market.

Contents
Executive Summary ........................................................................................................................3
INTRODUCTION...........................................................................................................................5
MAIN BODY...................................................................................................................................5
Comparison between Tesco in UK and Tesco in Japan..............................................................5
Evaluate methods of market entry...............................................................................................7
Review of marketing strategies...................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global marketing is defined as field of study in general business management that market
goods, solutions of social problems, services to customers based on local, national and globally.
It is the application of marketing principles in more than one country by companies overseas or
across nation boarders. It is important for exporting products and goods of company into other
locations of get entry through a joint venture with another firm within a new country (Agarwal
and 2018).
Tesco plc is known as trading company of Britain that deals in groceries and general
merchandise retailer with headquartering in Welwyn Garden city, England. It considered as the
third largest retailer worldwide measured by gross revenues and ninth largest in the world
measured based on revenues. Tesco has 6, 391.1 crore GBP revenues till 2019.
This report is based on choosing best market for Tesco based on comparison between
both international markets. Selection criteria are considered within this report to support
comparison. Furthermore based on research which market to be chosen by firm is explained. In
addition market analysis, review potential marketing strategies are considered within the report.
MAIN BODY
Comparison between Tesco in UK and Tesco in Japan.
Selection criteria for Tesco plc
Market segmentation or selection is the process of understanding characteristics and
demands of different people within a nation. Tesco collects information from loyalty cards
schemes and identifies buying habits of consumers and their behavioural patterns that are used to
segmenting customers based on their needs and wants. In order to select target customers
respective organisation used to divide customers within several groups so as to focus on
particular segment. Tesco plc is largest food retailer in UK, and operating its stores in various
nations with best performance (De Mooij, 2018). Tesco hold effective brand image within
society so as to develop trust and gain loyalty from customers. Thus it targets its customers every
effectively based on several criteria’s like income level of customers, their purchasing habits,
lifestyles and social values or beliefs that leads positive impact over firm position. Keys of
successful positioning are clear, consistence, credible and competitiveness. Repositioning is
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carried out when needs and expectations of customers are changed. It includes product
positioning, intangible repositioning, and tangible repositioning.
Tesco operates its business in UK with well established brand image and repudiation that is
significantly different from Tesco in Japan is explained as following table:
Selection
criteria
Tesco in UK Tesco in Japan
Demographi
cs
Tesco operated its business
effectively within UK in urban as
well as rural areas with having
more than 2000 stores so as to offer
goods and services for upper to
lower class people in order to make
their lives better.
While based on Japan target markets of
Tesco plc has broad expansion as 100
supermarkets in Japan under the name
of “Tsurukame” based on plan to
introduce its Tesco Express stores to
world’s second largest economy.
Consumer
spending
power
Based on consumer spending
power Tesco targets customers that
have low as well as middle income
so as to afford products and
services for their betterment of
regular lives.
On contrary of Tesco plc in UK target
markets of Japan is based on people
who have ability to spend more on
premium brand and products with
having own logo and brand name
(Green and Keegan, 2019).
Infrastructur
e
When it comes to infrastructure
Tesco plc targets markets or areas
of urban as well as rural so as to
meet expectations of customers and
satisfying them with offering of
better quality and productivity
Kasemsap, 2018).
While as compared to UK Tesco plc in
Japan focused on growing stores in
different areas of country where there
are living customers who have high
earnings and required effective products
to raise their living standards.
Language Tesco plc in UK focuses on
different languages. For instance in
Spain company has to focus
Spanish while in terms of selling in
France it needs to focus on French.
On comparison with Tesco in UK,
Japan Tesco plc focuses on wining
customers loyalty through focusing on
selling effective goods and services in
their own language so as to make them
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Thus based on language respective
firm uses different languages for
establishment of several brands
within different areas of nation.
easy to understand what is the brand
and how it is different from
competitors.
Lifestyle When it comes to lifestyle and
living patterns of individuals Tesco
target customers who beliefs on
traditionalists and contended
conformers.
While lifestyle of customers in Japan is
based on aversion to risk by Tesco plc
in order to win new customers through
offering them effective quality of
product and services (Keegan, 2017).
Although above comparison between target markets of Tesco plc in both UK and Japan, it is
observed that UK has more opportunities for long term sustainability of business that leads to
effectiveness in firm’s position and brand image. As above discussion shows UK’s market is
more towards acceptance of traditional and classical designs and materials, it has broader place
within retail market that leads to prominent impact over future growth and sustainability of firm.
Thus it is recommended for Tesco plc to choose further expansions within native country UK
due to high demand of its goods and services within country. This will leads prominent influence
over performance and brand existence of respective organisation and helps to maximise profits &
market shares.
Evaluate methods of market entry
There are variety of methods to enter into new and foreign market based on variety of
factors that impacts strategic choices, tariff rates, degree of adaptation of products, marketing
and transportation costs (Mothersbaugh, Hawkin and Kleiser, 2019). These factors enhance the
selling cost of goods and services. In terms of Tesco plc there are various options to enter into
new and fresh market is discussed below:
Direct exporting: It is the method of selling direct into international market. Business
organisations have to establish and formulate sales programs turn to distributors and agents to
represent them within market. Distributors and agents work together with representation of
interest of firm. This is an effective way for respective organisation to enter into new and
different market internationally for raising market share and profit of firm.
Licensing: Another significant method to enter into international market is licensing
based on transferring the rights to use of products and services of other firms. It is a useful and
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effective strategy for purchaser of license relatively large market shares in the market within
which it wants to enter. Licensing is needed for marketing and production of goods and products.
Thus it is also a beneficial method for respective organisation to get entry into new markets
(Ratten, 2017).
Franchising: It is related to process of rapid market expansion. Franchising works well
for business firms that have repetitive business models that can be easily transferable into other
markets. There are two caution of using franchising model. First one is the business model
should be unique or has strong brand recognition can be utilised internationally and second one
is to creating future competition within franchisee. This reflects as effective method for
respective firm to enter into international markets.
Partnering: It is necessary when organisation wants to enter into foreign markets. It
takes variety of forms from a simple co-marketing arrangement to sophisticated strategic
alliances for manufacturing. Partnering is particularly important for those markets where
business and social culture is substantively different from local partners bring local market
knowledge, contacts and helps to choose customers effectively. In terms of respective
organisation it is also an important technique of entering into foreign markets with ability to
succeed for long term.
Joint ventures: Another significant method of entering new market is joint venture with
other firms mostly between those who have similarities in their structure, culture and business
patterns. This helps to raise market share and profits of firm with attainment of large customer
base. Risks and profits are equally share between both firms. Thus for respective company it is
important method to get enter into international market with capability of future expansion and
long term sustainability.
Buying a firm: In some markets buying a local firm which is already exists is reflecting
as an effective method of enter into new market and country. This may be because of the firm
has sustainable market shares, are reflects as direct competitor for firm due to rules & regulations
of government reflect as the only option for firm to enter into new market.
Greenfield investment: It requires greatest involvement of in international market. A
Greenfield investment is where a firm can buy land and build the facility & operate business on
an ongoing basis in a foreign market. It is costly approach associated with higher risk but some
markets may needs to take high risk and cost as per governmental rules and legislations.
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Review of marketing strategies
Marketing strategy is refers as long term, forward looking method of any organisation
with fundamental objective to achieve sustainable competitive benefits through understanding
needs and wants of customers (Zaveri and Amin, 2019). In terms of Tesco plc following are the
best marketing strategies:
Using social media: In this era of advance technology everyone uses social media
platforms and spends hours in a day. It is effective way to market and promote goods and
services on social media platforms for creating awareness of its goods and services. It allows
customers directly give orders through direct messages. This helps to save time as well cost of
marketing of products and services.
Creating video tutorials: Another important marketing strategy that helps business
organisations to create awareness of its goods and services towards fulfilment of business
objectives and satisfying needs and wants of customers in effective manner. YouTube is best
way to provide video contents for promoting of products and services so as to create brand
awareness in front of customers.
Leverage influencers: In order to create brand awareness worldwide the best marketing
strategy is to find out influencers in order to target right audience for right products and services.
This not only helps in spreading message of firm but also helpful for selecting right audience for
whom the message is to be deliver.
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CONCLUSION
Although above report it is observed that global marketing is effective approach that
helps to marketing and promotion of goods and services at international level that has prominent
impact over business performance. There are several differences between target markets of firm
based on different factors of countries such as- geographical, demographical differences etc.
further different method of getting enter into foreign markets are considered within report with
additional consideration on marketing strategies for new markets. The methods helps in
exploring different and new market with existing or innovated products and services, the direct
exporting, licensing, franchising, joint ventures, partnering and so on , all these factors are
required to explore the new locations and increase the brand value of company. Methods are
helps in run business with legality and also helps in reach out different customers in various
cities and countries. The reviewing marketing strategies helps in increase business on different
platforms such as content for social media and video content or other platform to increasing the
productivity and profitability of business.
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REFERENCES
Books and Journals
Agarwal, J. and Wu, T., 2018. The changing nature of global marketing: a new perspective.
In Emerging Issues in Global Marketing (pp. 3-11). Springer, Cham.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Green, M.C. and Keegan, W.J., 2019. Global Marketing. Pearson.
Kasemsap, K., 2018. The roles of social media marketing and brand management in global
marketing. In Social media marketing: Breakthroughs in research and practice (pp. 425-
453). IGI Global.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Ratten, V., 2017. Gender entrepreneurship and global marketing. Journal of global
marketing. 30(3). pp.114-121.
Zaveri, B.N. and Amin, P.D., 2019. Global Marketing Strategy in Digital Era: Global Online
Presence. In Breaking Down Language and Cultural Barriers Through Contemporary
Global Marketing Strategies (pp. 103-112). IGI Global.
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