Global Marketing: Strategies for Expanding Business Globally

This document discusses the concept of global marketing and explores the strategies adopted by Tesco, a leading retailing store in the UK, for expanding its business globally. It covers market entry methods, such as joint ventures, and marketing strategies, including segmentation, targeting, positioning, and product adaptations. The document also highlights the importance of global marketing for business expansion and increased profitability.

GLOBAL MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Organizational overview..............................................................................................................3
International markets...................................................................................................................1
Market entry method....................................................................................................................3
Marketing strategies.....................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Global marketing is one of the major current trend which every company is following to
diversify and expand their business not only in the operating country but also in other countries.
However, there are many methods and strategies which companies can adopt, to give their
business a global exposure. In this project we will study about the concept of global marketing,
in the contrast of Tesco which is one of the biggest and famous retailing store of UK along with
the different marketing methods with strategies adopted by Tesco for establishing global
presence and trade globally.
MAIN BODY
Organizational overview
Tesco:
Tesco was established in 1919 with the opening of its first store in 1929. Headquarter of Tesco is
in Welwyn garden city, UK. Ken Murphy is the current chief executive officer of Tesco. Tesco is
one of the biggest retailing industry and multinational company of UK, who operates in many
other countries also, which shows its global presence. It is a big operator of groceries and
merchandize. It sales various categories of food and non-food items, along with clothing,
furniture, telecoms, and also deals in finance related services, internet services at a global level.
By adopting the various marketing strategies and planning Tesco always tries to meet the
demand of customers and expand its business globally. For Tesco, consumers are its core which
means Tesco works for their customers only and try to adopt all such strategies and planning
which will satisfy its customers needs and Tesco would be able to grab more customer share
which is the main motive of Tesco. Also, by adopting the digital platform and through its online
stores, the sale and presence of Tesco converts its business into a global form which is now
accessible by all the customers at all the places of the world (Keegan, 2017).

International markets
Two international markets which is chosen by Tesco are Thailand and India.
Selection criteria Thailand India
Demographics The market of Thailand is very
big. This country have easy
entry and exit options that is
why Tesco got attracted
towards the country.
Government do not have strict
laws for the foreign
companies. They have such
guidelines which attract the
foreign companies to come
and do business in their
country.
Tesco found that India is ideal
for expansion. Company has
observed other global
companies which has entered
easily in the Indian market and
doing good business so this
has increased the confidence of
the company and company
also found good opportunities
in the Indian market.
Consumer spending power Purchasing power of the
consumer is good in Thailand.
There citizens have good
income so their spending
power Is also very high.
Company launch luxury
products in this country
because it is demanded by the
people and people of Thailand
even afford that. Company
attracted consumers by
providing them innovative
products. Innovation is the
demand of every market.
Tesco launched such products
which are affordable by the
Indian citizen. Most of the
people have low income in
India (Holzapfel and Hampel-
Milagrosa, 2020). So company
supplied such products who is
reasonable but without
compromising on the quality
and are success to cover good
part of the market in India.
Infrastructure Thailand infrastructure is very Tesco have big retail outlets on

amazing. They have world-
class quality of roads where
transportation can be done
without any delay rather
smoothly. Internet services of
the country are also very good.
It is fast and smooth. Advance
technology is available.
the Indian roads. Those outlets
give a good shopping
experience and customer also
enjoy while shopping their.
Tesco opened their retail outlet
on that areas where it is easy to
reach for the customers.
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Language English language is spoken by
the citizens of Thailand.
Language is never the barrier
for the company in India.
Promotions Tesco do promotions by using
modern and traditional
methods. They use social
media for the promotion.
Social media nowadays is use
by large groups. Doing
promotion on the social media
is cheap and saves time and
also reach towards large
customer groups with fewer
efforts (Guo and Wang,
2019).
In India company do their
promotional activities through
TV, print media, radio. And
also adopted modern method
for doing promotions in India
like using their own website.
Website is the online image of
the company and company has
maintained their website in
such a way which give good
feeling to the consumers and
consumers are also tempted to
buy products form the
company.
Political factor Government has such tax,
trade tariff laws etc which are
not so tough. Elected party
come and goes but do not
much affect the laws for the
global companies.
Political factors are also
relaxing for marks and Spencer
in India. Company also get
loans on easy interest rates.
Arranging finances for the
company is not the tough thing
in India.
Market entry method
Marketing: It refers to act of buying and selling of products or goods between the producer and
the consumer with the motive of earning the profit by the producer and satisfaction by the
consumer.
Global marketing: It also refers to the same act but when marketing is done not only at local
level but at international level or within the different countries then that refers to global
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marketing. It leads to the expansion of business globally or at a wider level (Kotabe and Helsen,
2020).
Market entry methods:
Since demand and supply of products is the main lead which results in the operations of
market. As demands of the customers are always growing and changing according to the trends
and preferences and every company tries to meet that demand by providing those products to the
customers and this will also lead to the expansion of company's business. And for that expansion
companies adopt various methods.
Like other companies, Tesco also adopted many methods to enter into the Thailand market and
expand its business operations and try to acquire the local market of Thailand. Joint venture is
one of the main strategy which was used by Tesco to enter into the Thailand.
Joint venture: It is that strategy in which the whole business was divided into two components
and from those two parts, one part is held by the local business which means local country while
the another is hold by the coming country (Connelly, 2019). This type of business strategy is
usually more successful because it gives dual advantage one in the form of knowledge by local
country while the ideas and innovativeness of the coming country. Tesco also adopted this
strategy and enter into the Thailand market.
Apart from joint venture Tesco also buy majority of the stakes of Lotus supercentre which again
helps the Tesco to enter into the Thailand market and expand its business there.
After entering into Thailand, Tesco made research into the local market and tries to understand
the needs and preferences of the local consumers and according to that outcomes Tesco has more
diversified its products from various food to non- food items and introduce those products in
more innovative way with high value that attract the local people of Thailand and by doing this
product diversification Tesco would be able to grab the local market of Thailand and expand its
business.
Apart from that, various marketing strategies are also adopted by Tesco including the use of the
latest technology or technique of marketing like digital modes, which also helps the Tesco in
expansion of its business in Thailand. Since price is the crucial issue for every customer, but
converting this issue into an opportunity Tesco started selling quality product to its customers but
at minimum prices and this is also one of the main reason that Tesco was able to acquire such a
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big share in Thailand and able to attract the customers of Thailand towards it which both
increases its sales and profit share (Lessmann, 2019).
Also, with the adoption of internet transaction, Tesco would being able to connect more and
more customers of Thailand and being able to understand their interest and needs and by
providing them better choice and better value in comparison to the existing competitors which
not only helps the Tesco to enter into the market but also helps it to meet the current market
competition.
Marketing strategies
Marketing Strategies:
It refers to the proper plan and strategy which are adopted by companies in order to
acquire or grab those customers also who don't buy the products of the concerned company so
that the objective of increase in sale and profits is meet by the concerned company
(Mothersbaugh, Hawkin and Kleiser, 2019).
Tesco also uses many marketing strategies to acquire more customers share and out of this some
of them are:
Segmentation:
It is one of the marketing strategy used by Tesco to acquire the customers of all the levels
as well as sell its products globally. Under this marketing strategy Tesco consider and try to
acquire all the customers of all the segments considering from high class to medium class and
also lower class customers and tries to produce only those products which will satisfy the needs
and wants of all the customers of all the class (Camilleri, 2018). So that, more customer will buy
the products of Tesco and its objective regarding increase in sale and global presence would
come into true.
Targeting:
To improve the market share and expand the sale of products at larger level Tesco uses
this strategy. Under targeting strategy Tesco targets the customers of young, middle or old age
group who have different preferences of fair trade products which means before making the plan
regarding targeting customers Tesco firstly access those customers and analyse their needs or
taste and preferences and then try to produce those products only which will satisfy the needs
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and wants of all the age group so that Tesco would become successful in targeting them and
acquiring them and increase its sale globally.
Positioning:
The positioning of the products in the market also affect the marketing plan, as Tesco's
fair trade products are placed in the centre of city of UK in such a persuasive manner that it lays
a permanent impact on the minds of the customers and its demand will never fall. And for doing
this Tesco always tries to keep and present those products in such an innovative manner with
high value that it will always be in demand of youngsters and middle age group peoples and this
will helps the Tesco to rule the market and beet its competitors (Fayvishenko, 2018).
Communication mix:
It is also one of the marketing strategy used by Tesco. Under this strategy Tesco uses
various modes and means of communication devices mainly digital marketing or online
marketing which helps it to communicate to the target customers and able to know their actual
interest and then accordingly make them understand about the company and its products and how
the company's product is best from the other and how they can meet their needs (Genchev and
Todorova, 2017). It is one of the most successful strategy used by Tesco because effective
communication not only helps to acquire the target customer but also attract the other customers
towards the company and its products.
Product adaptations:
It is one of the basic but important marketing strategy which is adopted by Tesco by
which it made changes in selling of the product according to the laws and regulations of the
operating country like it made changes in the form of packaging, labelling and many other forms
in its original product so that those products can be sold in other countries without harming their
country's norms and would also being able to meet the needs of customers of those countries.
(Furr, 2019).
CONCLUSION
From the above study it is understood that to sustain in the current world and the current
competitive market, the expansion and global presence is very essential for every company
which not gives them international recognizance but also helps them to trade their product at
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international level and in different countries. The global marketing also helps the companies to
improve their sale and increase profit which is the main objective of every company. Global
marketing and global presence can be achieved by adopting various strategies including the
product differentiation or market segmentation and targeting the right customer at right moment.
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REFERENCES
Books and journals
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Connelly, and et.al., 2019. Shareholder influence on joint venture exploration. Journal of
Management.45(8). pp.3178-3203.
Fayvishenko, D., 2018. Formation of brand positioning strategy. Baltic Journal of Economic
Studies.4(2). pp.245-248.
Furr, N.R., 2019. Product Adaptation During New Industry Emergence: The Role of Start-Up
Team Preentry Experience. Organization Science.30(5). pp.1076-1096.
Genchev, E. and Todorova, G., 2017. Sales Promotion Activities–Effective Tool of Marketing
Communication Mix. Available at SSRN 3089894.
Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc financial performance between
2015 and 2018 in comparison with Tesco and Morrisons. American Journal of
Industrial and Business Management, 9(2), pp.325-341.
Holzapfel, S. and Hampel-Milagrosa, A., 2020. Global and National Food Safety and Quality
Standards: Implications and Impacts for Farmers in Thailand and India. In Sustainability
Standards and Global Governance (pp. 163-186). Springer, Singapore.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Lessmann, and et.al., 2019. Targeting customers for profit: An ensemble learning framework to
support marketing decision-making. Information Sciences.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
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