International Marketing Part 2

This report discusses international marketing strategies and opportunities for Tesco. It covers the importance of product, price, place, and promotions in international marketing. The report also explores various opportunities associated with international marketing, such as increased market size, economies of scale, and return on investment. Additionally, it discusses the competition faced by organizations in the international market and suggests creative marketing strategies for expanding across international markets.

International Marketing Part 2
Table of contents
Introduction 3
Project 2 3
Conclusion 9
References 10
Introduction
To reach the organization marketing goal, the company uses various marketing strategies
which are described in this report. The application of marketing principle by company in
international level i.e. overseas or across national boundaries is called international
marketing. In other words, international marketing is the strategy to fulfil a consumers and
company’s need by undergoing the various process of execution of concept, price, promoting
& distributing the various goods and services.

Project 2
Company background
Tesco is a British multinational company that mostly business in daily usable
commodities such as regular household merchandise & grocery products. The head office of
Tesco is situated in United Kingdom at Hertfordshire state. According to the recent study
Tesco was found to be on the third position on the scale of gross revenue among the various
retailers of the world. Tesco deals in large number of commodities ranging from internet,
funding service, software’s, petroleum, toy, furniture’s, electronic goods, cloths & books. The
company already has its footprints in various countries of Europe & Asia. The organization
wants to expand its business across several other geographical boundaries to gain more profit.
To enhance its chain of network of international intentional marketing Tesco has used various
strategies over the years. Tesco operates in variety of sectors with various outlet formats such
as Tesco one stop, Tesco Metro, Tesco express, Tesco superstores and Tesco Extra (Vercellotti
and Vercellotti, 2016). This organization has its sub operations in various sectors also such as
in petroleum, banking, tech supporting, telecoms and booking group. The organisation is
expanding its business globally with around more than 800 new stores across the globe. Tesco
uses a variety or method and techniques to collect data and evaluate its progress by regularly
monitoring its strategies. With the clear objective, aim, vision & mission the company is
capable to gets its desired goals.
Strategic & international marketing activities
Various strategies are used by Tesco in order to convey their message of products in
the international market. To reach the organizations marketing goal, the company uses
various marketing strategies which are described below. The application of marketing
principle by company in international level i.e. overseas or across national boundaries is
called international marketing. In other words international marketing is the strategy to fulfil
a consumer and company’s need by undergoing the various process of execution of concept,
price, promoting & distributing the various goods and services. Success in international
marketing does not mean simply change of language. For international marketing the
marketers have to design a systematic plan that shows how their product will come up with
the international market.
Importance of product these strategies shows the company must have something to market.
The producers of the product should have some products that could fulfil the desire of the
customers. They must also fulfil their desirable need which an alternative product already

present in the market could not fulfil. Although the producers produce products for a reason
(Hapsari, Stoffers and Gunawan, 2017). Thus, product could be anything either any service or
a commodity, that this organization produces for its consumers. Products must be as
appropriate as the need of the consumer. If the product could not be able to fulfil the needs of
the consumers, then the customer will not be will to buy the product. The company Tesco is
well-placed in such this scenario as it is having a wide range of products in which the
company dealing with. Along with it the company provides the customer service so that the
other customer get the knowledge of the experiences of the product and buy accordingly.
Price in marketing price of a commodity or service means the amount that the consumer has
to pay in order to use it. Prices vary from country to country. The price of the product
changes in the international marketing due to addition of various charges such as
transportation, taxes etc. the price of the commodity is set by Tesco by undergoing various
calculations and manipulations, and according to what the amount the organization has to
spend in making or acquiring the product or service. In international marketing the company
always tends to keep the price of the commodity which is in the affordability reach of the
desirable consumers. Keeping price too will let the consumers to change their mind over
buying the particular product. As Tesco is the global multinational company, it keeps its price
of its products with less profit of margin to easily compete with its competitors on the factor
of price.
Place in Marketing place is the basic strategy in international marketing. For Tesco various
researches are done in order to expand the market to other geographical boundaries. As place
is always selected on the basis of customers’ needs and income level of the consumers in
international marketing. The company would not like to market at the place where it doesn't
get its desired customers. The organization also examines where the stock will be stored and
where it will go to be manufactured (Mitchell and Dalgic, 2015). Tesco organization would
prefer to establish their manufacturing unit at any centralized location, from where it can
transport its produced goods at the least cost. Along with it, the various laws are also
considered before selection of the place as different countries have different set of rules and
regulations. Place in marketing strategy of international marketing is decided always on the
basis of market research. No company would like to establish at the place where it tends to
get the least business. Tesco does various calculations and manipulations on the terms of
market research before expanding to new location. Thus, this strategy of place in marketing is
used by Tesco to stand successfully across the globe.
Promotions in international Marketing

Promotions are one of the most essential in the P's in the strategies of international
marketing. Promotions generally depends on the place. The producers of the Tesco should
effective promote their product depending upon where it attracts its desired consumers. The
promotions are the strategy used by the Tesco organization that focuses on to gain the
attraction of the consumer to show why they need the product of this company and what
differentiate this product from the other competitors of the market. Timing also plays an
important role in promotions of a product by Tesco that the company should bring out the
product at the most appropriate time when the need of the product is on the maximum level.
Promotion in international marketing is the strategy that shows where the company needs to
advertise its product or services. Big companies set up a specialized team or invest huge
revenue in promotions. Companies hire various digital advertisers, influencers, designers,
bloggers in order to promote their product in the international market. Tesco has the separate
department for the promotions of the company, which continuously promote the products or
the services either on digital platform or on the social media sites along with this, It also
promotes on the paid search engine sites which gain the enough attraction of the targeted
customers of the product. Thus, this strategy helped Tesco to successfully stand in the global
market and could easily compete with the local competitors.
The company Tesco compete through its competitors majorly by expanding overseas,
transferring to merchandize which are non-food and are having high profit margins.
Additionally, the company has a strong brand recognition in United kingdom is the way
company currently compete through its competitors.
International marketing opportunities
TESCO is a British multinational grocery and involves in general merchandise. It is
the third largest retailer company in the world based on gross revenue. Mostly, the original
focus on groceries but it has diversified interest in clothing, books, toys, electronic, software,
financial services, and petrol. It has started to expand company in international market from
1957. Tesco has many opportunities to expanse retailing in global market.
TESCO can expanse business in Europe and Asia because their side grocery stores are
less. It can boost up profitability by opening more grocery stores in UK. It can build their
brand empires by export successful domestic product to multiple countries like china,
Malaysia, Thailand, and South Korea, and delivers consistent quality at an affordable price.
They also can raise economy fast if invest in emerging markets like Brazil, Turkey,

Russia, and South Africa, that's golden opportunity for Tesco to expand retailing in emerging
market by introducing wide range of financial products like car and pet insurance.
Company also have opportunity to enhance their subsidiaries in some markets like
supermarket and hyper market. Which springs more gainfulness rather to British market,
supermarket has more selling space in abroad, so Tesco can take advantage to open more
stores and can gain profit. Hypermarket also have an opportunity to expand subsidiaries from
eastern china to estate. Tesco can open shopping centres in hypermarket and can cover up
large area easily way. Tesco also have chance in Taiwanese market by introducing petrol
retail, placing convenience store through pump, and can built empire of Tesco. They can
expand groceries stores in American market because this market gets more profitability in
economy.
Firm can expand subsidiaries in japan because japan is basically dependent on technology
innovation. If Tesco open software and electronic companies in japan then it will get
opportunity to increase GDP rate in japan.
Tesco can achieve economical scale faster, if investment in Poland because Poland yield
opportunity to modification of market size. Tesco can enhance market size by investment in
Poland.
Netherlands also good option for Tesco to boom up business because domestic growth is
limited in nation. Tesco can take plus point of this weakness and can wide-open grocery
stores. It can take more profit from retailing in country
Tesco can flourish business by adapting local market, because local merchandise is fewer in
foreign market. Tesco can take benefit of this weakness and can raise subsidiaries in foreign
market through local merchandise.
In England, the latest paper version" harry potter" book is displayed which is more liked by
England people's and children. Tesco can take this international marketing strategy as
opportunity by opening English Tesco bookstores that will expand market size in England
and will enhance economy scale in England.
Tesco heighten opportunity in global market by analysing customers’ needs and gathering
data from shoppers on what they want from retailers. Tesco spread out their business by
lowering prices, better services and non-food product and introduce more organic food
product.

The various opportunities associated with international marketing
When a business is moved from domestic level to the international level, the business
tends to get enough opportunities. As working on the global level, the organization enhances
its knowledge on various terms, and it let the overseas company to cope up with the local
competitions.
Increase Market Size in order to earn more profit organization uses international marketing.
As this gives the organisation a larger amount of opportunities as the organisation can invest
on research and development to gain various competitive advantages (Rana and Sharma,
2015). Big companies mostly prefer to have investment on such location which has great
scientific knowledge so company could use optimistic utilization of researches to gain
competitive advantages of the market. Companies operating at the domestic level have lower
growth opportunities compared to with operating at the international level.
Economies of Scale with the expansion across the national boundaries the organisation tends
to gain enough knowledge about the core competences with the help of sharing of knowledge
& resources. Sharing of knowledge helps the organisation to expand its operation and let it
produce services & products which are more economic and cost effective.
Return on Investment the company tend to get the return of investment at a faster rate with
the help of international marketing. As the market of business gets increase with international
marketing, the company could earn from the commodity or service not only within the
national boundaries but also across the national boundary. Thus, international marketing
provides the scope of larger market size to the organization.
Standardisation of the products means the product having same size, colour, design etc. To
gain enough faith among the consumers in the international market, the companies undergo to
the standardization of the product or goods. Having same even appearance of the product
across the entire market national as well as international let the company to establish in the
minds of consumers with the faith that they are receiving the best quality.
Competition
Some organization did not want to expand their business at international level,
however their marketplace forces them to move globally (Hapsari, Stoffers and Gunawan,
2017). As if these organisations dint moved to international level then they might be left
behind in the market or acquired by the other companies. Moving internationally companies
tends to get enough competition from their competitors which let it to get enough
opportunities to gain knowledge about the latest trends of the market.

The various opportunities possessed by organization Tesco is the opportunity to strategically
align with the other brands to attract new customers. More over in order to have more
competitive advantage the company has grown in online market as well as stared home
delivering into more areas.
Creative marketing strategy to expand across international market
Creative marketing strategies are the advanced international marketing strategies used
by organisations in order to expand across international market. These are the enhanced
approaches other than the basic 4P's international marketing strategies.
International marketing approaches this approach of international marketing is a creative
marketing strategy that must be used by Tesco to expand their business. As intentional
marketing approaches let the organization to market their product not only in the domestic
boundaries but also at the international level. This approach will let the organization to
business on far wider range across the globe i.e. including various people, locations and with
societies of various cultures and ethics.
International advertising options intentional advertising options is a creative approach to
international marketing. It that suggest that the organization must do a proper market research
before promoting. Different products require different advertising options. For example, it
doesn't make sense if a commodity consumer base is of rural area, and the same commodity
is been advertised on the railway channel in the urban region (Solberg, 2017). Thus, the
organization would not be able to advertise to their desirable consumer without the market
research. There are various options to advertise a commodity ranging from film and
television ads, magazines, billboards, hoardings etc.
International shipping considerations
Over the globe, most of the consumers are using online shopping sites or method to get their
desired commodity. Online shopping is not only limited to domestic level. Intentional
shipping consideration is the creative approach to international marketing such that as Tesco
has the online presence on the internet and needs to ship something internationally on the
demands of a consumer. Then the organisation must collaborate with some domestic
company as an alternative to physically present in the country from where the order has been
placed. This strategy is used by the small organization to reduce the cost of the shipment
while a big firm could easily bear this cost and earn the profits.
Forming a brand identity Forming a brand identity is the creative approach as by creating a

standardization of the product or the commodity, that means the product should have same
size, design and colour across the globe wherever it has been marketed (Gillespie, 2015). If
the company wants to be an accessible brand in the market, then the organization should keep
the price or the profit margins as low as possible.
Setting price points
Before launching a commodity in the international market, setting price points is a
creative approach to international marketing by any organization. The company must have
enough knowledge of how much money they are willing to gain by selling the product before
releasing in the market. The organization must examine what price it must set of the product
and how much profit it would gain by selling of each product. It is considerable that the price
of the commodity would vary from place to place and on demands & supply.
Marketing and packing to advertise the product to the consumers the producers use the
marketing strategies. There are various creative marketing strategies that Tesco could use to
expand its business across various geographical boundaries. A large amount or a considerable
amount of revenue must be kept aside by Tesco for marketing advertisement as a creative
approach to international marketing (Vellas, 2016). These advertisements could be placed on
various social media sites or even on the paid search engine sites, either by developing
motivators or influencers or by hosting trade show. Basically packing & marketing requires
various staff members in and organization. This staff would be ranging from distributors,
packaging workers, advertisement designers etc.
Assembly/manufacturing in marketing
Assembling & manufacturing in marketing is a creative approach to marketing strategies as
products of some organizations are produced at one location, and then they are transferred to
the various other places. At these places the parts are arranged and assembled to build the
product. Assembling and arranging of these parts requires hiring of various staff members.
Thus, it is important that the employee must get its payment according to its worth.
Porters five force model on Tesco
Threats to entrants
To overcome this issue Tesco brings regular innovations into its new services and products.
This is done by company through spreading huge amount on R & D by reducing the window
of profits for new organizations.
Bargaining power of suppliers
Through multiple suppliers the company has been capable to have strong bargaining power

with suppliers. Moreover, experimenting with the design of product to have different product
when price of one commodity go higher.
Bargaining power of buyers
Through large customer base. As well as by offering discounts to customers the organization
Tesco could limit the power of bargaining for customers.
Threat to substitute products
Rather than being just product oriented the company Tesco has appeared to be more service
oriented. Moreover, in order to overcomer the threats to substitute products the company
tends to understand what customer needs and not focus much on what customer is buying.
Competition rivalry
To overcome the issue of competition rivalry, Tesco has built sustainability differentiation as
well as the company has built scale in order to compete better.
The strategy used by Tesco for successfully doing business is the online marketplace
initiative, diversifying into new services & products, entering new markets as well as aligning
to digital market. The company is using all these strategies in order to have competitive
advantage is front of its competitors.
The company Tesco deliver its values effectively by acting responsibly toward
communities, by being the first one to meet the needs of its customers as well as by
understanding its customers.
CONCLUSION
It has been concluded from the above report that for a successful international marketing
standardization plays a crucial role. Few of the marketing activities require uniform global
approach while some requires great level of customization. Thus, standardization of products
is essential in most of the cases to gain faith of the consumers that they are getting the desired
product. This standardization could be in form of same size, same colour, or design across the
globe. With the standardization various issues also occurs such as issue of price, place,
distribution, and communication. Moreover, it has been concluded that due to the clear
vision, mission and objective of Tesco, the company is capable to survive in the international
market. Every decision taken in company keeping the respect of the consumers, staffs,

suppliers & communities. Thus, Tesco keeps the consumers satisfied with their shopping
experience.
RECOMMENDATION
It could be recommended to the company Tesco that, for succeeding and to effectively
grow in international market the organization must adopt strategies of Greenfield investments
as earlier they were proved to be costlier. Moreover, being the retail industry the company has
to sensitive in order to represent customers necessities according to customers cultural habits,
for this Tesco must adopt strategies to effectively respond to culture of local market.

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