Table of Content INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 1.1 Market research need for international marketing............................................................3 1.2 Business case for international marketing........................................................................6 1.3 Risks involved in marketing at international level...........................................................7 M 1 Different methods of international marketing.................................................................8 D 1 Pricing and financial issues impacting international operations.....................................8 TASK 2............................................................................................................................................8 2.1 Features of international market.......................................................................................8 2.2 Operational consideration for developing international marketing strategy....................9 2.3 Characteristics of international marketing strategy..........................................................9 M 2 Legal implications.........................................................................................................10 D 2 Evaluation of international marketing strategy.............................................................10 TASK 3..........................................................................................................................................10 3.1 Different factors which affect marketing communications............................................10 3.2 Role of technology in communication of international marketing.................................11 3.3 Need and implication of various marketing and sales communication strategies..........12 D 3 Glocalization and its effect on communication.............................................................13 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION International marketing can be defined as applying of principles and strategies of marketing to satisfy needs of the international consumers. In this modern and globalized era, it is of utmost importance to do international trade and marketing. The present study is based on Tesco which is British multinational retailer planning to expand trade in Brazil (13 Global brands that are not in Brazil,2019). The report will outline need of market research to know the trends of international marketing. Further it will discuss in a formal brief implication of international marketing for the company.Nexttheassignmentwillapplysomeknowledgetounderstandanddevelop internationalmarketingstrategy.Atlastthereportwillhighlighttherequirementsof international marketing communication. TASK 1 1.1 Market research need for international marketing When establishing the business at international level it is very necessary to conduct a market research of the country. International marketing research needs of Tesco can be justified with a systematic method of analysing, evaluating, collecting and recording relevant information related of host country. The requirements of market research are as follows- As Tesco wants to trade with Brazil so it needs to do a proper market research of Brazil. It is so because of the reason that people of Brazil will have different taste and culture different from UK and other countries where it operates. This market research is important as it will help in understanding trends and preferences of society of Brazil. The market research will help Tesco in studying about the market size of Brazil and also about the existing competitors and what strategies they used to market their products in that particular market. This will help Tesco in analysing the strategies of competitors and then accordingly design their strategy to get a competitive advantage (Papadopoulos and Heslop, 2014). The political and legal environment of all the countries are different. Therefore, with the help of proper market research Tesco needs to study about the laws governing the retail sector of Brazil, the employment contract act prevailing in Brazil, the taxation policies applicable on the retail sector of Brazil.
For doing market research it is very necessary to collect relevant and valid data for the establishment of the business in Brazil. It is due to the reason that if the data will not be correct then the business will be a failure.TESCO carries a renowned brand name thus, they carry the crucial information which if hacked can dispose their brand image (Leonidou and et.al., 2018). In developing countries, the validity of data is to be produced through high tech security. So that TESCO can easily trade their business in Brazil without any barriers. Therefore, for doing the market research installing international marketing information system is very necessary. Marketing information system is a type of setup wherein the company tries to scan the whole environment before entering into a new market. For this it uses different types of tool like SWOT analysis and PESTLE analysis which helps in analysing the whole market before entering into it. Through the international marketing information systems in TESCO, it helps company to increase customer base through their respective techniques and also improve accuracy to interpretanytask.Asbyundertakinganyinternationalinformationregardingthelocal competitors of Brazil and the strategies which they use to attract the interests of customer helps TESCO in motivating employees to concentrate more on achieving high level functions in organisation at international level. Marketing research is mainly conducted by TESCO company in context of determining the needs of customers, strategies of competitors and also market competencies (Baker and Saren, 2016). Thus, to examine the suitability of the different marketing research methods at global level, interviews and survey is the best policy which is adapted by TESCO in determining the actual position of Brazil market and preference of people choice regarding choosing such products. By conducting interview from the people helps TESCO in determining more culture and taste differences which helps them to grab their interest through their innovate products and services. Business plan mainly depends upon the internal and external factors of the company. Thus, by preferring the environmental scanning tool of TESCO, its basic use is reflected in respective of gathering information which is occurring in Brazil regarding trading of import and export of goods and services. At international level, various issues and barriers are also occurred which is reflected through environment scanning and also TESCO can scan the internal working through preferring SWOT analysis. This helps them to identify various aspect regarding their internal management and also trained employees to achieve targets within the stipulates time.
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Resources Investment mainly conducted on investing the resources in form of case, liquid securities or any other investment related loans. It can be on the bases of financial investment which helps company to plan their activities, so that they can operates the business effectively at international level (Hapsari, Stoffers and Gunawan, 2017). The main advantages of preferring the resource investment for TESCO is that in respective of raising income it helps TESCO to trade their business into Brazil which results in increasing the profits ratio. The disadvantage of the resources investment is that it carries market risks. As TESCO carries competitors in market regarding their products and services. Thus, there are more chances of reducing the reputation in market regarding the products. The methods are required to enter into different market are in respective of preferring the Franchising, joint ventures and licensing. Through this TESCO can expand their business into different countries and also carry their brand name to attract large interests of people. In context of international agencies they played the major role on behalf of government (Butler, 2015). The rules which are implemented by them are majorly focused on protecting the interest of customers and also secure the creativity and innovation to sustain the economic development of country. In case of TESCO, the multinational trading groups are used in references to managing the accuracy of suppliers and study of products to be undertaken by customers in adapting the services of company.Thus, it indicates that they are engaging their business into multinational companies to operate their business and carry such activities at large scale. The role of UK trade and investment in respective of TESCO to trading with Brazil in respective of dealing their goods and services in respect of reducing any barriers which occurs through government norms. In respective of BIS (Business innovation and Skills) it is important in preferring the overseas trade as it carries the company brand image. By expanding the business operation, they are also giving opportunities to employees to innovates such products by keeping in mind the needs of the customers. In respect of TESCO company expanding their trading with Brazil, the major factors which is to be carried is in respective of the local labour which further carried the business and also it requires skilled person to handle the consequences if any. The place also matters as customers prefer such places which is easily reachable and also hygienic environment (Gbadamosi, 2019). Thus, it is the duty of the TESCO managers to plan and prepare the proper management regarding inflow and outflow of goodsfrom company to
customers. In this the international logistics is required to prepare the supply chain management regarding such flow of goods and services. In the matters related to distribution channel, it determines the overall planning which is interpreted by company regarding reaching to large number of customers. It also helps TESCO to protect the products from any errors in respect of finalising or manufacturing such products. 1.2 Business case for international marketing In the present case Tesco wants to trade with Brazil.The reason behind choosing the market entry is that they had to target the new market.The business world has become globalized and to be in the competition and run business successfully it is necessary for company to adapt to the latest trends increase market share. There is a need to go for international marketing for Tesco because it is helpful in increasing its scale of the business. This will help Tesco in increasing its market presence of Tesco in Brazil as well (Vellas, 2016). As the market will increase for Tesco, it will increase its base of customers and this in turn increases the profits for the company. Another need of international marketing for Tesco is that it will increase the goodwill and brand image of the company at the international level so it will be helpful in raising the market position of the company at the international level. It is very necessary to consult international development agencies before entering into a new market as these agencies helps in collecting information relating to the intended market where Tesco wants to expand. It wants to enter into the market because there the labour cost is very low as compared to UK. Therefore, Tesco can operate with low labour cost which will eventually increase the profits for the company. Also the local market of Brazil is very good and the products of Tesco are preferred to a much extent by the population of Brazil. Brazil varies under the top 10 country and is covered under the 8,515,767 total sq. km area. As Brazil carries the large investors bases and maturity structure for both public and private sectors. The barriers which the TESCO can faces at the time of trading are in respect of government norms which they impose in respect of importing and exporting of goods and services (Agarwal and Wu, 2018). The fluctuation in market depends upon the environment condition and also the government involvement is to beidentifies in respect of committing any barriers in respect of country norms. TESCO wants to trade the goods and products in Brazil which result in imposing the taxes along with purchases and delivery of goods and services.
1.3 Risks involved in marketing at international level As the business environment is very dynamic in nature so there are many types of risk which may affect the business while marketing at international level. Some types of risk which may affect Tesco in trading with Brazil are discussed in the adjoining points below- Market risk-This is the major risk involved while going for international marketing. This is majorly because of the reason that the markets of UK is completely different as compared to Brazil. The business continues in a dynamic environment where changes takes on frequently. And apart from this market risk increases due to increase in competition, changes in the consumer trends and buying behaviour, and many organisation-wide systematiser factors. Economic risk-It is a type of risk which occurs due to changes taking place in the economy of the country which impacts the working and profits of the company negatively. The economic conditions of both the countries are very different like economy of UK is much developed as compared with Brazil so it might be possible that there may be changes in interest rates, inflation, deflation, recession or depression, currency fluctuations, changes in taxation and many other related factors which may affect Tesco. Operational risk-Both the countries are different in the use of machines and tools and materials used for operating the business. Therefore, it includes the risk with the production and operations of the company. For example, UK is much advance in technology but it is not possible that it many be the case with Brazil as well. So there can be other risk like limited raw materials available in another country, or there may be high priced raw materials and inputs, more cost fluctuations in machineries and tools and many other related factors (Demangeot, Broderick and Craig, 2015). Legal risk-it is also a common risk which needs to be taken care of because every country has its own rules and regulations which every new entering company has to follow. Financial Risk:Brazil is not considerer to be the developed country as it carries the low GDP rate which results in low livings standards of the people. As compared to UK it is much developed country and also it charges minimum taxes in respect of import and export of goods and services (Leonidou and et.al., 2018). The difference also occurs in case of exchanges rates in respect of transferring the goods and products in international markets.
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M 1 Different methods of international marketing There are many methods of international marketing such as exports, imports, licensing, joint ventures, franchising and many other different types of methods. Strengths As the company now trades at large scale so it reduces the cost and is benefited with economies of scale.It is also advantageous for the government also as it can earn foreign exchange because of international trade (Shenkar, Luo and Chi, 2014). Weakness The major problem is the difference in the culture of different countries which may pose problem to both home and host countries. The another problem can be different government rules and regulations which it has to follow while trading in other country. D 1 Pricing and financial issues impacting international operations The pricing and financial differences will impact the operations of Tesco because of the reason that it is not possible that all the countries have same standard prices or any other financial charges like high rate of interest on loans and borrowings. Like if the price of raw material is high in Brazil then it will negatively impact the international operation of Tesco. It is so because if material price will be high then it will not buy material from there and will find an alternative to minimize its cost. TASK 2 2.1 Features of international market An international market can be defined as the place where any country can trade that is buy and sell goods and services with any other across the globe. Some different features and characteristics of international market are discussed in the connected points- Broader market-Due to good geographic position Brazil is a very good market and has a wide area of market in retailing sector. Also, the maximum part of population of has moved from poverty level to consumer level. So it increased the consumption level of the economy. Intense competition-As the consumption level of Brazil has increased so for catering to the increased demand many companies have entered into the retailing sector. And because of this reason the competition has increased and intensified.
High risk-With increased exposure to international market the risk of dealing at international level also increases (Gnizy and Shoham, 2014). This is because of the reason that the market conditions of Brazil are different as compared to UK. Therefore, it is not possible that the techniques used by Tesco in UK will also be applicable on the Brazilian market. 2.2 Operational consideration for developing international marketing strategy For developing an international marketing strategy some key considerations need be taken into consideration which are discussed in the following points below- Market research-This is the first consideration to be taken care of because the business deals in dynamic environment so it is very necessary to study the market in depth to analyse and evaluate the market conditions (Hoppner and Griffith, 2015).The market research will help Tesco in knowing the preferences and taste of the people living in Brazil. It will help company in doing strategic planning before entering into the market. Financial aspect-It is very necessary for the company to evaluate the financial position of itself before operating in international market. Tesco needs to evaluate all the cost that is the cost of raw materials and other inputs of Brazil so that it can arrange for the money required to meet all the cost of production. Legal consideration-This is another consideration which company needs to focus. This is majorly because of the reason that different countries have different types of laws, rules and regulation. It is not necessary that law governing the retail sector of UK is also applicable on Brazil. Therefore, before establishing business it needs to study the legal implication of Brazil. 2.3 Characteristics of international marketing strategy For entering into the BLeonidou, L. C. and et.al., 2018razilian market Tesco will use the strategy of joint venture. Joint venture is a strategy for international marketing wherein two or morecompaniescometogetherforaccomplishingacommongoal.Andasthegoalis accomplished the joint venture comes to an end. The characteristics of joint venture are discussed in the following points- Sharing of loss and profits-With help of working jointly all the profits and loss are shared in between both the companies in an agreed ratio. Less investment-Both the companies pool their resources and expertise so the company need not invest much in technology, raw materials, capital and other resources required to run the business (Gillespie, 2015).
advertising taboosDissolution-It is another characteristic that as and when the goal is accomplished the business venture comes to an end and both the companies are free to run their business individually according to their own choice. M 2 Legal implications There are many legal implications which the company needs to take into consideration for implementing international marketing strategy (Tiago and Veríssimo, 2014). The underlying fact behind this legal implication is that every country has its own specific rules and regulations. Therefore, the company need to comply with different laws and rules and regulations to be successful. The laws applicable in UK are totally different as compared to Brazilian law. D 2 Evaluation of international marketing strategy Strengths With help of joint venture company can have access to new market with very low cost and also its distribution network increases.Joint venture with big and established company will increase the good will of another company joining with it. Weakness The difference in the culture of both the companies and use of management styles can impact the operations of business. This venture is only temporary as the objective will be achieved the venture will come to an end. TASK 3 3.1 Different factors which affect marketing communications There are many factors which affects the marketing communication, some are as follows- Local customs-The customs of UK are different from that of Brazil. Customs are the tradition which are being followed since ages. Like people of UK likes to communicate in formal way. But Brazilians love to interact with each other in relaxed and informal way. Culture-It also affects the communication among people. It is so because of the reason that culture of different countries are different from one another. Like the UK culture is mostly based on its history on the other hand Brazilian culture is majorly western and is a mix of diverse cultures.
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Language-It is the medium through which the people communicate with one another. In communication at international level it poses a major problem because every country has its own language. Like in UK the official language spoken is English whereas the official language of Brazil is Portuguese. Ethical consideration-This also impacts the communication because what is ethical for one country may not be possible that it is also ethical for other country (Martin and Javalgi, 2016). Like for example eating non- vegetarian food is popular in UK but is not prevalent in Brazil then promoting it in that country is waste of time. It is very necessary for the community to accept the product within the country. It is mainly because of the reason that if the product will not be accepted by the country then it will have to face losses. So for this the company will have to go for advertising.Through the concept of advertising, the various barrier are resulting on the bases of taboos which are conducted on the bases of culture. Thus, the process of advertising is to be chosen along with the laws and the keeping in mind the culture of society (Rindfleisch and Malter, 2019). The culture of UK and Brazil are different, thus to promote the TESCO company, positive attitude is to be maintained regarding producing ads. Leaders had power to influences the employees and also carry company stability in better way. Thus, the role of leaders in TESCO had the ability to turn the company profile and reputation at international level. 3.2 Role of technology in communication of international marketing As the communication at the international level might be confusing and not clear so here technology helps in communicating more clearly and effectively. The role of technology in communicating as international level are discussed below- In general the technology plays a vital role in international marketing as it helps in assessing the reliability of the data collected and communicating the information to the consumers. Social media marketing-With advancement in technology commination at international level has been increased. The social media marketing is the best method of communicating internationally. With the help of this method any country can communicate with any other country at any distance with just one click.
Telecommunication-It is another method of communicating over the globe. Under this technique people use many modes of communication like, cell phones, beepers, fax, video conferencing and many other modes. Implication of language and cultural factors are on the operational management that is recruitment and training of staff is necessary because of the fact that in marketing in different country the difference in the language of the countries poses a problem in marketing the product indifferentcountry.Theinformationwhichisprovidedbycompanyinrespectiveof international marketing are based on the company marketing techniques in respect of promoting through advertisement (Baker and Saren, 2016). As the original information is to be disclosed on company profile which attract the company interest for longer time period. Through the process of technology, TESCO carries the reliable information which is disclosed in company profile and through technology they reach to large number of customers. The alternative methods of marketing communication which the TESCO can used in respective of Buzz marketing which reflects by communicating through mouth (Hapsari, Stoffers and Gunawan, 2017). They directly interacted with customer and identifies the needs and demands regarding the availability of such products. They can also prefer the Guerilla marketing through which they can bring or alter the innovate ways to bring more effective tactics. 3.3 Need and implication of various marketing and sales communication strategies Marketing and sales communication strategy are different techniques which company use to interact with the consumers in order to promote the products and services of the company within the market. The different strategies used by Tesco are as follows- Social media advertising-It is a method of advertising which Tesco uses to promote its product and services in Brazil. This method is used prominently because it is most popular and cheap method of marketing and communicating with others. It is cheap because it covers a large portion of population. Blogging-It is also a newer concept of marketing communication. Under this method experts of company writes blog articles relating to the products and services outlining its features and quality of product. This method is used because the blogs from experts and authentic sources builds trust in consumers and it increases the sales (Amankwah-Amoah, Boso and Debrah, 2018).
Operational management:This is also the beneficial concept which TESCO can choose in respect of recruiting or providing training to the local staff of the Brazil. This helps them in communicating more effectively and also interact with large number of customers regarding their needs and demand in preferring the particular products (Rosson and Ford, 2016). By choosing the local facilitator in promoting the sales and marketing communication, helps the TESCO company to interact with more local customers in Brazil. D 3 Glocalization and its effect on communication It is a combination of localization and globalization which is used to describe the development of product and services and its distribution at global level but it also takes into consideration the local consumers as well. Communication for glocalization is very necessary because in glocalization the company has to correctly assess the needs of both the local consumers and global consumers. If the communication will not be proper then Tesco will not be able to assess the needs correctly. Advantages It helps in facing high pressure and meeting the requirement of the local consumers. It also helps in connecting the consumers with the companies at the global position. Disadvantages it requires a lot of time in doing research for entering into a new market. CONCLUSION With the completion of the report it can be concluded that for international trade it is very necessary for the company to properly plan and execute a market research to know the trends of another country. The report outlined that many risks are involved in international trade like market risk, economic risk and many more. Next it outlined the operational consideration required for international trade like market research, financial stability and many others. Further it outlined the characteristics of international marketing strategy that is joint venture. Next it outlined some factors which affects the communication like customs, language, culture and many others. At last the report discussed the role of technology in marketing communication. Along with a discussion on need and implication of marketing strategies like social media advertising and blogging.
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