Global Marketing and Digital Business

Running head: MARKETING
Global Marketing and Digital Business
Name of the Student:
Name of the University:
Author Note:

1MARKETING
Executive Summary:
The aim of the report is to provide an insight into the global marketing and digital business
scenario of Tesco, one of the third largest supermarket chains of United Kingdom. The report
focuses on the internationalization of Tesco in various countries along with a focus on its online
business. The report puts across background information and conducts an industry analysis.
There is also focus on the internal and the external analysis of company. There is also discussion
about the internationalization strategy of Tesco and an overview of the company’s marketing
activities that focused on targeting, segmentation, consumer trends, positioning and branding.
There is also insight to the online activities undertaken by Tesco which is followed suitable
recommendations.

2MARKETING
Table of Contents
Organizational Profile and Industry Analysis..................................................................................2
i. Background of the Organization:.................................................................................................2
ii. Porter’s Five Forces Analysis:.....................................................................................................3
Situational Analysis (External and Internal)....................................................................................5
i. PESTEL Analysis:........................................................................................................................5
ii. SWOT Analysis:..........................................................................................................................6
Models and Theories:......................................................................................................................8
Marketing Activities:.....................................................................................................................11
i. Segmenting:................................................................................................................................11
ii. Targeting:..................................................................................................................................12
iii. Positioning:...............................................................................................................................12
iv. Branding:..................................................................................................................................12
v. Consumer Trends:......................................................................................................................12
Online Activities:...........................................................................................................................13
Recommendation:..........................................................................................................................13
Conclusion:....................................................................................................................................14
References:....................................................................................................................................15

3MARKETING

4MARKETING
Introduction:
The report aims at providing a review of global marketing and digital business of Tesco.
It is a British supermarket chain found in 1919 by Jack Cohen with headquarters in the United
Kingdom (tescoplc.com 2019). In 1990, Tesco expanded the operations to close to eleven
countries that included various countries of Europe and Asia and Turkey and United States
(Butler and Neville 2013). Besides, Tesco also operates through a digitized platform for
providing the customers with facilities of click to collect functionality and a digitized store
experience. The report commences with background information of the organization and an
industry analysis focused on the Porter’s five forces. The report also provides an internal and
external analysis of Tesco. The report also puts across an insight into the internationalization
model of Tesco along with an overview of the marketing activities that included segmentation,
targeting and positioning, consumer trends and branding. The report further discusses the online
activities of Tesco followed by recommendations that mentioned the suggested areas of
improvement.
Organizational Profile and Industry Analysis
i. Background of the Organization:
Tesco originally known as the UK grocer expanded to eleven countries during the 1990s.
Operations in the USA were however discontinued in the year 2013 (Geoghegan 2011). Tesco
ranks third in the world in terms of the gross revenue. During 1950s and 1960s the company
experienced an organic growth and through acquisitions owned close to over 800 shops. It was
during the 1960, Tesco undertook diversification in areas that included electronics, book

5MARKETING
retailing, clothing, electronics, petrol, furniture, toys, software, telecom, internet and financial
services (Reece 2019). The company repositioned itself during 1990s from being one of the
down markets higher volume lower cost retailer to the ones designed for attracting social groups
through offering finest range of Tesco products (Ho, C. and Temperley 2013).
ii. Porter’s Five Forces Analysis:
Threat of
Substitute
Products
Threat of Entry
of Newer
Competitors
Intensity of the
Competitive
Rivalry
Bargaining
Power of the
Buyers
Bargaining
Power of the
Suppliers
1. In retail
market for food,
the substitutes of
the key food
retailers
especially the
small chain of
convenient store,
off license and
the organic shops
mostly acts as a
threat to Tesco as
they provide
higher quality
products at lower
1. The entry of
the newer
competitors is
lower in the
retail industry
since massive
capital
investment is
required to
become
competitive and
ensure the
establishment of
the brand name.
In other word,
1. Tesco faces
intense
competition from
competitors like
Asda, Morrison,
Sainsbury and
Waitrose that
competes with
one another over
the product price
and the
promotions
(Evans and
Mason 2018).
There has been
1. The
bargaining power
of the buyers has
been fairly
higher for Tesco
(Schleper, Blome
and Wuttke
2017).
2. It is also to be
noted that
customers are
mostly likely to
be attracted to
lower prices.
1. The bargaining
power of the
suppliers is fairly
lower for Tesco
(Richards et al.
2013).
2. Suppliers
remains inclined
towards the
major food and
the grocery
retailers and
remain
apprehensive in