MARKETING STRATEGY EVALUATION OF TESCO.

Running head: MARKETING STRATEGY EVALUATION OF TESCO
Marketing Strategy Evaluation of Tesco
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1MARKETING STRATEGY EVALUATION OF TESCO
Executive Summary
Tesco has the international retail market position of being the most admired company because of
its quality of gods and services offered along with its quality of marketing. Considering the
business expansion and profit growth objectives, Tesco has considered to expand its business in
the retail industry of France. The report revealed that the Ansoff Matrix indicates that Tesco
follows marketing penetration strategy in UK with offering wide range of food and non-food
products at low prices than its competitors in the industry. Conversely, the GLOCAL marketing
strategy of Tesco in expanding its business successfully in France is focussed on ensuring
significance that is effectively customized based on the demands and needs of the French market.

2MARKETING STRATEGY EVALUATION OF TESCO
Table of Contents
1. Company Background.................................................................................................................3
1.1. Company Profile and Market Share.....................................................................................3
1.2. Market Position of Tesco......................................................................................................3
2. Task 1: Introduction.....................................................................................................................4
2.1. International Marketing Mix.................................................................................................4
2.2. International Marketing........................................................................................................5
2.3. Country Selection for Business Expansion of Tesco............................................................6
3. SOSTAC Model...........................................................................................................................6
4. Situation Analysis........................................................................................................................7
4.1. Micro-environment Analysis: SWOT...................................................................................7
4.2. Macro-Environment Analysis: PESTEL..............................................................................8
4.3. Hofstedes Model Analysis of France....................................................................................9
5. Objectives..................................................................................................................................10
5.1. Mission Statement of Tesco................................................................................................10
5.2. Objectives for Successful Business Expansion of Tesco in France...................................10
6. Strategy......................................................................................................................................12
7. Tactics........................................................................................................................................14
7.1. Action.................................................................................................................................14
7.2. Control................................................................................................................................15

3MARKETING STRATEGY EVALUATION OF TESCO
8. Task 2: Evaluation of Current SOSTAC Model........................................................................16
8.1. Hofstedes Model Analysis of UK.......................................................................................16
8.2. Tesco UK Revenue.............................................................................................................17
8.3. Ansoff Matrix Implementation...........................................................................................18
8.4. 4Ps Application...................................................................................................................19
9. Task 3: Current Marketing Strategy Application Analysis.......................................................21
9.1. The GLOCAL Strategy.......................................................................................................21
9.2. Application of 4Ps Approach..............................................................................................22
10. Conclusion...............................................................................................................................23
References......................................................................................................................................25

4MARKETING STRATEGY EVALUATION OF TESCO
1. Company Background
1.1. Company Profile and Market Share
Tesco PLC is a renowned retail company based in UK that has business operations of
retailing and retail banking along with insurance services. The brands of the company encompass
Everyday Value, Finest, Chokablock and Technika. Tesco’s convenience store market shares are
observed to control around 34% of the grocery market (Chaffey 2015). However, recently the
only threat that is observed to be faced by Tesco in its increasing market share position is from
its competition authorities that is enforcing monopoly legislation. Tesco has the international
retail market position of being the most admired company because of its quality of gods and
services offered along with its unity of marketing. Its success in UK market is through shifting to
“higher margin” non-food merchandise and its core business is m maintaining low prices,
cultivating consumer loyalty along with offering distinct store concepts like insurance and
banking. In the recent years Tesco has more than 2646 stores all over the world with 490 gas
stations, 25 distribution centres, and 13 other stores along with its website (Tesco plc. 2019).
Moreover the company also has around 700 convenience stores all through the world like in
Wales, England and Scotland. In the current year, the retail organisation has 28% of its market
distribution in terms of sales in UK and in international markets.
1.2. Market Position of Tesco
The marketing strategy of Tesco to attain international business success has always been
focussed on promoting its brand message of “Every Little Helps” to strength is core traditional
competitive edge in the marketplace. The retail brand based in UK also focussed on developing a
marketing strategy to position its brand as a “high-volume and low-cost” retailer that offers

5MARKETING STRATEGY EVALUATION OF TESCO
exceptional value and finest retail product ranges at affordable prices. Through positioning itself
as the leading supermarket in UK, Tesco has attained around 55.9 billion revenue internationally
in the recent year (Chaffey 2016). The company has also expanded its business operation from
just being a food retailer to include products and services such as financial services mobile
telecommunication product services along with data analytics. Tesco has successfully expanded
globally holding a leading international market position through ensuring continuous offering of
competitive products with smarter prices, better service and improved quality. The objective of
the company is to expand its successful business in the prospective market where it has not yet
established its business operations, such as in France.
2. Task 1: Introduction
2.1. International Marketing Mix
International marketing mix is referred as the use of distinct marketing instruments in
order to attain prospective financial results by the organisations operating within the international
markets (Datta and Sanyal 2016). These instruments encompass product, price, place and
promotion. The international marketing mix strategies facilitate companies in adjusting its
marketing strategies for adapting to the business environment in other nations.