The Role of Strategic Marketing - Tesco

STRATEGIC MARKETING

EXECUTIVE SUMMARY
The report has discussed the company Tesco who wishes to launch a new energy drink
and energy bar into a new market that is Brazil. For this it has done a PESTLE analysis of
country Brazil to check that what will be the implications of any changes in the macro
environmental factors which has upon the company. Also, it has analysed the STP for the new
product along with some entry options into the market.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
PESTLE analysis.........................................................................................................................4
Market entry option.....................................................................................................................6
Market Segmentation, Targeting and Positioning (STP)............................................................7
Porter's Generic strategy.............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic marketing is a new and latest way of marketing within which the company tries
hard to differentiate itself from that of the competitors by working on its strengths and
overcoming its weakness and also by providing premium quality products to its customer (West,
Ford and Ibrahim, 2015). The present report is based on the company Tesco. It is company
which deals in groceries and general merchandising which was founded by Jack Cohen in the
year 1919. The present report will outline the Tesco launching a new energy bar and energy
drink in Brazil. The report will start by outlining the macro environmental factors which may
affect the new product of Tesco. Further it will analyse some market entry option for Tesco.
Further it will analyse the STP analysis for Tesco that who will be its target. At last, it will
discuss the Porter's generic strategy and how it benefits company in expanding its business in
Brazil.
MAIN BODY
PESTLE analysis
The PESTLE analysis is an analytical tool used by companies in order to study and
understand the impact and effects of any change in the macro or external environment on the
working and operations of the business. This analysis is mainly helpful for the companies who
want to expand into a new market or a new country. Since Tesco wants to launch a new product
that is Energy drink and energy bars in Brazil. So before launching the product in the country it
first needs to study and analyse the fact that whether the macro environmental factors will
support the new product or not. So the PESTLE analysis of Brazil is as follows-
Political- these are the factors which studies the interference of government and other
aspects relating to politics that affects and impacts the working and operations of the proposed
product or service. These also includes instability in politics, corruptions, government policies,
foreign trade policies and many more other options. The country Brazil is a member of many
international organizations like World Trade Organizations, BRICS, International Monetary
Funds and many more other international organizations. The country enjoys a strong political
relation with United Kingdom. With the benefit there is also negative impact that there is much
corruption in the country (PESTEL analysis of Brazil, 2018).
Economical- these are the factors which determines the performance of whole country.
Under the economic factors comes forces like changes in interest rates, economic growth rates,