MKT3040 Global Marketing Report: Tesco Internationalization

This report provides a comprehensive analysis of Tesco's global marketing strategies. It begins with an introduction to the company, followed by an examination of the global marketing model, utilizing the PESTLE framework to analyze the political, economic, social, technological, environmental, and legal factors influencing Tesco's operations in both the United Kingdom and the United States. The report then delves into various methods of market entry, including exporting, joint ventures, and merging, recommending a joint venture strategy for Tesco's expansion into the United States. Furthermore, it explores Tesco's marketing strategies, including product, price, promotion, place, people, physical evidence, and process, providing insights into their application. The report concludes with a summary of key findings and recommendations, emphasizing the importance of adapting marketing strategies to different international markets and the potential benefits of a joint venture approach for Tesco's international growth.

GLOBAL MARKETING

EXECUTIVE SUMMARY
This is a report on the marketing strategies which are used by organizations in the market
so that they can have a better functioning which is a very essential factor for the organization.
There are a lot of competitors which are increasing in the market which have to be considered so
that organizations can plan accordingly. There have to be plans which have to be made in
advance so that the organizations can work in one direction and get a high profit margin in
market.

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
Global marketing model..........................................................................................................................4
Methods of market entry..........................................................................................................................6
Marketing strategies................................................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
There are a lot of strategies and analyses of markets and companies which the
organization has to do before they expand themselves in other countries. To get more customers
and profit margins the establishment takes these decisions so that they can have a better
functioning. Tesco is an international organization which is having its headquarters in England
United Kingdom. There are more than 6,800 stores and number of employees working is more
than 450,000. The further report is going to discuss the models and entry strategies which the
organization has to decide to expand themselves in other market.
MAIN BODY
Global marketing model
It is very important to understand the two different international markets with the help of
PESTLE tool so that the organization can make decisions for the organizations accordingly
which is going to help the organization to have a better functioning. The following report is
going to discuss Tesco’s pestle in the context of both the internal markets the company has
expanded into.
PESTLE United Kingdom Market United States Market
Political factors There taxations in the country are
also high which is why the
organization finds it difficult for
themselves to make the products
reach the customers on time (Green
and Keegan, 2019). This is a very
costly factor for Tesco to reach out.
Due to Brexit there are a lot of
changes which have taken place in
the political power of the company.
The taxation policies are liberal in
the country which is why it is going
to be very beneficial for the
company to expand themselves in
this country. The political powers
are also stable in the country which
is a great factor for Tesco. Getting
inventories from China and East
Asia is also not going to be a
problem for the business.

Economic factors There is a lot of loss which Tesco has
faced in United Kingdom Market
which is a bad factor for the
organization due to Brexit. It is
because of Brexit the economy of the
country has fallen as compared to the
economy of US. Wages rate have
increased in 2018 by 4.4% for the
employees who are 25 and onwards.
Free trade policies in the market
have made the organization expand
in this market effectively which is a
great factor. The GDP of the
country is good which is why
expanding in US is going to make
the organization have higher
revenue.
Social factors The demand for the products of the
company is more in this country
because they are aware of the brand
origin. The returning policy can
attract a lot of customers because
they are more health conscious which
a very good factor is for the
company. There are 65% of the
shoppers which are loyal to the
organization which can make the
organization get a competitive
advantage in the market.
Satisfaction and feedbacks of the
customers are regular which is
going to help Tesco to improve
according to the customers demand.
The returning policies which Tesco
has started are going to be misused
in this country (Hopkins, 2017).
Getting online in US is going to be
more effective and get more
revenue because the society is more
technology friendly.
Technological
factors
There are apps which have been
making in the country so that the
customers can be satisfied more and
can even track their orders online live
which is a great advantage for the
organization. There are sales which
are provided to the customers and the
employees are taken care of as well
so that the organization can control
their labour turnover.
The technological changes in the
organization are going to be good
because investment is not going to
be that high since US is very good
with improved technologies. There
is self check out machines in US
which is more satisfaction for the
customers and Tesco would be
using the best of technology so that
they can find a strong base for

themselves in the country.
Environmental
factors
The organization is collecting unused
and unwanted plastic bags for the
customers so that the production of
these products can be minimised
(Rakic and Rakic, 2019).
The organization would be using
the right environmental friendly
technologies in the organization so
that there is a better functioning.
Legal factors The labour laws and the customer’s
rights are strictly followed in this
country which is a great factor for the
organization and keeps the stability in
the organizations operations. Any
sort of discrimination has strict
consequences which is a great factor
for the employees of the organization.
The labour laws are misused
according to their needs but they are
paid extra and higher so that gives
the motivation to the employees to
work more. Packaging will have all
the details of the products on it so
that the customers are satisfied
which is a very essential factor for
the organization.
Methods of market entry
There are a lot of ways through which an organization can enter market and expand
themselves in other countries. This is done by organization so that they can get more customers,
the brand gets recognition globally and the organization will be able to have high profit margins
(Samiee, 2019). It is very important for the organization to have high profit margins and more
loyal customers in the company which is going to make the organization be able to function
smoothly and stability is the market will be maintained. The different methods of doing this are
going to be discussed in the further report.
 Exporting
There are two types of exporting indirect exporting and direct exporting which the
organizations do so that they can sell their products in other countries. There are a lot of
advantages and disadvantages which the organization can have while doing this exporting in
other countries (Ozuem, 2016). Advantages: There are high chances of getting higher profit
margins and the satisfaction of the customers is also higher because they tend to understand both

the parties. Disadvantages: It requires a lot of efforts to get a strong customer base, the
feedbacks gets difficult for the organization to handle and there is a requirement of handling by
the organization on all the levels of the operations in this kind of entry method.
 Joint ventures
There is an involvement of a third party in the organization and there has to be a fair
partnership in this process. There will an involvement of other opinions in the decision making
of the organization as well. Advantages: This can be temporary but they are mostly not in that
nature. Both the parties have to share the costs and risks which are being taken in the
organization. Disadvantages: The flexibility in the organization can be lost which is not good
for productivity in the organization. There can be a clash in the culture of the two different
organizations and lack of communication is not good for organizations when they have to meet
the demands of the customers.
 Merging
When two organizations come together to functioning in the market and give competition to
the big businesses in the industry. Advantages: There are going to be lower risks in using
innovative techniques in the organization because there is going to be a lot of knowledge and
experience which is going to be shared in the organization (Hartsfield, Johansen and Knight,
2017). Disadvantages: There are a lot of conflicts which can rise and that may affect the
functioning of the organization.
Recommendation
It is very essential for Tesco to joint venture with another retailer so that they can expand
themselves in the market of United States. This is going to help the organization have more loyal
customers because the objective of the organization is to provide the customers with the best of
services at low price. Joint venture is going to make the expansion of the organization not just
simpler but also make the organization have a better functioning and capture the market of the
country easily. Later the organization can leave the venture and the organization gets a better a
better stand for them in a new market all together (Sredl, 2019). This is going to reduce the risks
and the organization will have a stronger portfolio and stability in the market.

Marketing strategies
Marketing strategy is a tool which is used by organizations to help them understand the
market in other countries which is going to be very helpful. Marketing mix is a great factor for
the organization to understand them and plan for the future effectively and lower their risks in
the market.
 Products
The organization would be focused on expanding the organization online which is going to
help the organization to have a better functioning. The organization gets in a lot of innovation
according to the needs and demands of the customers which is going to be very good for Tesco.
This is also going to get loyal customers and the revenue will increase which can be used for
investment in expanding or technological updating. The products of Tesco are of high quality
and the organization improves them from time to time according to the taste of customers.
 Price
The strategic plan for pricing which is being used by Tesco is low pricing for the products so
that the organization can get in more customers and make them loyal to the organization which is
a very essential factor (Lin, Swarna and Bruning, 2017). The GDP is well analyses by Tesco
before they expand themselves in those countries which give the establishment a better future run
in market. When the prices rise the customers tend to shift from one organization to another but
Tesco takes care of that factor while pricing their products.
 Promotions
There are campaigns which are held by Tesco from time to time so that they can spread the
awareness of the changes which the organization get in the business. There are a lot of sales and
discounts which Tesco puts out for the customers to have a better experience with the
organization which is a great factor.
 Place

There are online and offline services which the organization has which are making the
organization have a large customer base and satisfaction and loyalty of the customers. There is a
lot of investment which is being done by Tesco so that they can increase the number of stores in
other countries as well so that they can have a better functioning (Li, 2016).
 People
There are a lot of privileges which are being given to the customers and the employees of the
organization so that there is a high productivity and operations of Tesco. There are high
competent and to get a competitive advantage there are strong strategies which are being used by
Tesco so that they can have a better functioning.
 Physical Evidence
The decoration of Tesco is not as much as of Sainsbury’s in the market but it is good enough
and comfortable for the customers who come in the organization (Tuten and Solomon, 2017).
There is an ease which can be found in Tesco and the cleanliness in the organization is a good
attractive factor of the organization. The logo and other factors which are visible to the
customers are attractive enough which a great advantage is.
 Process
The functioning of the organization is maintained online as well as offline so that they can
satisfy the customers effectively. It is very important that the billing lines in the stores are not
long and they should not be time consuming which is why the organization has come up with
wonderful ideas and new technology to make the customers experience better.
CONCLUSION
From the above report it can be concluded that there is a need for the organizations to
understand the market they would be entering into and make the decisions accordingly so that
they can have a better functioning. There has to be a plan in the company so that they can
effectively have a better functioning for themselves which is going to be very effective.

REFERENCES
Books and Journals
Armstrong, G.M and et.al., 2018. Marketing: an introduction. Pearson UK.
Green, M.C. and Keegan, W.J., 2019. Global marketing. Pearson.
Hartsfield, S., Johansen, D. and Knight, G., 2017. Entrepreneurial orientation, strategy, and
marketing capabilities in the performance of born global firms. International Business:
Research, Teaching, and Practice. 2(1). pp.12-38.
Hopkins, R.A., 2017. Look at Global Marketing. In Grow Your Global Markets (pp. 35-52).
Apress, Berkeley, CA.
Li, Y., 2016. Global consumer behaviour in luxury goods markets. In Global Marketing
Strategies for the Promotion of Luxury Goods (pp. 1-28). IGI Global.
Lin, H.C., Swarna, H. and Bruning, P.F., 2017. Taking a global view on brand post popularity:
Six social media brand post practices for global markets. Business Horizons. 60(5).
pp.621-633.
Ozuem, W. ed., 2016. Competitive social media marketing strategies. IGI Global.
Rakic, B. and Rakic, M., 2019, June. MARKETING BRIDGE OF GLOBAL COMPANIES
FROM WEST TO EAST: CREATE, COPY AND PASTE OF GLOBAL CONSUMER
CULTURE. In TISC-Tourism International Scientific Conference Vrnjačka Banja (Vol.
4, No. 1, pp. 571-588).
Samiee, S., 2019. Reflections on global brands, global consumer culture and
globalization. International Marketing Review.
Sredl, K.C., 2019. Gender East and West: transnational gender theory and global marketing
research. In Handbook of Research on Gender and Marketing. Edward Elgar
Publishing.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.