Global Marketing: Tesco's Strategies and Market Entry Analysis

This report provides a comprehensive analysis of global marketing strategies, focusing on the case of Tesco. It begins with an introduction to global marketing concepts and explores Tesco's globalization efforts, highlighting its operations in various countries and the factors influencing its market entry decisions. The report delves into specific aspects such as political risks, trade barriers, and the BRIC economies, particularly India. It examines factors affecting foreign market entry mode decisions, including political, economic, social, technological, environmental, and legal considerations. Furthermore, the report investigates the use of franchising as a market entry method, using Burberry as an example, and discusses its advantages and disadvantages. The report concludes with an overview of Tesco's global marketing strategies and recommendations for future growth.

GLOBAL MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
Portfolio Entry 1..............................................................................................................................2
Portfolio Entry 2..............................................................................................................................3
Portfolio Entry 3 .............................................................................................................................4
Portfolio Entry 4..............................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................7

INTRODUCTION
Global Marketing is the process of adjusting marketing strategies of company to adapt
conditions of other nations. The process is more than selling products and services globally.
Tesco is British multinational groceries along with general merchandise in Welwyn Garden City,
Hertfordshire, England, United Kingdom. The report will cover development of global marketing
concept along with the use of academic sources. Further illustration from real business world
will be addressed supporting portfolio entry. Further the study will address chosen company's
factors affecting entry decision for foreign market. Finally, conclusion is withdrawn for use of
market to install franchise along with its advantages and disadvantages.
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Portfolio Entry 1
Task
1. Explain the development of global marketing concept.
Global marketing is concept of marketing in targeted markets through the world for
business purposes. To boost business activities throughout globe managers, need to recognise
and act upon international opportunities along with competition in foreign markets (Canel, Bejou
and Khumawala, 2015). In context of growth and survival, it has required to analyse about the
process of global marketing which applicable for adopting strategy for increasing performance
and capabilities.
Globalization concept for Tesco
Globalization is spread of products, information, technology and jobs through national
cultures and boards. The concept is interdependence of nation around globe forecasting by free
trade (De Mooij, 2018).
Tesco dealing in multinational groceries along with general merchandise for food
retailing in country will lead to create values for their customers by operating global sales along
with market share of domestic type.
Tesco to operate its business activities works runs its operations in Czech Republic,
France, Hungary, Poland, Slovakia, Iceland, China, Hong Kong, India, Japan, Malaysia, South
Korea, Pakistan, Thailand, Taiwan, United States and Turkey. The business type is segmented as
the priorities of consumers along with patterns of daily living (De Mooij, 2018).
As to justify globalization concept in Tesco
 Czech republic will expand business operation for non food items as they have already
been operating petrol stations along with several financial services in Czech republic
along with Prague, Brno and Plzen.
 Tesco in France is selling wine, beer and spirits that was further closed on 30 august
2010.
 Tesco in Hungary offers clothing line along with personal financial services. Poland Tesco outlet deals in petrol, personal financial services along with on line photo
processing.
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Tesco in Hungary is offering clothing and personal financial services.
The type of business activity by Tesco will lead to grow their business operation as they
moulded their business pattern focusing on customer's requirement. These practices in Hungary
will lead to expansion of business in special and organized manner to enter new market and set
it's feet. The type will lead Tesco ensuring financial services to individual to grow their business
type in Hungary by specialized business form. The globalization process will help for improving
the services of providing clothes and personal financial services to business establishment.
2. Research upon global marketing concept.
Global marketing concept is overall framework for international enterprise adopting
introduction, design, distribution, promotion along with maintenance to introduce products to
global arena whereas global marketing is just process of adjusting market strategies for
companies to adapt in other countries conditions (De Mooij, 2019).
Tesco on their entry into international market will lead to consider several factors such as
-
 Size of the firm of Tesco for specific international market along with pre determined
global experiences.
 The ability to take risks along with measures to control them in organized manner as
well.
 Barriers for trade in specific country along with its work environment in Tesco.
Marketing selection:
 TESCO is operating is operating the
Hungary for increasing number of
customers so as develop business in
global marketplace.
 It also operating the market of Japan for
providing better services and products.
 The largest growth occurs in china
where increasing number of demand of
goods and services.
 It has rapidly growing the business in
Japan market by implementing
innovative idea.
Table:1
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Marketing strategies:
TESCO must use effective marketing strategy that mainly focused on the product quality
and services. It mainly used communication which promote the product to target the customers.
It involves different methods of marketing such as sales promotions, advertising, public relation
and direct marketing through internet.
Portfolio Entry 2
1. Emerging brisk markets – India
a. background of chosen brick country
BRIC is economic initialization developing countries of Brazil, Russia, India and China.
India with increase services of export along with foreign investments has been justified main
reason for growth of nation's economy. The economy country is expected to continue the
business for rapidly increasing demand of customers in global marketplace. The growth
population is about 1.6% in 2010 (George and Cherian, 2017).
.
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b. Political risks of India
Tesco has expanding their business in new Market of India where it become easier to
deals with large number of customer and increase sales because many people aware about brand
value and reputation. Another advantage is that having a lot of experience when how to deals
with the supplier and provide the better quality of services to customer in other country.
Sometimes, it quite difficult when how people think about products and services.
Apart from that there are some disadvantages of UK based company face many
challenges related to corruption, tariff barrier, law of education, trade control, law of
discrimination, law of employment, law for data protection, law for health and safety, law for
environment, regulation of competition, regulation and deregulation, policies of tax. These are
different types of policies and procedures directly effects on the overall business. (George and
Cherian, 2017).
c. Trade Tariff and Non-tariff barriers between UK and India.
UK has no investment or trade barriers and even no restrictions on the transfer of profits
and capital. The few barriers that exist is to be implemented by elected union of UK to follow
their directives and regulations whereas in India Non-Tariff barriers or restriction of goods are
imposed through import licensing requirements which is one of the most common restriction in
India. Although now India has removed restriction which concerns to import licensing for most
of the consumer goods (Gillespie, 2015).
Portfolio Entry 3
1. Tesco
Tesco plc trading as Tesco is general merchandise and multinational groceries headquartered
Welwyn Garden City, Hertfordshire, England, United Kingdom sis the third largest retailer of the
word dealing in gross revenues. The company deals in groceries, F&F clothing, Tesco Club card,
Tesco bank, Tesco Mobile, recipes, Tesco photos, Tesco magazines, Delivery save etc. (Harris,
2015).
2. Factors affecting foreign market entry mode decision.
Tesco to operate its business activities in India will have to take following activists
Political factors
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Tesco to operate its business operation in India will have to consider government
policies, political stability, taxation policies, labour laws along with occurrence of trade
restrictions. These policies formulated by government of India will monitor the business
expansion of Tesco in their respective lands (Kraak, Rincón‐Gallardo Patiño and Sacks, 2019).
Economic factors
To regulate business operation in India with its main branch in UK will have to consider
following practices to establish business operation n their place such as economic growth of
India, differences in their economic and interest rates, inflation rate of the nation along with their
disposable income. The operational activity of Tesco for their business operation will be affected
by the employment ration in the nation and willingness of people for such working conditions
(Kraak, Rincón‐Gallardo Patiño and Sacks, 2019).
Social factors
Tesco for their operational activities for India will have to re consider their products and
services along with population growth rate of the place, business operation will also be affected
by carrier attitudes of people along with safety and health emphasis of their business operations.
Tesco will also be affected by their operational activities due to lifestyle attitudes and cultural
barriers in the place of business operations (Lasserre, 2017).
Technological factors
Technological factors are always from place to place affecting business operations and
decision making of Tesco operating in various geographical locations. The operation of Tesco
will have to identify level of innovation in place of operation activity i.e. India along with
adaptability from people (Rao-Nicholson and Khan, 2017).
Environmental factors
Factors such as weather conditions and climate along with changes in environmental type
will lead to affecting business operations of Tesco in India. Changes in environment in India
along with adaptability of environment from people will play a vital role on sale of products and
services of Tesco which also encompasses pressure from N Go's along with several policies to
protect the environment (Schlegelmilch, 2016).
Legal factors
Tesco to operate commercial activities in India land will have to consider several laws
and regulations followed in their land that are discrimination al laws, employment laws, antitrust
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laws, copyright and patent laws, consumer protection law along with laws protecting health and
safety of people working from them (Shultz and et.al., 2015).
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External factor:
It is based on the social culture which is similar to other countries those who have similar
enterprises and industrial practices. Social cultural differences occur in between organization’s
home country and also create uncertainty in the organization (Smolin, 2015).
Country risk and demand uncertainty
It usually perceived the risk that other domestic market which face problem not only market
but also part of involvement (Smolin, 2015).
Transaction specific factors
It is based on specific variables which difficult to maintain service quality and also shown
evaluation to increase the establishing the owned subsidiaries. It also evaluates about the own
subsidiaries which required to high resource requirements (Smolin, 2015).
Portfolio Entry 4
1. Dedicated markets Burberry chose franchise method to operate business operations in several
countries.
New York – Being ranked number one reattaining title after losing streak among Milan, Ny
York is the best place to operate business type to attain more and more customers so Burberry
gain competitive advantage.
Los Angeles – As ranked number five in the world due to enormous impact of film industry's
fashion world can gain attention for Burberry's market.
Miami – Due to attachment of garment market as largest market for swimwear will gain
business advantages for Burberry for their business operations type and help them gain attention
and withdraw business as well (Smolin, 2015).
2.Advantages and Disadvantages of using franchise as entry methods for business operations.
The Burberry using Franchise method for business entry includes following advantages -
Growth of business
By the use of franchise method Burberry can operate business operations in cost effective
manner to generate addition sales along with additional profits for business retention for sell able
assets in the future (Steenkamp, 2017).
Purchasing power
Burberry larger business secured the parameters of these business practices for their
further generate additional turnover for their business type along with generation of access
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profits for their future development and betterment business activities. These deals provide
access to larger business opportunities for their future expansion and growth of their type of
business operations alongside (Steenkamp, 2017).
Easire management
Burberry with implementation of franchise for their business operations can reduce
management demands placed for their business operations. These Burberry developed high
motivation for their local expertise making their life convenient and easier as well (Canel, Bejou
and Khumawala, 2015).
Costs
By operational activities through franchise methods Burberry can help meet the cost
along with collection of its respective incomes. The Burberry will also attain cost of Franchises
at the time of their receivable of their franchise cost alongside as well (Canel, Bejou and
Khumawala, 2015).
Disadvantages of operating business operation by franchise methods.
Training and support
Burberry will have to develop along with deliver training and development along with
additional support for their franchisees to successfully sell their brand products. Burberry need to
establish systems along with procedures to place copies by majority of people for running their
business operations for further growth and development as well alongside (De Mooij, 2018).
3.Benefits of opening franchise business.
Burberry have assessed following benefits of opening franchise business for long run such as:
Support from others
Burberry by isolating their business type will lead to isolation of owner for their support
along with advice for type of their specific business operations alongside.
Time
Franchising of Burberry will acquire lot of time and practices along with their arranging
of investment for setting of model of franchise foe business operations of their type as well. The
investor need to also assess that they attain right franchise for their business operation otherwise
they will lose their money and resources responsible for their further development and
betterment activities as well (De Mooij, 2019).
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CONCLUSION
The above study concluded that research of global marketing concept along with the
ability of take risks and deal with barriers in specific country of operation to deal with the
environment. Further the report addressed the effect of decision making on foreign market by the
use of PESTLE analysis. The report also addressed advantages of franchise method such as
purchasing power, easy management along with better training and development but on the other
hand involvement if time and no support from other creates a fuss in the process.
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