Tesco's Market Analysis: UK and Japan - Global Marketing Strategies

This report provides a detailed comparative analysis of Tesco's global marketing strategies, focusing on the UK and Japan markets. It begins with an introduction to global marketing and the company profile of Tesco. The main body of the report includes a comparison of Tesco's operations in the UK and Japan, analyzing market segmentation, consumer spending power, infrastructure, language, and lifestyle factors. It then evaluates various market entry methods, such as direct exporting, licensing, franchising, partnering, joint ventures, buying a firm, and Greenfield investments. The report also reviews effective marketing strategies like social media marketing, video tutorials, and leveraging influencers. The conclusion synthesizes the findings, highlighting the differences between the target markets and recommending further expansion within the UK market. The report is supported by a comprehensive list of references, including books and journals related to global marketing and consumer behavior.

AS2 – Investigative
Report

Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Comparison between Tesco in UK and Tesco in Japan.........................................................2
Evaluate methods of market entry..........................................................................................4
Review of marketing strategies..............................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

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INTRODUCTION
Global marketing is defined as field of study in general business management that market
goods, solutions of social problems, services to customers based on local, national and globally.
It is the application of marketing principles in more than one country by companies overseas or
across nation boarders. It is important for exporting products and goods of company into other
locations of get entry through a joint venture with another firm within a new country (Agarwal
and 2018).
Tesco plc is known as trading company of Britain that deals in groceries and general
merchandise retailer with headquartering in Welwyn Garden city, England. It considered as the
third largest retailer worldwide measured by gross revenues and ninth largest in the world
measured based on revenues. Tesco has 6, 391.1 crore GBP revenues till 2019.
This report is based on choosing best market for Tesco based on comparison between
both international markets. Selection criteria are considered within this report to support
comparison. Furthermore based on research which market to be chosen by firm is explained. In
addition market analysis, review potential marketing strategies are considered within the report.
MAIN BODY
Comparison between Tesco in UK and Tesco in Japan.
Selection criteria for Tesco plc
Market segmentation or selection is the process of understanding characteristics and
demands of different people within a nation. Tesco collects information from loyalty cards
schemes and identifies buying habits of consumers and their behavioural patterns that are used to
segmenting customers based on their needs and wants. In order to select target customers
respective organisation used to divide customers within several groups so as to focus on
particular segment. Tesco plc is largest food retailer in UK, and operating its stores in various
nations with best performance (De Mooij, 2018). Tesco hold effective brand image within
society so as to develop trust and gain loyalty from customers. Thus it targets its customers every
effectively based on several criteria’s like income level of customers, their purchasing habits,
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lifestyles and social values or beliefs that leads positive impact over firm position. Keys of
successful positioning are clear, consistence, credible and competitiveness. Repositioning is
carried out when needs and expectations of customers are changed. It includes product
positioning, intangible repositioning, and tangible repositioning.
Tesco operates its business in UK with well established brand image and repudiation that is
significantly different from Tesco in Japan is explained as following table:
Selection criteria Tesco in UK Tesco in Japan
Demographics Tesco operated its business
effectively within UK in urban as
well as rural areas with having more
than 2000 stores so as to offer goods
and services for upper to lower class
people in order to make their lives
better.
While based on Japan target markets
of Tesco plc has broad expansion as
100 supermarkets in Japan under the
name of “Tsurukame” based on plan
to introduce its Tesco Express stores
to world’s second largest economy.
Consumer spending power Based on consumer spending power
Tesco targets customers that have
low as well as middle income so as
to afford products and services for
their betterment of regular lives.
On contrary of Tesco plc in UK
target markets of Japan is based on
people who have ability to spend
more on premium brand and
products with having own logo and
brand name (Green and Keegan,
2019).
Infrastructure When it comes to infrastructure
Tesco plc targets markets or areas of
urban as well as rural so as to meet
expectations of customers and
satisfying them with offering of
better quality and productivity
Kasemsap, 2018).
While as compared to UK Tesco plc
in Japan focused on growing stores
in different areas of country where
there are living customers who have
high earnings and required effective
products to raise their living
standards.
Language Tesco plc in UK focuses on different
languages. For instance in Spain
company has to focus Spanish while
in terms of selling in France it needs
to focus on French. Thus based on
language respective firm uses
different languages for establishment
of several brands within different
On comparison with Tesco in UK,
Japan Tesco plc focuses on wining
customers loyalty through focusing
on selling effective goods and
services in their own language so as
to make them easy to understand
what is the brand and how it is
different from competitors.
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areas of nation.
Lifestyle When it comes to lifestyle and living
patterns of individuals Tesco target
customers who beliefs on
traditionalists and contended
conformers.
While lifestyle of customers in Japan
is based on aversion to risk by Tesco
plc in order to win new customers
through offering them effective
quality of product and services
(Keegan, 2017).
Although above comparison between target markets of Tesco plc in both UK and Japan, it is
observed that UK has more opportunities for long term sustainability of business that leads to
effectiveness in firm’s position and brand image. As above discussion shows UK’s market is
more towards acceptance of traditional and classical designs and materials, it has broader place
within retail market that leads to prominent impact over future growth and sustainability of firm.
Thus it is recommended for Tesco plc to choose further expansions within native country UK
due to high demand of its goods and services within country. This will leads prominent influence
over performance and brand existence of respective organisation and helps to maximise profits &
market shares.
Evaluate methods of market entry
There are variety of methods to enter into new and foreign market based on variety of
factors that impacts strategic choices, tariff rates, degree of adaptation of products, marketing
and transportation costs (Mothersbaugh, Hawkin and Kleiser, 2019). These factors enhance the
selling cost of goods and services. In terms of Tesco plc there are various options to enter into
new and fresh market is discussed below:
Direct exporting: It is the method of selling direct into international market. Business
organisations have to establish and formulate sales programs turn to distributors and agents to
represent them within market. Distributors and agents work together with representation of
interest of firm. This is an effective way for respective organisation to enter into new and
different market internationally for raising market share and profit of firm.
Licensing: Another significant method to enter into international market is licensing based on
transferring the rights to use of products and services of other firms. It is a useful and effective
strategy for purchaser of license relatively large market shares in the market within which it
wants to enter. Licensing is needed for marketing and production of goods and products. Thus it
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is also a beneficial method for respective organisation to get entry into new markets ( Ratten,
2017).
Franchising: It is related to process of rapid market expansion. Franchising works well for
business firms that have repetitive business models that can be easily transferable into other
markets. There are two caution of using franchising model. First one is the business model
should be unique or has strong brand recognition can be utilised internationally and second one
is to creating future competition within franchisee. This reflects as effective method for
respective firm to enter into international markets.
Partnering: It is necessary when organisation wants to enter into foreign markets. It takes
variety of forms from a simple co-marketing arrangement to sophisticated strategic alliances for
manufacturing. Partnering is particularly important for those markets where business and social
culture is substantively different from local partners bring local market knowledge, contacts and
helps to choose customers effectively. In terms of respective organisation it is also an important
technique of entering into foreign markets with ability to succeed for long term.
Joint ventures: Another significant method of entering new market is joint venture with other
firms mostly between those who have similarities in their structure, culture and business patterns.
This helps to raise market share and profits of firm with attainment of large customer base. Risks
and profits are equally share between both firms. Thus for respective company it is important
method to get enter into international market with capability of future expansion and long term
sustainability.
Buying a firm: In some markets buying a local firm which is already exists is reflecting as an
effective method of enter into new market and country. This may be because of the firm has
sustainable market shares, are reflects as direct competitor for firm due to rules & regulations of
government reflect as the only option for firm to enter into new market.
Greenfield investment: It requires greatest involvement of in international market. A Greenfield
investment is where a firm can buy land and build the facility & operate business on an ongoing
basis in a foreign market. It is costly approach associated with higher risk but some markets may
needs to take high risk and cost as per governmental rules and legislations.
Review of marketing strategies
Marketing strategy is refers as long term, forward looking method of any organisation
with fundamental objective to achieve sustainable competitive benefits through understanding
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needs and wants of customers (Zaveri and Amin, 2019). In terms of Tesco plc following are the
best marketing strategies:
Using social media: In this era of advance technology everyone uses social media platforms and
spends hours in a day. It is effective way to market and promote goods and services on social
media platforms for creating awareness of its goods and services. It allows customers directly
give orders through direct messages. This helps to save time as well cost of marketing of
products and services.
Creating video tutorials: Another important marketing strategy that helps business
organisations to create awareness of its goods and services towards fulfilment of business
objectives and satisfying needs and wants of customers in effective manner. YouTube is best
way to provide video contents for promoting of products and services so as to create brand
awareness in front of customers.
Leverage influencers: In order to create brand awareness worldwide the best marketing strategy
is to find out influencers in order to target right audience for right products and services. This not
only helps in spreading message of firm but also helpful for selecting right audience for whom
the message is to be deliver.
CONCLUSION
Although above report it is observed that global marketing is effective approach that
helps to marketing and promotion of goods and services at international level that has prominent
impact over business performance. There are several differences between target markets of firm
based on different factors of countries such as- geographical, demographical differences etc.
further different method of getting entre into foreign markets are considered within report with
additional consideration on marketing strategies for new markets.
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REFERENCES
Books and Journals
Agarwal, J. and Wu, T., 2018. The changing nature of global marketing: a new perspective.
In Emerging Issues in Global Marketing (pp. 3-11). Springer, Cham.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Green, M.C. and Keegan, W.J., 2019. Global Marketing. Pearson.
Kasemsap, K., 2018. The roles of social media marketing and brand management in global
marketing. In Social media marketing: Breakthroughs in research and practice (pp. 425-
453). IGI Global.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Mothersbaugh, D.L., Hawkin, D.I. and Kleiser, S.B., 2019. Consumer behavior: Building
marketing strategy. McGraw-Hill Higher Education.
Ratten, V., 2017. Gender entrepreneurship and global marketing. Journal of global
marketing. 30(3). pp.114-121.
Zaveri, B.N. and Amin, P.D., 2019. Global Marketing Strategy in Digital Era: Global Online
Presence. In Breaking Down Language and Cultural Barriers Through Contemporary
Global Marketing Strategies (pp. 103-112). IGI Global.
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