Customer Perceptions and Tesco's Approach to International Markets

This report analyzes customer perceptions regarding Tesco's international market entry strategies. It begins with an introduction outlining the background, nature, and importance of the study, along with its aims and objectives. The literature review explores the concept of customer perception, various market entry modes (joint ventures, exporting, franchising, and acquisitions), customer perceptions of Tesco's approach, and suggestions for altering customer perceptions. The methodology section discusses the research approach. The findings are presented, followed by recommendations and reflections. The report concludes by summarizing the key findings and insights, offering a comprehensive overview of Tesco's global market entry challenges and opportunities, and drawing upon academic literature to support its arguments.

MANAGING A
SUCCESSFUL
BUSINESS
PROJECT

Table of Contents
TASK 2 ...........................................................................................................................................3
Chapter 1 : Introduction.............................................................................................................3
Chapter 2 : Literature review......................................................................................................5
Chapter 3 : Methodology ...........................................................................................................8
Chapter 5: Recommendations...................................................................................................22
Chapter 6 : Reflections..............................................................................................................23
CONCLUSIONS............................................................................................................................24
REFERENCES..............................................................................................................................25

TASK 2
Chapter 1 : Introduction
Background of the study
In present competitive business environment, many of organization is planning to expand
business in new market in order to escape themselves from competitions. But due to intense
competitions as well as continuous changes in business environment , many of the firm in retail
sector is facing issues in determining the best way to enter into intentional market, Therefore,
some enterprises such as Tesco has decided to seek suggestions from the customers in order to
identify the approach which an enterprise can implement for entering into global market.
Selection of the best entry mode is very much crucial for company in order to achieve success in
global market.
Seeking the advice from the customers is considered to be as one of the best strategy
which will help management in addressing the best mode as well as approach for entering into
international market. It is the tactics that will also assist firm in analysing the perceptions of
customers about the various mode of entry adopted by enterprises for entering into international
market (Mas-Ruiz, Ruiz-Conde and Calderón-Martínez, 2018.). By seeking the advice from the
customers an organization can engage customers in business which is considered to be
beneficial for the growth of business in global market. Earlier, Market research was the tactics
which can be utilized by an organization for gathering the information about the customers
perceptions about the entry mode as well as approach which an enterprise can adopt for
expanding business in international market. But now a days' organization uses social media
platform for collecting the information about customers belief about the best entry approach as
well as mode that firm can implement for entering into market of other country.
The research report emphasizes on analysing the customers perceptions about the way an
organization should enter into international market in context of Tesco. It is basically a
multinational British organization operating business in internation market. The different
methods or techniques which is applied by researcher will be highlighted in the research report.
Nature of the problem
Selection of the research methodology is completely based on the nature of topic.

In addition to this, the type of investigation to be performed is also based on the nature of
problem being selected for conducting the research. In context of present study, The topic chosen
that is analysing the customer perception about way an organization should enter into
international make is qualitative in nature. Theretofore, research will perform qualitative
investigation. Qualitative research will be performed because it provides investigator an ease in
collection of data related to the subject. In addition to this, other reason for choosing to execute
qualitative study is that it provides investigator an ease in analysing as well as interpreting data.
Importance of the investigation
The study conducted on topic has great importance as it will assist management in
analysing the perceptions of the customers about the way an enterprise can enter into
international market. In addition to this,the findings of the study will help an organization in
addressing the techniques which they can apply for changing the customers perceptions in
intentional market. Present study has great importance as it will assist researcher in developing
the understanding about the concept of customers perceptions. The study will also help
researcher in gaining the knowledge about the different modes through which companies can
enter into international market which could be helpful for them in order to improve their
academic performance.
Rationale of the study
One of the reason for selection of the specific topic is to develop the understanding about
the globalization as well as customers perceptions about the way companies should enter into
international market. The other rationale for selecting the specific topic is to eliminate the
literature review as well as it will assist in enhancing academic performance. In addition to this,
other rationale for particular topic is to support management in an enterprise in identification of
best way , approach and mode of entering into international market. In addition to this, by
conducting the investigation on specific topic researcher intend to analyse the risk as well as
benefit associated with different modes used for enterting into global market.
Aims and Objectives:
Aim : “To determine the customers perceptions about the way company should enter into
international market. A study on Tesco”.
Objectives :

 To develop the understanding about customer perception and analysing the factors
influencing the same.
 To analyse the different modes of entry through which organization can enter into global
market.
 To identify customer perception the approach which an organization can adopt foe
centring into international market.
 To suggest an alternative way Tesco can change the perceptions of customers in
international market.
Chapter 2 : Literature review
Theme 1: Concept of customer perception
As per the opinion of Panibratov, Veselova and Nefedov, 2018., customer perception
can be defined as the procedure through which an individual client of organization selects,
organize and interpret data input fort creating meaningful picture of brand. However, it has been
argued by other authors that customers perceptions is basically marketing concept which
embrace impression on customers.
According to the self perceptions' theory which is based on the assumption that value
and motivations are two important factors which positively influence an individual to make
purchase of the goods or services offered by company. However, it has been argued by other
authors that perceptions of the customers are highly effected by the way different practices are
being performed by organizations. According to the opinion of Mudambi and Zahra, 2018., the
perception of customers is highly influenced by situational factors such as change in income
level, inflation, changes in trends etc.
As per the opinion of Panibratov, Veselova and Nefedov, 2018, in context of entry mode,
the changes in the trends in the industry and increase in globalization has great effect on the
perception of customers about the entry mode which an organization should choose in order to
enter into international market.
Theme 2: Analyse the different mode of entry through which organization can enter into
global market..
According to the opinion of Verbeke, Lopez and Kundu, 2018., Joint venture is
considered to be as one of the best entry mode which can be adopted by the organization. The
author has also stated that it is the joint venture strategy which will provide firm an ease in

entering into global market. However, it has been argued by other authors that there is high risk
of conflict in context of Joint venture business that could have adverse effect on the business
performance of company in international market. According to the opinion of Elia, Larsen and
Piscitello, 2019, Joint venture is considered to be as one of the best entry mode as it will help
business entity in rebuilding its image in the internation market. Some other authors argues that
due to joint venture, there might be change in the business culture of company which might not
be liked by customers in international market. According to the opinion of Mohr and Batsakis,
2018, Joint venture is considered to be as the one of the best entry mode as through this
technique business entity can have easy access to the customer database that can be helpful in
relation to identification of suitable ways for changing the customers perceptions or attitude
towards goods or services offered by enterprise.
According to the investigation conducted by researcher Tatoglu, Sahadev and Demirbag,
2018. , results of which reveals that many of the customers perceives that exporting is
considered to be as best entry mode which can be utilised by an enterprise for entering into
international market like Spain. The author have stated that many of the clients perceives so
because they hive analysed that there re less risk as well as cost associated with entering into
international market through exporting of goods or services. However, there are few scholars
who argue that in relation to exporting as a entry mode there are high chances of fraud. As per
the view of Schwens, Brouthers. and Hollender, 2018., many of the customers in the
international market believes that firm can earn high amount of profit through direct exporting of
goods or services.
As per opinion of Magnani and Zucchella, 2019., franchising is one of the most suitable
and best option which can be used by companies for expanding business in other country. The
author have also stated that many of people think that franchising is the best entry mode for
expanding business in international market is that in enables organization to have access to
capital which is very much essential for expansion of business. However, some author argues
that lack of control on business is considered to be as oner of the biggest drawback of using
franking as a mode to enter into intentional market.
According to the study conducted by author De Mooij, 2019, results of which reveals
that many of the customers in the market perceives that acquisition is the best entry strategy
which can be applied by an enterprise for expansion of business in other market. However, it has

been argued by few of authors as well as culture, as Joint venture there is high chances of culture
clashes in relation to the implementation of strategic acquisition strategy for entering into new
market. As per opinion of Ahsan and van Wyk, 2018. , many of people perceive that by utilise
the strategic acquisitions' strategy for entering into global market an organization can benefit
from expertise as well as knowledge which can be helpful for maintaining the sustainability of
business in international market.
Theme 3: Identification of customers perceptions about the approach which can be
implemented by Tesco for entering into international market.
According to investigator conducted by the researcher Wan, Sartor, Di Mauro and
Nassimbeni, 2019. result of which reveals that customer centric is the approach which can be
utilized by an organization for entering into global market. The author has also stated that there
are approx. 60 percent of people in the market believes that by implementing the customer
centric approach for developing as well as selling the products an organization can easily enter
into international market. However, it has been argued by other authors, as enterprise is unaware
about culture as will as taste as will as preference if customers, it will be quite difficult for
enterprise to adopt such approach.
As per opinion of Mas-Ruiz, Ruiz-Conde and Calderón-Martínez, 2018, many of the
customers in international market perceives to get the quality products at low price, therefore, an
organization by launching quality products at reasonable price can easily enter into new market.
However, it has been argued by other authors that a firm can enter into global market by
launching innovative products.
Theme 4: Suggestion related to alternative way Tesco can change the perceptions of
customers about its products or services in international market.
As per the view of Panibratov, Veselova and Nefedov,2018., ethical marketing is the
practice which can be implemented by enterprise for changing the perceptions of the people in
international market. However, it has been argued by other authors as well as scholars that by
providing the quality goods at reasonable price company can change the perceptions of
customers. According to the opinion of Verbeke, Lopez and Kundu, 2018, it is required by the
company to integrate corporate social responsibility with other business strategy, as it will help
an enterprise in chancing the perception of pep[le towards brand. As per the investigation

conducted by researcher Elia, Larsen and Piscitello, 2019., findings of which reveals that
customers those considered themselves to be as more socially conscious intends to lay
emphasizes on issues such as environmental effect when making buying decisions. According to
consumer perception theory, an enterprise can adopt the green marketing strategy which will
help an organization in changing the perception of people in global market.
Chapter 3 : Methodology
Research Methodology involves development of a systematic plan which is implemented to
conduct the research successfully. A researcher must properly evaluate the study type so that
appropriate data collection methods can be formulated which will guide the individuals on whom
research has been conducted in a better manner. In this report, research has been conducted in
systematic manner and questionnaire method has been used for primary data collection. The
sample size involved 30 customers attached to the Tesco brand and the based on their response
the researcher has formulated the relevant charts and figures ((Webster, 2016)). It utilizes a
number of tools and techniques that are necessary for successfully conducting the research which
can be described as follows :-
Research Philosophy :- Research Philosophy can be defined as a process of formation of beliefs
regarding the manner in which research should be conducted i.e. the manner of data collection,
analysis and its interpretation. Research philosophy can be used to reflect. There are two major
classification of philosophies namely Interpretivism and Positivism. Interpretivism involves
implementing theories and models and emphasizes upon the qualitative aspects utilized in the
accumulating the facts and data that helps in interpreting the human tendencies. Positivism on
the other hand relates to formulation of hypothesis and taking quantitative data for further
research. In the present research, researcher has used Interpretivism method as his research
philosophy so that he could be facilitated in collection of data required for carrying research
regrading the consumer's perception of Tesco and how they can penetrate the international
markets (Zajda, 2018).
Research Approach :- It indicates the manner in which the research should be conducted and
can be categorized under two headings :- Inductive and Deductive approach. Inductive Approach
refers to implementation of different models and theories instead of formulating hypothesis. This
is linked with Interpretivism theory as it involves collection of qualitative data. Deductive
approach on the other hand refers to the hypotheses formulation by the researcher and is linked

with Positivism theory which involves quantitative data. In this research, the researcher aims on
collection of facts related to human tendency rather than quantitative data; therefore, the
researcher has used inductive approach for data evaluation.
Research Design :- There are various categories which involve creation of a research design
according to which research is conducted. There are three major categories namely descriptive,
exploratory and casual research. Descriptive research is a systematic study of the population and
determining their characteristics through observation method, case study analysis etc.
Exploratory research involves a systematic study which is used to further clarify those concepts
which are abstract in nature and casual research is used to investigate cause and effect
relationships. In this research, descriptive research design has been adopted which help in
outlining the method of conducting research. With the help of this method, research will be
assisted in properly analysing the perceptions of the consumers associated with experience in
Tesco and this helps in fulfilling the required aims and objectives of the research (Zajda, 2015).
Sampling :- Sampling process is related to selection of a particular set of individuals which will
help in successfully conducting the research and these are selected out of the entire world known
as population. The selection of these samples can be in the form of systematic sampling method
or random sampling method. Their selection is a very crucial part as the wrong selection might
lead to formation of wrong conclusions and this can make the research conducted redundant. In
the present study, the samples have been collected on a random basis and the population here
involves all the customers who are visiting the stores of Tesco. This has helped the researcher in
avoiding any direct or indirect biasness in the selection of samples. The number of samples used
for the present study are 30 consumers of Tesco.
Data Collection Techniques :- Data collection involves accumulation of those facts and figures
which are relevant for the conducting the present research and help in formulation of those
conclusions and recommendations which are relevant (Webster, 2016). The data that a researcher
collects must be extremely relevant and there are two major methods primary and secondary data
collection methods. Primary data involves the data collection through questionnaires, surveys,
interviews etc. which is collected from the samples selected by the researcher. Secondary Data
involves collecting and interpreting that data which has already been analysed, researched and
published in different websites, books and journals. The researcher collects the data which is
relevant for his study and uses only that. In the present research, the researcher has used both

primary and secondary data sources and he has used questionnaire method for collecting primary
data for conducting the research successfully.
Data Analysis :- When the data has been successfully collected by the researcher, he can use it to
analyse and conduct a systematic research which will formulate a basis for creating and
formulating all the relevant conclusion and findings which will fulfil the purpose of the study. In
the present report, for the purpose of fulfilling the objectives of research, the researcher has used
thematic analysis technique for interpreting the data. Thematic analysis involves breaking up of
data collected in form of systematic tables which are then used to create charts depicting the
data. These further assist in forming the required conclusions and recommendations.
Ethical Consideration :- This is related to a declaration form which the researcher gets filled by
the samples under which they declare that they have not been forced or manipulated in any way
by the researcher to give biased answers or prioritize one answer over another (Shizha and
Diallo, 2016). This also involves a declaration by the researcher himself that all the data
collected, analysed and interpreted i.e. all the research work has been carried out by the
researcher himself and the work carried out is original i.e. it has not been copied from anywhere
else and the secondary data that has been taken has been properly referenced and cited by the
researcher.
Questionnaire
Name:
Age:
Gender:
Ques. Which is the main factor which influence you to buy particular product from Tesco?
 Low price
 Good quality
 Attractiveness of store
Ques According top you which is the best entry mode which Tesco can enter into international
market?
 Joint venture

 Franchising
 Exporting
Ques . Which is the best approach which Tesco can implement for entering into global market?
 Customer centric approach
 Innovation
 Both
Ques. Up to what extend You are satisfied with the quality and pricing of products or services
offered by Tesco?
 Complete satisfaction
 Partially satisfy
 Some what satisfy

Ques. Up to what extend you are agreed with the statement that Joint venture is the best entry
mode for entering into Spain ?
 Completely agreed
 Partial consent
 Completely disagree
Ques. Which products you prefer to buy from Tesco?
 Home brand products
 Food item
 Clothes
Ques How often you visit Tesco for making the purchase of products or services ?
 Weekly
 Monthly
 Yearly
Ques. Which strategy according to you is the best strategy implemented by Tesco to gain
customers?
 Ethical marketing

 Green marketing
 Engaging the customer in business
Ques. Do you think Tesco has enough resources that will help them in expanding in Spain
currently?
 Yes
 No
 Don't know
Ques. In which areas Tesco need to bring improvement?
 Quality of products
 Customer service
 Both
Chapter 4 : Results
Thematic analysis has been utilized in the present study for presenting the data in
systematic manner.
Theme: The main factor which influence you to buy particular product from Tesco
Frequency
 Low price 10
 Good quality 15
 Attractiveness of store 5