International Marketing Strategies: A Tesco Case Study Report

This report examines the core concepts of standardization and adaptation in international marketing, analyzing how companies modify their strategies for global expansion. The report begins with an introduction defining these concepts and highlighting key trends impacting multinational corporations (MNCs) in target markets, such as cultural, economic, and political factors. The main body critically evaluates market focus, product and service strategies, and the reasons behind a company's international strategy development, supported by relevant theories like differentiation and innovation. The report uses Tesco as a case study, analyzing its expansion into the Thailand market and key decisions in its strategy development, including customer focus, partnerships, operational improvements, and new product/service offerings. The conclusion summarizes the importance of international market research and adapting to local market needs. References to supporting literature are also included.

International Marketing

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Critically evaluate the following mentioned aspects...............................................................1
2. Key decisions in the strategy development.............................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Standardization seems to be the process whereby an organization helps to make strategies
which is similar throughout its business, particularly its production processes (Boso, Debrah and
Amankwah-Amoah, 2018). Standardization reduces costs by eliminating overlapped effort and
enables a firm to achieve economies of scale in the international market when goods are
purchased by the consumers. Adaptation is an important tactic which followed by the
organizations for consumer orientation. This strategy involves significantly modifying the
different aspects of goods and services in order to fulfil consumers' needs in the international
markets. Because of the intellectual capacity in the field of globalisation, the managers,
representatives and communities have been the most effective. However, there have been major
shifts in the patterns of globalization owing to the current slowdown in economies. The U.S. and
UK are the world's most powerful markets through to recession. These countries' economic
growth has had significant impacts on operational performance of international organizations
such as Tesco which is multinational grocery retail Sector Company.
MAIN BODY
1. Critically evaluate the following mentioned aspects
There are several reasons which force the organizations to conducts international market
research which help them to expand their business operations in international market through
considering several aspects. Some of them are as follow:
Market focus: It is very essential aspect which required to analyse by the company’s top
management that where to expand their business or in which market has huge potential (Christofi
And et.al., 2018). In 2019, Tesco announced to open 750 convenience stores in the Thailand
within next three years. Thailand is the fourth largest country outside the UK which generates £
4.1 billion of revenue in the 2019, February 23 (Expansion strategy of Tesco Plc,
2019). Now Tesco company focus on Thailand market where they find the
opportunity to expand their operational activities to get growth in the
international market.
Product & services: Tesco Plc wants to open 750 stores in Thailand where they provide all
the essential products and services for the consumers. Before expanding their business into
international market, it is very important for the organization to identify the needs of products
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and services in the external market. Research and development department of Tesco identified
the opportunities in Thailand market which reduces the dependency on UK market. Before
expanding their operations, it is essential to evaluate this aspect for effective implementation and
successful outcomes.
Reasons of international market research:
In context of international market expansion, there are several reasons of international
market research and all are discussed with appropriate theory.
International marketing research has significant reasons where organizations need to
understand consumer behaviour. International marketing research’s key goal is to identify
customer needs and consumer attitudes and then turn these actions into sales strategies. Due to
the increased of market research and the advancement of internet connectivity, the foreign
market customers have many options in this modern age. It was responsible for maintaining their
initiatives to improve the market strategies and tactics of target markets in order to organization.
From the other side, if the product does not have the opportunity to follow the actions or
expand their operations globally so that the product will lose the customer share. The
organization still faces other problems in this situation that have arisen due to a lack of foreign
market study. Such as Tesco Plc, due to effective international market research they identified
the growth opportunity in Thailand market. For best result, international market research is
required which helps in identifying customer needs, market trend of particular country, growth
opportunities, company’s products able to satisfy the need of target audience or not, build
strategies according to the particular market competition etc.
Theories:
While expending their business into international market, it is very crucial for the
management to implement such actions into reality (Douglas and Craig, 2018). It become little
simpler by using some theories such as differentiation, innovation etc. These theories can be
implemented by the Tesco Plc in order to expand their operations in international market and
further discussions are as follow:
Differentiation: That is a framework that a company takes to establish a product or service
which will distinguish their clients on the basis products or services which offered by competing
companies better than or in another way. Differentiation approach is a means for an organization
to distinguish itself against the market. If effective, this will help the brand to charge extra for
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their good or service. Keep in mind, that perhaps the company often faces higher costs in
providing the different product or service and therefore order to achieve excellence in potential
consumers to offset the additional cost. Tesco plc can implement this strategy at the time of
expanding their business into Thailand market.
Innovation: In this strategy, company should focus on innovation and introduce innovative
products which still not produced by their competitors (Morgan, Feng and Whitler, 2018). It
helps in maximising demand of product in the international market or able to attract maximum
audience. Tesco Plc can adopt this innovation strategy to make their products & services
different from their competitors.
Tesco currently hires more than 46,000 full-time employees across 1965 stores trading in
Thailand under the Tesco Lotus fascia. In 2018/19 the Asian division of Tesco, that contains its
Thai business which generated a profit of £ 286 million. Chief executive of Tesco, Dave Lewis
said due to Thailand's rising disposable income and urban population, there was a possibility
further to construct the Asian grocer’s business. "The country's economies are extremely
attractive. There's a major middle class growing up there, "he said. The extension programme in
Thailand could produce up to 10,000 additional workers.
Tesco Company adopted this expansion strategy to maximise their operations in the other
countries or grab the opportunities to increase their products demand all over the nation. In
addition, it helps in minimising the dependency of operations on single market because most of
the revenue generates by the company is from UK.
2. Key decisions in the strategy development
There are several key strategy decisions which managers of Tesco Plc wants to involve in
their decision making process which helps in standardising its products and services offers in the
market to satisfy their customer’s needs or fulfil the requirement of local markets. All the key
decisions in respect of developing strategies are as follow:
Customer: It is one of the main aspects of organization to find their audience who use their
products &services. By using customer strategy, Tesco plc find the audience who need their
products & services and it includes that where are from company fine their customers. It also
includes the marketing or sales strategies to attract them to increase their demand in the market.
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Partners: If Tesco Plc wanted to expand their business operations into international market
then they need to find partners in particular market such as suppliers for their goods and build
effective relations for regular supply of material for the effective performance.
Operational improvement: Each company always needs a plan for making organizational
improvements. The corporate processes used to establish the market (Radulovich, Javalgi and
Scherer, 2018). That may mean enhancing qualified leads or follow-up for a singular-person
consultant. This could be to do with productivity or the supply chain for a manufacturing
company. Again the information is different but the approach is not.
New products & services: Innovation is very essential in the products & services which is
going to offer in the new market and this aspect considered under strategic development
decisions.
People & talent: Company should hire talented people as per the requirement of their
business operations. In addition, they can provide the addition training to improve their
employee’s efficiency to achieve the task or improve overall performance.
Above discussion points are key factors which required considering at the time of
developing strategy regarding entering into international market. Managers of Tesco Plc focus on
these elements before making strategies as well as at the time of implement these practices into
reality.
CONCLUSION
From the above discussion it has been concluded that organizations need to done intense
international market research at the time of expending their business operations into new market.
Company should evaluate the market size, customer demand, market trends, opportunities in the
potential market etc.
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REFERENCES
Books & Journals
Boso, N., Debrah, Y. A. and Amankwah-Amoah, J., (2018). International marketing strategies of
emerging market firms. International Marketing Review.
Christofi, M. And et.al., (2018). Customer engagement through choice in cause-related
marketing. International Marketing Review.
Douglas, S. P. and Craig, C. S., (2018). International marketing research (p. 192). Englewood
Cliffs, NJ: Prentice-Hall.
Morgan, N. A., Feng, H. and Whitler, K. A., (2018). Marketing capabilities in international
marketing. Journal of International Marketing. 26(1). pp.61-95.
Radulovich, L., Javalgi, R. R. G. and Scherer, R. F., (2018). Intangible resources influencing the
international performance of professional service SMEs in an emerging
market. International Marketing Review.
Online
Expansion strategy of Tesco Plc. 2019. [Online]. Available Through:
<https://www.retailgazette.co.uk/blog/2019/07/tesco-open-750-stores-part-thai-
expansion/>
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