International Marketing, Innovation, and E-commerce Analysis of Tesco

This report provides a comprehensive analysis of Tesco's international marketing strategies, focusing on its expansion and operations in the global market. It begins with an introduction to international marketing and the background of Tesco, highlighting its global presence and product offerings. The report delves into the macro-environmental factors affecting Tesco, utilizing a PESTLE analysis to examine the political, economic, social, technological, legal, and environmental factors influencing its business decisions, particularly in the context of its potential expansion into India. The report then evaluates the advantages and disadvantages of standardization, adaptation, and glocalization approaches for Tesco's international marketing efforts. It further explores the application of product life cycles and the Boston Matrix to understand the company's product portfolio and strategic positioning. Finally, the report culminates in the formulation of a marketing plan and marketing mix for Tesco, including the 4Ps, to effectively enter and compete in international markets. The report concludes by summarizing key findings and providing references to support the analysis.

International Marketing,
Innovation, and E-commerce

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1 Macro environmental factors that affects the company................................................2
TASK 2 Advantages and disadvantages of standardization, adaption and glocal approach ......5
TASK 3 Product life cycles and Boston model ..........................................................................6
TASK 4............................................................................................................................................7
Marketing plan and marketing mix for the organisation including the 4 p's...............................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

BACKGROUND
Marketing is a tool which helps companies to establish their business in larger scale. As
appropriate marketing techniques and strategy, grows the structure of the company and sustain
their reputation in the market. As increase in productivity and employees are only productive if
the company increase the sales in the market and engages customers through their products and
services. Marketing is the best way to attract the customers and also face tough competition with
their competitors with the same products.
Earlier TESCO uses different strategies to attract the customers, they use posters and
campaign to engage customers interest and tell them about their products. They communicate
with the people and tell about the product's usage and quality but due to changing times the
concept of marketing also change (Fozer and et.al., 2017). Now a day companies spends huge
amount to promote the product and maintain the stability in the emerging world. They provide
chances to children to work in their advertisement to promote the product and tell the usage
through this way, this strategy attracts the customer interest. As big companies engaged with big
ideas and they use promotional way to innovate products and bring them in the market. As
Brand ambassadors also working with this concept to provides more productivity. There slogan
to attract the customer through advertisement is “Every Little Help”. This motivates customers
and people to get everything at single place and they can feel released to search different things
at different place. They promote Internet and online selling of products which is useful for the
customers to order their products through online and receive delivery with low cost payment
charge or no payment charge.
Marketing helps company to maintain the close relationship with the customers and fulfill
their needs and demand. As the taste of customers are frequently changes and to retain them they
have to use various marketing strategy to fulfill their needs. There focus is to satisfy the
customers through their products. TESCO has expanded globally and serve their operation in
among 11 countries. They deal with various products such as clothing, books, electronics, and
other Internet services which helps the customers to order various things at single place. Through
the online sites they expanded their business in different countries as well (Aithal,2016).
Expansion initiated chances to the companies to take their business into new scale and
this method helps company to grow. TESCO maintain their individual budget for the marketing
process which helps company to face the competitors and also risk is involved if they have no
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proper marketing strategy to beat competitors in the market. Mostly magazines, charity shows
and donation to NGO also attracts the customer towards their products and motivate the to
engage with their business. This helps companies to promote their business activity and also
engages in some social work. To conduct a marketing strategy, it involves the product life cycle
which tell the proper structure of the companies and their products stability in the market. As
different countries have different rules regarding promoting the products and it's the duty of
TESCO to follow such rules and procedure for effective marketing strategy.
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INTRODUCTION
International marketing means promoting the business through global market. It is the
best strategy to engage the business or their brand name in the internation market and expand
their business globally to earn more profits and growth of the company. As to innovate new
products in the market or to expand the business globally, there are more chances to promote the
business activities and attract the customers through their products and services. Present report is
based on TESCO company which was founded in 1919 by Jack Cohen. This is the multinational
groceries store and considered to be the third largest retailer stores in UK (Hammad,2015).
Report will include the detailed analysis of the TESCO in relation to macro environment
and their potential effects to enter the company in relation to products and services. It also
includes the advantages and disadvantages of standardised, adapted or global approach to enter
into the international marketing. Further it also includes comparison of use of product life cycle
and Boston Matrix in TESCO. Lastly the report ends up with the formulation of visible
marketing mix strategy to enter into the market.
TASK 1 Macro environmental factors that affects the company
Tesco is an international retailer that operates in the business of groceries and other
products and headquartered in England. However, it is the largest retailer operating worldwide
and is the 9th highest retailer who earns revenue. Further, the company operates its business
activities in many countries like Europe, Thailand, Ireland etc. Moreover, Tesco is planning to
expand its business operation in India in order to operate worldwide, thus, to expand company
will evaluate the macro environment of India through which they will get to know about how
political, economic and other factors will impact the working of the company (López, 2017).
Pestle analysis is a model through which organizations can analyze and monitor the
impact of macro environment factors on the performance of the company. Further, the PESTLE
stands for political, economical, social, technological, environment and legal factors.
Political Factor: Political factors include trade policy, tax regulations, political stability,
corruption etc. However, Tesco can expand its business in India as its political environment is
stable which means they have fair tax and trade regulations like service tax, sales etc, propose by
the government of India. However, the Union government of India arrange events and programs
for the companies to expand their business in India, thus, all this factor will provide advantage to
the company to expand its business operations. On the other hand, in India there is a primary
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concern of corruption which may affect the Tesco to operate its business activities as it will
increase the cost of activities and will reduce their revenue (Dikova, Van Witteloostuijn, and
Parker,2017).
Economic Factor: These factor consists of economic growth, exchange rate, interest rates,
inflation rate etc. Moreover, the economic environment of India is stable as they have fair
industrial policies proposed by the government of India like industrial licensing, foreign capital,
gold and silver price etc, thus is beneficial for the company to expand its business operations.
Thus, the products of Tesco is highly potential in the economic environment of the India as they
have stable policies regarding the licensing and capital investment.
Social Factor: These factor are inclusive of norms, customs, attitudes, safety, lifestyle,
and culture restrictions etc. However, India is the largest country with growing population thus it
will provide an opportunity for the company to expand its operations. On the other hand, India is
still suffering form the issue of poverty and unemployment, thus, it is not beneficial for the
company to expand its business activities as it is not possible for the middle class people to
purchase the products of company. Moreover, as India has the largest population with huge
potential customer market, thus it is beneficial for the company to expand its operations as in its
potential market (Elg, Ghauri and Schaumann,2015).
Technological Factor: These factors consists of innovation, automation, research &
development etc. However, India is the third largest country in the technological industry and it
is the largest outsourcing country in the field of IT, thus, it is beneficial for Tesco to expand its
business operating India as they have the latest software and technologies through which they
can make the customers aware about their products and by using those technologies they can
enhance their production process which in turn provide profitability to the company. Further,
Tesco have a high potential market for their product in India as they have different advanced
technological software through which they can enhance their business operations (Marinov,
2018).
Legal Factor: These factor consists of protection right, employment laws, copyright,
health and safety laws etc. Moreover, In India company operate their business according to the
Company's act, 2013, thus through such act Tesco will be able to operate its business according
to the rules and standards that are proposed under the Company's act. On the other hand, there
are many policies regarding the recycling of product, discrimination, which will directly impact
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the operations of company as company will restrict to produce its products according to the
policies and standards. Further, the Tesco have a high potential market for the companies'
product that as it they will work according to rules and regulations of the company's act
(Spencer-Oatey and Dauber,2019).
Environmental factor: These factor consists of climate and weather changes, natural
calamities etc. Moreover, there are various environmental policies that are proposed by the
government of India like corporate social responsibility, reduction of carbon foot print, ethical
practices etc, thus, due these policies company have to operate keeping in mind the environment
sustainability which in turn enhance the image of company as a general citizen. On the other
hand, India is the most populated country as due to industrialization sector, which in turn will
affect the products of the company and leads to declining profits of the company. Further, the
company higher potential market for its products in India as they have various policies regarding
environment sustainability through which thy can provide products keeping in mind the policies
of environment (Dikova, Van Witteloostuijn and Parker,2017).
TASK 2 Advantages and disadvantages of standardization, adaption and glocal approach
Standardization: Standardization is the system by using which Tesco can design its
techniques, mainly its manufacturing approaches that will be consistent in the entire organization
while expanding in India. However, Standardization provide the major advantage to company as
it will allow them to reduce costs by means of putting off duplicated effort and allows an
organization to take gain of economies of scale when buying materials. On the other hand, in
order to make the products unique or to make it available for some targeted market and
customers while expanding its business operations then company may loss its previous customer
base as those customers will switch to other competitor in order to fulfill their own needs and
wants (Tao and et.al., 2016).
Adaption: Product adaptation is the manner of redesigning the present product so it's
miles appropriate for special customers or different markets. However, An adaption strategy is in
particular essential for Tesco as it will export their merchandise as it guarantees that the product
meets the culture of people and regulatory necessities.
Further, the major advantage of adaption method is that it retains the customer base of
Tesco in India as it produces products and services according to the needs and wants of the
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customer and it further, help the company to meet the different needs of local market which in
turn helps to achieve customers satisfaction regarding the products of the company.
On the flip side, the major disadvantage of product adaption for Tesco while expanding
its business operations is that the cost of company will increase as in this method they will
design products keeping in mind the needs and requirements of different markets and people on
India thus, it will increase their production and marketing expenses which in turn will reduce the
profits of the company (Konstantas,Stamford and Azapagic,2019).
Glocal: Glocalisation means undertaking the marketing activities by the way of
combining the global brand along with the needs and wants of local customers and markets and
according to those requirements the company will integrate their global products into local
market of India.
Further, the major benefit of glocal approach is that the company can capture huge
customer base by design the global products keeping in mind the needs of local market.
On the other hand, the major disadvantage of glocal approach is that the company will
may lose its existing customer base if the company do not integrate its global brand with the
local market.
TASK 3 Product life cycles and Boston model
Product Life Cycle:
This cycle is important in the marketing concepts. It includes the stages of product cycle
or the company to maintain their reputation and brand name in the market. The first stage is
relating to Research And Development of Product, before bring new products first analyse the
demand of that product the taste of customer to adapt such product. This helps companies to
execute their plan for bringing new product. The second stage is related to Introduction stage,
In this stage they have to bring their products in the market and introduce them as their company
productivity and brand name is also attached (Miah and et.al., 2017). So that there is no chance
of infringement of the products. The third stage is relating to Growth stage, once the product is
launched in the market its growth rate is high as this product differentiate from other products
and they are newly launched. The fourth stage is regarding the Maturity stage, when the sales of
the product is high due to customers interest but certainly it results in less demanding. As the
reason behind is that due to entrance of competitors for the same product. The fifth stage is
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Decline stage, in this stage the actual availability of status of sales is examined and it results in
falling the prices of sales in the market (Madsen, D.O., 2017).
Boston Model
The Boston model is method through which company can frame their market strategy in order to
provide products according the market segments. However, there four components according to
which Tesco will provide its product in the markets of India namely; stars, cash cows, question
marks, and dogs.
Stars: In this category the products of company will have high potential market and tend
to attract high revenue for the company, thus, in turn enable the company to capture huge retail
market of India (Mohajan, 2017).
Cows: this category of products have low growth but will capture huge market share of
India, thus, such products needs lower investment which in return reduces the expenses of the
company and will provide higher profits to the company.
Question marks: In this category the products of Tesco will have higher opportunity to
grow but will have lower market share, thus, such products require more money to invest which
will reduce the income of the company.
Dogs: The products in such category have lower market share and lower growth
prospects, thus they are break even which means they company will not earn any profit or will
not suffer any lose from such products in the markets of India (Hersen, Silva and Timofeiczyk
Junior, 2018).
TASK 4
Marketing plan and marketing mix for the organisation including the 4 p's.
TESCO is the multinational groceries and general merchandise retailer trading company
which Is UK based and planning to expand their business into new international market that is
India in order to sell and expand their products to the new areas and new customers base in order
to capture larger share of the market globally. This expansion also help them in exploring the
products into different markets which may benefit the many in long way.
They focusing on different objectives and to accomplish those aims and objectives they decided
to establish and expand their unit to the different international market .
The marketing plan of the TESCO is stated below:
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Mission of the company- To build up the value added products to attract new customer
base in which they are going to expand their unit that is in India.
Situational analysis- Situational analysis basically refers to the collection of the methods,
that managers us to analyze the organization's internal and external environment in order to
understand and identify the organizational capabilities, potential to expand to the new
international market.
This analysis plays very important in the marketing plan of the organization which
includes the different prospective that is SWOT, strategies adopted and customers base etc. for
this purpose organization, function, productivity, environment, system and customer base need to
discuss.
Analysis of Internal and external environment which affects the business organization :
Tesco is on the competitive environment and both are either the micro and macro can suitable for
it.
Micro environment:
Micro environment is the environment which may affect the business organization directly or
indirectly which have direct impact on their operation.
SWOT analysis
STRENGTHS
 Strong brand image which helps in
attracting new customers
 Skilled sharing channel and directions
of company are strong
 Expansion of product having
capabilities of satisfying the needs and
wants of the customers
 value added product offering
WEAKNESSES
 New place might lead the company to
face difficulties related to social factors
which includes different language,
culture
 Unawareness regarding the actual
preference of the new customer base
OPPORTUNITIES
 Growing demand for their products
 Expanding market appeal that is there
THREATS
 Existence of small and less priced
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is still uncovered area where company
may establish and explore their product
which h help them in earning higher
profit margin.
 Attraction of customers towards their
brand by bringing news and
differentiated product in India.
superstores
 Financial circumstances due to change
in financial situations may cause risks
to the company
 unfavourable economic condition of
India might affect the entire business of
TESCO.
Macro environment:
This includes the factors which have direct impact on the operations of the organization and
Tesco need to consider all the factors effectively and efficiently in order to successfully
implement the business in new market.
Political and legal factors- Tesco needs to consider all the rules and regulation of UK
government in order to run on legal path and in addition to this they are also considering the
policies of the new market that is Indian government regulations as they are intended to open up
their branch in the Indian market .
Social factors- Tesco needs to evaluate and identify the requirement of the customers of
India as they are planning to open up the branch in that country and also required to make the
product according to the taste and preference of the Indian customers s in order to satisfy them.
Economic factors-company needs to evaluate different risk of the economy of the
country in which they are going to establish their business and risks may relate to the change in
growth rate, foreign exchange rate, inflation etc. so accordingly they can take preventive
measures to eliminate the risks .
Technological factors- Tesco required to use different technologies for altering and
adding the value I the products to satisfy the needs and wants of the new customer base.
Marketing mix
Marketing mix helps in explaining the 4 P' s and Tesco marketing strategy which
elaborates the pricing, promotion,product and placing strategies of the company.
Product- Tesco has a huger variety and range of the products which are offered at various
stores, For establishing their unit into new international market they need to evaluate the needs
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and preference of the customers of new market place and accordingly goods are required to
distributed so to satisfy the needs and wants of the customers .
Place- Tesco has more than 6900 stores in 11 countries and they are planning to expand
their business at new place and for implementing the unit at new place they need to analyse the
different factors of macro environment which are explained above and which also helps them to
decide the location where they need to implement their business .
price- Tesco following the cost leadership as their pricing strategy that is they focusing
on keeping the price low by maintaining the quality of goods and this will help them in attracting
more customers of new market. They are working on bringing the cost down by improving the
work and relation with supplier ton make the supply chain efficient .They focusing on the low
and stable prices so they can retain the new market customers for long which ultimately helps
them in increasing their market share and make them a leading business globally. They also cut
down their promotional expenses for further lowering their prices.
Promotion- company have strong brand image which relies on low prices which they
offer. Tesco is using hoardings, television advertisements, promotional channels, charitable
events in order to promote their business products and service so they can be able to attract the
new customers base and make a remarkable impact on the minds of the targeted customers .they
also using the large extent promotions discounts and offering such as buy one get one free. They
are focusing on expanding their sale through online marketing techniques which includes social
media, online sites pay per click etc.
Marketing strategy
Tesco is following effective marketing mix for successfully implementing their products
and unit into new markets of India. Their focus is on internet marketing strategy which is the
effective source of marketing their products to India as they can advertise their products in
different and new markets which helps them to attract the more customers and can retain them
for longer which helps the company in achieving the larger share of the market at global level,.
Competitive analysis
Tesco have to critically evaluate the different super stores which might give them tough
competition in India as like Big Bazaar and reliance fresh have already good market capture and
to win over the competitors Tesco needs to evaluate and adapt different market strategies which
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