Tesco's International Marketing Strategy: Africa Expansion Plan

This report provides an analysis of international marketing concepts and strategies, focusing on Tesco's potential expansion into the African market. It examines the scope of international marketing, various routes to internationalization, and the opportunities and challenges Tesco might face. Key criteria for market selection are discussed, along with different market entry strategies such as strategic acquisitions, licensing and franchising, direct exporting, and joint ventures, outlining their respective advantages and disadvantages. The report emphasizes the importance of understanding foreign laws, currency rates, and international accounting standards. It also touches upon devising a comprehensive marketing plan, including product, promotion, and pricing strategies. Desklib is a valuable resource for students seeking past papers and solved assignments related to this topic.

International Marketing

Contents
INTRODUCTION.................................................................................................................................3
SECTION -1..........................................................................................................................................3
Analysing the scope and key concepts of international marketing.....................................................3
Discussing the rationale and various routes to international market..................................................3
Evaluating the opportunities and challenges of the organization.......................................................4
Key criteria and selection process to use considering the international market to enter.....................5
Explaining the different market entry strategies with its advantages and disadvantages...................6
SECTION -2 (covered in PPT)..............................................................................................................8
CONCLUSION...................................................................................................................................24
REFERENCES....................................................................................................................................25

INTRODUCTION
International marketing refers to the marketing of the business or the marketing of the
organization in more than one country. This makes the company to conduct its business in the
various other markets in order to earn more profitability. The international marketing is
basically the trading of the goods and services in the different countries. This report is based
on the Tesco Company having its business in various countries but not explored Africa. The
report will outline the various routes to the international markets and various opportunities
and challenges that affect the organization. Further this report will outline the selection
process to use while entering the international market. Furthermore this report will outline
different marketing strategies with its advantages and disadvantages. The report will also
evaluate the best entry strategies and recommendations to the organization.
SECTION -1
Analysing the scope and key concepts of international marketing
Global marketing refers to the marketing which helps in integrating and standardizing
the markets across the national geographic markets. It is the performance of the activities of
the business that helps to design the organization in order to plan, price, promote and have the
direct flow of the organization’s goods and services in different nation (Battisti and et.al.,
2021). It helps the organization to have the international marketing, having globalization,
export the markets, etc. the scope of international marketing is as follows:
1. Imports: This is the very easiest way of doing the international marketing an
organization can get into. Importing refers to the system in which one country use
sell and other country used those products. Importing is only done when the there
is demand in the domestic country for the imported services and goods. The
organization can localise its products and services and should import its products
where there is need in the market.
2. Exports: This is another easiest way of taking the goods and services from the
outside nations. Exporting refers to the system in which the company exports their
final products in the international markets (Katsikeas, Leonidou and Zeriti, 2019).
The organization can also sell its products to its franchise in another country. By
this the company can earn the good and huge revenues in the international
markets.
3. Contractual agreements: The business moves beyond their domestic markets and
boundaries and its scope is to have the international marketing. It helps the
business to have greater chances and have expanded its business in the
international marketing. The base of the consumers used to expand and it’s also
expands the profits of the organization.
Discussing the rationale and various routes to international market
International marketing is very important marketing which helps the organization to
have the social and cultural exchange that is possible within the different countries across the

globe (Agwu and Onwuegbuzie, 2018). With the passage of the goods the trends and new
fashions are also passes from one nation to another and by this it creates the cultural relation
among different countries. Taking participation in the international marketing allows the
countries to have the advantage of having the specialise expertise and have various factors in
order to deliver the goods and services in the marketplace.
Various routes to internationalization
Direct exporting: This route involves the direct exporting of the goods and services of
the products overseas the market. This is the easiest and fastest mode of entering into the
international market (Morgan, Feng and Whitler, 2018). The company can expand its
products and brands by selling its goods and services in the market.
Licensing and franchising: This is also the best way of entering into the international
market. By focusing on this, the company have the presence in the market where they have
no presence over there. Licensing and franchising allows the person to reduce the risk on the
behalf of the organization.
Joint ventures: In this route, the organization used to have special venture with
another company. This is the most preferred modes of entering into the international markets.
The organization wishes to expand its market in the Africa can use this route ad by this it
increases the profitability of the business (Hult and et.al., 2018). The both entities can share
its investments, profits and cost and also shares the losses equally.
Strategic Acquisitions: This route refers that the company used to acquire and have
the controlling interest in the existing companies in the international market. In this the
business is not starting from the new things and infrastructure facilities and has the good
market share in the other countries.
Foreign Direct Investment: Foreign direct investment is the various routes which help
the company in order expand its market in the overseas by having the substantial investment
in the country (Kozlenkova and et.al., 2021). This route is very viable where the demand and
size of the market increases and there is growth of the company.
Evaluating the opportunities and challenges of the organization
The organization has the various opportunities and challenges in order to expand its
business in the international markets. Various opportunities that the businesses have by
having the presence in the international markets are as follows:
1. Increases the market share: The share and size of the company increases and
have the significant influence over the firms. By having this it increases the
competitive advantage of the organization (Watson IV and et.al., 2018). The
company usually prefers to invest in those companies which has great knowledge
and where the company can have huge profit.
2. Economies of scale: Expanding the firms operations used to reduce the total cost
of the goods and services in the market. The company can gain the good core
competencies by having the good resources and by sharing the values of different

countries. By having the good knowledge expands the operations of the and helps
the company to produce the best products for their customers.
3. Return on investment: By having the market of their goods and services in the
international market makes the company to have return on their done investment.
The new technologies and the new products make the customers to have good
return on their done investment. This makes the opportunities for the company to
have good operational efficiency in the international market.
Challenges that company faces while expanding and having its presence in the
international markets are as follows:
1. Foreign laws and regulations: This is the very biggest challenge that the company
use to face while having its presence in the international markets. As different
countries have their different laws and regulations so it ma may be difficult for the
company to expand its business in Africa. Different countries have their different
laws with used to affect the profitability of the business,
2. Currency rates: By having the price setting and deciding the payment methods the
currency rates has the major effect on the business. The great difference in the
currency rates used to have a great effect on the profitability of the organization.
Major fluctuations in the currency rates have the serious impact on the expenses
and profit (Dinu, 2018). The best way to protect the organization from this
challenge is to have the suppliers and have the good production costs in the same
country where they are supplying its goods.
3. International accounting: This is also the biggest challenge the the company used
to face in order have their markets in the different countries. Different countries
have different accounting systems which makes the company to have negative
impact on the profits.
Key criteria and selection process to use considering the international market to enter
Market selection refers to the process of deciding the markets where the organization
can invest and used to pursue in that particular market. There are certain key criteria which
are number of opportunities, relationships in another country, customers preferences, etc.
these are the factors that the company must focus on in order to have presence in the
international market.
Selection process considers in the international market
1. Decide where to go: The marketer of the organization has to decide where they
have to expand their market overseas or not. As there are several benefits that help
the company to expand its business in the international market.
2. Select the markets to go: The organization before deciding the mode of entry first
has to decide which market they have to expand their business. As it is the
important for the company to decide which market they have to enter.
3. Finalizing the entry modes: There are several modes in order to enter into the
international markets. The company can decide the merger and acquisition or
direct exporting of the goods and services in the market (Sartor and Beamish,

2018). The organization can have the best entry mode in order to have presence in
the international market.
4. Preparing the marketing plan: The organization must decide and make the
marketing plan. Tesco must also focus on the product, promotion and pricing
strategies in order to have success in the overseas market.
Explaining the different market entry strategies with its advantages and disadvantages
There are various ways in which the company can enter into the international and
foreign markets. As the company has to expand and explore its market in the Africa they
must considers the best market entry strategy in order to have presence in the international
markets (Modes of entry into International Business, 2022).
Different market entry strategies Advantages and disadvantages
Strategic acquisition Advantages:
1. The organization has not to start its
business from the very new as the
company can use the existing
furniture and facilities, distribution
channels, etc.
2. The organization can have the advantage
as they get the expertise knowledge
and their experiences and this makes
the employees to retain in the
organization (Lazoriková, 2021).
Disadvantages:
1. The drawback is that the company may
face the cultural clashes as different
markets have their own
organizational culture.
2. The organization also faces the
technological and system problems
as these are the common issues in
this market entry strategy.
Licensing and franchising Advantages:
1.It cost very low in order to enter in the
international market and the franchiser has
full knowledge about the local market.
2. It allows the expansion of the various
regions and also reduces the political risk of
the country.
Disadvantages:
1. In most of the cases, the organization is
not able to have full control on the
franchising and licensing partners in the

international market.
2. Franchisees and the licensees can have
the balance by acquiring knowledge and can
make the pose for the organization in the
future time.
3. The organization can face the lots of
competition in the market as they are the
reputed firms in the markets.
Direct exporting Advantages:
1. The organization can select their
representatives by itself in the
overseas market.
2. This market entry strategy will help the
organization to protect the goodwill
and patents.
Disadvantages:
1. The company having the offline
products will make it very high price
strategy.
2. It takes lots of time to export the
goods from one country to another.
Joint venture Advantages:
1. The both joint venturers can have the
expertise knowledge and this makes
them to expand their business in
overseas market.
2. There is less political risk involved as one
partner is belong to the domestic
market and from the international
market.
Disadvantages:
1. This entry strategy used to face the
cultural problems and both partners belongs
to the different organizational culture.
2. If there is dispute among partners then the
joint venture used to dissolve and makes the
complicated and long process for the
organization.

SECTION -2 (covered in PPT)
SLIDE 1

SLIDE 3
 Furthermore, presentation will be identifying perfect marketing mix
that will help quoted firm in earning greater revenues in the future while
working in various markets.
 Moreover, certain marketing approaches will also be identified in this
presentation.
 Also, concept of home and international orientation along with certain
suggestions for Tesco to operate successfully in international markets will
also be covered under this presentation in detail

SLIDE 4
• For any company that wish to expand its operations on global level it is essential that
all the factors are clearly analysed so that losses might be minimized to greater extent.
• Also, there is major difference between conducting the activities at both global and
local level. Some points are as follows:
• The company is able to operate in local market with minimum funds as lot of research
activities need not be undertaken by firm regarding various products while in case of
operating at global level proper investment is required by company research
department for analysing sales of various products
• Local level companies have minimum chances to bring economies of scale within
specified time while the company that operates on global level has higher chances of
earning maximum revenues within short period due to diversity in products.
• Thus, it can be said that operating at global and local level has their own merits and
merits and it is essential for any company to first establish in local market than plans
to move in global markets

SLIDE 5
• It is very well-known that Tesco is operating on large scale in UK and other markets
through successful selling products in various regions. Also, to operate successfully in
other marketing efficient marketing mix is required so that maximum revenues might
be generated for the new or existing products.
• Product: However, while selling the goods in African market it is very important for
Tesco to research fully about the needs of that market so certain modifications or new
products might be sold.
• Price: Hence it is crucial that pricing of the goods by Tesco is done correctly.
• Place: Moreover, only those suppliers need to be chosen that charged very minimum
to sell various quoted company products in the target market.
• Promotion: Also, use of social media is cost effective manner where information
about various new products might be given easily to large number of people.
• Thus, marketing mix is completely different in context of international markets as
proper strategic plans need to be made by the firm so that goods might be sold in less
time and cost efforts.