Tesco in Africa: A Study of International Marketing Strategies

This presentation provides an overview of international marketing concepts, focusing on Tesco's potential expansion into African markets. It discusses the global vs. local marketing debate, examining differences in pricing, promotion, and distribution strategies across various contexts. The presentation evaluates when an organization should adopt a local or global approach and how to adapt the marketing mix for international markets. It critically evaluates the marketing mix, analyzes different marketing approaches, and compares home and international orientations, including competitor analysis. The presentation recommends structuring organizations for international operations and concludes that firms need to allocate resources appropriately for success in international markets. Various international marketing approaches such as functional approach, decision-making, social media etc. had also been discussed that might be adopted by Tesco while working in various regions. The presentation also references several academic articles related to international marketing and brand positioning.

INTERNATIONAL MARKETING

Table of contents
 INTRODUCTION
 SECTION -2
 Overview of global vs local debate
 Investigating how pricing, promotion, pricing differs in variety of contexts
 Evaluating context in which the organization need to adopt local or global approach
 Discussing in detail on how to adapt to the marketing mix in international market
 Critical evaluation of marketing mix
 Analyzing various marketing approaches that organizations might adopt
 Comparing home and international orientation and ways to access competitors outlining
 CONCLUSION
 REFERENCES

INTRODUCTION
 International marketing refers to the different marketing activities that are carried out across the borders.
 Further, the presentation is based on Tesco that top British retail company and is planning to expand its
operations in African markets.
 Moreover, certain key arguments in relation to global and local markets business operations will be discussed

Overview of global vs local debate
 On local level marketing campaigns of the company are more personalized as it is targeted to more close groups of
people located at any one particular place. However, at the global level location of user is of little importance as
large number of people are targeted on the basis of some common needs or desires.
 Risk are diversified in the global market as lot of people are targeted in various regions where chances of sales are
higher. On the other hand in local market risk factor is higher because customers might not like the products
manufactured by company and thus sales might be negatively impacted.

Investigating how pricing, promotion, pricing
differs in variety of contexts.
 Product: Tesco has launched variety of products that are in accordance with
current needs of the customer.
 Price: The African market is comparatively interested in consuming goods that
are reasonable priced due to lower income groups.
 Place: The distribution of Tesco goods need to be done through various supply
channels or establishing the local outlets in that regions so that products might be
delivered on timely manner
 Promotion : While selling the goods in international market the best promotional
technique need to be identified so that positive results are derived with minimum
efforts

Evaluating the organization need to adopt local
or global approach
 For the start up companies the best option would be to start business operations at local level so that it is able to
operate smoothly with limited amount of funds.
 On the other hand companies that are already established in the host country and created better brand image
among the local customers it is option to expand its business at global level to increase the existing customer
base and to generate more revenues for the firm.

Discussing on how to adapt to the
marketing mix in international market
 For all those organizations like Tesco that have predefined marketing mix it is essential for the company to
identify ways so that limited modification might be made in the exiting structure.
 For instance : Tesco had the option to create additional product line among the existing products so that people
have variety to consume from different markets.

Critical evaluation of marketing mix
 Providing variety of goods in larger quantities might allow Tesco to reduce the overall cost of operations as
large number of people are ready to consume the firms goods.
 However, with lot of government restrictions and high competition Tesco chances are higher that firm would not
be able to operate in different regions in right manner

Various marketing approaches
 Email marketing or social marketing
 Mass marketing
 Transactional marketing
 Functional marketing approach
 Decision making marketing approach

Comparing home and international orientation
 Home orientation is belief that home country approach for any company is better than others while international
orientation is defined as connectivity of the company in relation with presence in international markets in terms of
exports, imports, services and goods etc.
 Also, home orientation does not require much financial resources than in comparison to international as target market
is very vast and large
 Moreover, international orientation is riskier approach than home approach as more financial resources are required
while conducting the operations in different regions

Evaluating various marketing approaches in competitor
analysis
 Competitor analysis is very crucial in identifying success factors for the quoted firm and targeting the right
customers in against of existing competitors.
 Moreover, for firm like Tesco that is operating on large scale it is recommended that it should adopt
transactional marketing approach as by offering value products in African market the consumers would be ready
to pay even little higher prices in future thus increasing the sales of business

Recommendations of how organizations need to be
structured
 It is to be suggested to the firm that proper roles, responsibilities and activities need to be modified or designed by the
firm while operating in international market so that there is no confusion and wastage of resources later in conduct of
various business activities. Moreover, matrix organization structure might be adopted by Tesco where teams would
report to multiple leaders.