International Marketing Report: Tesco's Strategies and Challenges

This report provides a detailed analysis of international marketing concepts, focusing on Tesco's strategies for global expansion. It examines the rationale behind international marketing, various market entry routes like exporting, countertrade, licensing, and joint ventures, and evaluates the opportunities and challenges Tesco faces when marketing internationally. The report also includes a critical evaluation of the international market context, key criteria for market selection, and specific market entry strategies with their advantages and disadvantages. It applies these concepts to Tesco, offering recommendations for the organization's international expansion, particularly in markets like India, considering factors like local market capture, competitive advantage, and adherence to local regulations. The overall aim is to understand how Tesco can effectively leverage international marketing to achieve sustainable growth and profitability.

International
Marketing

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
P 1 Analysing the scope and key concepts of international marketing.......................................1
P 2 Discussing the rationale for an organisation to want to market internationally and
describing the various routes.......................................................................................................3
Various routes to international market........................................................................................3
M1 Evaluating the opportunities and challenges that marketing internationally presents to an
organisation..................................................................................................................................4
D1: Producing a critical evaluation of the international market context.....................................5
P3: Evaluating the key criteria and selection process to use when considering which
international market.....................................................................................................................5
P4: Explaining using examples, the different market entry strategies,including the advantages
and disadvantages of each...........................................................................................................7
M2: Applying the market evaluation criteria, entry strategies and make recommendations for
the selected organisation..............................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International marketing helps the organisation to attract various customers in the
market with the help of right promotional methods. The company can expand their business in
a systematic manner and achieve their inherent goals and objectives. The report aims to
analyse about understanding the international marketing strategies and procedures for the
company. Tesco is one of the largest retail supermarket brand which provides various essential
products to the consumers (Wei, Ang, and Liou, 2020). Due to the ethical practices the
company has seen an immense growth in the market. It was founded by Jack Cohen in the
year 1919. They had diversify their operations in various regions to achieve more profitability
in the market. The main focus of the company is to become more profitable in the industry by
capitalising on different opportunities, On the other hand in this report there will be brief
discussion about various key concepts which could be used to expand in the business in new
opportunities and generate more revenues. Along with that, there will be brief discussion about
different opportunities and challenges which the organisation could face to achieve the goals
and objectives. For further instance, in this report there will be evaluation about rules and
regulations the company needs to follow in order to achieve a systematic growth in the future.
MAIN BODY
P 1 Analysing the scope and key concepts of international marketing
Tesco is a leading multinational retailer which provides different essential products to
the consumers. It was founded by Jack Cohen in 1919. It is the ninth largest company on the
basis of they revenues which they had generated in the market. The company is one of the
most popular brand in various regions. In the UK market they had seen a sustainable growth of
the period of time. The unique thing about Tesco is that they make their own products when it
comes top grocery (Venciūtė, 2018). They had curated a large customer base by offering the
excellent quality products at an affordable prices. The main vision of the company is to enrich
the lives of the customers by providing quality products. The global presence of the
organisation is strong they had managed to dominate the retail industry. They organisation can
expand their business in the region like India to generate more profits. They can diversify their
business in a systematic manner by using various strategies and approaches. The company can
dominate the market and capture a huge market share. The organisation is also using the
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effective promotion methods to attract new potential customers in different region. They are
able to provide diverse products to the consumers and appear as a market giant.
Scope: By expanding the business in international market the organisation can
capitalise on various opportunities and generate more profits. With the formulation of right
stargates which includes a systematic plan (Woo, Kim, and Childs, 2019). The company can
generate more profits in the desired industry. The main focus of the company is to provide the
excellent quality goods to the consumers to attain maximum customer satisfaction. This
mainly helps the organisation to dominate the market and attract new potential customers.
Different types of international market scope is mentioned below:
 Exports – In this business the organisation export the finished products to the
consumers in that particular region. They open different stores and franchises to
generate more profits in the market. In the region like India there are different rules and
regulations which is abode by the government. Tesco needs to follow these rules in
order to achieve sustainability in the market. The organisation needs to eliminate
different trade barriers in order to achieve great results in the new region.
 Fully owned manufacturing – The business needs to establish an effective plan
through which they can expand the business in a appropriate manner. The organisation
needs to observe the new marketing trends to provide quality products to the
consumers. They can manufacture the units in the international market to increase the
sales (Sozinova, 2018). There are various factors which includes trade barriers,
differences of the cost needs to be established in the new region.
Key concepts: There are different types of concepts related to the international marketing. The
points are described below:
 Trading on the international Barrier – The organisation needs to fulfil the demand
of the consumers. They need to establish an effective supply chain in order to provide
the necessary goods and maintain a systematic flow. In this concept the organisation
needs to analyse all the financial components effectively.
 Comparative Marketing – There are various factors present in the market to promote
the goods and services in the new region. The organisation needs to implement various
similarities and differences on the products. This is also called as comparative
marketing.
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P 2 Discussing the rationale for an organisation to want to market internationally and
describing the various routes
The main role of the organisation is to expand the business in a systematic manner to
achieve the inherent goals and objectives in the market. It is necessary for the business to
generate the profits. It helps them to function better and able to achieve a sustainable
performance in the industry (Rust, 2020). The company which are diversifying their business
operations in the newer regions. The only motive is to attract different customers by providing
the quality products. Tesco has managed to establish a positive brand integrity in the market.
There are various techniques which is used by the organisation to enhance the business
operations and achieve the inherent targets. In the region like India the company can needs to
capture the local market and needs to gain a competitive advantage. There are certain
challenges which could be faced by the company in this new regions. With the formulation of
different strategies they are able to carry out the business operations effectively. The
organisation needs to capitalise on different opportunities which is present in the market. With
the help of digital infrastructure they can manage the working operations and provide better
products to the consumers. Tesco could use various methods to attract new potential customers
in the region. They needs to offer the quality products at an affordable prices to enhance the
profitability.
Various routes to international market
There are various strategies which could be formulated by the organisation to achieve
great results. They could promote the goods and services in the international market to increase
the revenues and profits (Rekarti, Doktoralina, and Saluy, 2018). In order to expand and
achieve growth the management needs to transform their thinking an innovate new ideas.
There are various routes which could be adopted by the organisation to successfully dominate
the international market. Different routes are described below:
 Exporting – This is the one of the first route which the organisation can use to provide
the products in the new region. It includes the marketing of the products which they
wish to provide to the customers. In relation to Tesco they odes not expert the products
in the region like India. There are various trade barriers which could be the problem for
the company.
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 Countertrade – This is the indirect form in which International marketing it includes
the barter system. The organisation can offer the goods and services to the customers at
an effective price with the help of trading. They can offer the products which the
minimum amount to attain maximum customer satisfaction. They get a chance to
promote the products in the new region by using various stargates.
 Licensing – This is one of the most important route through which the organisation can
meet the demands of the consumers. They can dominate the international market by
formulating a successful plan (Carpio, and et.al, 2020). With the help of this rouite the
organisation can provide the authority to other companies in region. They can sell the
products to the consumers. In relation to Tesco they provide licenses to different other
business in India to sell the products directly to the consumers.
 Joint Ventures – The organisation can indulge in various joint venture to carry out the
business operations effectively and achieve an inherent growth in the market. Tesco
could indulge in various joint ventures. This will help them to maximize on various
opportunities in the region like India. They can dominate the market and understand the
customer preferences in a systematic manner. With the help of joint ventures three are
equal profits and shares which needs to be divided in the company.
M1 Evaluating the opportunities and challenges that marketing internationally presents to an
organisation
It has been evaluated that the organisation can capitalise on various importunities and
able to achieve a sustainable performance in the market. One of the main opportunity for
Tesco they can dominate the market and expand their business in India. It is one of the most
populated market and there are new demands which can be fulfilled by the company. On the
other hand, there are different challenges which the organisation could face at first. With the
use of different technological tools and methods thy are able to attract new potential customers
in the market. The company can generate more revenues in the market. There are different
operational activities which needs to be managed by the organisation in an effective manner
(Barna, and Semak, 2020). In accordance to Tesco the most crucial challenge for the
organisation is the rules and regulations and different barriers. They need to use viable
stargates in order to eliminate all the barriers. This will help them to achieve great results in
the future by capitalising in different opportunities in the market. Finding the solutions of
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various problems could possibly help them to dominate the market. They are bale to
implement new ways to do the effective promotion of the products and services and generate
more more capital which is necessary for the business. The main focus of Tesco is to enrich
the lives of the customers with the new products and services in the international market. The
management has to innovate new ideas to generate more retunes for the company. They also
need to maintain a positive brand integrity in the market.
D1: Producing a critical evaluation of the international market context
It is important to analyse various factors of the international market in order to expand
the operations. Current market trends should be evaluated so that organisation can effectively
offer their products and services (Faryabi and et.al., 2019). Managers of Tesco should arrange
surveys so that they can identify the requirements and needs of the customers who are located
in the new targeted region. It is important to communicate with the customers so that they can
maintain relationship which engage customers in appropriate manner. Advanced tools and
techniques should be used by Tesco so that they can maintain quality of products and services
according to needs.
P3: Evaluating the key criteria and selection process to use when considering which
international market
Selecting market for expanding the operations is very essential for the organisation so
that they can easily achieve growth and success. Various steps and procedure of selection
process is mentioned below:
International marketing objectives: Organisations aims to expand their business in
new boundaries by analysing the business environment of the new market. Main objective of
Tesco is to offer products and services in targeted market so that they earn higher revenue
generation. They follow all the rules and regulations of that targeted market so that they can
avoid unnecessary challenges and threats.
Parameters for selection: It is important to select appropriate parameter so that
organisation can smoothly expand their business in new market. Tesco analyse that
International market should involve facilities like technology and other raw material so that
they do not face difficulties in operations.
Preliminary screening: It includes identification and selection of various factors
related to income of the targeted customers, attitudes, beliefs and their background (Cantoni,
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Rocha, Galhanone and Righetti, 2019). Tesco select that market which help them in higher
profit generation in best possible manner.
Analysis and selection: It involves the final selection of the targeted market in order to
expand the operations and business. Tesco is planning to expand their business in India as it
helps them in increasing their profitability. The performance of the market should be properly
evaluated so that organisation can understand their actual position.
Test marketing: Organisation should use various approaches which help in evaluating
the reviews and feedbacks of the customers (Crespo, Crespo and Curado, 2022). It is essential
to record the reviews of customers after the services as it gives them chance for the
improvement. Insights are very important for the organisation as it classify positive and
negative factors of the operations.
Commercial production: After the gathering of information about the business
environment and customer insight, organisation can easily expand their business in targeted
market by implementing various strategies and policies which can help them in overcoming
various challenges. Tesco can effectively operate their business on international level by
adopting different strategies.
Key criteria: There are various criteria which Tesco can follow in order to expand their
business in international market which are mentioned below:
Infrastructure facilities: This criteria plays important role while expanding the
business in international market (Lu, Scholz and Nguyen, 2018). Tesco evaluate the market
area so that they can understand and plan their operations. It also involves various tools and
technologies which should be analysed properly so that organisation can arrange effective
tools and techniques. It helps them in producing and manufacturing of goods and services in
appropriate manner.
Nature of the competition: Various threats should be analysed so that organisation
can formulate strategies against their competitors. Competition can affect the growth and
development of the organisation which should be overcome by the Tesco so that they can
eliminate difficulties. Tesco maintain the quality of their products which helps them in
competing in correct manner.
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P4: Explaining using examples, the different market entry strategies,including the advantages
and disadvantages of each
Different ways can be used by an organisation in order to enter to new targeted market
and international boundaries. Tesco can also use various strategies which can are best suitable
according to their business environment so that they can offer products and services in the
international market. Various strategies are mentioned below in context to Tesco which are as
follows:
Strategy Sub types/
Description
Advantages Disadvantages
Licensing This suggest that
intellectual property
are used by
organisation in order
protect their products
and services
(Oyewole, 2018).
Operations can be
easily carried out by
Tesco so that they can
expand their business
in international
market.
 Organisations
can enter new
market in less
capital and
investment.
 This type of
entry method
can help
organisations
in facing less
financial risk.
 Income and
profitability
which is
earned by
organisation
can be lower
in comparison
to other
strategies.
 License can
cause
problems as it
require
renewal.
Export Organisations can
expand their business
with the help of
distributors and
agents.
 It do not
involve critical
research and
survey as
distributors
already
understand the
 Agents operate
most of the
operations
which creates
dependency on
them.
 Relevant and
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market.
 Investment is
slightly lower.
confidential
information
can be leaked
because on
involvement of
third party.
Franchising It provides rights and
ownership to other
parties so that they
can sell their products
and services under
their name.
 Organisations
enjoy more
growth
exposure.
 It requires less
investment.
 Organisation
have to share
their profits
which their
respective
franchisee.
 Strict rule and
regulations
should be
followed by an
organisation.
Recommendations:
Organisations should use effective tools so that they can analyse he market situation.
During the entering in international market Tesco should follow all the prescribed rules and
regulations so that they can effectively offer their products and services.
M2: Applying the market evaluation criteria, entry strategies and make recommendations for
the selected organisation
Different strategies can be used by organisations so that they can enter in new market
for their growth and expansion (Zeneli, Czinkota and Knight, 2018). It helps them in managing
their expenses and cost which are essential for the development of the organisation. It assist in
analysing various threats and risk which should be overcome in easy manner with the help of
effective strategies and policies. Various recommendations which help them in entering
marketing in smooth manner are follows:
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 Business environment should be studied in effective manner which help in
achievement of various opportunities.
 Managers should train their employees so that they can carry out smooth operations
without any difficulties.
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CONCLUSION
From the above report it can be concluded that organisations have to formulate
various strategies in order to enter in new market. International market helps organisation in
enhancing the profits of an organisation. This report will include concept of international
marketing which help organisations in expansion. Different market entry strategies are used by
organisations in order to establish their brand image in global market. Selection process is
studied for entry along with various recommendations.
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REFERENCES
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