Strategic Marketing Report: PESTLE, Entry, and Segmentation

This report provides a comprehensive analysis of strategic marketing principles, focusing on Ashanti Marketing Solution Limited and its application to Tesco. It begins with an executive summary outlining the report's key findings. The introduction establishes the importance of marketing strategy as a long-term plan for business success, emphasizing profitability and competitive advantages. A detailed PESTLE analysis identifies the political, economic, social, technological, legal, and environmental factors influencing Tesco's operations. The report then explores various market entry modes, including exporting, direct exporting, licensing, and strategic alliances, particularly joint ventures and non-joint ventures. Finally, it delves into market segmentation and targeting, analyzing potential consumers and outlining strategies for effective product positioning and customer engagement. The report concludes with a discussion on identifying and targeting the most valuable consumers, emphasizing the importance of understanding consumer needs and adapting to market trends.

Strategic marketing

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
PESTLE...........................................................................................................................................4
Analyse all the factors that cover overall opportunities and threats in Ashanti Marketing
solution Limited- ........................................................................................................................4
MARKET ENTRY OPTION...........................................................................................................5
Main Market entry modes includes but cannot restricted to the strategic alliances, acquisition
and Mergers.................................................................................................................................5
MARKET SEGMENTATION........................................................................................................7
Analyse the market segmentation and targeting in the terms of customer-................................7
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
Marketing strategies process has been described in this report which based on the long term
plans for managing the business operations and functions. This assignment has been discussed
about the Pestle analysis for identifying the overall external and internal factor for enterprise
process. It has been described the market entry mode that beneficial; for handle the overall
performance of enterprise activities. Porter's generic strategies has been suitable for organization
to create a specific strategy plans for growth and development.

INTRODUCTION
Marketing strategy is basically long term plan for business process for increasing the
profitability and productivity in the marketplace. It is the best approach which based on the
planning to achieve their sustainable competitive advantages. This process will involve the
overall strategy of organization according to the situation for putting some evaluation,
formulation and selection of market values. In this report, It describes the TESCO firm which is
based on web services or marketing organization that provide the best quality of product and
services in the marketplace. This report will discuss about the PESTLE analysis of all essential
factors that cover the opportunities and threats in the firms. Furthermore, it also discusses about
the main market entry mode which is not restricted about the strategic alliances, FDI and
Acquisitions or mergers etc. It is needed for established the market segmentation and targeting in
other terms and explain the potential target customer for increasing the productivity and
profitability across the world. At last task, it also discusses about the porter's generic strategy that
critically analyse the suitable strategy that beneficial for the market and compare with the generic
strategies.
PESTLE
Analyse all the factors that cover overall opportunities and threats in TESCO
Pestle analysis is a concept of marketing principles that help for managing the business
operations and function in proper manner. It is applicable as tool by TESCO track the entire
environment because they easily operating the planning of new product and services in
marketplace. This factor is analysing the overall threats and opportunities faced in the
organizations.
 Political Factor- this factor is determine and identify that the government always
influence the economy for increasing the business process all over the world. Ashanti
marketing firm always maintain their overall system in effective manner (David David,
and David, 2017). Government may included the different types of tax and duty that help
to increase the revenue and generating the structure of firms. Political factor includes
fiscal policy, tax policies and trade tariffs etc.
 Economic Factor- This factor is directly impact on the performance of economy which
affect the organization and their resonating long term goals. TESCO is increases the price
of services and products that directly affect the economy growth of country. Economic

factor includes interest rate, inflation rate, economic growth pattern and exchange rate
etc. This factor is also direct accounts for the foreign direct investment which depending
on the specific industries. Ashanti marketing organization is try to maintain their
economic factor and always increased their market values.
 Social Factor- This factor is basically depend on the social environment of market and
other gauge determinants such as population analytics cultural trends and demographics
etc (DeTienne and DeTienne, 2017). Social factor is playing important part of
organisation which requires for managing the working culture of firm. Ashanti
organization always maintain their service because they provide the best quality facilities
to their employee and in this way, it will create an effective working environment.
 Technological Factor- Technology factor is basically innovation technique that affect
the business operations and function in both ways for negative and positive, it is based on
the automation, development of research etc. TESCO applicable innovate new idea in
marketing strategies.
 Legal Factor- This factor is affects both internal and external because there are certain
laws which impact on the business environment. TESCO is maintained certain policies
which essential for organization to provide the security and privacy to their employees.
Legal analyse can be used the strategies chart to apply the proper legislative rules and
regulations such as safety standards, consumers laws and labour laws etc.
 Environmental Factor- This factor include those influence and determined with the help
of environment. Pestle is a crucial for business and this factor use the entire climate,
location. Global changes etc.
MARKET ENTRY OPTION
Main Market entry modes includes but cannot restricted to the strategic alliances, acquisition and
Mergers
Market entry mode is a based on the participation strategies that different in the terms of
risk because it can control of all necessary resources which help for managing the return
investment. It comes to getting their products and services exchange n the marketplace by using
different marketing strategies in the organisation (Kaynak and Meulenberg, 2017). This strategy
allow for business to always maintain their current enterprises model and production line for
sending goods in the foreign market on the basis of distribution. The simplest form of market

entry s exporting. The exporting new good into the market which allows for organization to
judge on the basis of their product, quality and items.
Direct Exporting- Direct exporting is selling the product directly in the marketplace in
which TESCO is chosen the instance that has own resources that applicable in the development.
This organization is established the sale programs or provide the details and turn into the
distributors to represents in the marketplace. In this organization whereas all the distributors and
agents work together to represent their own interests. It is the part of company that;s why,
requires for choose the right distributors and agents are easily handled the business operations
and functions in proper manner.
Licensing- It is relatively proper arrangement where the organization can transfer the
rights to use the efficient product and service to another enterprise. It is usually beneficial
strategy in case license has relatively large global market that share in marketplace. It can be for
the purpose of marketing or production (McCamley and Gilmore, 2018). TESCO is take own
charges a fees and used for the technology, expertise and brand.
Strategic Alliances- It is a term that explain the entire series of various of relationship
between the organization that market internationally. Sometimes, TESCO is created an effective
relationship with the competitors.
Strategic alliance is basically an arrangement between two or more companies to get
benefited. Both the companies combine all the efforts made by them without sharing their
expenses, knowledge mostly to enter into a new market segment or to gain advantage in the
competition. Strategic alliance benefits a company in different ways like entering into a new
market segment or to convert competitors into partners and move towards same goal. Through
Strategic Alliance an organization can generate more revenue, enhance competition by merging,
through partnership risk can be divided, new standards can be set for entering into new market
segment and can enter into a foreign market with more effective way. Strategic Alliance can be
of different types. But mostly they come under two categories like.
 Joint Ventures based Strategic alliance: In this two or more companies work as a
single entity for a particular project. For example: Tesco has recently made a
strategic alliance with a French retailer or supermarket Carrefour for a long term
global purchasing alliance. Carrefour is Europe's one of the biggest retailer and
grocer. They have teamed up for buying products from almost 19000 stores or

even more so that they can provide low price and more choice products to their
customers. This has helped Tesco to expand their business into new market
segment.
 Strategic Alliance based on non joint ventures: These types of joint ventures are
much unstable and do not last for long. These are basically for a limited period
and for a small purpose ( Quinton and et.al., 2018). These type of strategic
alliance are done when a company or an organization is loosing their market share
and to save their business. These type of strategic alliance can be terminated any
time.
MARKET SEGMENTATION
Analyse the market segmentation and targeting in the terms of customer-
The market segmentation is analysing the potential consumers that support for business
growth and development. A market segment is a process or method that select the efficient
potential customer in the entire audience. It is necessary for business process their consumer
demand and requirements. The right choice of market segment will help for increasing the long
term opportunities for business process. TESCO is implement variety of strategies for growth
and development.
Being consultant, I have many market segmentation that can categorize according to the planning
and strategies. These are important concept that implement in the market place and can be
segmented into different manners.
Segmentation, targeting and Positioning are more popular strategic approach that applied
in the marketing process. It is the most common marketing model to analyse the need and
requirement of enterprise growth and development (Rani and Kebede, 2018). This factor is
creating the marketing communication plans which help for marketer to develop or deliver the
relevant messages and personalized details. In this way, it easily engaged with the various type
of audience.
Illustration 1: Marketing segmentation
(Source: Marketing Segmentation, 2018)

Market segment- It is a process for dividing the market according to the potential consumer and
group of people such as segment that based on the various characteristics. It is easier for tesco to
personalized the marketing campaign. In TESCO, marketer is more efficient person that manage
the time, resources and money. They were targeting the consumer in the individual level.
Targeting select the target market- A target market is a collection of consumer in the business
process which aim to put some efforts for increasing the profitability and productivity in
marketplace (Shalender, 2017). This is first step of segmentation to chose the best market and
identify the best segment within the potential for business process.
Product Positioning- Product element is an important element in the business process of
marketing plan. It the best process for marker to identify the best communicate with the products
and their attributes.
Discuss about the potential target customer with full of justification-
I am working as consultant in Ashanti marketing solution firm and I always concern
towards the potential customary and targeting towards planning an effective strategy that help for
improving the business process all over the world. Once the target market is basically defined on
the basis of product knowledge and market analysis. In this way, it can measure the entire
business requirement on the basis of experience. I can see that there are highly competition in
marketplace that's why, it is an essential to maintain their position. In this way, Tesco always try
to achieve the business goals and achievement because they target the potential consumer those
always buy the products to this firm. It can be provided the specific criteria to handle their
business situations in proper manner (Trong, 2017). Online marketing is depended on the
segmentation to find out the target market and consumer on the basis of strategy. Such as
products, service options etc. Tesco follows some steps for targeting the consumers and market.
 Understand the need and issue of problem in the business process or solve in proper
manner.
 Represents in the innovation idea towards the customer that's why, they attract towards
their services and products.

 Identifying the solution of particular problem that arises in the business process at the
time of development and growth.
 This is the most important steps to identifying the market trends and their specific
situations analysis.
 Manger always think about the internal consumers such as employee and their effective
capabilities and efficiency.
 At last investigate about the competitors in the marketplace afterwards, it can increase the
business process all over the world.

4. Porter's Generic Strategy
The Porter's strategy has been considered as one of the important strategic tactics that is
applicable in any scenarios and in any business or industry. This model is adopted to emphasize
on the necessity of gaining the competitive advantages (Nandakumar, Ghobadian and O'Regan,
2011). In regard to the same, competitive advantage is referred as the leading of an upper hand
over the competitors by giving valuable product or service through means of low pricing or
providing benefits. Henceforth, this used by all sizes of establishments when planning to expand
or grow in new boundaries or geographical regions through maximising their resources'
allocation.
Moreover, it has major three categories of generic strategies that must be employed for
industry focus and are explained below:
Cost Leadership Strategy- This type is useful when there is a prevalent vigorous competition
among several sellers. It is mostly employed in a large market when the products are either same
or the suppliers' have the availability of materials to properly manage as well as maintain in
appropriate manner. Moreover, it gives insights on the methodologies which are in use in the
presence of attainment of differentiation of products in context to add value to the buyers'
(Tanwar, 2013). Along with, it is highly advantageous when most of the buyers infer the product
or service with the same approachability or perceptive outlook, thus giving it a vantage point for
considerations.
Illustration 2: Basic model for interrelationships
between business elements
(Source:Hattangadi, 2018)

Differentiation Strategy- This is one of the frequently used techniques for effective segregation
of product or service in the marketplaces, mainly in any type and size of markets. However, it
adds worth to the overall perception of buyers' due to this differentiation order. Here, the
utilities, requirements and needs are of diversified manner that affects the price sensitive areas. It
is mostly applicable when there is a presence of few rival companies, who are following the
same approaches of differentiation. Furthermore, with speedy altercations in the technological
advancements and enhanced competition affects the entire evolution of the features in relation to
the product development.
Focus Strategy- This is that type of generic strategy that emphasis on targeting the niche
markets which are already in profitable state and are in progression stage. Here, the involvement
of leaders are minimal in terms of niche component and they are more inclined towards the
specialized needs and specifications that target the markets while following their mainstream
customers'. Along with, there is a specificity to select an attractive niche depending on the basis
of competitive advantages and customers' base for attaining the objectives effectually. This is
dealing with targeting the small marketplaces through focusing on the needs of consumers' on a
small scale (Box and Miller, 2011).

The following table gives the relationship between the industry's forces and the generic
strategies to have an understanding on the overall assessment when any company plans to
expand in a new geographical location.
Industry's Forces Cost Leadership
Strategy
Differentiation
Strategy
Focus Strategy
Threats of New
Entry
Refers to reduction of
prices due to
retaliation from other
prevalent companies in
order to stop any new
entry
Here, the loyalty of
consumers' hamper the
new entrants when
compared to the
already established
brands
Refers to development
of competencies at
basic level of an
organisation that act as
an obstacle when
entering new markets
Buyer's Power Includes lower costing
to the buyer's powers
Includes fewer options
for negotiation aspects
Includes less power to
buyer's due to existing
Illustration 3: Porter's Generic Strategies
(Source:Generic Strategies,2018)

from buyer's side few alternatives
Supplier's Power It is highly insulated
from the powerful
suppliers
It is easily cross-over
the pricing for
increased customers'
retention
It is related to low
volumes of supplier's
power with a
differentiation focused
approach
Threat of
substitution
Application of low
pricing strategy
Attachment of
consumers' on the
basis of differentiating
dimensions
Competent
fundamental values
and existence of
specialized products
Competition Rivalry This is in context to
pricing competition
This is based on
loyalty towards the
products and services
of brands
This is not applicable
for differentiation
focused needs of
customers'
Tesco's adoption of the generic strategy
Companies like Tesco has always used these generic strategies for their evaluation of the
prevailed competition in all over the world. This assists their management to chalk out an outline
for successful implementation of their progression at the globalization level through international
movement of their allocation if resources including the manpower and other technological tools
and techniques in suitable order (Teeratansirikool and et.al., 2013).
In this regard, Tesco can use the cost leadership generic strategy for striving their market
positioning in the best possible manner. It involves providing their services or products at lowest
costs at the large marketplaces so they can gain an edge over their competitors. However, this
will be beneficial for them to control their operations costing for generation of profits and
revenues. Whereas on the other hand, it can lead to a path of disorientation from achieving the
high profit margins because of their inclination to attract the potential customers to their products
and affect in the form of inelastic pricing tactic.

CONCLUSION
It has been summarized that strategic marketing is an important aspect of the business
world which shed light on the various facets of the multi-dimensionality approaches. Moreover,
this report has given a detailed analysis of PESTLE Analysis of Tesco company for
understanding their market positioning in the current market at the global level. This has been
done to comprehend the implications for growing their businesses in new locations and areas at
the global perspective. Additionally, it has also concluded about the various market entry modes
through different tools such as strategic alliance, mergers and more to demonstrate the planning
of Tesco in order to attain the objectives and goals for improved productivity and profitability.
Lastly, it has provided a detailed evaluation of the Porter's generic strategies and the most
effective methodology to be implemented by Tesco for their expansion plans. It also laid
emphasis on the complete assessment of this management in terms of strategic marketing for
better results at the global competitive marketplaces.

REFERENCES
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Acquisitions in the Greek Food Industry. In Food and Agribusiness Marketing in
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conceptual model and empirical findings from two emerging heritage regions. Journal of
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Teeratansirikool, L. and et.al., 2013. Competitive strategies and firm performance: the mediating
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Online
Generic Strategies,2018. [Online]. Available
through:<http://www.marketingteacher.com/generic-strategies/>.
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through:<http://drvidyahattangadi.com/porters-generic-strategies/>.
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https://www.smartinsights.com/wp-content/uploads/2013/12/STP-model.png>