Strategic Marketing Report: Analyzing Tesco's Romania Market Entry

This report examines Tesco's strategic marketing plan for entering the Romanian market, focusing on product recommendations, macro-environment analysis using PESTLE, and the selection of a market entry mode. It critically assesses strategic alliances, mergers & acquisitions, and foreign direct investments, ultimately recommending a strategic alliance for Tesco. The report also applies market segmentation and targeting principles to identify key customer groups and applies Porter's generic strategies to determine the most appropriate competitive approach. The analysis emphasizes the use of organic food offerings and reusable packaging to appeal to the Romanian market, considering political, economic, social, technological, legal, and environmental factors. The report concludes with a strategic marketing overview and recommendations for Tesco's expansion into Romania, considering the country's business environment and potential challenges.

STRATEGIC MARKETING

Table of Contents
Executive summary.....................................................................................................................................3
INTRODUCTION.......................................................................................................................................3
Recommend product or service and a country and provide macro-environment analysius with possible
opportunities and threats..........................................................................................................................4
Critically assess three modes of market-entry and recommend one of the following..............................5
Applying marketing concept of market segmentation and targeting........................................................7
Apply porter’s generic strategy................................................................................................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................11

Executive summary
This report is based on the strategic marketing that helps in modifying the products to
differentiate their products from the rival firms. As a marketing consultant of the Ashanti
marketing solutions they recommend the new market for Tesco with some innovation in their
product so that they target the number of people and get the potential customers for the firm.
PESTLE analysis is helpful to understand the macro environment and it also shows the political,
technical, economical conditions of the country as it is useful or create opportunities or make a
threat for the organisation. According to that Tesco analyses the best mode of entry into the
Romania market that gives the high profits to the firm. After entering the market they segment
and target the people who are valuable to the business firm and helps in increasing the sales to
the venture. At last apply porter’s generic model that is useful to identify the which strategy is
most appropriate for the company to target the large customer base(West, Ford and Ibrahim,
2015).
INTRODUCTION
Strategic marketing refers to a process of that in which a company can make a strategy
that is differentiate their products from the competition and focusing on their strength to earn a
high profits by providing the best services to the customers and gain the valuable consumers for
a longer period of time. In this an organisation can target the number of people and make them

potential and valuable customers to the firm and its goods and services. This report is based on
the Tesco that is open their outlet in the Romania to increase its market share and profits. In this
they enter with modified food products so that they capture the large customer base. This report
includes the strategy that is made by the manager in this they identify the macro- environment by
using PESTLE to know the market condition and their situation and further it involves the modes
of entry that is much suitable for the form to enter into the market and helps in generating more
funds. It also includes the market segment and targeting strategy that is helpful in attracting the
large people and make them a valuable customers for the products and services of the company.
At last it shows the porter’s generic strategy that is helpful in deciding the strategy to enter into
the market. This will enhance the market growth and share of the organization(Sahaf, 2019).
Recommend product or service and a country and provide macro-environment analysius with
possible opportunities and threats
Overview of Tesco
Tesco is one of the famous multinational groceries and general store in the UK and
founded in 1919 headquatered in Hertfordshire, England. They have diversified products that
includes books, financial services, foods, toys, petrol, software and many more. The manager of
the Tesco thinks to expand their market in Romania for this they need to hire a market consultant
of Ashanti marketing solution so that they gives the best ideas to enhances the market while
earning profit and market share.
Recommended product or service and country
Tesco is one of the largest superstore in the UK want to expand their business in the new
country i.e. Romania with all organic food and species that protect the public health in this they
does not mix the artificial flavor that harm the people and with a reusable packaging. Organic
food can safeguard the quality of the food and it is also a good initiative to protect the
environment. In this firm provide the earth friendly products to their customers that are helpful to
reduce the disease in the human being(Aghazadeh, 2015)..
PESTLE ANALYSIS

 Political - Romania is a parliamentary unitary republic that is based on the France
republic. In this country people have right to express their feeling and expressions and
there government have the strong connection with UK due to this Tesco capture the great
opportunity to open their outlet without any government inventions. But at the same time
due to Brexit in European country it may contain threat to expand their business unit in
other country (Zghidi and Zaiem, 2017).
 Economical - the economic condition of the Romania is much stable and there people
income are also high due to this it make a good opportunity for the Tesco to enter into the
market with their or services and it also get the employment to the unemployed people of
Romania. The main threat that is face by the company is that Romania is the country
where business environment is not encourages the competitive market. This will present
the threat to the Tesco(Hajli, 2015).
 Social – in this factor Tesco face the threat as there people make more emphasis on their
mother tongue due to this operate a business in country is difficult as they more money
on hiring a person who have a knowledge of the country language. It also make the
opportunity as it helps in knowing the market where they want to operate.
 Technological - Romania is follow a advanced culture in technology and due to this
Tesco face the high competition in using the technology in their production and
promotion strategy and it will make a threat but at the same time it contain high
opportunity as using advanced technology helps in earning high profits and
revenues(Varadarajan, 2018).
 Legal – This factor shows the use of legal laws and regulations that was imposed by the
government of the country for the benefits of the employees who are working in the
company. In Tesco they use the employee equal pay in this they pay their employees
equally as per their performance, ability and capability of doing a particular work. For
Tesco it may create a threat of high corruption in the country(Cegliński, 2016)..
 Environmental – This factor explains the various factor that is related to the save the
climate and atmosphere where a person live and a business operates. In this Romania is
the country that makes more focus on environment benefits and this will make a grate
opportunity for the Tesco to enter into the market with their organic food because it will
not harm the environment and people who live in the society(Kim, Shin and Min, 2016)..

Critically assess three modes of market-entry and recommend one of the following
Market entry options
It refers to the term that describes the various options to the company who wants to enter
into the overseas market. This can be done for the delivering of good and services to the other
country and earns high profits and benefitted the economy of the home country by earning
foreign currency. It also benefitted the image of the business in all over the world. In the
reference of Tesco they want to enter into the Romania market for this they can examine
varieties of entry options and select the best and appropriate one form this. It can be described
below(Hunt, 2015).
 Strategic alliance - It refers to a framework between the two organisation that mutually
contracts to joined the companies and achieve the projects without losing their
independence by each firm. It is less complicated as compare to the joint venture. By
using the alliance they can increase their customer base and also gain the competitive
market. it has some advantage and disadvantage of this type of mode of entry. In a
economic terms it contains low risk and low cost but high profits and it has the largest
benefit that it make the cooperation to their rival firms so that profit may be increase
without competing in the market. it also expand the base of the large customers(Percy,
2018).
 Mergers & acquisitions –It refers to that process or action that is made by a company to
stronger their position in the market. in this merger is the combination of the two
organizations whereas acquisition is the process of taken over the other venture and make
rule on it. These two terms are the core aspects of the corporate finance world. By using
these terms company can transact the financial resources, tender offers, buy assets etc. to
done a business on global level it is the major terms that a large company can use and
covers the large market in the new country. It help in beat the competition in the market
place. It contains the major advantage as it mix the power and control in the marketplace
and also help in enrich the returns with cost saving. It also contain the drawback as it loss
the experienced workforce because of changing leadership and company atmosphere. It
also reduces the flexibility in the business venture.

 Foreign direct investments - It refers to that investments that is made in the form of
controlling the ownership in the company in a country by an enterprise based in the other
nation. It means done the investment by the company in the another interested country in
the form of acquiring the assets in that nation and make a ownership. Its main advantage
is that it develops the economic by creating a conducive environment in the country
where the business is operating at the same time it can benefitted the company as it
enhance they market share and gain the higher returns in future(Agic and et. al., 2016).
By examine all the three modes of entry Tesco is using to enter into the Romania
market is Strategic alliance because in that country they ignore the competition in the
market place. Here they cannot encourage the competition between the firms. So the
Tesco is using the strategic alliance in this they can contract the other already established
firm so that entry is beneficial as they attracts the large customer base. They deal with the
delivery firm who delivers the products to the customers in a easy and safest way so that
the people are satisfied with the service of the company. At the same time this entry
mode is less complicated in other words it is a easiest way to operate a business in a other
country like Romania. Strategic alliance is the best way for Tesco because it expands the
loyal customer base on a fast manner and people easily recognize the brand name. this
helps in earning high profits and revenues by the firms. It also helps in giving the high
level of innovation that force and attracts the people towards the products and they
purchase it. It also makes the positive and energetic brand awareness and also improve
the quality of the individual good or services. It also expand the opportunities related to
the market. but sometimes it mat clash the owners thought and culture and this will create
a threat to the company to overcome this issue company assign a experts who can solve
all this problem and give the innovative solution.
Applying marketing concept of market segmentation and targeting
Market segmentation
It refers to a dividing a whole market of the targeted customers into a various groups,
segments and the various other characteristics. It can be based on the users who respond in a
similar basis as per the strategies of the marketing and share a same traits like taste, interest,
needs and locations. It is a research by the company to divides their customer base into smaller

groups and offers them a goods and services according to their needs and desires. In this market
can be dived into some segments like homogenous group of market, distinct group of customers
and the reaction responsive type consumers(Muangkhot and Ussahawanitchakit, 2015).
In context of ten Tesco there manager can segments the customers into a small groups in
the market and earns a high profits by satisfying their needs and wants. The main objectives of
the organisation to segments the whole customer base is that it can minimize the whole risk and
it also help in gaining the knowledge which type of consumers can give the high returns to the
firm. It also help in increasing the efficiency of the resources. In this firm can be segment the
market in a demographic and behaviorally basis. In this Tesco can focus on the young and the
old people because they prefer health first and due to this they fastly attracts towards the organic
foods and species. By transferring the usage of the products into the market they attracts their
behavior to buy the products and enjoy this so that they earns a high amount of market share and
profits.
Targeting
Market targeting refers to a process of selecting a base of the customers in the market
from the entire market where it is strong. It is a market that a company need and they wants to
satisfy their demands to earns a higher profits and returns. A company can set the price
according to the target market manufactures good and distribution channel so that they feel
comfortable in the market. A market can be targeted according to the age and the gender. It is
very essential to target the market where the business is operate so that they earns a higher
profits and returns in a short period of time(Muangkhot and Ussahawanitchakit, 2015).
In the background of Tesco it is very essential to target the market in the new country so
that it is easy to sale their products according to the customer satisfaction. In this they target the
young people specially male who prefer healthy food for their safe life and children it is
important to feed them with healthy food for this company introduce the organic series which is
safe from the health disease as it is fresh and its consumption is very healthy.
Apply porter’s generic strategy
Porter’s generic strategy

It refers to that strategy that is helpful in gaining the competitive advantage in the market.
It contains four aspects in this it includes cost leadership, differentiation, cost focus and
differentiation focus. In this Tesco can use this strategy to gaining the competitive advantage in
the new market i.i. Romania. This factor can be explained below(DeTienne and DeTienne,
2017).
Cost leadership – This strategy is refers to a process of gaining the competitive advantage in the
market place. In this company can reduce its prices of the products and sales them to the
customers. In this there are few factors that will encourage in reducing the cost i.e. low labor
cost, low cost of production and the capital that was needed in the technology that will brings
down. In this company can offers the variety of offers like discounts sales and many more. In
context of Tesco if it is used than it will helps in gaining the market with their existing product.
If a company can introduce the innovative products than it can make the high price of this
products.
Differentiation - It refers to the process which shows the different products and services that is
more attractive from the competitors firms. It helps in gaining the high profits and high sales in
the market. Because of this innovation is done as per the customer demands and fulfills their
needs. To using this strategy Tesco can invest the high amount on research the market so that
they know the customer taste and preferences and after that they conclude that people are very
conscious about their health and due to this organisation offer organic range of products so that
many people get attracted and buy the products and services and increase the sales of the
company (Kumar, Sharma and Gupta, 2017).
Focus – It includes two aspects first is cost focus and second is differentiation focus. In this
company can make the loyal customer base by using this strategy if they use cost focus strategy
than they enhance their customer base for a short period of time but if company want to attracts
the customers for a longer time they choose the differentiation strategy. This helps in making the
loyal customers at a short period of time and for a longer time. In context of the Tesco, if they
want to capture the large market share for a shorter term they use cost focus and if they need a
loyal customer and for life long they chose differentiation focus. It helps in gaining the market
share.

From the above strategies Tesco could choose the differentiation strategy so that they
capture the large market for their organic food and this type of products are high in cost so the
company cans sale it on the premium price and target the young and the old one people who are
very conscious about their health. This strategy makes a people attracted towards the company
and retain for a longer period also help in earning high profits and sales(van Scheers and
Makhitha, 2016).
CONCLUSION
By using the above explained data it is to be concluded that strategic marketing is an
important term for every business as it helps in giving the best opportunity to enter into the new
market with the new product and earns a high amount of profits. It explains the Pestle analysis
that is helpful in knowing the macro environment that finds lots of opportunities and treats in
them. It can gives the best mode of entry like FDIs that helps in directly investing the foreign
market earns a high amount of profits. It aloes explain the market segmentation and market
targeting to identify and capture the large people and make them to the company customers. It
also shows the porter’s generic strategy that is helpful in earning high amount of revenues and
also gives the ideas of longer sustainability of the firm(Miles and et. al., 2015).

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