Marketing Report: Tesco's Brand Extension in the Netherlands

This report provides a comprehensive analysis of Tesco's brand extension strategy, focusing on its potential expansion into the Netherlands market. The report begins with an introduction to the importance of marketing in a competitive landscape, highlighting the use of various marketing techniques for business growth. The main body of the report outlines the methodology, utilizing qualitative research to gather data on Tesco's existing brand value, analyzed through Kapferer's prism of brand identity, and its extensive global presence. The report then delves into the target market analysis using the STP model (Segmentation, Targeting, and Positioning) to identify and reach specific customer segments in the Netherlands. Furthermore, the report includes a PESTEL analysis to assess the external factors influencing the business environment and the application of Ansoff's growth matrix to formulate strategies for market penetration, product development, and market development. The report also examines the introduction of a new product, digital toys, and addresses the competitive landscape. The conclusion summarizes the key strategies Tesco should consider for successful brand extension, emphasizing the use of the STP model and PESTEL analysis. The report references several books and journals, providing academic support for its findings.

BRAND EXTENSION

TABLE OF CONTENTS
INTRODUCTION
MAIN BODY
CONCLUSION
REFERENCES

INTRODUCTION
 Marketing function always plays a very important or productive role to a
business in the market place.
 Currently each sector or industry has faced very higher competition, in which
upper management in almost all organisations uses various techniques and
strategies of marketing for gaining effective competitive advantage in the
market place.
 In this modern world, there are many companies takes various productive
steps towards making different marketing plans for gaining better outcomes
while extending own business operations in the selected market place.
 This presentation discusses the marketing function and business extension
processes of the of Tesco.

MAIN BODY
 Methodology
 In this modern world, there are quantitative and qualitative methods of research
commonly used by different companies and individuals.
 Basically, qualitative method research helps a business for gaining data and
information through personal meetings, observation, interviews and books & journals.
 On the other side, quantitative method of research has been used by companies for
collecting data through numerical and mathematical information.
 However, only the qualitative method has been used here to collect data for existing
research work.

CONTINUE…
 Findings
 Existing brand and brand values
 Existing brand value of Tesco is very higher in the global retail
industry.
 There is Kapferer’s prism of brand identity has been used to know
existing brand value of Tesco in market.
 Physique: Tesco is a very large retail venture, because currently has
stores and supermarkets in 6800 locations in across the world, and this
retail business has over 450,000 employees or workers as well which
works in daily operations of company to achieve its overall objectives
in the market.

CONTINUE…
 Description of the Target Market
 STP model
 STP model is one of the most important strategies of marketing, because it provides
opportunity to a venture for systematically targeting people in market.
 Segmentation: Segmentation is the stage that informs businesses about how to create
different segments of market. In this situation, the marketing team have to use this
model to turn it’s all large into small segments of market. It can turn its large market
into small segments on the basis of many factors, like; demographic, geographic.
 Targeting: Targeting is the main stage under the STP model, in which upper
management have to give order to its marketing team to systematically target its
different customers in the new market place in the Netherlands.

CONTINUE…
 Analysis of the New Market, Including Trends
 PESTEL Analysis
 This is the tool that currently used by different businesses in the market for being
informed about the key external factors of the business environment.
 Political factors
 Political factor of Netherlands will positively affect to business operations of Tesco when
it will be extended its brand in this market place.
 Basically, local government runs different campaigns for inviting different MNCs which
their authorisation area in order to generate great employment opportunity to local
people. Government will impose very low tax rate on Tesco as well.

CONTINUE…
 Ansoff’s Grid Matrix
 The management of company will require to use Ansoff grid matrix as well in its
workplace while extending its business operations in the Netherlands, because this grid
provides various productive strategies to gain better outcomes.
 Market penetration: Market penetration strategy will help business for offering
existing products in the existing market place.
 Product development: Product development strategy can support business for
innovating a new product to use it for existing market place.
 Market development: Market development strategy is very helpful to Tesco for
entering in the marketplace by using existing products and services.

CONTINUE…
 An Explanation of the New Product
 The company has developed new product, named; digital toys which will give an
excellent experience, fun, joy and satisfaction to different kids and children in the
Netherlands.
 On the other side, Tesco has not added such features and attributes in this product
which can harm kids and children, and this is why this product is too good to use while
brand extension.
 Competition
 Currently the competition in retail industry is very high, and this factor can be a threat
to Tesco while brand extension. For example; Walmart, Iceland foods, Aldi etc. retail
companies can give very tough competition to Tesco in the Netherlands.

CONCLUSION
 It can be concluded that upper management of Tesco have to consider
different strategies and techniques of marketing while extending own
business operations in the retail industry of Netherlands.
 Basically, there is huge competition in the market place of this country,
so that it should use STP model for properly targeting their customers in
the market place.
 On the other side, it should use PESTLE analytical tool also while
brand extension to be ready for dealing with the impact of different
factors of business environment.

REFERENCES
 Books & Journals
 Swaffield, J., Evans, D. and Welch, D., 2018. Profit, reputation and
‘doing the right thing’: Convention theory and the problem of food waste
in the UK retail sector. Geoforum. 89. pp.43-51.
 Keane, M. and Morschett, D., 2017. The Influence of Localised
Corporate Social Responsibility and Perceived Brand Localness on
Willingness to Buy at a Foreign Grocery Retailer. Marketing ZFP. 39(1).
pp.27-43.
 Lamey, L., and et.al., 2018. New product success in the consumer
packaged goods industry: A shopper marketing approach. International
Journal of Research in Marketing. 35(3). pp.432-452.
 Kreutzer, R. T., 2019. Concepts for the Development of Strategies. In Toolbox for
Marketing and Management. (pp. 49-87). Springer, Cham.