International Marketing and Consumer Behavior Analysis: The Tesco Case

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This report provides an analysis of Tesco's international marketing strategies and consumer behavior. It begins with an introduction to international marketing and consumer behavior, followed by a discussion of standardization and a PEST analysis of Tesco, examining political, economic, social, and technological factors. The report then explores Tesco's market focus, including segmentation, targeting, and positioning strategies. Finally, it examines Tesco's communication strategies, such as email marketing and search engine optimization. The report concludes with a summary of key findings and provides a list of references. The report highlights how Tesco adapts its marketing approaches to different markets and consumer behaviors, providing a comprehensive overview of the company's international marketing efforts.
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INTERNATIONAL MARKETING AND
CONSUMER BEHAVIOUR
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAINBODY....................................................................................................................................3
Section- 1....................................................................................................................................3
Section- 2....................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1
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INTRODUCTION
International marketing is the business performance where the activities ate design to
price, plan promote & direct that flows the form services and goods to buyers. where as
Consumer behavioral is study about the customer, individual, organisation select, use and ideas
dispose that satisfy wants and needs. Tesco is one leading supermarket on UK. This report
highlights the standardization and pest of the Tesco company and also highlights the market
focus and communication. In this regard present report has been prepared(Xiang, Magnini and
Fesenmaier, 2015).
MAINBODY
Section- 1
Standardization is the procedure that to developing and implementing of a technical standard
which is based on consensus various parties, includes users, interest groups, firms, governments
and standards organizations.
PEST of Tesco
Pest analysis is a tool which is used by the company to evaluate, discover organize and
that track an macro-economic of a factor that can have an impact on enterprises and in the
future . Such framework determines the chances and threats because of an economic, political,
Technological forces and social
(Carlucci and et.al., 2015).
Political factors- As changes in the political factors that highly influence the
performance of the organization. It includes changes in tax rate, legislation act & of course. The
stability of country that operates, because of an ongoing financial instability in world, Many of
the government motivate the retailers to make jobs for domestic population. As Tesco use in a
positive way and make employment opportunity, it helps in turn raise the demand of its
diversifies its employee and its products. Hence, Such political changes have an effect on the
Tesco company.
Economic factors- It is one of the main factors that concern for Tesco company, as they
mostly leverage the costs, profits, demand and prices(Erevelles, Fukawa and Swayne, 2016).
The Tesco company always try to be aware if the changes in economic factors that can affect the
finance accessibility. It is essential describe that as the Tesco business growing internationally,
where the firm still become quite dependent on UK market where 30% of market share is their.
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And also the diversification and internationalization that have two strategies that is perused by
Tesco organisation all over year, it is main reason for the success of the company. And if the
decrease in disposable of household income and income level. In such condition Tesco gave its
focus to an advertising of its valuable brands than more luxurious items.
Social factors- Due to lot of changes in the social factors such tends which indicates the
consumer in UK and have shifted towards the one-stop shopping and bulk shopping. Because of
this Tesco company raise the number in non-food varieties and offered for sale. Such types of
services and goods that is demand by the customer that is mainly influenced by their attitudes
and beliefs which in turn mainly influence through the social condition(Bian and et.al., 2016.).
As the consumer are generally mote aware of the health problems because of which approaches
towards the food continuous changing. By adopting all such social changes by the Tesco
company which accommodating the organic products demand.
Technological Factors- As the advancement of the technology that bring lot of new
chances for the Tesco company. It has two most distinct that include, where the introduction and
development of an online shopping that provide home delivery facilities. Whereas it also
provides the self-service of checkout points that ease and convenience for the consumers, which
reduced the lab our cost. Additional to it Tesco company also invested an important fund on
energy of an efficiency projects that fulfill for a long period objective which decline Tesco
carbon Footprint(Rödiger and Hamm, 2015.). Hence, adoption of such technology factors by the
Tesco company that helps the company for the development its business at international level.
Section- 2
Market Focus
Segmentation- Tesco segment its consumer according to its loyalty and by various kinds
of different products. Where segmentation divide kinds of its consumer into geographic,
categories, physiography, demographic and behavioral, that may require a separate or mixed
marketing strategy. For an effective segmentation it can be accessible, measurable, substantial,
actionable and differential. Such as geographical segmentation where it divides the market into
various geographical units such as states, nations, regions, neighborhoods or cities. Second is an
geographical segmentation- which divide the groups that is based on age, family size, education,
religion nationality(Hofacker, Malthouse and Sultan, 2016).
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Targeting- It is the process of an actually that determine the planning and select markets
that advertise the media that is used through a segment appealing. It is a targeting changing
environment. Tesco uses the online marketing to increase the sale of the products if the
company. It uses the online marketing or advertising the products so that it can be reach the
overall business market in the UK. Because of this all people in the business market are to be
aware about the Tesco products which can increase the sale of the products. Whereas the
behavioral targeting is the change of the product and also optimization of a data collection and
online advertising that send a message for a potential segment(Carlucci and et.al., 2015). It is
based on small collection of information by the consumer and sold to the business that is to
analyses the potential segment.
Positioning- it is the final stage of the STP where it mainly focuses on the customer
where they view how the customer can be view their products or services with the comparison of
the competitors. Here the Tesco company try to make the position of the company product on thr
mind of the customer after finding the needs and wants of the customer and what they prefer, by
analyzing it properly, the company positioning the market by establishing the identity or image
of the products or brand so that the consumer can perceive in certain source, which make the
consumer to be more attract towards the product and hence change the consumer buying
behaviour towards the Tesco products(Erevelles, Fukawa and Swayne, 2016).
Communication strategy
TESCO uses a variety of marketing strategies which eventually help them to attract the
large number of customers and thus in capturing the greater market share by establishing their
position. One of the most important strategy which the company uses is the E mail marketing.
This is basically the marketing strategy in which the company sends the personalized messages
as well as the emails regarding their products and services, The various offers as well as the
cashback which they release on their products are sent to their target consumers through the use
of mails. This at the end helps TESCO to gain competitive advantage and thus take their brand
message to wider audience(Bian and et.al., 2016.). Another marketing strategy used by TESCO
is Search engine optimization in which the company optimizes their website with the aim to
appear on the top page of the search engine. TESCO designs their website in such a way that
makes it consistent for the customers to search the various attributes of products as well as
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services on their website. Through this optimization, TESCO is able to entice the customers and
thus establish their position in the marketplace(Rödiger and Hamm, 2015.).
CONCLUSION
From the above study it is concluded that standardization is very essential for the
company to an implement and developing the technical standard that can help the organisation to
increase in the productivity of the Tesco and also concluded that pest analysis which help the
company to overcome from the changes in political, social, economic, technical this help the
organisation to increase the productivity and sale of the company at the international marketing.
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REFERENCES
Books and journals
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22. pp.244-249.
Carlucci, D., and et.al., 2015. Consumer purchasing behaviour towards fish and seafood
products. Patterns and insights from a sample of international studies. Appetite. 84.
pp.212-227.
Erevelles, S., Fukawa, N. and Swayne, L., 2016. Big Data consumer analytics and the
transformation of marketing. Journal of Business Research. 69(2). pp.897-904.
Bian, X., and et.al., 2016. New insights into unethical counterfeit consumption. Journal of
Business Research. 69(10). pp.4249-4258.
Rödiger, M. and Hamm, U., 2015. How are organic food prices affecting consumer behaviour?
A review. Food Quality and Preference. 43. pp.10-20.
Hofacker, C.F., Malthouse, E.C. and Sultan, F., 2016. Big data and consumer behavior:
Imminent opportunities. Journal of Consumer Marketing. 33(2). pp.89-97.
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