Global Marketing Strategies for Tesco: A Competitive Analysis Report

This report provides a comprehensive analysis of Tesco's global marketing strategies. It begins with an introduction to global marketing and defines its importance. The report then critically evaluates the trends in the international market sector in which Tesco operates, including increased competition, technological innovations, environmental and political trends, and market structure. It examines Tesco's current competitive positioning and customer segmentation. The report explains how well Tesco is placed to develop globally, outlining its product and market focus and the reasons for its success. Furthermore, it identifies the challenges Tesco faces in global marketing, such as increased competition and the need to understand customer needs. Finally, the report offers recommendations on building sustainable competitive advantage in the future and suggests implementation actions critical for success, such as focusing on customer relationships and implementing effective cost leadership strategies. The report concludes that global marketing is crucial for reaching potential customers worldwide and maintaining a strong brand image.

Global marketing

Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Critically evaluate the trends in the international market sector in which the company operates
.....................................................................................................................................................3
TASK2.............................................................................................................................................4
Explain on how well Tesco company is placed to develop globally...........................................4
TASK3.............................................................................................................................................6
Recommendations on how to build sustainable competitive advantage in the future.................6
Implementation actions that will be critical in building competitive advantage.........................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Global marketing is defined as the process in which businesses conduct and adjust marketing
strategies worldwide through adopting different conditions of other countries in order to fulfil all
global objectives. Basically, it is the activity of planning, developing, positioning as well as
promoting products and services beyond country border at global market. Effective marketing
enhances effectiveness of products and provide various competitive advantages as well. In this
report chosen organisation is Tesco that a British multinational-groceries as well as general
merchandise retailer founded in 1919 by Jack Cohen. Headquarter of respective organisation is
situated in England, United Kingdom. 7,005 employees are working with organisation. In this
report current environment and market trends of organisation, market structure, competitive
positioning and challenges in international marketing is discussed. Recommendations and
implementation of actions to gain competitive advantages are covered in this project report.
TASK1
Critically evaluate the trends in the international market sector in which the company operates
In international markets various changes are take place according to current requirements which
affects global presence as well as provide various opportunities to expand business in efficient
manner (Artz, B, 2018). Tesco is maintaining its effective brand image and operates all its
functions in global market according to trends in order to take various competitive advantages.
These trends are discussed below:
Trends in the environment and market for the sector:
Increased business competition: As in current scenario number of organisations are
taking part in global marketing in order to provide their products and services to other country’s
customers. Engagement of various companies enhances the competition level for Tesco
organisation because these organisations provide better quality products at low process through
adopting various innovation and automation that affects profitability of Tesco as well.
Speed of innovation and technologies: In global market innovations is the trend that is
used by all business in order to developing differentiated products and services than other
competitors (Awad, 2017). Tesco implement different innovations, automations and research and
development in order to provides new featured products to their customers to satisfy their needs
and demands.

Environmental trends: Environmental trends are plays important role in business
expansion to global market. Tesco develops environment friendly technologies and conduct all
business operations accordingly (Fard and Amiri, 2018). It provides various competitive
advantages and enhance brand image of respective organisation in global market.
Political trends: In order to expand business at international level various government
intervention, policies, political stability or instability and foreign trade policies and other trade
restriction affect the working to Tesco in global market (Song and Kim, 2018). So, these are
examined properly than appropriate strategies are formulated than that helps in enhancing
performance.
Some important aspects of global marketing:
Market structure: The market structure of Tesco organisation in global market is
oligopolistic as the respective organisation opens various stores across the countries. It has
dominant over supermarkets and the organisation has large range of competitors that often
control market partially.
Geographical spread of product: As Tesco provides its products and services in 11
countries outside United Kingdom (Hassan and Dadwal, 2018). It provides better quality
products and services to their customers according to their needs, demands and preferences.
Customer segmentation: Tesco divides whole potential customers and market into
smaller groups on the bases of their geographic, demographic, behavioural and psychographic
factors and analyse their needs and demand and satisfy then by offering products accordingly.
Competitive positioning: As Tesco is the largest grocery and general merchandising
retailer in UK as well as other countries. So, the respective organisation has strong positioning
among all competitors that provides various competitive advantages.
TASK2
Explain on how well Tesco company is placed to develop globally
Tesco enhances its global reach as well as maintain strong image in global market. As is one of
largest groceries retailer organisation that provides its products and services world wide and
satisfy all needs, demands and requirements of customers through develop products accordingly
by targeting specific segment of potential market. There are various strategies are implemented
by the Tesco such as transactional global strategy for the purpose of achieving maximum local

responses and ensures global integration by providing better quality products at low price (Helo,
Gunasekaran and Rymaszewska, 2017). Tesco implement effective organisational structure,
corporate culture, manage all risk in efficient manner and face all challenges in order create
effective positioning in global market.
Tesco product and market focus, including reasons for the company’s domestic, regional and
international success
As Tesco is multinational groceries as well as general merchandising retailer that offers
range of products to their customers such as food, drink, clothing and many more. Tesco focus
on the market by publishing various advertisements, promotions and other methods in order to
spread awareness among customers about products and services to enhance customer base as
well as take competitive advantages than other competitors. There are various reasons behind
domestic, regional as well as international success such as Tesco focus on the customers benefits,
customer communication, customer cost as well as their convenience that crates strong
relationship with customers and providing them better quality products at low prices
Basis of current competitive advantage
As Tesco provides better quality products and services to its customers at low prices that
facilitate organisation to retain potential customers that enhance brand image among competitive
market place (Iannuzzi, 2017). There are various other factors that provides competitive
advantages to Tesco than other competitors such as brand image, appropriate prices and
promotional activities, inbound as well as outbound logistics, implementation of new technology,
innovation and automation and better customers services.
Global strategic marketing challenges
There are various challenges are faced by the Tesco in global marketing that affects its
performance and profitability ratio as well. All these challenges and their improvement methods
that facilitate the organisation to ensure effective international competitive positioning are
discussed below:
Increased competition and technological innovations: Competition and technological
aspects is the grate challenges that is faced by the Tesco to conduct marketing activities in global
markets. Respective organisation focuses on various innovative technologies that facilitates to
produce quality products on low cost and satisfy all needs and demands of customers (Kotane,

Znotina and Hushko, 2019). Effective implementation of technology help business to take
competitive advantages.
Enhancing the role of communication: In current marketing the role of communicating
with customers who are belongs to different part of world creates challenges for the Tesco to
reach all potential customers. So, respective organisation starts operating different social media
channels that help it to connect with customers and resolve their problems in order to maintain
effective positioning in international market.
Understanding customer needs and wants: To analyse customer needs is the biggest
challenge for Tesco as there are various demographic differences among customers. By
conducting market research organisation is able to gain customer’s information and gain various
sustainable competitive advantages in international market.
TASK3
Recommendations on how to build sustainable competitive advantage in the future
Sustainable competitive advantages defined as the attribute that facilitates the organisation to
take various advantages than other competitors. It helps Tesco to maintain strong brand image as
well as positioning highly competitive international environment. Competitive advantages
depend upon various factors such as skilled labour, entry barriers and access of new technology
to produce quality products and services (Mandler, 2021). Tesco should analyse all current
market trends, relative competitors and their strategies and evaluate all internal as well as
external business environment in order to create effective business strategies to take competitive
advantages. Effective customer relationship also help business to gain sustainable competitive
advantages in current as well as future.
Implementation actions that will be critical in building competitive advantage
There are various effective actions are implemented by Tesco that facilitates it to gain various
sustainable competitive advantages that differentiated the organisation from other competitors
respectively. There are various strategies, policies and action plans are implementing by the
organisation that help business to establish effective and strong brand positioning in international
market place. In its strategy respective organisation focus on particular market segment and
provide better quality products and services according to their requirements. Tesco company
implement various competitive strategies to gain various sustainable competitive advantages in

current as well as future (Nagaraj, 2020). By implementing cost leadership strategies in which
respective organisation provide better quality products and services at lower prices and adding
some new features in products in order to make them quite different from other competitors that
provides various competitive advantages to sustain in environment (Ragulina, 2019). Tesco also
evaluate all internal as well as external factors to develop effective strategies.
CONCLUSION
As per above report, it can be concluded that global marketing plays important role in
reaching potential customers worldwide and ensures effective brand image in international
market. There are various strategies are developed by the business regarding international
marketing in order to gain competitive advantages. There are various challenges are faced by the
business such as technological advancements and customers reach that affect business and proper
solutions ensures toA maintain strong competitive positioning in market.

REFERENCES
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Helo, P., Gunasekaran, A. and Rymaszewska, A., 2017. Improving marketing and operations strategy
through industrial services. In Designing and Managing Industrial Product-Service Systems (pp.
37-42). Springer, Cham.
Iannuzzi, A., 2017. Greener products: The making and marketing of sustainable brands. CRC
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Mandler, T., and et. al.,2021. Performance consequences of marketing
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Ragulina, Y. V., 2019. Priorities of development of industry 4.0 in modern economic systems
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Song, T. H. and Kim, J. Y., 2018, July. THE ROLE OF COMPETITION IN CUSTOMER
EQUITY MANAGEMENT. In 2018 Global Marketing Conference at Tokyo (pp. 386-
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