Report: Evaluating Tesco's Marketing Strategies for Global Expansion

This report provides an in-depth analysis of Tesco's marketing strategies, focusing on its international expansion efforts. It begins with an executive summary and introduction, outlining the company's objectives to become a global brand. The report delves into a situation analysis, including a SWOT analysis of Tesco's market position, followed by an examination of its marketing strategies, particularly the use of target marketing techniques like segmentation, targeting, and positioning. It explores the company's game plan for achieving its targets, including the use of newsletters and articles, and details the importance of strategic marketing plans. The report covers the steps involved in developing a marketing plan, such as setting marketing goals, conducting market research, and determining budgets. It also discusses various marketing strategies, including business-to-consumer approaches, and includes financial projections and implementation control measures to assess the plan's effectiveness. The report concludes with a summary of the findings and provides references to support its analysis.

Marketing Across
Boundaries.

EXECUTIVE SUMMARY
This report summarises as strategies marketing plan used to attain desired marketing
objectives which help the company to achieve its targets. Marketing plan is develops on the
basis of target market needs so that consumers can satisfy. Financial projection help the
organisation to control the unnecessary expenditures. With the help of control implementation
company can accomplish its goals. Environmental analysis help the corporation to protect its
business from the negative impact of external environment.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1 Strategic marketing plans are used to attain desired marketing objectives..............................1
Situation Analysis........................................................................................................................1
Marketing strategy ......................................................................................................................2
Game Plan to achieve Targets .....................................................................................................4
Financial Projection.....................................................................................................................7
Implementation Control ..............................................................................................................7
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Marketing is consider to be a business process of creating relationship with large
number of customer and making them satisfy (Berkowitz, 2016). International marketing is
related to when company wants to expand their business across national boundaries. This help
to find the right marketing method and stating the right marketing message that support to
attract large number of audience. In this report, Tesco is selected to understand the concept of
marketing across boundaries. The main objective of firm is to become worldwide global brand.
In this report, critically evaluation of strategies marketing plan are used that help
company to attain the predetermined marketing goal and spread its business at global level.
Company use the target marketing techniques such as segmentation, targeting and positioning.
TASK 1
Situation Analysis
Tesco is a British multinational groceries and daily general commodity production and
seller company. It was founded on 1919 by Jack Cohen and focus to expand business rapidly
and in 1939 company have more than 100 stores across UK. It is third largest retailer company
in the world according to the gross revenue. Company has its headquarter in Welwyn Garden
City, Hertfordshire, England, UK (About Tesco, 2018). It was founded that Tesco has diversified
its business in several areas such as cloths, electronic items, furniture, software, telecoms,
financial services and other internet services. Tesco has expanded its business with its
operation in almost 11 national countries since the early 1990s. After Fifteen later form the mid
of 1990s to 2013 company was successfully able to develop a chain of stores from 500 to 2500.
Recently, the company is listed on LSX and is considered of the FTSE 100 index. Tesco has
market share of about £18.1 billion as was recorded on 22 April 2015.
Market: It is defined as the medium of exchange that allows the buyer and seller of
particular commodity or services in order to satisfy each other. Nowadays market have
emerged and increased for each kind of industry. It is observed in food and beverage industry
the market place is increasing at a very fast pace as everyday there are various companies
entering in industry. For example, Tesco is one of the leading supermarket chain in UK, but
there are other more companies that provide the variety of product such as Tesco.
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SWOT analysis of Tesco to evaluate competitive performance company by identifying its
strengths, weakness, opportunities and threats.
Strengths- Tesco has won numerous awards for consumer service and is largest
supermarket store and possess its stores are located in reachable areas all these features make
it competitive to introduce new business range.
Weakness- As Tesco is new to fast food business and do not possess existing market
share and to expand it globally is very competitive.
Opportunities- International expansion, developing markets and new consumer group is
termed as opportunity for the company.
Threats- Strength of competition, over stored industry and fluctuation in foreign
exchange rate are some threads to business of Tesco.
Marketing strategy
In general marketing plan is defined as the valuable part of business plan formulated by
management of company. This plan help sales person, marketing manger to perform their task
in appropriate manner so that objective of company could be achieved and profitability can be
increased. For example, management of Tesco has formulated an effective marketing plan that
focus to expand its business in more countries. They have adopted online, inbound, relationship
marketing strategies that support to handle its business in different countries. Main motive of
Tesco is to cover large market share and enlarge its customer base so profit can be maximised.
Customer: These individual are consider to be backbone for company as large number
of client company has the more profit is going to be hold by company. Tesco have large number
of customer base, as they provide variety of product under one roof. This makes customer
satisfy as they don't have to move at different places for different product.
Competition: In recent time, the competition in food and beverage industry is growing
at a rapid speed. Due to which it is very important for manager of Tesco to maintain the quality
of product and provide best product to customer.
A marketing plans formulated by manger of company also involves a detail information
of current and actual marketing position about company. It also includes a brief discussion of
the target market audience and description about important Mix of marketing that assist
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companies to achieve its marketing objective and goals. When company like Tesco is planing to
enter into new market of to expand its business in other countries it is crucial for the manger to
create effective plans, develop marketing strategies and adopt the best enter mode (Campbell
and Martin, 2015). There are different ways to enter into new market such as exporting,
licensing, Joint venture, Franchising, diversification etc. Management of Tesco adopt franchising
method that help them to establish and expand business in different part of world.
Mode of entry:
Diversification:
It is defined as a system that help company to diversify its business in different part of
world. It is the growth strategy that capitalize the different marketing opportunity by focusing
several investment risk over various asset classes. With the process of diversification company
are able to target its audience and provide them best quality of product. For example, Tesco
recently identifies that there is increasing demand of fast food in almost every country. When
company applies diversification option to enter in market it has different reason that includes
such as reducing risk of believe on only one or some income roots, avoid seasonal variation by
manufacturing variety of good and services with several demand interval, accomplish higher
growth rate and calculating a rival by offensive the competitor's core industry.
Game Plan to achieve Targets
Newsletter and articles: Manager use to make advertisement in popular newspaper and
articles so that information about new innovation could be reached to large number of people.
For example, Tesco use to give new articles in famous newspaper of UK and other countries so
that reader may get the information about new fast food centre of Tesco.
Strategic marketing plan
Management of Tesco focus to develop an effective strategies marketing plan that have
a detail about the activities to be performed while opening new fast food centre in other
countries (Cant, 2010). These activities are based on proper and accurate research and specific
objective and is must be implemented in a specific manner and evaluated carefully in a timely
approach. In general marketing practice adopted by management of company is to increase
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their income, expand its business, discourage competition, increase business practices and
image, promote new and current services etc.
Importance of strategies marketing plan:
 It help to analyse, gather and plan for future activities that will aid to achieve the main
goal of Tesco.
 With the proper planning about future manager of Tesco use to overcome different
problem that may arise in future.
To develop a valuable strategies marketing plan manager has to follow major steps that
help in expanding business at global level. These steps are discussed below:
 Set marketing goals: This is first step of plan in which manager discover the market for
practice and defining the target population that support business of company. It is very
important to discuss these set objective with other staff member so that they can work
in appropriate manner. For example, manager of Tesco first analyse the overall country
and pick the best country where fast food has been a new fashion. If company wants
marketing plan to be successful than they have to support and guide their staff member
that help to attain the marketing goals. This time span allows manager to plan activities
around community events that are in objected to achieve goals.
 Conduct a marketing audit: This is related to review of all marketing activities that are
part of companies regular activities. Thus the manager of company sure to review and
properly check every announcement, brochure seminar so that function of business can
be managed and control in successful manner. For example, Tesco manager use to
review all relevant activities so that accuracy and productivity are maintained. This help
them to easily conduct different operation at global level. This would helpful of HR
manager of company to make business marketing plan that will help to open new stores
of fast food. They also make sure that best quality of product must be offered to
consumer so that they get attracted towards Tesco.
 Conduct market research: This step basically help to evaluate a realistic pictures of
different business activities so that manager of company are able to determine current
position in market. For example, Manager of Tesco use to research its current market
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position that help them to enter in new market. They properly investigate current
market which help in understanding the demands and taste of people (Dibb and Simkin,
2013). But on the same time it is a time consuming activity so management have to
allocate work accordingly so that operation are executed well. So the main objective of
Tesco to provide customer tasty fast food at cheap rate. From the analysis they use to
gather information that people desire food but it does not harm their health.
 Analyse the research: Once manager investigate about the market the next step is to
analyse the information collected that assist to find meaning full opportunities. It also
act as a foundation for determining which marketing strategies are best for company an
make valuable result for future. Manager analyse the market as people are wiling to eat
tasty and health fast food at faithful price. So production department keeps in the plan
to manufacture product with very low fat, not oily and is tasty also. This will make
customer happy and they will start moving form other brand to the product offered by
Tesco.
 Determine a budgets: This step is basically related to defining the overall budget
required by company to expand its business in international market. Before making
specific marketing strategies manager are suppose to examine the current financial
position and preparing a marketing budgets. These budgets must be effective, clearly
descriptive and according to the kind of market company wants to enter. For example,
Tesco wants to enter in new market through opening their fast food centre in different
countries there is a need for properly formulated annual budgets. Properly mentioned
budgets help company to work according and attain the overall objective to earn profit.
Following is the estimated budget (figures are in pound).
 Consider marketing strategies: This step is last part of a marketing plan that means
manager have to decide and select most accurate and appropriate strategy. There are
number of strategies that have to be selected by management of Tesco according to the
requirement of business, targeted customer and specification of product. Two main
types of marketing strategy:
 Business to consumer (B2C) marketing
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 Business to Business (B2B) marketing.
 As Tesco is willing to enter new market by introducing fast food stores so they
apply business to consumer strategy. This help company to explore market in
appropriate manner and attain large number of customer. Its is observed that customer
are always want best quality of product at reasonable price. Thus management of Tesco
are also focused to manufacture food item at lower cost so that actual price will be
lower as compared to other companies (Ebert and et. al., 2014).
Financial Projection
Marketing budget
Particulars 1st year 2nd year 3rd year
Initial money 27000 30000 12000
Investment 30000 18000 25000
Total 57000 48000 37000
Marketing outlay
Promotion 12000 8000 9000
Online Advertisement 40000 8000 11000
Total 52000 16000 20000
Cash Analysis
Break even analysis: It is consider to be valuable point where sales for company are
equal to purchase. This analysis help manager to determine the point where no profit no sales.
Particulars Amount(£)
Sales 500000
Less: Variable cost 210000
Contribution 290000
Less:Fixed cost 250000
Profits 40000
Break Even Point= Fixed cost/ contribution
= 250000/290000
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= 0.8620 per unit
Note: Forecasted sales are of £ 500000 and expected expenses are of £ 460000.
Implementation Control
PESTEL
Large companies such as Tesco, willing to launch their product in different market must
have proper knowledge about the business environment factors. These factor if not analysed
proper may have negative effect on the business operation of company. So in order to analyse
the external environmental factor manager of Tesco uses PEST approach. Its is describe as the
macro environmental factors that help companies in environmental scanning. In PESTEL, P
stand for political, E for economic, S stand for Social and T for technological factor.
Political factors: These are consider to be important factor that have to be analysed by
manager of Tesco. In case if a region is facing situation of corruption or there is unsuitability in
political parties it might have negative impact on the business of Tesco. So manager use to
analyse them properly and make plans to cop up with (Hagan, 2011).
Economic factor: These factor includes different faces of economy such as
inflation,recession, deflation etc. that might impact the business of company. Before entering
into new region company use to analyse economic condition and prepare themselves
accordingly.
Social factors: The factors that are related to lack of public support and insufficient
development due to which company performance can be reduced. Therefore manager of
company are required to make strategies to deal with these situation.
Legal factors: There are number of legal factor that may reduce the productivity of
company such as tax rate, government polices etc. In case if manager are not able to analyse
these factor it may reduces their performance and profitability of company.
So manager of Tesco use to consider these factors that help them to develop effective
strategies which support in growth and expansion of company.
Use of marketing mix.
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The marketing mix is defined as the set of marketing tool that is used by company to
pursue its marketing objective in the target market. Tesco apply the 4Ps of marketing mix which
are product, promotion, place and price.
Product: It is related to the different and innovative product manufacture by Tesco.
They use to offer best quality product in order to sustain long term financial profitability.
Price: This is related to the price offered by company to large number of customer.
Tesco offer the best price in industry to its customer and make them feel satisfy. This help to
increase the customer base and market share.
Place: This is related to the location of company or store so that large number of
customer may visit and buy product. Tesco is situated within centre of city so large number of
customer visit and make purchase.
Promotion: These are related to different activities used by company in order to
promote their product and services. Manager of Tesco uses, different promotion activity in
order to popularise their product such as advertisement in newspaper, hoarding etc. This would
result in increase sales and profit for company during an accounting year.
Use of target marketing
In present era, company once manufacture a product, analyse the market properly the
next step is related to targeting. In general, targeting in marketing means to divide the large
market in to small part or segment so that company are able to concentrate on a particular
group of consumer within that audience. Basically an individual who analyse the market use to
dived the market according to the unique characteristic of clients and focuses to solely on
serving these customer. It is observed that companies like Tesco instead of reaching the whole
market they use to divide or target market so that need and wants are satisfied.
Segmentation:
It is described that segmentation help to determine the particular needs, divide market
to ascertain specific new fresh consumer and convey important message to people of different
segments. There are different type of market that are often segmented by characteristic like.
Demographic: These are consider to be statistic factor that help company to segment
market according to the different groups such as age, income, education, material status,
education level household income etc. For example manager of Tesco wants to demographic
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factor to that support them to easily target the audience. This would result in better outcome
for company.
Psycho-graphic: This is commonly related to the personality and emotion of different
customer. This is related to what actually customer are willing to buy from whom. It is based on
culture, behaviour and lifestyle of people. So in order to get the actual information about the
lifestyle, behaviour of customer manager of Tesco use the different method of such a
interviews, customer data and survey etc. Once management of company segment there
market according to psycho-graphic factors than they use to target them and make them
satisfied.
Business Industry: This method is related to division of market according to the business
industry. There are many companies that use to offer different types of fast food in different
countries. Thus main focus of newly enter company is to keep in mind that there are large
number of rival operating in same industry. With proper segmentation about business industry
they newly launched company are able to satisfy their customer by providing product at lower
price or by fixing price of good according to the income, education level etc.
Geographic Areas: These factor of market includes city, region, country, area codes etc.
Manager use to analyse and divide market according to the location and depending upon the
scope of business. Manager of Tesco, relies on the notion that group of customer in a specific
geographic area may have a certain product or services needs (Fader, 2012). But they found
that demand are higher in those region so manager of company make effective decision to
launched their fast found centre in different areas.
Market targeting
It is defined as targeting in marketing is crucial because it impact the advertising,
customer experience, branding and different business operation. In general, when company like
Tesco focus to target market segmentation than they have to adopt the
 Speak directly with defined audience: In order to gather important deeply information
about the audience. So large companies have varied customer often struggle with
developing marketing campaigns so that they could directly interact with the large
number of customer. For example, marketer of Tesco use to first analyse the market
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and target audience then they use to speak directly with the customer so that accurate
information about their taste, life style is collected. This help companies to manufacture
goods accordingly.
 Differentiation of TESCO brand with its competitors:
Brand refers to the symbol, design, name or any other features which helps in
distinguishing particular organization product with its competitors. Therefore TESCO company
has huge number of competitors like Sainsbury's, Asda, Aldi, Morrison's, but the brand of Tesco
is totally different from its competitors, as the company has made new labels using initials of
the suppliers name. In addition to this tesco company has also diversified its areas in different
sectors as compared to its competitors like retailing of books, electronics, furniture, financial
services, telecoms and as well as retailing on internet services. Moreover it brand is different in
the point of view of customers because of it offers products to its customers ranging from low
cost.
 Improve product and services:
Tesco company can improve its product and services taking into consideration the
customers needs and preferences in respect of quality the customer require. In addition to this
company should also lays emphasis on the affordable price which the customers can pay, so
that accordingly pricing strategy can be adopted (Gummesson, 2011). Thus, it will help in
retaining and attracting more numbers of customers towards their products and services.
Product Positioning
In general, marketing strategy have key to create a brand image and develop distinct
position, that are related to competing brand which will be benefit for customer. It is observed
that company usually apply this strategy either by emphasizing the different features of their
brand product or the focus to develop suitable image through advertising. For example
manager of Tesco use to apply product positioning of their different product that help them to
build good market image of their product. With the good market image among customer it help
company to increase sales and generate more revenues.
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CONCLUSION
From the above report it has been concluded that marketing help companies to explore
their different product to large number of people at a same time. Companies willing to expand
its business at global level must have a specific enter mode that help them to attract large
number of customer. With perfect and effective strategic marketing plan help companies to
attain their desired goal and generate more revenue.
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