Report on Tesco's International Marketing Strategies and Expansion

This report provides a comprehensive analysis of Tesco's international marketing strategies, focusing on its expansion plans, particularly in the Australian market. It begins with an introduction to Tesco, its history, and the scope of international marketing, highlighting key concepts and the rationale behind market internationalization. The report then explores the criteria used for selecting international locations, emphasizing market area, social factors, political stability, and technological factors. It further examines different market entry strategies such as joint ventures, direct exporting, and licensing, evaluating their advantages and disadvantages. The report also discusses the global and local marketing debate, product, pricing, promotional and distribution approaches, and concludes with the implications of using a global approach. The analysis covers marketing mix elements in international markets and emphasizes the importance of innovation and customer loyalty in Tesco's international success.

INTERNATIONAL
MARKETING

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Introduction of organisation........................................................................................................3
Scope and key concept of international marketing......................................................................3
Rational for market internationalisation......................................................................................4
Criteria to choose international location......................................................................................4
Different market entry strategies.................................................................................................6
TASK 2............................................................................................................................................7
Global and local debate...............................................................................................................7
Product, pricing, promotional and distribution approach differs.................................................7
International marketing approaches.............................................................................................8
Home and international orientation.............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is defined as the approach to promote company’s products in the target
market. This report is based on the case study of Tesco Company in respect to its international
expansion. Company initiated its business operations in the year 1919. Jack Cohen is the founder
of the Tesco Company. Headquarter of the company is located in England, United Kingdom.
Company operate its business operations in more than 6800 locat6ions all across the globe. This
report will project the scope and key concept associated with international marketing. Different
rational of international market will be discussed in this report. Criteria for selecting the
international market will also discuss in this report. Various market entry strategies will be
summarising in this report.
TASK 1
Introduction of organisation
Tesco Company is a United Kingdom based retail sector organisation. Company operates
in different retail sector products like food, clothing and other key retail products with the
support of company’s supermarket, hypermarket, super store and conventional stores. Company
has a global base of business operations. Jack Cohen is the founder of the Tesco Company.
Company initiated its operations in the year 1919 (Chhabra, 2019). Company started its
international expansion from the year 1950. Tesco Company is among the top brands associated
with the retail sector all across the globe. Company is well known for its quality products.
Scope and key concept of international marketing
International marketing is about to expand the business operations in any of the
international location. This is an effective technique to improve the business outcomes of
company. Tesco Company is planning to expand the business at international level. Management
of Tesco Company is planning to launch new stores of company in Australia as a part of the
business expansion at international level. In this context company needs to conduct marketing
campaign to achieve the recognition to brand in international market. Company can channelize
the regular promotion strategies to promote its products and brand in case of expanding business
at international level.
International marketing allows company to enhance its potentials in order to entertain
profits and business outcomes. International marketing allows company to enhance its brand

value. International marketing gives scope to company to enhance the brand value of company at
international level (Kakabadse and Khan, 2016). It allows company to improve the presence of
company in international market. Company also get scope to improve the reach of brand in term
of customer satisfaction and profitability. International marketing also provide scope to company
to improve the stakeholder trust in company’s business. It allows company to also expand the
stakeholder list of company.
Concept of international marketing is about to promote company’s products at
international level. Tesco Company channelizes its branding and promotional strategies at all key
effective marketing channels that allow company to create a international presence of company.
Concept is to run an effective and attractive marketing program in such a way that company get
to convince the potential customers of company at international level.
Rational for market internationalisation
Rational are determined as the key characteristics of the organisation that drives the
company to expand the business at international level. Company needs to assess its capacity to
deal with the expectations of the customers at international level. In case of business expansion
at international level it is essential for the organisation to assess its capacity to expand the
business in international market. Tesco Company already operating in multiple international
location which allows company to deal with the consumer expectations in retail sector in case of
international retail market. Company also needs to analysis its resources while going for the
business expansion (Smith and Clinton, 2016). As the internationalisation of business seeks more
resources that are needed to expand the business at international market. Resources are the key
rational company needs to consider while planning for business expansion. The above mentioned
rational are the key rational involve in case of business expansion. Tesco Company contains an
effective resources and company also have an effective brand value at international level which
allows company to expand the business at international level.
Criteria to choose international location
Tesco Company is planning to expand the business in Australia. Different factors have
been analysed by the company while choosing the international location for the business
expansion of company.
Market area: Market area is among the key factors that need to analyse while choosing the
international location for conducting business expansion of company. Australia has an effective

market for retail sector. People in Australia are keener towards buying essential food products
and clothing from top retail organisations. Peoples in Australia are keener towards quality rather
than look for prices of products. As per the latest sales statistic it is projected that in Australia the
retail sector has generated the sales turnover of approximately 329.6 billion Australian dollars
(Filippidis and et.al., 2019). This figure has attracted the Tesco Company towards expanding the
business in Australia. Company can generate effective sales revenue by opening stores in
Australian market.
Social factors: Social factors are among the most dominating factors while selecting the
international location for business expansion. Social factor involves attitude of people, standard
of living of people in Australia, income structure of people in Australia and other key factors. All
such social factors play huge role for the company in expanding the business at international
level. All the social factors allow Tesco Company to make profitable business outcomes by
expanding the business operations in Australian retail market.
Political stability: Political stability is also a key factor that needs to evaluate while choosing
any international locations for business expansion. Political factor is a key business environment
factor put an impact over the business operations of company (Van Hoa and Harvie, 2016).
Political stability allows companies to prepare long term strategies for business growth and also
it provides better opportunities to entertain growth. Government in Australia is very stable due to
people’s supports in Australia. Tesco Company has a potential to entertain effective growth in
the retail market of Australia. Government in Australia is also very supportive towards the
economic development and growth of the business environment in Australia. Tesco Company
will also get huge support from the government of Australia.
Technological factor: Technological factor is also one of the dominating factor behind the
globalisation decision making of business operations. Technological factor involves
technological advancement in the country. Information technology has transformed the entire
business sector (Ndidiamaka and et.al., 2019). In Australia government is very keen towards the
technological advancement in the country. Tesco Company will get to channelizes all latest
technological development entertained in Australia.
The above mentioned factors need to consider while taking the business expansion
decision in international market. Company needs to assess all potential sources that can entertain
profits for the company.

Different market entry strategies
There are a lot of methods which can be used by Tesco to enter the other markets in different
countries. There is a lot of experience and brand recognition which the company has gained over
years which can make the organization have a better functioning and decision making. The
different strategies are as follows (Vaillant and Lafuente, 2019). Joint Venture
Joint venture is doing a partnership or agreement with another company so that the company
can expand themselves in different markets. Advantages: There are a lot of new ideas which can
generate in this form of strategy in the organization. This is a temporary venture which is not a
long term and reduces risks for the organization as well. Disadvantages: There are a lot of
conflicts which can rise and the productivity will get affected. There is a requirement of a lot of
planning and researching which is required by the company so that there is a better functioning. Direct exporting
There is a direct sale by the organization to the customers is what this strategy is about but
there are a lot of disadvantage in this factor. Advantages: The trademark of the company will be
slightly protected in the market and there would be a better understanding of market share.
Disadvantage: This is going to be very expensive as an investment for Tesco and the company
is not recommended to do so (Rao-Nicholson and Khan, 2017). The responsibility on the
company is huge because they will have to understand the customers without any help. Licensing
The property like intellectual rights is given to another organization for a period of time so
that they can sell their products in the market. This is not good for the reputation of Tesco and
the market will be lost by the organization. Advantages: The company will be able to establish
themselves in the new market and get in a lot of profit in the new market as well. There is a great
opportunity for the passive income in the organization which is a very good factor.
Disadvantages: There is a high threat for IP theft for a company like Tesco which is why it is
very important for the organization not to take this measure.

TASK 2
Global and local debate
There are a lot of innovations with global market with a high customer share in the
market as well which is making the company have a lot of competitive advantage. There are a lot
of changes which are coming up and new brand entering the market as well globally. There is a
change in technological aspect in the company as well which is a great factor for the company to
be able to expand themselves in market (Charles and Anderson, 2016). The limits on the
company are not so much in the market internationally or globally which can make Tesco get
higher profit margins and that is a very good factor. The company is spending a lot on the
innovation in the market so that there is a better capture of the customers. The trends and
demands of the customers are changing which has to be maintained by the organization so that
there is a better functioning and revenue generation.
Product, pricing, promotional and distribution approach differs
Tesco has always focused on the quality of the products which the organization is
producing so that the best of products and services can reach the customers. There are strong
promotional methods as well because the organization has been in this industry from a long run
so they created strong connections in the world which is a very important factor. The customers
are loyal to this company because Tesco is providing the customers with the cheap but the best
of facilities for them which are making the company have a strong portfolio which helps the
company to expand themselves in the market. There are a lot of scenarios which have to be
considered while making the company expand themselves in the market so that the company can
have a better functioning for themselves in the market.
Rational for using global approach and implications
The company is diversified highly into segments and innovation factor which helps the
organization to have a better functioning (Surdu, Mellahi and Glaister, 2018). The company is
being able to globalise themselves in the market which helps the company to have a strong profit
margin which is a very important factor for the organization. Expanding into Australia is a great
advantage which is good for Tesco’s portfolio and the company will be able to have a better
functioning for themselves in the market.
Marketing mix into international markets

The place is Australia where the pricing of the products is going to be highly stable and
the products are going to be innovative which is going to attract a lot of customers in the
organization. This is going to make the company have a competitive advantage despite of so
much of competition in retail industry.
Critical evaluation of marketing mix factors
The marketing mix factors are well analysed by the organization so that there is a better
functioning by having a strong customer segmentation in the market (Kaleka and Morgan, 2017).
There are large profit margins when the company will be able to have a strong base for
themselves and new functional channels are effective in the country in which the organization is
expanding them into.
International marketing approaches
Centralised approach for the international marketing is an approach which helps in
understanding the market and the marketing team makes decisions for the company there after
which is going to be very effective in nature. The company in this approach works with high
international factors and expansion which will help the company to have direct exporting of the
services and products in the other country. To have a better market share there is a lot of
investment which is made for innovation of the products so that there is a higher sale which the
organization can have in the market which is going to make the organization have a strong
market base for them. The innovation should be able to stand in the field which has to be made
sure by the marketing team of Tesco and because of their experience and knowledge in the field
there is a good job which will be done by the organization.
Home and international orientation
There are a lot of products which Tesco has launched and have been successful in the
segment they planned for themselves in the market. It is because of this experience the company
has planned a larger segment with the products of the organization and the company wants to
expand themselves in Australia because the GDP of the people is also higher and the company
will be able to have higher profits (Jurše and Jager, 2017). The company is investing a lot in the
technological changes and the promotional methods which are being used by Tesco are also
strong which is why it is very easy for the company to be able to expand themselves.

Competitor analysis and recommendations
The company has a lot of experience in this industry which is why they already have a
strong strategy planned out for the organization to follow so that the company will be able to
capture the market soon. There is training and development which has to be provided to the
employees so that they can give their best in the organization which will make the company have
a better functioning (Christofi, Leonidou and Vrontis, 2017). There are already established
companies in the new market which is why it is very important for the company to be able to
give them a competition.
Recommendations to maximise international market opportunities
Amongst all the channels in the market the company will have to focus on the innovation
so that there is a better position which the organization can gain in the market. There is a lot of
competition but Tesco has great opportunities globally in the market which can make the
organization have higher profits.
CONCLUSION
From the above report it can be concluded that it is very important for the organization to
have a better analyses of the market the company is expanding themselves into so that the
company can have a better market and profit margins. There is a lot of competition in the market
because of which the company should have innovation and creativity in them so that they can
capture the market effectively.

REFERENCES
Books and Journals
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Review.
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Finance. 10(1). pp.3-38.
Jurše, M. and Jager, J., 2017. Marketing channel strategy management in international
markets. International Journal of Innovation and Learning. 21(2). pp.127-148.
Kakabadse, N. K. and Khan, N., 2016. Cosmopolitanism or globalisation. Society and Business
Review. 11(3). pp.234-241.
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