International Marketing Report: Tesco's Global Reach

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INTERNATIONAL MARKETING
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Table of Contents
INTRODUCTION............................................................................................................................. 3
Overview of the company..............................................................................................................4
LO1.................................................................................................................................................5
P1 ANALYSING SCOPE & MAJOR CONCEPTS OF INTERNATIONAL MARKETING.........................5
P2 EXPLAINING THE RATIONALE OF THE METHODS USED FOR ENTERING INTO THE NEW
MARKET..................................................................................................................................... 7
M1 EXPLANATION OF THE CHALLENGES AND OPPORTUNITIES THAT TESCO WILL HAVE WHILE
ENTERING INTO THE INTERNATIONAL MARKET.........................................................................8
LO2............................................................................................................................................... 11
P3 EVALUATION OF THE MAIN ASPECTS AND PROCESS OF SELECTION IN FOR TESCO IN THE
INTERNATIONAL MARKETING..................................................................................................11
P4 EXPLANATION OF THE VARIOUS MARKETING STRATEGIES WITH THE DEEP EXPLANATION
OF THEIR DISADVANTAGES AND ADVANTAGES.......................................................................13
M2 applying market evaluation criteria and strategies for entering and along with that
recommendations will be provided for entering the international market.............................15
LO3............................................................................................................................................... 16
P5 & M3 Presenting and evaluating whether global or local which method will be more useful
for organization....................................................................................................................... 16
P6 & M4 INVESTIGATING AND EVALUATING HOW MARKETING MIX STRATEGIES CAN BE
ADOPTED IN THE ORGANIZATION IN CONTEXT TO INTERNATIONAL MARKETING..................18
LO4............................................................................................................................................... 20
P7 & P8 EXPLAINING AND EVALUATING VARIOUS INTERNATIONAL MARKETING APPROACHES
THAT CAN BE ADOPTED BY ORGANIZATION............................................................................20
M5 EVALUATING VARIOUS INTERNATIONAL MARKETING APPROACHES AND PROVIDING
RECOMMENDATIONS THAT HOW COMPANY CAN MAINTAIN THEIR OPERATIONS IN THE
INTERNATIONAL MARKETING..................................................................................................22
CONCLUSION............................................................................................................................... 23
REFERENCES.................................................................................................................................24
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INTRODUCTION
The organization that wishes to expand its operations and business internationally or globally
uses the tool of international marketing. International marketing is the term that is based on
many factors and many marketing and international marketing strategies are used for growth
and expansion of the business. The international strategies used by organizations help in
maintaining the brand image of the company and also supports bin taking a competitive
advantage in the market. In this assignment as the general manager of the local company,
many marketing aspects and concepts will be discussed. By explaining the importance and
scope of the business organization with international marketing will also help in expanding
business globally at a higher rate. In the next section of the assignment, various methods and
ways of marketing will be discussed that will help Legal and Tesco to expand their functioning
and business operations globally. The company will also be able to plan expansion strategies
which will gradually help in many marketing areas of the company.
Thus with the help and support of the marketing consultant, the report will be prepared to
provide guidance to the organization and the Tesco would be easily able to expand their
company and attract more customers for increasing the amount of turnover.
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OVERVIEW OF THE COMPANY
Tesco is the local company of UK and is founded by Jack Cohen; the company falls in the
retailing industry and has many employees working with them. The headquarters of the
company is situated at Hertfordshire England. The various products served by the Tesco are
such as, Books, Clothes retailing, Electronics items, petrol, Toys etc. and by providing the vast
range of products to the customers, they are able to attract an increased number of customers.
The Company Tesco is planning to expand in the international market and with that, they are
planning to earn higher revenue margins.
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LO1
P1 ANALYSING SCOPE & MAJOR CONCEPTS OF INTERNATIONAL MARKETING
The term international marketing can be explained as marketing through which companies are
able to expand their business operations with the help of the various marketing strategies. The
expansion of the company globally is only possible with the help of strong planned strategies
and techniques. The international marketing is the method through which goods and services of
the company are offered to a large number of customers.
INTERNATIONAL MARKETING SCOPE
JOINT VENTURE:
The concept of Joint venture is the method or process through which a company can expand its
business operations easily (Yan and Luo, 2016). The joint venture allows one company to merge
its business with other company and serve goods and services to the customers. Expanding
business through Joint Venture helps an organization in many ways and also helps in getting
established a brand image and good customer base for the company (Yan and Luo, 2016).
CREATES HARMONY AMONG NATIONS:
The international marketing allows businesses to interact with each other in many ways and
when companies interact with each other than employees of both companies are related and
learn many things with each other. This helps organization and nations to create harmony
among them.
OPPORTUNITIES ARE INCREASED WITH MINIMUM RISK:
There are many organizations that take the support of the strategy such as they manufacture
products in the home nation and deliver products and services all over the world. With the help
of international marketing concept risk of the business failing decreases and thus helps in
increasing profitability.
INTERNATIONAL MARKETING CONCEPT
GLOBAL MARKETING
Global marketing is the term that can be explained as a strategic tool that helps in creating the
brand image of the company. Through the process of global marketing, organizations try to take
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up many advantages and benefits and try to grow their operations globally (Gillespie and
Riddle, 2015).
DOMESTIC MARKETING
Domestic marketing is the term which can be explained as the process in which goods and
services of the company are purchased and sold in the same market. In this type of marketing,
the organization try to create brand awareness through satisfying customers' needs and wants
(Pomirleanu et al., 2016).
MULTINATIONAL MARKETING
In this type of marketing, organizations shift from domestic to multinational, this can be
explained as when the organizations are done with the domestic marketing they choose
another way to expand their business through Multinational marketing (Leonidou et al., 2018).
EXPORT-IMPORT MARKETING:
The term export-import marketing can be explained as when any organization sells its products
across the national border then that is called export marketing. But when a company take
products from other countries situated at another place then that is known as Import
marketing. Many companies have earned a huge amount of profit with the help of this strategy
in the international or global market (Malyarets ., 2017). This method will also help in satisfying
customer's needs and wants at a large scale.
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P2 EXPLAINING THE RATIONALE OF THE METHODS USED FOR ENTERING INTO
THE NEW MARKET
Tesco is the company which deals in the retail sector and can expand their operations with the
strategy of international marketing. The company provides a wide range of products that
satisfies customers' needs and wants. The Tesco is planning to increase its brand value in the
global market and thus a rationale for the company is provided hereunder:
RATIONALE OF TESCO:
DIRECT RENDERING OR EXPORTING:
This can be another good option to reach the international market for more revenue
generation, through this method Tesco can minimize the cost of middle person and can expect
to generate more profits.
PARTNERING:
In this type, the companies are allowed to work in partnership and through this method,
companies can switch they can explore many markets to create a brand image and its
awareness. If Tesco adopts this method then the organization will have many options to explore
and expand their business.
FRANCHISING:
Franchising allows other companies to manufacture the same kind of products as this company
is producing. All intellectual rights can be used by the franchise company. At Tesco, this strategy
can be used as entry option where company can take franchisee of the other company and can
take benefit of the latest technology to serve a large number of customers (Madanoglu et al.,
2017).
LICENSING:
Licensing can be explained as the process in which the company transfer or provide the rights
to the other company to use their brand name and products and services so that they can
establish and grow their business operations (LiSanti et al, 2018.). For entering into the
international market this is a good option for Tesco to reach a large number of customers.
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M1 EXPLANATION OF THE CHALLENGES AND OPPORTUNITIES THAT TESCO
WILL HAVE WHILE ENTERING INTO THE INTERNATIONAL MARKET
Expansion is the process in which companies has to adopt many strategies and method and
thus when any company decide to increase their market share by the expansion of their
business operations, many opportunities and challenges come in the way of the company.
The following available opportunities and challenges are explained hereunder:
OPPORTUNITIES:
PERFORMANCE IN FINANCIAL TERMS:
The organizations which deal in the international market usually have the potential to expand
their operations with the help of finances. Their financial performance or capacity is usually
strong. The company Tesco when enter into the international market will have the opportunity
to grow their operations and serve products and services which will help the company to
increase their financial position and shares (Cohen, 2018).
BRAND IMAGE & VALUE:
It is very well known that companies in the international market are stable because of the
brand name they have among other competitors. If the company Tesco will enter into the
international market then brand image and name of the company will surely reach the heights
of success (Cohen, 2018). The global market is the best opportunity to attract a large number of
customers for better and higher brand value.
GROWTH OF BUSINESS:
Through entering into the international market, opportunities of the market increase whereas
this is not possible in case of the domestic market. When the organization target the domestic
market there are only a few options to expand. Thus the domestic market is not much
beneficial for the industry to grow (Cohen, 2018).
COMPETITIVENESS:
It is very common that when you serve a large number of customers, many competitors will
come in your way and thus in the global markets competition rate is always high in the market.
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When Tesco will enter into the global market it will be easier to increase the competitiveness of
the company.
CHALLENGES
INSTABILITY OF ECONOMY:
It is very common that economies of different countries are not stable and because of that
many businesses of the international market faces problems in accordance with changing the
economic situation. This could also be the situation with Tesco when they enter into the new
Global Market.
CREDIT RISK:
The larger the market greater the risk, it is very common that in the global markets businesses
have the risk of credit but these risk can be recovered with the support of insurance or taking
the letter of credit from the person who has taken amount or goods. When Tesco enters into
the market they may also have to face the critical situation when customers take credit and
failure of that will adversely affect all other operations (Oldani, 2016).
EXCHANGE RATE:
When companies enter into the international markets, they have to face the problem of
various rates of exchange. It is very natural that exchange rates in different countries will differ
according to their trade practices and policies. Thus when Tesco will enter into the new market
it will also have to face the problem of various exchange rates.
POLITICAL RISK:
The political factors of each country changes with time, The Tesco will enter into the
international market and the political risk will be very high because nobody can predict the
stability of the political matters in the country, this will have an impact on the functioning of the
business (Oldani, 2016).
THEFT OF INFORMATION
When business deals in the global market it is very common that company has to deal with
many organizations and those organizations will be various other companies, people at
different levels, banks and other institutions, while contacting with these there may be danger
of misuse of company’s personal information (Oldani, 2016). Tesco may also face this situation
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of theft of information in many areas where they deal with other people for getting work done
for earning more profit and for maintaining other activities of the business.
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LO2
P3 EVALUATION OF THE MAIN ASPECTS AND PROCESS OF SELECTION IN FOR
TESCO IN THE INTERNATIONAL MARKETING
A Common criterion in international marketing has to be followed by every organization as and
before they enter into the market.
DEMAND OF MARKET:
It is very important for the company who is entering the international market to analyse market
demand and marketing Trends, Analysing market demand will help in planning strategies to
fight with critical situations in the company.
TRADE BARRIERS:
It is very important to have clear and full information of all the trade barriers of the country in
which there are problems and strict rules are followed. The company can avoid expanding their
operations in those countries where there are more trade barriers.
POLITICAL CRITERIA:
It is very essential for the company who is entering into the international market to know about
political situations of different countries because slight changes in the political policies can
affect the whole operations adversely.
SOCIAL CRITERIA:
Social factors such as lifestyle, culture, behaviour taste and preference and many other aspects
related to social life are very different and this will affect the business operations in many ways.
Thus it is very important for an organization to analyse whether the social factors of the
company match with the company’s culture or not.
PROCESS OF SELECTION:
1. IDENTIFYING COUNTRY:
This is the first step while entering into the international market, every company has to
analyse all the factors before starting activities of the business. Identifying all the factors of
the country is important because taste and preferences and culture of every business are
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different (Schlegelmilch, 2016). This the company has to choose those countries which are
suitable for their business.
2. IN PRELIMINARY SCREENING:
In this stage, all the factors that are taken into account are those factors which explain that
what cost has to be incurred by the company for expansion of business in those nations.
Thus the company’s cost will be analysed by knowing economic stability, exchange rates,
political, socials and cultural factors etc (Schlegelmilch, 2016).
3. IN DEPTH SCREENING:
This is the stage where the company analyses what product will be offered to customers
and what type of channel will be used by the company to promote and advertise
(Schlegelmilch, 2016). What all strategies will be planned for the success of the product?
The process of accepting these goods and services by other nations would also be decided
in advance for the smooth functioning of the business operations.
4. SELECTION IN FINAL:
In this stage when the company has already decided how products and services would be
offered to customers by analysing all other factors. The company will then finalize whether
they have an ample amount of finance to use this strategy and method or not. After
analysing various factors decision will be finalized about the company's expansion through
the International marketing process.
5. SHARING PERSONAL EXPERIENCE:
The experience of the person is very important after the company has analysed and decided
on all the factors. The marketing head of the company must personally visit the chosen
company to have experience with the culture and people of the company. Having personal
experience will help in differentiating similarities and dissimilarities and through which the
company would be able to plan for future growth and success (Eriksson et al., 2015).
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