Marketing Expansion Strategies: Tesco's International Market Entry

This report provides an executive summary and in-depth analysis of Tesco's international marketing strategies. It begins with a background of Tesco, a multinational retail brand, and discusses the application of global marketing models in its international expansion, specifically focusing on Ireland and Thailand. The report compares these markets, examining demographics, consumer spending, and infrastructure. It then analyzes Tesco's marketing expansion strategies, including franchising, direct export, and joint ventures, with a focus on the effectiveness of direct export through online channels. Finally, the report explores potential marketing strategies for ensuring success in international markets, emphasizing the importance of understanding local culture and utilizing an effective marketing mix. The conclusion summarizes the key findings and implications of Tesco's international marketing approach.

INTERNATIONAL MARKETING

Executive Summary
Global marketing refers to the place where there is different marketing strategies in
relation to the organisation functional along with adoption of condition in the country where the
organisation is there. Creating, promoting, Positioning along with using the product global
market. There are many organisation who want to expand their business internationally where
they face various type of competition from International brands or organisation to enhance the
organisational function. For any organisation which can use the appropriate system to perform it
in an effective market. Here the company is Tesco, where it is introduced for the international
brand. This organisation is based on UK where it is performing its function from 1919, and the
founder is Jack Cohen. It is one of the largest retail brand in the UK. Tesco is able to introduce it
to internationally which can able to help the community or public for fulfilling the customers
need to satisfy them (Licsandru 2018). Due to having the largest customer base and having the
big brand value which influence it to take its brand to internationally which can help in
increasing the profitability of the brand along with the productivity of the brand which is also
create the job opportunity in the country. In this report it is going to be discussed about the
international market to make entry weather in international market of the Brand.

Table of Contents
MAIN BODY ..................................................................................................................................4
A Brief Background of the Company.........................................................................................4
Marketing model for international market..................................................................................4
Comparison of international market by using global marketing models....................................4
Analysis of marketing expansion strategy..................................................................................7
Potential marketing strategy which can used to ensure success in international market............8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

MAIN BODY
A Brief Background of the Company
Tesco is a multinational brand which is having its groceries retail shop and supermarket
which is having the headquarter in the Welwyn Garden City, England. It is said to be the one of
the third largest retail in the world. It is having seven country in Europe or Asia and is the leader
of groceries in the UK, Ireland, Hungary, Thailand. It was founded in year 1919. This is one of
the biggest supermarket which is able to provide different product to the market in very less price
which is valuable to the society and many people (Ahmad, 2018). They are providing many
employment which are helping in the country economic growth and the organizational growth
too. They are also providing the product which are of very low cost and are having the better
quality which is maintaining the high quality product. This brand is the one which is creating its
business in different sector where there are many products which are having the high quality
product and the price is low which can help the people to spend less and get the high quality
product through this Tesco is able to serve the society and community both. GLOBAL
Marketing model for international market
The two international market is Ireland and Thailand where the Tesco expanded its
business in such country for getting high profitability which can help in growing business. For
growing and expansion there is selection of the target market which they need to sell their
products to them for increasing the brand value and profitability of the organization which can
help in creating high demand and also the awareness of the brand (Santini 2018). Market
selection is based on the segmentation in which there is need of understand the customer need
and their demand which is not available in the market. Segmentation is the technique through
which companies focus on their target market which are able to buy their product and having the
ability to pay for their product to fulfill their need and requirements. There is a difference
between the target market of the Ireland and Thailand which will discussed further.
Comparison of international market by using global marketing models
There are number of market this is used by the organization to operate at global level.
This market having the requirement performing the functions of Organization in improving the
functions within new marketplace (Rekarti and et. al., 2018).

Market penetration- Which is known as the first strategy which can be adopted by any
organisation used for dividing the market in separate segments, where organization is able to
perform their functions and implementing their existing product in the existing market. This
strategy is now set to be suitable for the current position as a social organization. Because the
organisation is going to expand internationally and the awareness of the product should be higher
for creating the a number of sales which leads to the profitability of the organization.
Market development- It is the strategy which is concerned with implementing the
existing product in a new market to implement them in the market for increase the profit (Javalgi
2018). In context to the Tesco, where the organization want to expand its market in Ireland and
Thailand the organization need the appropriate production services which are able to fulfill the
customer need and their demand which can help in acquiring the market in Ireland and Thailand.
Product development- In this three is development of new product in the market. The
organization is going to expand internationally which requires to follow some functions is can
help the organization in expanding his business at the global level.
Diversification- Under this matrix, which include the development of new product in the
new market this can create the high risk of product failure which is also based on the analysis of
the market and the requirement of the product which the need of customer.
Selection Criteria IRELAND THAILAND
Demographics: There are many customer
which are the target market
where the main target is the
ladies and housewives which
are there in large numbers
where they are the target
customer where they are the
main customer who are able to
buy the companies product
which can be the high market
(Quinn and et, al., 2016).
This is the one where there
are many people who are the
target customer where the
youth and the highly young
people are the target
customer. There are many
visitors which came to this
country which is due to able
in providing the cheap price
product and having the high
quality product which is
having the high market

which can help in growing
the high market share which
leads to the profitability of
the company.
Consumer spending power Due to having the housewife
as their target market, their
customers are not able to
spend highly for the high
quality product. So the
company is able to provide the
high quality product which are
able to provide such high
quality product at very low
price which can attracts the
customer easily due to having
the low cost products.
They are having the ability
to buy the product where
they are having the ability to
pay more for the quality
product which also can help
in easily buy the product
which is not able to easily
retain its customer. There
are the one who are having
more money (Goh, 2017).
Infrastructure There are many roads which
are not initially wide which
were creating problem in the
connection of the cities with
the company road which were
very difficult. There were the
90% of the load were carrying
the roads. There the
telecommunication is getting
better but do having the hill
area thee are many problem
which are creating the network
issues which are very
problematic. Due to not
having the network of the
There are many retail stores
which are there in the
market. Due to having the
yard of tourist, this country
is having the high number of
the tourist which creates the
high profits which so there is
better infrastructure of the
country which is creating the
attraction for the visitors.

telecommunication there is
problem in the internet
connection in some of the
places.
Language Company need to
communication in their local
language for creating the
proper awareness of the
product.
Due to having the high
income Tesco need to make
some distance between the
local product and its product
which can help in increasing
the business.
Analysis of marketing expansion strategy
TESCO utilised various strategies for expansion of their product in the international
markets of Ireland . Market entry strategies used by the organisation are provided below:
Franchising:The organisation sold their franchises to various individuals in the
international market to effectively utilise their brand recognition value. This helped the
organisation attract franchise owners affectively and establish their name within the market
constructively. The organisation used the cultural knowledge of their franchise owners to their
advantage as it helped the organisation market their products more beneficially as their
marketing policies contained cultural elements of those societies (Usui, 2017).
Direct export:The organisation also used the strategy of directly exporting their new
products to the consumers of the respective markets. The organisation achieved this objective by
selling their products through online portals and marketing the products by associating it with
current brand of the organisation. This method involved formulating marketing strategies which
used popular social media personalities of that locations to promote their product among tech
savvy consumers and distributed their products to these consumers through various devilry
methods. This allowed the organisation to sell their products to a wide range of consumers
swiftly and effectively.
Joint venture: Another method of market entry is joint venture that is created by two or
more parties. In addition to this, it is generally characterized by shared returns & risk, shared
ownership and shared governance. It is basically a cooperative arrangement among the two

business entities with an objective to start a new business in a proper manner. Herein, each entity
contributes their asset to joint venture & agrees on how to categorised income as well as
expenses as well.
Merger and acquisition: It is referred to the broad process of one organisation
combining with the other. In acquisition one business entity purchase the other outright whereas
in merger there is combination of two organisation that subsequently develop a new legal entity
with one corporate name. It is determined that organisation merge in order to share technology,
information as well as resources in order to overcome with weaknesses, challenges and achieve
competitive edge at marketplace (Felix and et. al., 2017).
The most effective market entry strategy used by the respective organisation is direct
export of their product through online channels as it helped the organisation reach a huge amount
of consumer in less time and with lower investment. This method helped the organisation
increase awareness about their brand and their products in the psyche of the consumers and
collect more precise data about the consumers of the respective market swiftly. The organisation
supervised complete operations of the market expansion ,faced zero restrictions and received full
share of profits after comparatively mall amount of investment. The results gathered from this
will help the organisation modify their policies at the launch of other products.
Potential marketing strategy which can used to ensure success in international market
In context to Tesco, the current business environment of the organization which can use
the appropriate strategy for the organization functioning and promoting the function on
international level. Organization is able to create the consisting of brand culture is able to help
the organization and targeting customer within the Ireland market and Thailand market.
Organization need to understand the culture of international market. It can help in anticipate the
customer behavior along with actor according to it (Jaisinghani and Kanjilal, 2019). This can
help the organization in increasing the profitability and implementing the function according to
current requirements. Here, marketing mix is generally used for the promotion which comes
under the marketing strategy and the advertisement and promotion which is one of the main
entity for increasing the awareness of the product or brand which can help in increasing the sales.

CONCLUSION
From the above discussion, the chosen company is able to get all the information which is
related with the international marketing where there is the discussion about the company in brief
and about the two international market where there is discussion about the global marketing
model for international marketing. There are many company who wants to get the higher
business which needs different types of strategy and different ways so that it can help in
increasing the business productivity along with profitability. Due to having the largest customer
base they are able to make high business in small period of time due to having the high brand
value and providing the quality products. There is also need to creating the awareness about the
brand name along with its facilitating products which they are offering to their customer. There
is also the discussion about the strategy which can help in entry in the international market and
there is also the discussion about the potential marketing review which can help in get the
understanding about the international market. So, one can conclude that there is requirement of
different strategies for the international brand expansion which can give the high profit.

REFERENCES
Books and Journals
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Ahmad 2018. Toward advancing debates on Islamic marketing: a renewed perspective. Journal
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Santini 2018. The role of satisfaction in fashion marketing: a meta-analysis. Journal of Global
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Javalgi 2018. International marketing ethics: A literature review and research agenda. Journal of
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Quinn and et, al., 2016. Troubled waters: the transformation of marketing in a digital
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Goh 2017. Marketing private hotel management schools in Australia. Asia Pacific Journal of
Marketing and Logistics.
Usui 2017. A dynamic process of building global supply chain competence by new ventures: The
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Felix and et. al., 2017. Elements of strategic social media marketing: A holistic
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Jaisinghani, D. and Kanjilal, K., 2019. Marketing investments and firm performance in
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