International Marketing Report: Tesco's Market Entry and Analysis

This report, prepared for a marketing consultant, analyzes Tesco's international marketing strategies. It begins with an introduction to international marketing concepts and scopes, emphasizing the importance of adapting offers to specific locations, translating advertising, and considering cultural differences. The report then explores various market entry routes, including research, websites, direct sales, and distributors, highlighting the advantages of each approach. It then delves into the key criteria and selection processes for international markets, outlining steps such as defining objectives, setting parameters, preliminary screening, shortlisting, evaluation, and test marketing. Furthermore, it examines different market entry strategies such as franchising, direct exporting, joint ventures, and licensing, providing advantages and disadvantages for each. The report also covers the differences between global and local marketing approaches, focusing on product, price, promotion, and distribution strategies. The report concludes by summarizing different international marketing approaches and orientations.

International marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Scope and key concepts of intentional marketing..................................................................3
P2 Various routes to market........................................................................................................4
TASK2.............................................................................................................................................5
P3 Key criteria and selection process..........................................................................................5
P4 Different market entry strategies...........................................................................................7
TASK3.............................................................................................................................................8
P5 Key arguments.......................................................................................................................8
P6 Analysis of product, price, pricing and promotional distribution approach differs in a
variety of international contexts..................................................................................................9
TASK4...........................................................................................................................................10
P7 Various international marketing approaches.......................................................................10
P8 Home and international Orientation. ...................................................................................11
CONCLUSION..............................................................................................................................11

INTRODUCTION
A market is a system of institution, rules and procedures relating for customer and seller
those come across to exchange goods and services. Whereas marketing is the action or business
of promoting and selling various product and services that are product in company. It includes
market research and the advertising scheme for promotion (Berthon and ed. al., 2012). An
international market is defined as a market place outside the international boundaries of company
country where its was established. Tesco, is one of the largest supermarket store in UK that want
to deal in internation market. It is British multinational grocery store and general product retailer
and is located in Welwyn Garden city (UK).
As a marketing consultant, different scope and key concepts of international marketing
and entry routes are discussed to owner of Tesco in this report. Various market entry strategy and
its advantages are described and report also shows the difference between global and local
marketing with suitable example. Different approach of distribution, pricing, promotional and
product are being focused in this report.
TASK 1
P1 Scope and key concepts of intentional marketing.
Marketing across borders requires more work and inquiry preventive for launching a
marketing drive. International marketing involves the company in making one or more marketing
mix that help in selling their product in other countries. It is far different from local marketing as
it includes exchange of goods for customer who have various needs and needs. So, market
expertise of company can follow three simple international marketing concepts that help them to
plan about global marketing drive that are described below:
 Offer must be location specific: First of all the manager should check the cost and
delivery option for the current campaign in internation market and make sure that
shipping of good must be in every location. For example Tesco should check the delivery
option in every part of UK as well as other countries by making number formatting
different to rest of the world (Burgess, and Steenkamp, 2013).
 Translate your offer: It is very important concept as unless and until the advertising note
are understandable the product is not going to be sold in market. So, it the duty of market

expertise to check translate offer in every language so that misunderstanding can be
avoided.
 Different cultures: every company wants to grow and expand its business in
international market so it is not enough to make goods in another country. These product
must be feasible and produce by taking different culture into consideration that would
satisfy customer more. For example Tesco is a Supermarket company in UK and wants to
expand it business India so they must consider more of culture good for that region that
will fulfil customer demand.
It can be observed that the extent use of internet, social media and advertisement has
prompt the growth of global marketing. International marketing is the reason of enormous
change and have improve the way of scope of this marketing. Some of the basic scope are
described below:
Different legal system: In different countries the legal system are different so it make
task of businessmen more difficult for business man and companies to apply particular system
for their transaction. Tesco manager must keep in knowledge about the legal system of country
where the wants to expand its business.
Lower mobility of factor of production: It is observed that factor of production are less
mobile between nation than in the country itself. But as international banking is developed and
restriction on capital movement have been removed, it can be observed that capital is more
mobile.
P2 Various routes to market.
Internation marketing is one the major reason through which companies may expand their
business across border and fulfil the demand of customer with their special product. Tesco is the
third largest supermarket chain in UK and some part of New Zealand, Canada and Australia but
it wants to expand it business in many other nation. The basic rational of Tesco for doing
international marketing for its product are:
 Increase sales and profitability (Cadogan, 2012).
 Slow Growth of interior/ local market.
 Developing Globally attractive cost structure.
 It often create job opportunity for people of that region.
 It will help company to expand and enlarge its customer base by selling goods globally.

There are variety of ways and routes that company can enter into foreign market. Routes
are the consider as plans for selling product in global market. Some of the common market
routes adopted by Tesco to enter in global market are discussed underneath:
Research: First of all the preliminary market research is done by the manager of
company do that proper strategies could be made. This research can be done by finding
information available on website such as USA trade online about the global market opportunity
and sources. As a consultant, it is advised to the manager of Tesco to do proper research before
making strategies to enter new market across border.
Website: In recent time selling of product through a website is so common as, it is one of
the low cost route to enter into global market. It help customer and buyer around the world to
visit on website at any time and select the product and place order. So manager of Tesco in order
to improve key export market must prepare website pages that represent the variety of specific
goods produce and sold by them in territory.
Direct sales: Companies can sell directly to export buyer by making sales visit to the area
from where demand are identified. This is consider to be one of the cost effective route to enter
global market. Same as sales expertise of Tesco must determine the sales from a territory and
make direct sales to the customer across the nation that will increase the sale ratio and improve
profitability (Cavusgil and Cavusgil, 2012).
Distributors: One route of making presence in internation market and reducing the price
of own sales and requirement of logistic services is to work with independent distributor. They
are the one which buy product from the companies and resell them to their existing customer.
Manger of Tesco must develop an effective network with distributors across the border so that
they must established a local contact and market knowledge that will help the company to sell
product more conventional.
TASK2
P3 Key criteria and selection process.
It is very necessary for companies to ascertain the market where it have to enter and
expand it business globally. So, there must be process selection process for the internation
market. As, market selection plays an important role at the internation stage it is totally based on
valuation of the various market with acknowledgement to a pre defined criteria depending upon

company resources and objective (Steps of market selection process, 2017). Companies like
Tesco must have a proper international market selection process that is being described below:
International marketing objective: This is the first step that generally means the sales
and purchase of goods and services in a market. It Is observed that firm from different countries
attempt to attract buyers by advertising about their goods and services on the same platform. So
first Tesco must develop a platform to sell their product in international market to achieve the
objective of expanding business.
Parameters for selection: Then the stage is of setting appropriate parameters and criteria
for judgement. The different factor for the selection of market are company firm, international
environment. Market condition and situation, nature of competition and government policy.
Preliminary Screening: It is done to get rid of the markets which are not expected. The
parameters used for the preliminary display may differ from goods to good. However,
parameters like the size of population, per capita income, make-up of the economy,
infrastructural cause and governmental conditions are commonly used.
Short Listing of Markets: There would be a large number of markets left even after the
preliminary screening. So proper short listing is necessary for companies that will reduce the
time, cost and resources.
Evaluation and Selection: The short listed markets are further evaluated with reference
to the cost-benefit analysis and feasibility study. They are then, ranked on the basis of their
overall attractiveness. Of the markets, the best one is chosen for the launching of product
considering the company’s resources and external environment.
Test Marketing: At first, the market is analyse on a smaller standard by introduction the
product in a part of the markets that gives a answer to the manufacturer about the market. At the
same time, it helps the producer in assessing general effect of the consumers from a particular
market, after tested success, the production can be seized on a collective scale.
Commercial Production: Formerly the product is proved "in the selected market, the
company goes forward with bigger production. Minor modifications, if any, are innovate in the
product combine during this phase.
P4 Different market entry strategies.
In common a market entry strategy may be defined as a planned method of delivery
product and services to a new target market and distributing those goods to new customers. As a

marketing expertise various important strategies to enter new market have been suggested that
are discussed below:
Franchising brands: It is one of the easiest way to break into new market, as it is related
to the giving of business in some other hands. In general it means allowing other person to open
a branch of your own business across nation and paying a certain fee on behave or sometime a
part of profit also. Same as Tesco would open their franchise in different of world so that their
business could be expand (Yang, Su and Fam, 2012).
Advantages: It reduce the risk of business failure and established a market share for
various goods and services of Tesco.
Disadvantages: There are certain restriction at the time of agreements about how to run
business and there must be no modifications in manner.
Direct Exporting: This is one of the most common strategies that means directly selling
of product into the market that company tries to enter. For example , Tesco wants to sell product
in japan, so they should introduce its product in appropriate Japanese store and see the result.
Advantages: It help Tesco to have a potential profit much higher because direct
exporting eliminate the intermediaries.
Disadvantages: It requires more time, energy and money of company as demands
emerge are different level.
Joint venture: It is commonly known as a partnership between two people or companies,
they invest same equal amount and distribute profit equally in accordance. Usually, the two
business firm stay separate from each other but they work together on a specific venture. For
example Tesco must build a JV between the specific supermarket in different countries they
wants to expand its business.
Advantages: In case of Joint Venture if a project fails then both parties have to bear the
cost and the losses so it would be not a burden for one company.
Disadvantages: Some time it lead to less involvement of one party and whole
responsibilities are upon the other party.
Licensing: It is one of the effective strategy to enter in new international market as it is
basically a contract with foreign firm and asking them to temporarily own the product. The
process start with convening the firm about the product to sell then dealing with government and

lawyer to know the legal aspect of sales in particular market. For example, Tesco wants its
supermarket in India so they have to properly known with the legal aspect of Indian law.
Advantages: Main reason of licence is that company not require to find the sources to
money to commercialise its product.
Disadvantages: One of the main disadvantages is that it reduce the quality and reputation
of product and Brands (Turnbull, 2013).
TASK3
P5 Key arguments.
In recent time companies aim to operate on global scale in order to increase the its sales
and maximise profit. Local approach are helpful for global marketer as it develop the actual
ability to think globally to introduce its product. As Tesco wants to operate across the world
there are certain benefits of global marketing that are discussed below:
New Revenue Potential: As by taking business in international market it will help to
increase the customer base and as a result company can enjoy increase revenue from these new
buyers.
It help More People: By introducing new product in market will improve the live of
people in some way as they will be more satisfied with the services of goods.
Learning New culture: It help to gather information about a new place that will increase
the profitability of business. So knowing about the culture of people where they wants to sell its
product as is help them to produce goods that benefit the customer more.
Exposure to Foreign Investment: it is observed that Foreign investment are extremely
valuable for companies as it help business firm to have enough capital to run it business in other
nation.
Improving reputation: The most important benefit of global market is that company
reputation are stronger in the context (Terpstra, Foley and Sarathy, 2012). It is not easy to feat to
carry through, significant, expected and potential business partner that help to enhance the image
of companies in particular territory.

P6 Analysis of product, price, pricing and promotional distribution approach differs in a variety
of international contexts.
International marketing mix strategies is consisting of various instruments in order to
attain effective financial outcomes from Tesco company while operating in foreign markets.
These instruments consist of product, price, distribution and promotion of products and services.
Global marketing mix plan that would be taken into account as legal and social-cultural
circumstance in every nation in order to increase additional profits for the company. There are
various product strategies or approaches that are used in international markets are:
 Product standardization: As Tesco is having one of the global brands in retail sectors
so that they can introduce unchanged items as products on the foreign markets. The use
of this plan is more comfortable and not so expensive. Example, IKEA is the one who
used to adopt this strategy.
 Product adoption: This consists of adjustments of the products and their properties to
the situation that prevailing on a specific market. This consist of the packaging, size and
symbol of a product (Demangeot, Broderick and Craig, 2015).
Price policy in use in international market:
Price is often considered as one of the most crucial and tough issues in international
marketing. The price setting plan used to determine the basic price of a products as well as the
structure of the product line and effective system of rebates, discounts and refunds the company
used to offers in the initial phases of business.
Pricing policies in international marketing mix:
This is basically associated with the issues of price management as on international scale. Some
of the basic points are covered below:
 Penetration pricing: The rate of the products in the initial stages is been set as high as
and started to decrease after sometimes in order to earn market share.
 Price skimming: It is one of the effective pricing strategies which a marketer used to sets
as a relatively high in the starting price for their products or services. The reduce the cost
over the time period.
 Developments of modern communication technology used to make distant markets that
are more similar to every other brands or products. It will make difficult to lead a

separate pricing policy at the home as well as global market. In this situation, Tesco need
to carries global pricing planning.
Promotional distribution approaches used at international market:
As this particular strategy is associated with how effectively a firm gets their products to
their consumers or by their intermediaries. Whereas, in order to make promotion of their
products they need to make use of various advertising, sales promotion, publicity and personal
selling approaches for their products. Similarly, Tesco company need to make sure that
short/single channel, Long/ multiple channel and other mode are required to be implemented as
distribution channel (Czinkota and Ronkainen, 2013). These are basically associated with change
of ownerships & risk and financing of their payment options.
TASK4
P7 Various international marketing approaches.
There are basically three approaches to international marketing that help companies to
expand its business internationally. Some of the approaches are explained below:
Global Strategy: it is defined as a plan develop by companies to guide themselves to
globalization. It is basically a small term but has three part such as global, multinational and
international strategies. These are designed by the manager of companies to enable them to attain
its objective in international expansion. So manager of Tesco are suggested to build certain
global strategies that help them to survive in the market of other countries.
Adaption strategy: According to this strategy an existing product are made suitable for
the customer that will benefit customer. An adaptation strategy is particular important for
companies that export their product because it make sure that the product meets local culture and
regulatory requirement. So it has been guided to marketing team of Tesco to make strategy that
about producing and selling of those good that will meet the customer requirement and fit the
culture for the reign where they open their branch of supermarket.
So, it is clear that both of the approaches are important for companies like Tesco those
wants to Introduce its product world wide (Chung, Lu Wang and Huang, 2012). But global
strategy are more helpful for company has it enable the manager of companies to create the
understanding about the wants and desire of customer of region where they want to expand its
business.

P8 Home and international Orientation.
International orientation National orientation
There are certain basic step that help Tesco to
identify their competition in internation market
such as:
 product differentiation.
 Service differentiation.
 Distribution and price differentiation.
 Brand reputation differentiation.
In the national orientation there are different
ways to ascertain the competition in national
market such as:
 merchandise distinction.
 Company discrimination.
 Arrangement and price differentiation.
 Brand repute differentiation
CONCLUSION
In this project report, it has been concluded that market are different depending upon
size, customer base, condition of place and product with it deals. In general international
marketing is an application of marketing principle that satisfy the needs and wants of various
people live crossways the domestic boarders. It is observed that best practice for all marketing
drive help companies expertise in delivering high quality of advertising. In this project report
various key concepts, market routes, market selection process and various marketing strategies
with advantages and disadvantages are discussed

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