Strategic Marketing Report: Tesco's Market Entry and Strategy Analysis

This report, prepared for Ashanti Marketing Solutions Limited, examines the marketing strategy of Tesco, a UK-based company, focusing on its potential entry into the Bangladesh market. The report begins with an executive summary and then delves into a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors impacting Tesco's market entry. It explores three market entry modes: acquisitions, mergers, and joint ventures, recommending joint ventures as the most suitable approach. The report also analyzes market segmentation and targeting, identifying potential target markets for Tesco's products. Furthermore, it applies Porter's Five Forces to assess competitive advantage. The report concludes with recommendations for Tesco to improve its business strategies and achieve success in the new market.

Running Head: MARKETING STRATEGY OF TESCO
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MARKETING STRATEGY FOR TESCO
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MARKETING STRATEY OF TESCO 1
Executive Summary
These report concealments the features of policies connected to advertising for TESCO
Business; this business indication is a UK based steady that helps in providing services like
advertising and promotions for the other client. The report is essentially made to show the
advertising policy of a novel merchandise incoming a new market and cover all the features
of the plans, rivalry, benefits and the risk in seeing various strategies. The goal of the
procedure is to strategy that the business can use for the process of choice making by casing
all the features of market segmentation, directing strategy and the placing, apart from that
porters five force analysis in the competitive advantage etc.

MARKETING STRATEY OF TESCO 2
Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Q1: PESTLE Analysis................................................................................................................3
1. Political:..........................................................................................................................3
2. Economic:.......................................................................................................................4
3. Social:..............................................................................................................................4
4. Technological:.................................................................................................................4
5. Legal:...............................................................................................................................4
6. Environmental:................................................................................................................5
Threats that the company will face can be such as:...................................................................5
Q2: The Three Modes of Market Entry......................................................................................5
1. Acquisitions, Mergers and Joint ventures.......................................................................6
2. Vertical integration..........................................................................................................7
Vertical integration – benefits............................................................................................7
Joint ventures.........................................................................................................................7
Foreign direct investment FDI –............................................................................................8
Q3: Market segmentation...........................................................................................................8
Q4 – Porter Five Forces Strategies...........................................................................................10
1. Competition rivalry.......................................................................................................10
2. Threat of new entrants...................................................................................................11

MARKETING STRATEY OF TESCO 3
3. Power of suppliers.........................................................................................................11
4. Power of customers.......................................................................................................11
5. Threat of the substitutes................................................................................................11
Conclusion................................................................................................................................12

MARKETING STRATEY OF TESCO 4
Introduction
The report is going to be functional to the company Ashanti marketing solutions limited
stable which is also a older advertising specialist will be using diverse aspect for cheering
the firm to avoid the tools of strategic marketing. Planned marketing is a way of preparation
and utilizing the purposes of the firm operations by founding the weakness as well as the
strengths in the competitive marketplace. Though in some of the options the report is going to
produce ideas of facilities and products to be used while incoming in a new market, using
market segmentation and also investigating the PESTLE analysis for the outside setting. In
the end of the report conclusions by way of well as references determination be states for
TESCO and ways they would be able to improve their business which is one of the main
target of the report (Slater, Hult, and Olson, 2010).
Q1: PESTLE Analysis
The Macro setting is the influences that impact the organization at an outside level which
reproduce the firm’s competences outside. This is can affect organization in parts like
competition, PESTLE examination and the market documentation. As per Ashanti marketing
solutions the PESTLE examination of the company must be given beforehand incoming a
country. PESTLE examination is a thought in a advertising principle. Mostly this is a concept
which is used as a instrument to trail the setting in order to introduce a service or a product.
1. Political: this is applicable anywhere the administration inclines to impact the
budget and the setting of the business counting the strategies of tax, fiscal policy,
trade prices and etc. As the business is entering the Bangladesh market, they should at
first analyse the strategies, tax in Bangladesh to give an feature of how it will disturb
the commercial. For instance: the Germany Tax rate is around 30 to 33 per cent, in

MARKETING STRATEY OF TESCO 5
case the tax upsurges it will develop a risk for the business which will have less
revenue
2. Economic: this is a factor which includes the interest rate, inflation rate, foreign
exchange rates and the economic growth patterns and etc. The economy of
Bangladesh is growing fast and it also has a strong GDP and this would be very
beneficial for the company TESCO because of the high demand for organic food and
the high market share and gaining of the profits. However if there is a rise in the rate
of inflation then that would affect the way company would price their products in the
market (Zahay, and Griffin, 2010).
3. Social: this focuses towards the cultural trends, demographics and the analytics of
population and etc. the size of population in each area, divisions of the customers and
the markets preferences is information to identify for TESCO in order to target the
product. However, if there is high demand in such markets for web designing
therefore can be suitable for the company in order to enter
4. Technological: this thing can disturb the operations of the secure in originality as
well as innovation. If there would be more advanced equipment’s then the company
will have more efficient and effective process in order to operate in usefully and fast.
In Bangladesh the technology is quite similar to other places and although it is costly
the company will need to set a budget as to how much they would invest in the
technology.
5. Legal: there are convinced rules that can disturb the setting of the business and
various certain policies of the country. for example, the consumer laws, safety
standards, Labor laws and etc. therefore the legal consideration should be focused in

MARKETING STRATEY OF TESCO 6
terms of the consumer laws and the environmental laws, in order to reflect to the
impacts.
6. Environmental: this is a factor which includes all the surrounding environments
like the climate, weather and the global variations in the climate, pollution and etc. it
would be significant Ashanti solutions to investigation the environment in Bangladesh
for the company TESCO and they will have to identify the areas, near of pollution,
reprocessing and eco-friendly
Threats that the company will face can be such as:
Intimidations that can disturb the business such as the marketplace risks, rivalry, customer
partialities and etc. working employees by taking a adroit staff in emerging the web design.
Failure for completing the project because of failure in design, planning and backing. Societal
and ecological influences of the company’s activities and exchange fluctuations. In
instruction to avoid these intimidations Ashanti should grow an actual strategy for TESCO by
examining all the features of the marketplace by using improved research and growth
programmers and clever staff.
Q2: The Three Modes of Market Entry
In command to arrive the market such as Bangladesh, there are various dissimilar replicas
which can be charity for the companies in order to choose which strategy can effort for them.
In such case it is important to look at the three styles of entrance and select one of them that
can be applied to the company TESCO. Market entries can impact the businesses in various
dissimilar habits which is also significant to gather the data for example the close of risk,
market size and development, modest strength, obtainability of delivery station, subjects such
as directive and barricades and so on (Kumar, Rahman, Kazmi, and Goyal, 2012).

MARKETING STRATEY OF TESCO 7
Strategic alliances are where 2 or more gatherings decide to set an objective in employed
composed but residual as independent. This is appropriate if the group decides to work
composed in starting associations that may work with other agencies at the same point if time
in Bangladesh markets in order to formulate for the schemes, in footings of new creation
organic food this model won’t be valuable for the business because of the marketplace they
are inflowing (Shih, Chen, and Chen, 2013).
1. Acquisitions, Mergers and Joint ventures
Acquisitions and mergers are the plans that are used to procedure the possession of a
company, connection along through additional business or effort on projects as well
as operations. If a company focuses on taking over other commercial a merger will
occur. If the company decides to use acquisition then they can work with other
commercial in a exact operation or a project. This can be very helpful as it can help in
increasing the marketplace share of the companies and the also the thrifts of scale
lessening prices, especially if the compound businesses are managerially central and
efficient (Wu and Lee, 2010).
Further there are 2 kinds of mergers which are vertical addition and horizontal adding. Level
addition is the integration of the business that is at the same phase of production. Level
growth helps in expanding the activities of the business in geographic areas or by increase in
the variety of services and the products obtainable in the marketplace currently. For TESCO
they can classify other marketing companies which already exist in Bangladesh and transfer
integration with them and founding achievements.

MARKETING STRATEY OF TESCO 8
2. Vertical integration
Vertical integration is the integration composed of the double companies that are at
dissimilar manufacture phases. The grade to which a firm possesses its upstream
dealers (backward integration) and its downstream dealers (forward integration).
Vertical integration – benefits
 Gaining admission to downstream delivery channels that or else would be
unreachable
 Healthier preparation, organization and preparation
 Decrease transport costs
 Upstream or downstream profit limits
Vertical integration- drawbacks
 Possibly higher prices
 Augmented administrative costs
 It may constrain a business altering its dealers
 Reduced suppleness
Joint ventures
There are the type of associations, that is a planned tool which can be used in the market for
the market entries, in the foreign types of market, the alliances should be applied by
management, agreements, franchising, certifying and other sub- contracting agreements, all
of these things depend on the level of the joint undertaking of the company as well as the
market size (Leonidou, Leonidou, Fotiadis and Zeriti, 2013).

MARKETING STRATEY OF TESCO 9
Foreign direct investment FDI –
This is a kind of speculation which is also in the procedure of regulatory the possession in a
commercial in one republic by an object founded in another republic; it is thus differentiated
from the foreign collection of the asset by various idea of straight switch. In terms of entering
the marketplace of Bangladesh, this method can be used by the business TESCO as they can
take full switch of the marketplace mainly with the launching of the new creation. Apart from
this they can also get advantage from the market share, upsurge in the number of customers
and retain profit like germane and can also get benefit from the strict control of the operation
in various different countries like Bangladesh and can have a more focused global
coordination and along with that it can also have admission of the frugalities of different
scales. This can be aimed at a very long period of approach as it is very time overwhelming
and also very costly when it comes to the financial resources (Lamberti, and Noci, 2010).
Overall, while planning the entries of strategic planning for the company TESCO, in
relations of reducing the price and the risk level while entering the market, the best way for
the business is to twitch with joint venture, this can be complete in various ways such as
licensing, franchising or sub-contracting agreement for a better and a safe market position,
this thing can permit the secure to arrive the marketplace of Bangladesh to gain the market
part and to upsurge the consciousness through the make name and the gratitude at chief
beforehand planning additional in using the other procedures of choices (Moogan, 2011).
Q3: Market segmentation
Market division is when the clienteles are alienated into diverse segments or groups. The
businesses can then choose to make distinct produces for each and every segment or similar
product targeting segments. All this will help in enhancing the profit for the business by the
segmenting markets and apart from this, the business will be able to raise average prices and

MARKETING STRATEY OF TESCO 10
would be able to build the sales. With the use of careful division and targeting, the business
can turn to achieve the modest marketing and production prices.
There are mainly four diverse groups of market division, which are demographic, geographic,
physiographic and behavioural. The demographic segmentation includes the income of the
customers, earning, classification based on gender and populace. If Tesco will use the
demographic approach of segmentation then, it will be able to see the preferences of
consumer, income and etc. in order to target the audience.
Moving ahead Geographical segmentation is related to the customers who are divided into
dissimilar areas and religions such as the rural, local and national, if the company TESCO
will approach this segmentation then it would be able to target the customers in some of the
specific areas in the market (Morgan, Katsikeas, and Vorhies, 2012).
Behavioural segmentation, this includes the way customers behave in the market to the
offers, prices, promotion and decision making, through this segmentation the company
TESCO will be able to know the preferences of the clienteles and will also retain them by the
proposals and the values.
Lastly, physiographic division, this typically smears in the clienteles, opinions, arrogances,
insight and interests in a product, this segmentation can also be used by the company TESCO
merely since the insight of goods subjects’ feedback.
Based on the segmentation, the next stage in this would be to deliver a plan of targeting for
the business TESCO in the market of Bangladesh; this is basically the selection of the
customers to whom the company can sell their services as well as the products, on the basis
of decision creation not all the companies can select all the segmentation maybe, they can go
for one or two (Berthon, Pitt, Plangger, and Shapiro, 2012).

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As the company Tesco provides a very wide range of services as well as the products that can
be obvious in order to present a generic creation in the mass advertising or to take-off a
dissimilar creation for various dissimilar segments like in the multi- segment marketing,
since in the new product organic food entering the market of Bangladesh, the customers that
can be beleaguered can be small-medium firms, specialists or other office going people who
do not get time to eat healthy foods due to their busy routine and hence following are the
different kinds of target market (Douglas, and Craig, 2011)
Hence in order to position the new product in the market of Bangladesh, by directing the
clienteles in a few segments would be the most appropriate at first also endorsing the
commercial towards creating consciousness about the new products can be a bit expensive
Q4 – Porter Five Forces Strategies
Modest benefit is one of the most important things in the market where the organization
performs better than its competitors. Following are five force analyses
1. Competition rivalry
This is a force where the number of participants in the marketplace of the similar
manufacturing are and they are able to loom the business while incoming the market,
in relative to the business TESCO, other companies that are in the same industry as
the organizations in Bangladesh can be one of the major threat for the company as
more of the same kind of firms will lead to less power of TESCO in the market. If the
rivalry is squat than the business will have a great control to sell and will also have
upsurge incomes in the marketplace as they will have high admission to their target
clienteles.