International Marketing Assessment 2: Tesco's Global Market Analysis

This report provides a comprehensive analysis of Tesco's international marketing strategies. It begins by outlining Tesco's marketing strategy, including its approach to understanding market value, product pricing, and customer preferences. The report then delves into Tesco's recommended market entry strategy, emphasizing flexibility, local adaptation, and the development of capabilities. It explores the promotional mix strategy, covering advertising, personal selling, sales promotions, and direct marketing. The report further examines the drivers of globalization, including technological, political, government, market, and cost drivers. It assesses the impact of these drivers on strategic choices when entering emerging markets, and discusses relevant theories of international marketing strategies. The report concludes with a discussion of the impact of global drivers on the strategic choices a company may make when deciding to enter an emerging market.

Running head: International Marketing Assessment 2
International Marketing Assessment 2
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International Marketing Assessment 2 2
Contents
Task 1..........................................................................................................................................................3
International marketing strategy for Tesco..............................................................................................3
Recommended market entry strategy for Tesco.......................................................................................4
Promotional mix strategy for Tesco to increase opportunities and reduce threats................................6
Task: 2.........................................................................................................................................................8
Evaluate the main drivers of globalisation:..............................................................................................8
The impact of the global drivers of the strategic choice a company may make when deciding to enter an
emerging market:...................................................................................................................................10
Relevant theories of different companies and international marketing strategies in emerging economies:
...............................................................................................................................................................11
References.................................................................................................................................................13

International Marketing Assessment 2 3
Task 1
International marketing strategy for Tesco
Marketing strategy is a plan of action which helps to promote and sell a product of an
organization. At first, an organization have to understand the market value, about the price range
which satisfy their customers (Special issue on International marketing theory, strategy and
implementation: insights from Latin America, 2010). According to this, customers also wants the
good product from the organization. Along with this, Tesco also decided that they exported some
environmentally friendly products to Europe. With this, Tesco also fixed a perfect amount of
those things for the local customers of Europe. Before taking some decisions or making any plan
about marketing strategy, it is important for an organization to collect some information about
the demand of local customers, what range is suitable for the consumers, the new Alliance with
associates and also the attitudes of the consumers towards Tesco.
Tesco organization business marketing start campaigns. It can help an organization to increase
their business. According to this process, the consumers get to know about the products of
TESCO. Some processes are involved in this process such as,
Tesco uses the facilities of magazines and newspapers. By these resources, they advertise their
products.
Tesco also advertises their products through the website because nowadays people follow this
type of server.
Radio and TV are also very important part for their advertising tools.
The environmentally friendly of products are introduced by Tesco.

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The alliance partners of TESCO arrange a meeting with the press, so that they can share their
schemes or ventures. Therefore, the customers can understand and is very beneficial for TESCO.
Direct marketing helps TESCO and also the customers. Organization like Tesco can share their
scheme and requirements face to face (Pehrsson, 2009).
In recent decade, TESCO has a very popular business records. Since the beginning, TESCO
builds a strong image in the market. It places itself a success retailer shop in the UK. Along with
this, as an international retailer, TESCO is one of the best organization in the world. TESCO
continuously develop its products and market scheme to improve their business.
Recommended market entry strategy for Tesco
In the mid of 1990s, TESCO started its work in the international market as a retailer company.
They have their 55% international business from the globe (Barnes, 2011). Along with this, they
earn 23% from this of their total incomes.
According to researches the recommended global strategy for TESCO will maintain six steps
that are maintained below,
Be flexible: according to the research, every market has their demand or unique so that they
requires different things such as price value, products, etc. therefore, TESCO have to concentrate
on these matter.
Act locally: To maintain their business in the international market, TESCO has to deal with the
local stakeholders (Helm, 2004). It can help the organization to increase their business, and it
will be very beneficial for TESCO. According to this, TESCO has to recruit local staff or
employee.

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Maintain their focus: According to research, to build an international store portfolio it takes 10
years, and Tesco also needed 10 years to build a brand of the particular organization. Therefore,
TESCO has to keep patience and should continue their development process.
Use multiple formats: Each organization has different marketing strategy. Therefore, TESCO
must not be strict to the old conventional format. They should make their business plans based
on the particular market strategy. According to this, if an organization wants to increase the level
of their business then they have to understand the needs of the local customers. It will help them
to understand the opportunities for their business.
Develop capabilities: According to the research, if an organization wants to build their business
in the international market, hey have to develop their communication skills, learning skills,
system and processes. It is also important for an organization to advertise their products so that
the local customers can follow their products.
Build brands: According to research, customers always wants good quality products with
reasonable price. On another word, customers always want branded products. If TESCO gives
good products to their customers, then the organization can make a good relationship with their
customers which are very beneficial for an organization.
According to this, it will be very beneficial for TESCO. If they give importance on some things
to entire into the new market such as,
TESCO have a benefit that it has a good reputation in the market so they can build their business
in the new market easily.

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An organization should spend money to reach the higher position in the market or to build their
business. Therefore, TESCO also has to spend money, and it also can increase the customer
population.
TESCO have to develop their products constantly (Mukherjee, 2012). It is needed for a retail
sector.
They also have to increase their food retail market.
Promotional mix strategy for Tesco to increase opportunities and
reduce threats
The promotional mix is the main key part which involves in the global marketing mix.
According to this, it also describes how the business of TESCO tries to interconnect with
consumers (Sidhanta and Chakrabarty, 2010).
Advertising: To increase the business level, an organization should advertise their products or
new products to their customers. Therefore, TESCO can advertise their products through media,
website, newspaper, radio, magazines, posters, etc. It will be very effective for TESCO, and it is
also the main part of the promotional mix. Along with this, TESCO should advertise their
product including the differences between previous price and new range. It will encourage the
customers to buy their products.
Personal selling: personal selling creates contact between seller and buyer. In this process, the
employees can advise customers for better product and also understand their demands. If they
can satisfy their consumers then the population increases. Therefore, TESCO should concentrate
on this process.

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Seles promotions: To increase consumer populations, TESCO should arrange some sorts of
offers for the products (McClure and Kumcu, 2008). It helps the consumers to buy the products
on sale or in low price. The most active marketing strategy is "bye one get one free" sale.
Direct marketing: the process by which the products are reached to the desired customers in the
market is called direct marketing. For this method, the consumers get to know about the new
products of the particular organization. Therefore, TESCO can apply this method to build their
business in the new market.

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Task: 2
Evaluate the main drivers of globalisation:
Globalisation is something that anyone can stop (Globalisation, Societies and Education, 2008).
Globalisation is the economic equivalent to the natural forces such as- the wind, water. Various
types of drivers of the globalisation are described in several book and journals by the critics and
the experts. There are lots of issues discussed when the spreading of the globalisation seen in
many countries with welcoming this phenomenon much easily than before. According to the
experts, globalisation is unstoppable. It will take place whether anyone likes it or not. The drivers
of the globalisation divided into following categories:
1) Technological driver: technology shape and build the structure for advanced
globalisation (SDTC funds separation technology trial, 2006). Revolutions in the
shipping technology transformed the industry. Technological drivers mean that the
improvising the technological system, transportation and modifying the level of the trade
system across the globe. Day by day lots of techniques are invented, technology
modified, advancement of the communication and information processing along with the
internet. The fastest growth of the internet associated with the World Wide Web, latest
technological expression of globalisation. Developments are shown in the satellite,
optical fibre as well as in the wireless technologies (Georgiadis, Crnojevic-Bengin and
Kazi, 2010). One of the most important improvement observed commercial jet aircraft
and the theories of the containerisation are two of them between the year 1970s and
1980s. Besides all these innovations also seen in the field of the microprocessor,
telecommunication and developed communication system at very low price scale
(Wittmann-Price and Price, 2014). The rapid development of the internet, web

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communication are the recent technological drivers that are responsible for creating the
global e-business and e-commerce (Sachs, 2002).
2) Political driver: liberalised trading guidelines and decontrolled market built the lowered
tariffs and certified the foreign investors to invest across the globe (Nwogugu, n.d.). The
Institute of GATT; General Agreement on Tariffs and Trade started their trade in the
global market from 1947 by investing in different projects and deals. In the year 1995
WTO; World Trade Organisation also open up their investment process in the world trade
industry. These are the examples of the recent political improvement or development of
globalisation (Thrupp, 2001).
3) Government driver: it means that the reduction of the trade tariffs as well as reduce the
importance of the political policies. Free market economy is the main reason of the
failure of the international market (He and Wei, 2011). Because of this reason the small
firms are now able to enter the global market. There are lots of firms those are making
different parts in different countries or location then they assemble all the parts together
and export the products in the global market. Foreign direct investors are directly invest
foreign currency, which plays the vital role in the global economy.
4) Market drivers: the exact meaning of the market drivers is when any company
deliberate the multiple markets to invest the currency. Free market economy creates a
business in the world market by providing unique products that are only available in a
particular location or country. As per the customer demand, those products are globalised
in the market. If the free market economy trend has been stopped then the growth of
globalisation damage (The Free person and the free economy: a personalist view of
market economics, 2002). In the globalisation process, the local market economy became

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global as per the public necessity. The absence of free marketing economy slow down the
growth of globalisation then the major transformations will not be recognised. For this
reason, small companies should have marge with each other and make a massive global
marketplace for more profit.
5) Cost driver: efficiency in sourcing system and the price varies from one country to
another. Due to this reason, the global firms took advantages. Others cost drivers of
globalisation make an opportunity to create the global economy scale. Besides, that high
product development cost also the new types of cost driver of globalisation. For example-
It may be a driver when the price of the product is high in my country a where the cost is
low in another country. Then particular product should produce in that country is more
advantageous for making the profit. Sourcing the goods from various places around the
world to take the advantages of national differences such as cost and quality of the
products. The most effective idea is to sale the product in low price with good product
quality.
The impact of the global drivers of the strategic choice a company may make when deciding to
enter an emerging market:
International business means that the extensive range of business actions undertaken
throughout national boundaries. Globalisation very much associated with the term
international business. This topic has drawn the attention of business executives,
government officials and academics.it is quite different from the domestic business.
World economy of globalisation and difference between present opportunities and
challenges are the substance of international level for international business. According to
the economists, globalisation of world economy may be described by this key tendencies.

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Such as- in western economies low wages for the workers with high profit, less inflation,
less interest with strong growth. Globalisation has lots of effects in the business when it is
going to enter into the emerging market. These are –
 Spread the financial market and ability to access to the outer funding for
corporate, national and subnational location.
 The consciousness of the global common market, common market grounded on
the liberty of alteration of goods and money.
 As per the information flow between the geographical remote locations; that is
informational globalisation.
 Development of the cross-cultural connection, cultural diffusion, adopt new
techniques which personify the cultural spread, intake expected foreign products
or ideas.
 Accomplishing the free movement by the individuals of all countries.
Globalisation leads the main factors which effect the international business
during the last few periods. Those major phenomenon showed the impact on the
international business at the time of entering the emerging market (Sweeney,
2003).
Relevant theories of different companies and international marketing strategies in emerging
economies:
Various theories are there to support the emerging economic strategies for international business.
Theory of political realism, a theory of Marxism and theory of liberalism, etc. Theory of
liberalism: liberalism part of globalisation method. It leads extension of market-led to the
modernisation.in this theory forces ultimately connect the humanity across the globe. Sainsbury

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is a famous retailer company. The positive impact of globalisation observed in Sainsbury, that is
less utilisation of paper in the company. Like Sainsbury, many more companies shows an impact
of globalisation (Srivastava, n.d.).