Tesco's Marketing Strategies: An Analysis of Global Competitiveness

This report evaluates Tesco's marketing strategies and international competitiveness, highlighting its pricing, advertising, online services, distribution, and product strategies. It examines factors influencing international markets and elaborates on international marketing activities, emphasizing strategy adoption, market speed, adapting to changes, understanding labor laws, enhancing competitive advantage, and product upgrades. The report identifies international marketing opportunities for Tesco, such as expanding Jack's Store and entering emerging markets like Indonesia, Turkey, and South Korea, leveraging its strong brand and successful operations. It also proposes a creative marketing strategy for expansion, focusing on market research, digital marketing, localization, and sustainability to ensure successful global growth. Desklib provides a platform for students to access similar solved assignments and past papers.

Marketing Competitiveness

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Presenting the evaluation and interpreting its strategies.............................................................3
Factors that influence international markets................................................................................5
Elaborating international marketing activities and how company is well placed to compete
globally........................................................................................................................................5
International Marketing Opportunities .......................................................................................7
Marketing Strategy for Expansion in International Markets.......................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The competitive marketing defined as two or more companies competing each other by
similar goods and services to customers. In addition, competitive marketing helps in motivating
companies to expand their sales and business globally. Furthermore, competitive marketing helps
in recognizing the threats and opportunities and strategies helps business to overcome their
obstacle. In order to elaborate the concepts in detail, Tesco company has been chosen which is
the third largest retailer store in UK. Tesco has the immense network worldwide that has 7005
stores and it has provided employment 423,092 employees.
The current report will present the evaluation and interpreting marketing strategies of
company and presenting international marketing activities that will helps in understanding the
firm to compete globally. Moreover, in context of marketing competitiveness it will highlight
international opportunities and creative marketing strategy for expansion across international
market.
MAIN BODY
Presenting the evaluation and interpreting its strategies
Tesco is retailing company that has huge marketing network around different countries
such as Ireland, Hungary, Malaysia and Thailand. It provides high amount of employment to
various kind of people. It has great brand image within the market space and recognized as one
of the most well-known company in UK. Company provides various kind of goods and services
such as software, furniture, toys, clothing, electronics and telecom services etc. which helps to
attract more customers towards their offered products.
The several marketing strategies of Tesco Plc are as follows:-
 Pricing strategies: Tesco pricing strategies is cost leadership, and they provide various
kind of products in low price for middle class. This technique helps firm to attract more
customers. In addition, it helps in improving the network of supply along with this
company get online feedback which will assist firm to understand the customer need and
wants however the survey research helps them a lot to understand the demand of
customer (Gu and Mille, 2020). Despite from this, it aids in profit maximization and

setting the goals for generating income for company. Tesco provided guaranteed products
at low prices to their customer that lead to product satisfaction.
 Advertising and promotional strategies: The advertising and promotional strategies of
firm helps in promoting their brand and make strong brand awareness. Tesco already has
huge brand image. This technique highly emphasis in newspaper, TV commercials,
promotional channel and creating events in different countries which helps to gain
popularity and introduction for new product. Furthermore, this technique aid company to
generating new customer in order to attract them and enhancing sales in market. This
strategy major technique of company that aids in increasing sales and attracting customer
to provide them discounts, special offers, gifts and gratuity etc.
 Online services and e-commerce: Company has the biggest online network that
increases sales of goods and services and providing convenient facilities to their
customer. Throughout, Tesco had performed very well in past years they increased sales
and nowadays, online market widely spread around the world that has various kind of
tools of social media that can helps in productivity, advertising, promotion, several
software and application which is very useful. Furthermore, Tesco can use various tools
of social media that highly recommended by big companies.
 Appropriate distribution strategies: Firm has the largest distribution network in various
countries such as UK, Ireland, Hungry, Slovakia, France, Japan etc. and they have
different kinds of stores that has several products and services. Additionally, distribution
strategies plays a very significant role in market that enhancing the main goal on supply
chain management and this technique of marketing strategies aids in management
structure that make things understanding for customer(Nagy, Oláh, Erdei and Popp,
2018). Tesco hyper stores has large amount of different product in groceries stores, mall
etc.
 Effective product strategy: Tesco is the biggest retailer in UK that has wide amount of
goods and services and many stores. The product strategy gives vision to company and
aids in product position as it facilitate in targeting customer for enhancing sales and
Tesco revenue this helps in achieving firms goal and their objective. Basically, product
strategy is marketing mix that helps in branding, promotion and pricing etc. and the
product positioning that aids in targeting audience.

 Introduction of innovative products constantly: Marketing strategies helps companies
for introducing new products and those various strategies aids in promoting and
advertising their new product. Tesco constantly developing and creating new ideas for
products regarding customer needs and want. Company constantly developing and
improving their product and services to satisfy their customer. The renovation of new
product aids company to increasing sales and revenue of company.
 Renovate product packaging: This marketing technique of firm is most significant in
strategy that company constantly changes and renovate product packaging along with this
they always keep in mind the packaging, protection and colour of packaging product that
can attract more customer that generating new customer. Company also adds the overall
information on packaging that helps a lot for customer to know more about product.
Factors that influence international markets
Survives in global market require knowledge and idea about multiple aspects and it
highly influences performance of organization are as follows.
Exchange rate: It means diversification in product import expert and transportation directly
influence product cost or pricing to analysis and knowledge about this aspect is essential for
business.
Government rules: Diversification in government policies affects performance of business
because government taxes policies, laws, regulation will diversify product as service cost.
Nature of market: Different place different culture and people behaviour and changes in their
lifestyle presences also impacts on business effectiveness, survives in competitive market its
essential that company market research analyse international market activities for their effective
growth and survives in competitive market.
Elaborating international marketing activities and how company is well placed to compete
globally
International marketing refers to marketing assumptions of company in different
countries that deals with goods and services with several countries (Gerasimov and et.al., 2018.).
International marketing focus is to achieve companies goal and all the objectives among different
countries. Basically the international marketing depends on exporting their goods in different
countries. It helps in improving firms reputation along with this it enhances the market globally.

International market has various activities such as:-
 Adopting strong strategies: The adoption of strategies plays a significant role in
international marketing that aids Tesco plc to achieve their goal and objectives(Suryanto,
Haseeb and Hartani., 2018). This strategy helps in expanding their business globally in
which they can reinvest in product this will help firm to satisfy their customer globally
and aids in targeting new product. By adopting new strategies and research company can
establish in their new countries. It provides flexibility in business that mainly target
customers which aids in achieving their goals.
 Effective market speed: Effective marketing speed is very essential that commonly
develop the network between marketer to customer and targeting customer. Tesco plc
focus on effective growth and development that vastly helps in producing new products
regarding customer on the other hand that quickly attracts customer. By preparing strong
decisions they can increase the sales and revenue of company. In effective marketing
setting goal on weekly basis this helps in achieving their goal rapidly.
 Adapting changes: The international marketing requires to change in the pattern of
marketing strategies as firms knows the customer buying behaviour and their taste which
always changes according to their needs and convenience. Some strategies must need to
change which helps in understanding customer better way such as using social media,
online survey of company that helps to know more about customer and overcome the
obstacles. Along with this, company can use one of the most important online tool that is
feedback. By using feedback methods that also helps in understanding more about
customer. Company should more focus on their customer and their demands in market.
 Understanding labour laws: This is most important to understand the labour law for any
company. The labour law is always according to government rules and regulation. This is
the most essential part for international marketing in which company has to understand
labour laws that must according to contract or an agreement. The labour is necessary for
workers who are working in firm that helps in workers safety, prohibit child labour,
protect labour rights, working hour of every labour and their agreement that is important
to manage.
 Enhance competitive advantage and forecasting: Tesco can enhance competitive
advantage by encouraging partnership with other company that helps in competitive

advantage. Along with this, developing efficiency and effectiveness will help firm to gain
competitive advantage. Forecasting helps in assisting the financial status and past
performances that helps to know about their requirement for company to improve their
financial position in market (Benitez, Henseler, Castillo and Schuberth, 2020). This is the
need of company to forecast their competitors in market and improving their efficiency.
Firm can also research on customer to know more about them so that they can improve
their review that helps in understanding the requirement of customer as it is significant
for company to maintain the relationship with customer.
 Up-gradation of products: It plays significant role in market that every firm need to
upgrade their product time to time and planning new strategies. The technology up-
gradation is one of the important thing that lead to company success in which customers
always seek new products in market that fulfil their requirement and satisfaction. It is the
most important way to enhance the quality of product which helps in assisting to
achieve their goal or objectives. Furthermore, formation of new strategies highly
emphasis in market provide vision to company that helps in achieving goals globally.
International Marketing Opportunities
TESCO with its operations over 14 Countries across Europe and Asia with strong market
hold, can also expand its business operations in emerging markets like Indonesia, Turkey, South
Korea and others. Currently it has approximately 6800 supermarket and grocery retail stores
worldwide. TESCO with the highest market share of 27% of maximum market share in UK
market reflects that its is most trusted and followed by the customers. Under the umbrella of
TESCO, it has several stores like Tesco Superstores, One Stop, Tesco Express, Tesco Metro,
Tesco Extra, Tesco Home plus and Jack's Business (Cateora, Phu and Chi, 2020).
TESCO with a multinational brand and its successful operations across worldwide has
number of opportunities to expand its business globally. Its brand name, products and fair
operations from last 100 of years will definitely help it in gaining the opportunities.
 Expansion of Jack's Store: Tesco's in year 2018, launched the Jack's Store, named after
the name of its founder Sir Jack Cohen, to offer value to its customers. Its main aim is to
offers a “cost-effective” & “Value oriented” way of shopping to their customers. It has 13
stores across the UK. All 13 store are successful in their operations as well as
contributing in good amount in their revenues. Its success reflects that it has more

potential to grow, its expansion will result in several ways. It results in expansion of
business unit, increase in revenue and serving the society with new discount chain like
Aldi and Lidis'.
 New Emerging Market: Although, it has its business operations across 14 countries, but
it has more scope of expansion. There are several emerging economies like Turkey,
South Korea, Indonesia and several other, have a great potential to grow. Emerging
market have high productivity level, rapid growth and attraction of foreign investments,
will result in capturing the good market share. It can come up with its new successful
Jack's Store, as it will result in both expansion of its new stores and business units.
Tesco's with the target group of cost-conscious people who are more indulged in bargains
and sales, will help it in expanding the operations in new emerging market (Rosnizam
Rosnizam and Rosnizam, 2020).
 Alliance with other brands: Tesco should do partnership with other brands in result to
their growth. It will result in better product and services with aim to serve the customers
better. In 2018, Tesco and Carrefour formed the long-term joint purchase alliance in
supermarket business and its result in easy operations. While expansion of its operations
across the emerging markets it can come up with joint alliance with other. It reflects in
working together with aim of achieving single objective (Nilova and Malyutenkova,
2020).
 Online Shopping Store: Tesco has its business operations in both offline and online
basis. It is doing well and getting good returns from its offline stores. Tesco offer a
mobile app for its online shoppers, it can upgrade the app and more features in same, it
can add the feature of the fastest delivery, addition in the segment section of products and
many more, will result in attracting the more customers towards Tesco.
 Joint Venture: It refers to the combination of two business entity that result in
development of single enterprise. Tesco has its few stores in some countries that aren't
performing well due to local factors. If they come up with partnership or joint venture
with the local business entity and get the knowledge about the local market, it will reflect
its performance up to the graph.
Tesco with its refreshed marketing strategy can easily gain all above opportunities.
Focusing more on relationship marketing, cause marketing will result in covering the cultural

based markets in quite easy manner. Its brand name and goodwill will result in forming joint
ventures with other local brands or business entity in that particular area. Jack's Store, the idea of
new discount store chain will reflect in its expansion across the new markets as well as its units
in existing markets (Radošević and Yoruk, 2000).
Mode of entering International Market
There are several ways through which business unit can enter the international market.
Modes include Licensing, Exporting, Franchising, Foreign direct investment, Joint venture,
wholly owned subsidiary and etc. Each of mode has its own advantages and disadvantages.
Tesco Plc enters the international market through Joint ventures with local firms,
acquisition and foreign direct investment. With a aim of becoming the market leader within a
period of five years from it entry. Organisation decided to go of Joint venture because it will help
in understanding the international market and in reducing the risk. This benefited the Tesco with
new opportunities and capacity to expand in global market. Joint venture with local firm helped
it in getting access over the local staff and resources as well as in building a image in that
particular society.
Marketing Strategy for Expansion in International Markets
International expansion marketing strategy are formal, multi-level plan, business uses to
enter into overseas market and want to establish their business and earn profit. It becomes an
important for the organization to follow or form those strategy in terms to global expansion
(Amankwah, 2020).
 Partner Up: Partnering up with local business can help Tesco lot in its expansion into
international market. It helps in understanding the behaviour of customers mind set and
market condition, it helps in reducing the chances of failure into new market. Tesco with
an aim of expansion in emerging market should go with idea of joint venture or
partnership with local business units of those country.
 Go Local: While Expansion of its unit across the international market, it should focus
more on local products of that country. As going for the expansion in Turkey, it should
focus more on Knit or crochet clothing, plastic articles and in food like Baklava, Sis
kebab, Kofte and so on, rather than coming up the product which are more demand in
UK, because there is wide change in culture of UK and Turkey. It will result in successful
operations in day-to-day activity.

 Host a Contest: It requires little planning and investment, its deliver great results in
terms of sales and in customers engagement too. Contest can be held through both online
or offline platforms. Offline contest include in store activity & engagement and online
includes social media contest like Caption contest, # contest and many more, it reflects in
capturing the huge data base of people and their engagement. This data base and
customers engagement helps in knowing them about the offers and discounts on several
occasions through SMS or other network.
 Community Relevant: Going community or local relevant to the audience of that
particular company, is going to increase the chance of winning over them. If brands blend
is seamlessly with their home they are most likely to draw an emotional attachment to
business unit and their product and services offered. Going community relevant is
important for the success of the business units in the new country. It can be done in
various way, going with local business unit for initial period. It result in reducing the
chances of risk and failure.
 Engagement with Ethics: Being ethically minded society is important for number of
reasons. In addition to doing good, it is powerful marketing strategy too. Because
customer cares more about the morale of the company or main reason behind its
operations. It basically means that operations should be in ethical manner, services
offered must be ethical and so on. These ethics changes from country to country at large
or from community to community. So, Tesco while its expansion in new market, it
should focus that its product and services must be in ethical manner for that region, so
that it does not harm any of the community at all and result in success of its expansion
(Yang, 2018).
Above discussed are the number of strategy which help in successful expansion of
business in international market. Some of them are common, but they are essential to be
understood for successful expansion, as it helps in gathering the basic detail and behaviours of
people in society. For expansion in newly unfamiliar region, through organization is not at all
aware about, then in such situation it should go for joint venture or partnership in that particular
country, it will result in learning the business practices used in that particular country or region.
With following above strategy Tesco can expand its business unit in the emerging economies

like Turkey, Indonesia, South Korea and India, and it will results in expansion as well as increase
in revenue too (Kar, Peltier and Barger, 2021).
CONCLUSION
Tesco with its successful operations from more than 100 years, reflects that it has
followed the strategies in the best way, it result can be seen in terms of great returns of last years.
It is currently serving in 14 countries across worldwide with its several store - Tesco Superstores,
One Stop, Tesco Express, Tesco Metro, Tesco Extra, Tesco Home plus and Jack's Business. It
has several more opportunities for growth and expansion. Tesco can expand its operations in
emerging countries like Turkey, Indonesia and South Korea, its expansion will result in increase
in its stores and product line. This expansion in its business operations will also results in
increase in revenue.

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