AS2 – Investigative Report: Tesco's International Marketing Strategies

This report provides a comprehensive analysis of Tesco's global marketing strategies. It begins with an executive summary and introduction to global marketing, emphasizing its role in expanding businesses internationally. The main body compares Tesco's operations in the UK and Japan, examining market segmentation, demographics, consumer spending power, infrastructure, language, and lifestyle factors. It then evaluates various market entry methods, including direct exporting, licensing, franchising, partnering, joint ventures, and greenfield investments. The report also reviews Tesco's marketing strategies, such as using social media, creating video tutorials, and leveraging influencers to enhance brand awareness and competitiveness. The conclusion summarizes the key findings and emphasizes the importance of global marketing for organizational success. The report highlights opportunities for Tesco's growth and recommends expansion strategies within the UK market. Overall, the report offers valuable insights into Tesco's international marketing approaches and provides a framework for understanding its global operations.

AS2 – Investigative Report
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Executive Summary
Global marketing involve various processes that include plan, produce, and place and
promote company products and services in a worldwide market. It allows company to effectively
expand their business in foreign countries and assure more competitiveness. Present report is
conducted on Tesco. This report discussion along two international market place in which
company is operating its business functioning. Furthermore, project discusses different methods
of market entry and review of marketing strategy.
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Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Comparison between Tesco in UK and Tesco in Japan.........................................................4
Evaluate methods of market entry..........................................................................................7
Review of marketing strategies..............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Global marketing is defined as a process in which business organisation undertake use of
marketing strategies in order to adopt the conditions of other geographical region or country. It
involves different type of elements that involves planning, creating, positioning and promoting
organisational products and services in other market segment (Kotabe and Helsen, 2020). Global
marketing effectively improve effectiveness of company’s services and products and allow them
to grow more faster using effective services and other offerings. In addition to this it also
facilitates company to assure strong competitive advantage as compared to other competitors in
respective industry. With the assistance of global marketing organisation can reduce cost and can
effectively increase their savings.
Present report has been conducted on Tesco which is performing their operations in retail
industrial sector with having its headquarters in England, United Kingdom and offer wide range
of products and services around the goal. In this report formative discussion has been conducted
on the international market is in which company is performing their business operations along
with global marketing model. In addition to this report involve application of market selection
area and review of potential marketing strategies.
MAIN BODY
Comparison between Tesco in UK and Tesco in Japan.
Selection criteria for Tesco plc
Market segmentation is termed as a process of segregating a target market into smaller
categories in order to divide audience or customers into different groups according to similar
characteristics, location, interest, demographics or needs (Poradova, 2020). With the help of
proper market segmentation company can effectively target customers and can effectively satisfy
them with the company products and services. With the help of proper market segmentation
techniques TESCO identify behavioural pattern of customers. For this company to collect
information from loyalty cards schemes and segment consumers according to their taste and
demand to effectively serve target group of consumers. Tesco divide customers in several
categories according to the similar taste or other characteristics. This performs their business
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operations as the largest retailer company in the provinces of United Kingdom and has number
of stores. This organisation is having strong brand image as they provide high quality services
and products to customers. This allow company to ensure their loyalty and trust company target
their customers on different characteristics such as purchasing behaviour, income level, social
values, believe and more. It has been identified that company undertake use of Repositioning in
order to determine customers need according to dynamic changes in their preferences. Company
undertakes use of positioning, intangible repositioning and tangible repositioning.
TESCO operate its business services successfully and with having high brand reputation
in different countries such as United Kingdom and Japan. Evaluation of company functions in
these countries is defined below:
Selection criteria Tesco in UK Tesco in Japan
Demographics Tesco conducts its business
operations in the provinces of
United Kingdom in both urban
and rural market segment.
Company is having
approximately 2,000 and more
than stores through which they
provide high quality goods
and services to all the income
level of customers with an aim
to serve them with high
quality services and products
(Park, 2020).
In term with Tesco Japan,
company is having
approximately 100
supermarkets in the name of
“Tsurukame” through which
they provide different type of
products and services to
customers.
Consumer spending power Tesco target customers on the
basis of spending power in
which company evaluate and
select consumer group of low
as well as medium income
group of individuals. With the
In terms with TESCO, Japan it
has been identified that
company mainly target those
of consumers who spend more
on premium products as well
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help of this company provide
the services and products
according to the all price band
in order to gain more
competitiveness.
as brands.
Infrastructure In context with infrastructure
it has been identified that
Tesco target rural and urban
group of customers and
effectively meet their
expectations while satisfying
them with higher quality of
products and services.
As compared to United
Kingdom Tesco PLC in Japan
mainly aim towards growing
stores in different area of
respective countries in which
consumers are having high
earning as well as standard
living.
Language In context with language. It
has been identified that
company is having diversified
workforce in which
individuals are trained with
different languages. With the
help of this company serve
customers of all language.
This factor play important role
through which company
assure4 its leading positioning
in respective market segment.
As compare to UK Tesco in
Japan mainly emphasise upon
assuring loyalty of customers
for which company provide
effective services and
products. In this company
especially treat new customers
in Japanese in order to make
them feel comfortable.
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Lifestyle In terms Lifestyle as well as
saving part and it has been
identified that it is commonly
target consumer groups who
believes on content in and
traditional confirms
In context which people it has
been identified that in the US
customers imprecise Upon A
version to discuss in this as
your loyalty of customers
satisfy them with higher
quality of services and
products.
According to the above mentioned comparison among Tesco United Kingdom and Tesco
Japan it has been evaluated that company is having number of growth and development
opportunities in the provinces of United Kingdom, as in this market place TESCO is having
higher expectations of customers towards classical and traditional designs and materials (Wei,
Ang and Liou, 2020). This market segment provides fruitful area of growth and profitability for
retailing companies through which companies like Tesco can assure more prominent growth
and long-term sustainability. Thus, according to the analysis it is recommended for Tesco to
undertake further expansion strategies within the native country, United Kingdom, as in this area
company have higher demand and more customer base which will help company to maximize
their market share and revenue generation capability.
Evaluate methods of market entry
There are different types of market entry modes with the help of which organisation can
enter in a new or foreign market segment and can assure successful business operations.
However it is essential for organisation to evaluate the impact of different factors like tariff rate,
marketing factors, transportation cost, degree of adaptation of products and strategic choices in
order to effectively develop strategies against them (Samiee, 2020). It will help company to
provide the production services in respective the graphical location in effective manner. In
context with Tesco there are different types of strategy that can be undertaken by organisation in
order to enter in a new market segment.
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Direct exporting:
It is termed as a mode of selling directly into international market segment. In this
business organisation is required to formulate different sales program in order to turn agent and
distributor to represent them in market segment. In this company is required to perform the
operations together with distributed and agent in order to effectively enters in a new market
segment. It will allow company to assure more successful advantages and profitable results.
Licensing:
It is another one of the most important and effective form of market entry methods in
which organisation can enter in international market in more effective manner. In this company
is required to transfer the right of use of services and products. In simple terms it is defined as a
business agreement within which one organisation give other company to manufacture their
products for specified payment. It is one of the most effective and profitable way through which
business can you grow themselves in market segments.
Franchising:
It is the most important marketing entry concept which is being adopted by an
organisation in order to expand the business in other geographical location. In simple terms it is a
market entry model within which business owner grants other group or individual the right to run
business. There are different types of franchise such as product and distribution franchise,
business franchise and management franchise. With the help of these methods Tesco can
effectively conduct their business operation in other location.
Partnering:
In this mode of market entry with the help of which company can enter into a partnership
agreement or can make strategic alliances with other company or local business in order to
expand their market positioning (Tsai and et. al., 2020). With the help this company can assure
more success as partnership allows company to share resources funds and business strategy for
competitiveness and growth.
Joint ventures:
In this method of market entry business can collaborate with two or more parties in order
to pool their resources as to accomplish the specific business objectives with more effectiveness.
Important benefits of joint venture are that with the help of this company can access new market
and distribution network. In addition to this with the help of this mode of entry Tesco can
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increase capacity, share risk and cost with partners and can gain access of greater resources such
as finance and technology.
Greenfield investment:
It requires greatest involvement of in international market. A Greenfield investment is
where a firm can buy land and build the facility & operate business on an ongoing basis in a
foreign market. It is costly approach associated with higher risk but some markets may needs to
take high risk and cost as per governmental rules and legislations.
Review of marketing strategies
Marketing strategy is defined as an organisation overall game plan to research customers
and effectively turns them into regular buyer of organisation services and products. It is basically
as long term and forward-looking approach that assist an organisation to accomplish their
business objectives while assuring competitiveness in respective market (Aashirwad Kumar and
Kumar, 2020). With the help of effective marketing strategy can understand need and demands
of target audience and can further undertake significant marketing efforts in order to serve them
effectively. In context with the TESCO mentioned below there are some marketing strategy
through which Tesco can assure more competitiveness.
Using social media:
Social media play a crucial role in connecting individuals and developing relationship. It
is significant platform through which business organisation can reach, nurture and engage with
their target audience irrespective of the location. With the assistance of different social media
Platform Company can conduct their marketing while generating brand awareness and assuring
leads in sales and revenue. With the assistance of social media platforms Tesco can also
undertake feedback and suggestions from customers that effectively in hands company
competitiveness in market.
Creating video tutorials:
It is one of the most essential marketing strategy that allow company to create and use
tutorial in order to generate awareness among target group of customers (Sharman, Padwal and
Campbell, 2020). It will allow company to promote their products and services on different sites
like YouTube through which they can influence attention of large base of audience.
Leverage influencers:
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In order to effectively deliver brand awareness on global marketplace leverage different
influencers is one of the most effective marketing strategies (Galli, 2020). In this, Tesco can
partner with individuals who are having strong influence over audience in respective
geographical location. With the help of this company can enhance their visibility and
profitability in an effective manner.
CONCLUSION
As per the above mentioned report it has been concluded that its global marketing play most
important role for an organisation as it’s allow them to enhance their competitiveness in
marketplace while enhancing consumer awareness towards their offerings. It also aid company to
reduce the cost and maximize savings and lead towards more profitability and growth. It is
essential for an organisation to undertake advantage of effective global marketing strategy with
help of global marketing research in order to serve customers according to the needs and
demands as per the different regions taste. It will help company to ensure long term sustainability
and profitability.
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REFERENCES
Books and Journals
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
Sharman, J.E., Padwal, R. and Campbell, N.R., 2020. Global marketing and sale of accurate cuff
blood pressure measurement devices. Circulation, 142(4), pp.321-323.
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Galli, B.J., 2020. Using marketing to implement a strategic plan: Reflection of practiced
literature. In Start-Ups and SMEs: Concepts, Methodologies, Tools, and
Applications (pp. 1518-1532). IGI Global.
Aashirwad Kumar, G. and Kumar, D.A.R., 2020. Social Media for Global Marketing in KPS
Technologies, Chennai. International Journal of Management (IJM), 11(3), pp.366-372.
Tsai, W.S and et. al., 2020. Understanding the Interplay between Brand Globalness and
Localness among Homegrown and Foreign Global Brands in South Korea. Journal of
Global Marketing, pp.1-18.
Poradova, M., 2020. Content marketing strategy and its impact on customers under the global
market conditions. In SHS Web of Conferences (Vol. 74, p. 01027). EDP Sciences.
Park, S., 2020. Marketing management (Vol. 3). Seohee Academy.
Charoensukmongkol, P., 2020. The efficacy of cultural intelligence for adaptive selling
behaviors in cross-cultural selling: The moderating effect of trait mindfulness. Journal of
Global Marketing, 33(3), pp.141-157.
Samiee, S., 2020. International marketing and the internet: a research overview and the path
forward. International Marketing Review.
Steenkamp, J.B.E., 2020. Global Brand Building and Management in the Digital Age. Journal of
International Marketing, 28(1), pp.13-27.
Wei, S., Ang, T. and Liou, R.S., 2020. Does the global vs. local scope matter? Contingencies of
cause-related marketing in a developed market. Journal of Business Research, 108,
pp.201-212.
Wang, Y., Hong, A., Li, X. and Gao, J., 2020. Marketing innovations during a global crisis: A
study of China firms’ response to COVID-19. Journal of Business Research.
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