Comprehensive Marketing Audit: Tesco's Expansion Strategy in Singapore

This report provides a comprehensive marketing audit for Tesco's potential expansion into Singapore. It begins with an introduction to Singapore's market, highlighting its open trade economy and status as a global business hub. A PEST analysis examines the political, economic, social, and technological factors influencing Singapore's business environment, followed by a micro-analysis of key companies operating in the region. The report includes a competitive analysis using perpetual mapping, focusing on NTUC FairPrice and Sheng Siong, detailing their strengths and weaknesses. A SWOT analysis of Tesco identifies its internal strengths and weaknesses, as well as external opportunities and threats. The report concludes by outlining strategic priorities for Tesco's future based on the current market situation, emphasizing the potential for virtual stores and online expansion to cater to Singaporean consumers.

Principal of marketing
Management

Executive summary
This report benefits to provide the different strategic priorities for a company while expanding
into new country for the future purpose. With the help of perpetual mapping, strategic groups
and reviewing the strengths and weakness of the different brands the two closest competitors.

Contents
INTRODUCTION...........................................................................................................................1
Company intro........................................................................................................................1
PEST Analysis of Singapore..................................................................................................2
Micro Analysis.......................................................................................................................3
Competitive analysis..............................................................................................................4
SWOT & an analysis..............................................................................................................5
The strategic priorities for the future on the basis of the situation.........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing management helps in evaluating the opportunities which brings out with suitable
strategies for generating revenues and it supports in decision making, controlling and planning
the aspects of the market in terms of marketing. This report is going to assess the company to
evaluate the external environment. The report further elaborates that the marketing audit of
Singapore using perpetual mapping, strategic groups and ascertaining the strengths and
weaknesses of the company. The company chosen for this project is Tesco. Tesco is the
multinational retailer of general merchandise. The concerned report highlights the various
customers, suppliers, related public and marketing intermediaries for the competitive analysis.
Moreover, it contains an action plan which helps to make a detailed outline of the actions which
are required to attain the one or more goals. Another benefit is that the Singapore personal tax
structure is progressive.
Task 1
Company intro
Singapore is one of the biggest markets in the Asia-pacific which maintains an open trade
economy. It is highly developed economy and the second highest per capita GDP in the world in
terms of purchasing power parity. The headquarters of the Asia-Pacific Economic Cooperation
(APEC) is in Singapore. Singapore earns its revenue from the taxes, custom duties, GST,
property, license fees and government property rentals. It’s top three export and import
commodities are transport equipment, machinery and chemical products. It also has high rates of
foreign direct investments and the economy of Singapore is on the healthy growth path.
Singapore has a unique position in the global economy and it plays an essential role in the
business of Asia because it is considered as a global business hub. It has established itself as a
reputable trading centre whether the business is small, medium or multinational Singapore give a
launch to all types of business in the market. The major international banks and financial
institutions also established their branches in Singapore. Moreover, Singapore is known as Lion
city because it has strong infrastructure and currency which tends to help in making it the best
place to set up oversea corporation. Main reason behind that it is considered as business hub is
because it is easier and quicker to register a new company in Singapore as the process takes only
one day to complete all the formalities and the application is duly submitted.
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In Asia, Singapore has one of the most stable political environments which offers a safe
platform for investors and entrepreneurs. Mainly, the crime rate is also low due to strict law
enforcement.
Tesco can expand in Singapore as there is no actual Tesco store available Singapore can be good
option for to expand its business here, taxes are low and the quality of life is high. This country
is focused on economic growth so, it pushes to provide entrepreneurs an environment where they
can grow their business to attain their desired goals and grow their business. Singaporeans are
often too busy to go shopping for grocery at a traditional store. Tesco being a UK’s giant retailer
can introduce virtual stores too as per the market based on the country’s lifestyle. Interested
customers can download the app and use their smartphones to scan the QR codes so that they can
buy the products of their choice. The virtual stores can be set up in the public spaces mainly in
subways and customers can get the delivery as per their schedule time nowadays, same day
delivery is also a trend, so that customers can get their descried products by the time they get
back to home from work. Tesco has expanded its operations globally from UK to others
countries in the world. The company has its stores in United States, China, Japan, South Korea,
Thailand and Turkey. As it operates the world’s largest grocery service. Through internet various
services are provided like telecommunications, clothing, home appliances, consumers goods and
many others. Most of the revenue is generated from its main market that is United Kingdom and
most of the products are sold in the stores of Asian and European countries. Its main competitors
are Lidl or Aldi (Hüttner, 2018).
PEST Analysis of Singapore
Singapore is situated in the Southeast of Asia and it showed an extraordinary growth which made
it a high-income economy. The main segments are petroleum refining and pharmaceutical
industry which have the capability to attract the other countries and investors to invest. This will
review the external framework of the Singapore and the external factors impacting the country.
PEST Analysis helps to study the macro environment factors such as political, economic, social
and technological factors. The factors are explained below-
 Political factors- Singapore enjoys the lowest political risk in the continent as the
political risk is low as compared to other countries. The people are allowed to select the
representative in a democratic country. Moreover, the country has least corruption and it
is the transparent country which can help the companies to work here. The stability helps
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in bringing the new opportunities for people and the country. Since its independence,
they cherish the political stability.
Economic factors- It is a free-market economy with high per capita income. The legal and
financial business framework helps with the educated workers. Singapore has one of the highest
GDP in the world and the country is also planning to reduce the unemployment rate as many
businesses got affected in this COVID-19 pandemic. It has a tax rate of 17% which makes it
more attractive for the foreign investors because the rate is low and tax heaven. The import items
are gold, computers and petroleum and it exports the products to Indonesia, Malaysia, China,
Hongkong and USA (Elliott,2020 Clutterbuck, 2019).
Social factors- The country has achieved growth but there are some issues like ageing
population, increasing divorce rate, inflation rate and ethical conflicts which are also affecting
the country. The literacy rate is also very high because parents make sure about the regular
attendance of children. It has diversity in reference to cultures and ethnicity people are from
different cultures like Christianity, Hinduism, Islam, Buddhism and many others all live together
peacefully ( Marinchak, Forrest and Hoanca, 2018).
 Technological factors- Singapore has a well-established technology structure and the
most developed country that is why Facebook, Microsoft, Amazon and Google launch
their first products or promotions here rather than commercializing it globally. Country is
also facing some issues of lack of skilled tech staff for the offices in Singapore. It is
facing the problem in hiring the IT professionals and staff.
After evaluating the above factors, it is clear that Singapore is the world’s most developed
country. It housed motivated with talented people which provides opportunities for business. The
country has friendly approach in various aspects like the compulsory primary education and
hardworking citizens which makes Singapore a remarkable country but there are also some of the
prominent issues like ageing population and limited tech staff can be threats for the country
(Palmatier, and Crecelius, 2019).
Micro Analysis
The various companies that operate in Singapore are Thai Beverage, Wilmar International, DBS
Group Holding, United Overseas Bank, Jardine Strategic Holdings and many others because
Singapore is a prime location for new business, corporate entities, investors and business leaders
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to have strong investment and trade which make Singapore a strong and easiest place to do
business Asian country in the world (Mothersbaugh and et.al.,2020).
Competitive analysis
Perpetual mapping is used by various market researchers to know and depict how the target
customers feel about the brand or a product it is also called as product positioning maps. It has
two types of dimensions to inform product development and improvement. NTUC Fair price and
Sheng Siong are the main face of the supermarket chains of Singapore (Kotler and et.al., 2021).
NTUC Fair price- It is a supermarket chain, it has about 100 supermarkets across the island and
the largest in the country. It helps the customer to grab delish fresh and cured meats carved on
the spot and the products are available at cheap prices. They also provide great deals and offers
an excellent range of products. It has grown over the years.
Strengths
 NTUC Fair price is trusted by its
customers and has a strong goodwill.
 It has a good distribution system and
one of the oldest supermarket chains.
 It provides both that is home delivery
and online shopping facilities to its
customers.
Weaknesses
 It is restricted to Singapore only which
tends to make less sales of high end and
luxury products in future.
 The main competitors of NSU are Cold
storage, Giant Singapore and Sheng
Siong.
 Change in governmental policies
affects the operation of the company
Sheng Siong- It is considered to be the third largest chain of supermarket and it also has its own
television programmes named as ‘The Sheng Siong show’. It is cheaper than NTUC Fair price. It
provides chilled seafood, well-priced veggies, wet and dry goods at reasonable prices. It has
problems is limited number of stores which restricts the reach of all the potential customers.
Strengths
 This brand is among the top brands of
Singapore and it is awarded as the
Superbrand by Superbrands Singapore.
 It has more than 30 years of experience
Weaknesses
 It is losing the market share as it
operates in highly competitive
environment.
 The harsh weather conditions are not
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in grocery segment with in depth
knowledge of the market.
 It has expanded to other markets of
Malaysia and Indonesia which helps to
increase the brand value and find new
customers.
favourable which creates a disruption in
supply.
 This supermarket chain is barrier to
new entrants. The new business
requires huge amount of capital to
compete with market players.
SWOT & an analysis
SWOT Analysis is a powerful tool to help in developing the business strategies to build up a
start-up or guiding an existing company. It is a combination of company’s strengths, weaknesses,
opportunities and threats to assist the company to bring the awareness of all the various factors
involved in making a business decision. By using SWOT Analysis, it recommends the strategies
with a focus on improving strengths and opportunity to overcome the weakness and threats. To
make business more successful one should regularly analyse the process to make sure that they
are operating in a proper manner. It also creates a full awareness of all the factors involved in
making a business successful for future (Teoli, Sanvictores and An, 2019).
SWOT Analysis of TESCO is explained below-
Strengths
 It has leading marketing share which
dominates in the market as compared to
other supermarket chains
 It has a strong global presence as it
operates worldwide by opening
additional chain of new stores.
 Wide product range it made the
company successful. It has the wide
range of products such as mobile
phones, clothing range, home-ware
items, telecom services and school
Weaknesses
 Tesco charged with many fines because
of the false accounting declaration of
profits.
 It had to exist various markets due to
failed export operations of the
company.
 Tesco’s profit got affected badly due to
its high debt.
 As it has low-cost strategy which lead
to reduction in generation of profit.
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uniforms.
Opportunities
 Tesco can expand by growing its
business online as well as home
delivery services.
 It can open stores in different countries
which can be a good opportunity for the
company.
 The company can go cashless store
after the COVID-19 people avoid
touching things like notes or coins so,
Tesco opened its cashless store and
seeks to open more soon.
Threats
 During the pandemic, many businesses
have affected badly. Tesco has also
shifted to online service which saved
the company.
 Change in the government regulations,
legal and tax regulations also affected
the overall performance of Tesco
stores.
 The rising performance of Aldi,
Walmart and Carrefour, Tesco’s market
position can be threatened.
The strategic priorities for the future on the basis of the situation
The different strategic priorities are helpful for the business to adjust in both the internal and
external environment to achieve the list of goals and tasks. It is the core of business which aids in
future success of the organisation. The priorities which are useful for the future are explained
below-
Main focus is on mid-term objectives and to involve the different people in the strategy to bring
more transparency and different ideas so that the new customer base can trust and adapt the new
trends. The management can make use of their resources in efficient manner to get boost are
required in the future (Shen and et.al., 2020).
 True vision is required for future to set the future mission, target audience, volume and
customers to ascertain how the company can deliver unique type of value to its customers
in a competitive world by managing pricing model and delivery system.
 Fix the targets in order to remove the unclear strategies which allow the company to
focus on the abilities to improve the marketing and sales approach which enables the
productivity. Setting the sales target will help the business to grow and manage the
expenses to perform better in new market.
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 A good strategic plan can help to track the performance of the company in new country
to promote the plan across the departments. It will require discipline to promote the team
focused on the desired goals. It should be considered by the company to monitor the
business environment.
 Measure the performance with other companies of same segments by benchmarking
their work and policies so that they can understand their role’s contribution to the
company. It will help in gaining an independent perspective about how the company
operates. It will also set the standard of processes which enables a, mindset and culture of
continuous improvement.
 Every company requires to fix its analytical skills so that they can manage the
responsibilities and resources in a proper manner in the process. Such skills draw out the
new demand, the untapped areas and the needs of customers to find new ways to increase
the production and earn more profits.
 Vision statement should be made to evaluate the internal and external drivers to cover
the market structure with cost pressure and demand levels. It helps to maintain focus and
attract young professionals who are required for driving business to another level. As it
describes the future state of organisation’s working.
 Position of location is also important in growth of business because it plays a huge role
in retaining the best employees in order to make optimize work life balance. It also
attracts the customer base which can make the business a success.
CONCLUSION
From the above report it can be concluded that a comprehensive marketing audit of a particular
country with the targeted audience. It also helped to understand the various strategies which can
be used for the future to generate more revenues and to understand the market better. It further
explains the macro environment factors which have an impact on the success of business in new
country. As a business cannot control the external factors all it can contribute is to alter them and
make decisions to help it remain successful. By reviewing the strengths and weaknesses of the
company and brand helps to widen the market to create new demands for consumers.
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REFERENCES
Books and Journals
Mothersbaugh, D.L., Hawkins, D.I., Kleiser, S.B., Mothersbaugh, L.L. and Watson, C.F., 2020. Consumer
behavior: Building marketing strategy. McGraw-Hill Education.
Palmatier, R.W. and Crecelius, A.T., 2019. The “first principles” of marketing strategy. Ams Review, 9(1),
pp.5-26.
Park, S., 2020. Marketing management (Vol. 3). Seohee Academy.
Kotler, P., Keller, K.L., Ang, S.H., Tan, C.T. and Leong, S.M., 2021. Marketing management: an Asian
perspective.
Elliott, A.J., 2020. Chinese spirit-medium cults in Singapore. Routledge.
Clutterbuck, R., 2019. Conflict and Violence in Singapore and Malaysia, 1945-1983. Routledge.
Marinchak, C.M., Forrest, E. and Hoanca, B., 2018. Artificial intelligence: redefining marketing
management and the customer experience. International Journal of E-Entrepreneurship and Innovation
(IJEEI), 8(2), pp.14-24.
Hüttner, M., 2018. Marketing-Management: allgemein-sektoral-international. Walter de Gruyter GmbH &
Co KG.
Ziemba, P., Jankowski, J. and Wątróbski, J., 2018. Dynamic decision support in the internet marketing
management. In Transactions on Computational Collective Intelligence XXIX (pp. 39-68). Springer,
Cham.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Shen, C.W., Luong, T.H., Ho, J.T. and Djailani, I., 2020. Social media marketing of IT service companies:
Analysis using a concept-linking mining approach. Industrial Marketing Management, 90, pp.593-604.
Day, G., 2020. The yin and yang of outside-in thinking. Industrial Marketing Management, 88, pp.84-86.
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