Adapting to Global Markets: A Report on Tesco's Strategies

This report explores the concepts of standardisation and adaptation in international marketing, focusing on the challenges and strategies employed by companies like Tesco. It examines issues such as tariff barriers and cultural diversity, and analyzes changes in consumer consumption and buying behavior. The report further delves into Tesco's practical application of strategic marketing activities, including product, pricing, distribution, and communication strategies, to adapt to international markets. It concludes that understanding consumer behavior and adapting marketing strategies accordingly is crucial for success in international business, despite the challenges of rapid changes in consumer preferences and the need for continuous market research. Desklib offers a wealth of resources including similar reports and solved assignments for students.

STANDARDISATION/
ADAPTATION OD
INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Central issues faced by international markets..............................................................................3
Changes in consumer consumption and buying behaviour..........................................................4
Practical application.....................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Adaptation in international market means modifying a product so as to meet the
requirements of customers in the international markets and standardisation means the ability to
use standard marketing internationally. That is using competitive international marketing
strategies by companies across various countries. There are various issues that are faced by the
companies while standardizing and adopting new international markets,
Tesco is a British Transnational general and groceries merchandise retailer. Its
headquarters is located in Welwyn Garden city, England. It was founded by Jack Cohen in 1919.
It is the worlds third largest retailer and is the number one market leader of groceries in the UK
markets. It has around 7000 outlets located across worldwide.
This reports will discuss the central issues that are faced by companies in international
markets. The changes in the consumer consumption and buying behaviour. It also shows the
practical application of strategic activities taken by company to adapt to international markets.
MAIN BODY
Central issues faced by international markets
International market is not similar to domestic marketing. It poses number of
uncertainties and problems(Cateora, and et.al., 2020). There are various problems which are
faced by the companies such as the pricing, distribution and communication that are affected by
the cultural and geographical diversities. Some of the main central issues are as follows: Issue of Tariff barriers: Tariff barriers, while adopting new international marketing
strategy is one of the most significant challenging issue found in marketing within global
competitive parameters. It affect the pricing strategies, operations of the companies. It
includes taxes that are imposed on exports and imports (Kellner, 2017). Adapting to
international markets becomes difficult for many countries as they find it difficult to earn
profits with maintain effective pricing policy. Also, frequent changes in the tariff policies
creates uncertainty for the companies.
 Adopting to multicultural diversity: One of the major problem that is faced by the
companies in adapting to international markets is the cultural diversity. That is every
country has their own unique culture and civilisation. So if a company wants to

standardised and adapt to international market it has to frame strategies keeping in mind
the cultural values of the country in which it is operating.
Similarly, administrative procedures affects the international marketers adversely. As
bureaucratic rules makes it international marketing hard. With the different lengthy legal
formalities of different countries, it affects the distribution strategy of the companies which
hinders the company in adapting to international market.
For adapatation of international markets, there are various strategies that are adopted by
Tecso. That is it uses internationalisation, and localisation in adapting to the international
marketing. Internationalisation is a corporate strategy that involves, making of services and
products as adaptable as possible, so that it becomes easy to enter into new markets. Fro
example; to adapt to international market of Budapest, Tesco used different strategies of
promotion so that it becomes easy to adapt to the markets.
Localization is a process of adapting services and products to specific markets. It happens
after internationalization takes place. For example; Tesco in Budapest serves Kosher food and
drinks and closes on Jewish holidays. So that it can adapt to the international market by
localisation.
Changes in consumer consumption and buying behaviour
Consumer Consumption and buying behaviour refers to the analysis of customers, how
they behave while consuming or buying a product that helps in satisfying their needs. It is a
study that shows the actions of the consumers that drives them to use and buy products according
to their satisfaction (Loxton, and et.al., 2020). Understanding consumer behaviour is very
important for companies while adapting to international marketing strategies.
With changes in the consumer buying and consumption behaviours that is changes in
their taste and preference, purchasing power etc. affects the international marketing strategies of
companies. The aim of Tesco is to earn profits with providing customer satisfaction, with
effective goodwill goals attained. So, It is important for busines to adapt to strategies that are
according to the behaviour of consumers and which satisfy the needs of the consumers. And
formulating strategies which understands the buying and consumption behaviour of the
customer. Keeping this in mind, Tesco frames strategies according to changes made in the
consumer behaviour and providing their customers with variety of products according to their
needs and requirements. Marketing at Tesco has been competitively advancing with new

technologies, higher expertise, and the best optimum standards for connecting as per new targets
and working goals. Tesco innovatively aims to further enhance new range of production and
strengthened vision within retail products, to reach towards diverse consumers preferences
dynamically.
However, according to Ismagilova ,2020, consumer behaviour is an important aspect in
standardisation and adoption of international marketing strategies by companies. By analysing
the changes in the consumer behaviour it provides company with a competitive advantage in the
international markets, strengthening its positioning by attracting more customers and increasing
there revenue generation. it can be critically evaluated that with the fast and dynamic preference
of the consumer in buying and consumption it is difficult for companies to meet up with their
needs and requirements. Also, it becomes difficult in identify the various changes in the
behaviour of consumer. With the rapid change sin the consumer behaviour, it becomes difficult
for Tesco, as it requires higher investment to regularly change according to the preferences of the
consumers. Also, on regular intervals it requires study of market trends which requires capital.
Practical application
International marketing activities refers to the marketing activity that occurs between
cross borders (Thrassou, 2018). Strategic marketing is a strategy which encompasses countries
from various different regions in world and aims towards coordinating organisation's efforts in
markets of those countries (Bayazovna, 2020)s. These strategies include pricing, distribution,
product, promotion etc. The strategies used by Tesco are:
Product
Tesco provides a wide range of variety of products which includes food, cosmetics,
stationery, clothing, electronics etc. with the expanding product line, it caters to every needs of
the consumer keeping in mind the changes in their behaviour and their buying pattern. Also,
within every category, Tesco provides variety of choices from brand, type, regional produce
which doesn't leave the customer lacking when it comes to choosing.
Pricing
Pricing is a major issue when it comes to international markets. Tesco's pricing strategy is
cost leadership. To adapt to international market Tesco maintains prices which are affordable by
everyone without reducing the quality of the products or running themselves into losses. It uses

economies of scales in order to provide itself with all the cost advantages, works continuously
with its suppliers in maintaining competitive supply chain aiming towards strong business
positioning.
Distribution
Distribution is one of the most crucial aspect in adaptation of international markets.
Tesco, majorly uses two channels of distribution which is online and offline. With its brand
visibility it has around 7000 stores worldwide that caters to the need of consumers with six
different types that are Tesco Express, Tesco Metro, Tesco Extra, Tesco Homeplus, Tesco
compact and Tesco Superstore. And with the effective distribution channel Tesco is able to
capture international markets and strengthen its positioning in the international markets.
Communication
It is a strategy that is used by organization to reach their targeted customers and targeted
markets with using various forms of communication. It is one of the main element in adaptation
and standardization of international markets. Tesco has been using complex strategies in order to
successfully communicating to their customers. It uses a slogan ' Every little helps' as marketing
tool in communicating with its audience that what the firm stands for. This has helped in
penetrating the minds of consumers through forms of promotion such as their point of sale
communication.
It can also be summarised that, Tesco uses various strategies in terms of pricing, product,
distribution and communication which helps in strengthening the positioning of the company in
the international markets. Tesco has been focusing on creating a strong brand image by
providing customers with quality products and services.
Standardisation and adaptation of Tesco in international markets
Elements Standardisation adaptation
product yogurt Light choice yogurt
place Retail stores Home delivery (Budapest)
Promotion- via digital media,
using slogans
Tesco Eat Live Enjoy Big On Taste, Lower In
Calories

Price £2.4 (Cambridge) £2.8 (Lancashire)
CONCLUSION
From the above report it can be concluded that there are various issue that are been faced
by the companies in standardisation and adaptation of international marketing strategies. Various
geographical and cultural diversities affects the pricing, distribution and communication
strategies of the companies while adapting to international markets. Also, it can be concluded
that the changes in consumer buying and consumption behaviour affects the companies
international business. It can be analysed that Tesco understands the behaviour of its consumers
effectively and formulates strategies which helps in attracting more customers by fulfilling their
needs and requirements.

REFERENCES
Books and journals
Cateora, and et.al., 2020. International marketing. McGraw-Hill Education.
Kellner, A., 2017. Human resource management standardisation and adaptation in
franchises. The Service Industries Journal. 37(9-10). pp.545-566.
Ismagilova and et.al.,, 2020. The effect of characteristics of source credibility on consumer
behaviour: A meta-analysis. Journal of Retailing and Consumer Services. 53. p.101736.
Loxton, and et.al., 2020. Consumer behaviour during crises: preliminary research on how
coronavirus has manifested consumer panic buying, herd mentality, changing
discretionary spending and the role of the media in influencing behaviour. Journal of
risk and financial management. 13(8). p.166.
Thrassou, A., Vrontis, D. and Bresciani, S., 2018. The agile innovation pendulum: A strategic
marketing multicultural model for family businesses. International Studies of
Management & Organization. 48(1). pp.105-120.
Bayazovna, G.N., 2020. Marketing communication strategy and its essence. Вопросы науки и
образования, (1 (85)).
Online references
A, B., 2018. [Online]. Available through <>
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