Marketing Planning Assignment with Tesco (GC01689)
Executive Summary
In this present situation of the global marketing era, every business has to create a plan for starting new products in the new market to new customers. This report will be focused on the marketing plan of a new product in the new market to new customers in the area of China. The name of the company is Tesco. Tesco is a well-decorated and well-established global retail shop. In the global market, this company has a high brand image. Therefore, this report will be made a comparison between two international markets and describes the reasons for choosing these areas by Tesco. After that, this report will be described various possible processes of entering into the Chinese market by Tesco and mentioned what method will be the best method for Tesco into entering the global market in the Chinese area. Finally, it will be presented the marketing mix factors for Tesco to enter and operate marketing in the Chinese area.
1.0 Introduction
The firms’ success in the global market depends on the strategic planning on its production, distribution and marketing (Davidsson, 2016). This report develops the marketing plan of a new product in the new market to new customers in the area of China by Tesco. The first section presents the comparison between two international markets and describes the reasons for choosing these areas of Tesco (Tesco Plc, 2019). After that, this report describes the various possible processes of entering into the Chinese market by Tesco and identifies what method will be the best method for Tesco into entering the global market in the Chinese area. Finally, it presents the marketing mix factors for Tesco to enter and operate marketing in the Chinese area.
2.0 Company background
In the UK, Tesco is a highly accepted retail shop by the customers. In 1919, this company started its retailing activities with the head office in Welwyn Garden City, Hertfordshire. This company has 6800 shops in several areas including most of the European countries, Malaysia, India, Hungary and Poland (Tesco Plc, 2019). The revenue history of this company is highly satisfactory approximately 63911 million pounds. This company has 450000 staff. At present, this company has made a plan to increase its market area in china and this report presents the marketing plan for this company.
3.0 Compare two international markets and evaluate why Tesco choose these markets
2.0 Single diamond model
A single diamond is an economic model by which an organization can analyze a country’s role in a globally competitive market. According to Root F. (2016), through this model, an organization can identify the comparative advantages for a nation or region. the six figures of the model are-
Factor conditions are resources of business such as human resources, technological resources, physical resources, financial resources, knowledge resources, and infrastructural resources. Demand conditions create competitive advantages through innovative products in the home market. Cost-effective inputs are analyzed by Related and supporting industries for innovation and internationalization. Business strategies are adopted in order to gain organizational goals by the Firm strategy, structure, and rivalry. The demand and supply of products are influenced by Government initiatives. Chance affects the competitive position which is out of the control of the business.
2.1 Single Dimond Model Analysis for Tesco
| Variables | Conditions | Evaluations |
| Factor conditions | Good | Tesco has a skilled labor force to operate its business. It is technologically advanced as it has a high online facility. It also has great experienced personnel to manage the business. It is financially strong as it has had great turnover through the years.
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| Demand conditions | High | The demand for the products of Tesco is high as they offer quality products. |
| Supporting industry | High | As the company performing well more investors are likely to invest in Tesco. |
| Government policies | Strict | As Tesco operates its business throughout the whole world it faces several government interventions in the international market. |
3.0 Double diamond model
The double diamond model is the model which analyzes the competitiveness of multinational organizations in international markets (Davidsson, 2016). It analyzes by focusing capabilities, uniqueness of the companies. This model focuses on the factors of two groups: domestic diamond and international diamond. The domestic diamond focuses on the factors such as factors condition, business contexts, demand conditions, and related industry. On the other hand, international diamond focuses on worker issues, professional issues, political and juridical issues, and entrepreneurship issues.
According to Root F. (2016), this model overcomes the weaknesses of the single diamond model for multinational companies. it also helps to analyze the international market. This model requires experienced individuals in applying this model…………………..
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