Table of Contents
Overview of Tesco.
Task 1: How Tesco has grown in the international market.
1.1 Marketing mix (7’Ps) of Tesco in the international market.
1.2 How Tesco has standardized its marketing mix (7’Ps) in the global market.
1.3 How Tesco has adapted its marketing mix (7’Ps) in the global market.
1.4 How Tesco has followed economic approaches in the international markets.
1.4.1 Product Life Cycle Model
1.4.2 Transaction Cost Approach.
1.5 How Tesco has followed the behavioral approach in the international market
Task 2: Target the international market for Tesco.
2.1 Target Market (Bangladesh).
2.2 Why this market (Bangladesh) good fit for Tesco.
2.3 External business environment issues in the target market.
2.3.1 PESTLE Analysis for Tesco.
2.3.2 Porter’s Five Forces Model
2.4 Recommended entry mode for Tesco.
Along with the increasing trend of global trade, global competition is increasing and intensifying. Foreign companies are aggressively expanding their operations in the new global markets. Thus, opportunities are being less day by day in the home markets, and home marketers will be a loser if they operate only in the home market (Johnson et al., 2014). On the other hand, it is very crucial but difficult for foreign marketers to make decisions on which markets to enter as well as how to enter into the target markets (Kotler et al, 2015).
This essay has a multi-national company, named Tesco Stores, and focuses on two particular issues. In the first section, this paper evaluates how Tesco has entered into the international market and which strategies it has followed to gain success in the global market. In the second section, this paper has identified a target market where Tesco has not yet entered. Then, the paper has evaluated how it would be a better decision for Tesco to enter into the proposed new market. Finally, recommendations are made suggestions on which entry mode will be suitable for Tesco to gain success in the proposed new market.
Overview of Tesco
Tesco is one of the world’s biggest retailers founded in the UK in 1979. It has employed more than 530,000 people, where it serves over 80 million customers in its stores and online every week. Tesco is operating in 11 countries at this moment, which are Tesco UK, Tesco in India, Tesco Malaysia, Tesco Lotus, Tesco Czech Republic, Tesco Hungary, Tesco Ireland, Tesco Poland, Tesco Slovakia, Tesco Kipa, and Tesco China (Tesco, 2016).
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Task 1: How Tesco has grown in the international market
1.1 Marketing mix (7’Ps) of Tesco in the international market
According to Kotler et al. (2015) notes, marketing mix (7’Ps), which is a tactical as well as an operational part of a marketing plan, is a significant term in the marketing of global organizations. The marketing mix (7’Ps) refers to prices, product, promotion, place, people, process, and physical pieces of evidence. In terms of Tesco, the marketing mix (7’Ps) means how Tesco is dealing with these seven key factors of marketing in international marketplaces. The marketing mix (7’Ps) is shown in diagram 1.1 below:
1.3 How Tesco has adapted its marketing mix (7’Ps) in the global market
Adaption refers to the process of setting and maintaining a business in a certain circumstance to gain organizational success (Kotler et al., 2015). Tesco has adapted its business operations in both domestic and global markets bringing necessary changes as required in its strategies and operations. For instance, Tesco has adapted its products in the global market focusing on culture and tradition, and the income and expenditure level of local people. The following table explains how Tesco has adopted its marketing mix (7’Ps) in the international market……………