Thursday, September 26, 2019
Marketing Strategies For Growth Overseas At Tesco Essay
Marketing Strategies For Growth Overseas At Tesco - Essay Example Having described the premise of marketing strategies, this report will focus on Tesco, a multinational foods retailer operating in China, the United States, India, Thailand, Malaysia and South Korea. In some regions of the world, consumers are collectivist and value tradition whilst in other operating areas, consumers are more individualistic and brand-conscious. Price elasticity is a concern depending on the socio-economic conditions in each area of operations, thus requiring customized marketing strategies for each region. The results of a recent survey identified that 67 percent of customers considered Tesco their favourite supermarket due to its value and quality focus in the marketing mix and related to how the business positions itself among international competitors (Ma, Ding and Hong 2010). Tesco operates in an oligopoly market structure where competitive activities related to marketing continue to change the focus of business activity. The foods retailing environment maintai ns considerable competitive rivalry in pricing and promotion, as well as distribution methodology in order to serve diverse customers. Because of this, Tesco must focus on the marketing mix in order to differentiate from competitors that carry rather homogenous goods for the international consumer. Tesco utilizes marketing strategies related to green environmentalism, value promotions, brand extensions, diversifying product line offerings, and e-commerce as methods to improve its competitive position and ensure higher sales volumes internationally. 2. Theoretical framework International marketing strategies are plans of action that recognize costs, efficiency, and brand value/equity associated with specific strategic objectives related to how the business wants to... This paper stresses that since the environment where Tesco operates internationally is saturated with grocer competition, the business has developed effective strategies to try to avoid price promotions common with other supermarkets. Its value agenda provides the business with considerable brand loyalty and also brand equity that can be extended to supplementary service provision. It is uniquely positioned through its e-commerce model as a value leader and through its flexibility in procurement to fit local tastes even though these costs are higher for adjusting the supply chain methodology in the home country. However, the revenue gains achieved by Tesco, which is the number one supermarket according to comparative sales, offset these costs associated with the marketing mix adjustments. Tesco may not be able to maintain its unique value-orientation against competition with the new entrants like Aldi that carry discounted goods that consumers perceive as top quality. Partnerships wi th local producers to create private label Tesco products still fulfils its corporate social responsibility objectives in its marketing strategy for relationship and value-building, but can enhance its product selection for private label introduction or extension. When it is not only pricing, but also value associated in consumer markets with private label brands, it has long-term risk potential for TescoÃ¢â¬â¢s unique differentiation and positioning related to value provision. This report makes a conclusion that corporate social responsibility, too, stays away from pricing promotion and price emphasis in order to remain true to its value-conscious agenda and positioning efforts. According to results of a large sample group questionnaire, 71 percent of those targeted believed that Tesco has reasonable prices.