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BE553 Principles of International Marketing Assignment Sample
Assessment Details
The assessment for the module will follow the individual coursework
Students at the beginning of the course will be given the allocated assignments.
Students will receive an international marketing case and will be required to analyse the case and prepare responses to questions that will be assigned by the Lecturer. The case will allow students to demonstrate their knowledge and understanding of the key concepts and theories discussed in the module, testing their conceptual, analytical and communication skills.
The individual coursework will present in detail the analysis and discussion of the proposed international marketing issues for the international marketing case. The coursework report will be 3000 words in length.
Principles of International Marketing being will require the student to complete an individual coursework and pass it to successfully complete the diploma stage of the programme. The coursework will test the student’s understanding of key issues and concepts covered in the module
Coursework Submission Requirements
The assignment should not exceed 3000 words in length. It should be word- processed, double spaced, and written in an appropriate academic style.
The assignment should have a clear introduction and a conclusion. You should ensure that you have fully acknowledged the work of others in the body of the text. Coursework will be processed with plagiarism detection software.
The assignment should include a full list of references for all articles, books and other sources (e.g., Internet sites) that have been cited in the assignment.
All coursework will be anonymous (unless otherwise specified in the ‘Assessment’ section of this module outline), so you should ensure that only your registration number is included in the header.
Solution
Introduction
Tesco is an international grocery company that is facing various issues regarding its international marketing strategy. The core purpose of the study is to understand the critical issues faced by Tesco and the strategies that are followed by the company to sustain itself in the international market. Due to the outbreak of a pandemic, international business is facing challenges because of the poor supply chain, strict health policies in the organization, strict rules and regulations in the overseas market (Samiee and Chirapanda, 2019). Analysis of international marketing theory is crucial for companies to gain a competitive advantage. The different cultural factors of different nations are a challenging factor for Tesco, which is affecting the organization to open new stores in this region .
Discussion
Overview of Tesco
Tesco is a multinational grocery company, which is located in England. For assignment help As per the revenue, it is the thyroid largest company worldwide. Tesco was founded by Jack Cohen in 1919. Tesco is spread in Ireland, the Czech Republic, Slovakia, Hungary and the United Kingdom. The products of Tesco are Hypermarket, Supermarket, and superstore. In the year 2021, the organization earned £6.147 billion. The subsidiaries of Tesco are F&F, Booker Group, Tesco mobile, and Tesco bank. The organization is listed in the UK stock market. The company has been expanding the business since 1991, and presently, it is spread in 11 countries (Tesco.com, 2022).
Issues associated with developing international marketing strategies
Tesco is facing challenges regarding managing global teams. Being a multinational company, Tesco has to maintain a global team for planning its marketing strategy. The organization needs to keep in mind the cultural factor of other nations when launching a new product in an overseas market. For instance, the culture of Asian people is completely different from the UK region. Therefore, the marketing strategy of UK marketing would not work in the Asian region (Sharma et al. 2020). Apart from that, the Chinese companies provide effective service at an affordable price. Therefore, it is difficult for Tesco to sell the product in other countries at a cheap rate. In addition to that, the purchasing behaviour of the customers depends on the geographical region; therefore, Tesco is facing a problem understanding the buying behaviour of the customers of Asian countries. On the other hand, Alibaba is a tough competitor of Tesco in the Chinese region. For this reason, it is difficult for Tesco to influence the customers of Alibaba (Tesco.com, 2022). Similarly, Sainsbarry and ASDA are giant companies in the UK that provide better retailing services to gain a competitive advantage in the international market.
Evaluate the impact of contextual influences on international marketing decision
The present scenario of the international market has changed, and it has impacted the whole business process (Wettstein et al. 2019). For instance, international businesses are following the digital marketing strategy to reach out to the targeted customers. Due to this reason, there is a boom in the e-commerce industry. Therefore, the traditional marketing strategy is not effective in the current scenario. On the other hand, international businesses are following machine learning and artificial intelligence to understand the new trends in the market and collect data regarding consumer behaviour. The trade war among the countries poorly affected the internal business market. Therefore, a new and innovative strategy is essential for the long term sustainability of the businesses in the international market. Multinational companies are following advanced technology to get a competitive advantage and provide better service to the customers (Morgan et al.,2019). The technology also saves time and money, which is beneficial for international business entities in the present competitive market. It is considered that every company will be a technological company in the near future. Therefore adopting the new technology helps the organization to predict future challenges and take necessary steps based on the situation.
Impact of Covid on the international marketing of Tesco
Due to the outbreak of a pandemic, the supply chain management was fully disrupted, which is the works affecting factor for Tesco in the international market. Tesco is facing difficulties contacting its suppliers, which is affecting their supply chain strategy. However, the sales volume of Tesco will increase by 70% in the year 2020 due to the high demand of customers. Consumers prefer to get the product at their doorstep. They are using the online platform to book the product. For this reason, Tesco is following the online delivery process to follow the Covid norm and satisfy the customers as well.
Due to the pandemic, the operating cost of Tesco is rising over the period, which affects the marketing of the company. The transportation cost has been rising over the last two years, which directly impacts the pricing of the finished product (Maciel et al. 2020). If the transportation cause rises, the cost of the product will automatically increase. Besides, the lockdown is the major cause of higher maintenance costs, which affects the marketing strategy of the company.
Tesco is facing problems from the political side. The government has announced a lockdown around the year. The stores of Tesco are closed for a few months because of lockdown, which decreased the company's productivity and performance. Because of the pandemic, consumer behaviour changes drastically, which affects the organization's sales volume. The physical stores have been closed for a few months, and the customers are using online platforms to get the product at their doorstep (Chaube, 2020). However, sudden changes in consumer behaviour affect Tesco's business strategy. In this situation, the E-commerce industry is gaining a competitive advantage, and it is a negative factor for the grocer retail companies.
International Marketing decisions
According to Paul and Mas (2020), International marketing decisions can be defined as a scope of rendering marketing activities regarding the product and services of the enterprise. International marketing decisions are similar to domestic marketing decisions, with the exception that all marketing decisions are based on overseas customers. More specifically, decisions about "product, price, promotion, and distribution" are made for overseas buyers. There are major decision-making processes, and enterprises choose to expand into new markets. Firstly, it is by taking a look at the global marketing landscape. The International Trade System such as Tariffs charge, Regional Free Trade etc. is necessary for consideration. For instance, the most ingenious method the Japanese have devised for keeping foreign manufacturers out of pleading. Because Japanese skin is unique, foreign cosmetics businesses test their products before selling them in Japan. Secondly, it is deciding whether to go global or not (Jiwaji.edu, 2022).
Domestic operations are simpler and safer. There required no learning of foreign laws and rules, no requirement for dealing with unstable currencies and businesses in the home markets rarely face legal and political issues. However, entering into a foreign market requires all these considerations. Thus, businesses must weigh all the risks and opportunities to operate globally. Thirdly, the international decision-making process is based on deciding in which market one business will enter. Companies are liable to define their marketing and policies objectives (Katsikeas et al. 2019). For instance, the volume of foreign sales the company wants to make. In addition, the decision will be whether it wants to go with a small or large share. However, the company may face problems while developing a marketing mix such as lack of transparency, non-linear effects, multicollinearity and lack of standards of measurement.
Internationalization Theory
According to Wadeson (2020), a Multinational enterprise's existence and operation are explained by internalization theory. It aids in the comprehension of the multinational enterprise's boundaries, contact with the "external environment, and internal organizational architecture". The theory mainly emphasizes explaining the existence of the enterprise. This is the most effective way of controlling and controlling the set of activities instead of market exchange. As per the theory, it has been described that enterprise only grows when it absorbs the markets effectively and acknowledges the cost which it will bear entering into the market and turning them into benefits.
The fundamentals of the internationalization theory are combined with innovation and trade. This explains "location and relative success to the firms". By applying this into the marketing strategy, many businesses are proven to be successful in explaining their growth and its development overseas. Kotler model is one such model which showed the direction for international business sees opportunities and barriers coming forth their development in the overseas market (Kotler, 2018). Individuals and organizations gain what they require and desire through the generation, offering, and trade of high-value products with their peers in a social and administrative process. Entering a new market requires an effort of knowing the need and demand for the products. In addition, it also requires whether the home markets company is able to fulfil the requirement of the home markets or not. The theory suggests what action must be taken by the company which can enhance the growth in the overseas market. International companies such as Apple, Coca-cola and others are successful brands that have over 40 markets in the foreign market (Jiwaji.edu, 2022).
International Marketing environment of Tesco
PESTLE Analysis
Political:
Tesco is an international leader and deals in large market. Thus, political stability and government regulations plays an important role in political factors (Tescoplc.com, 2022). The political factors includes relevant legislation, taxation rates and its abilities to expand in the foreign market. Government policies pushes the merchants in stimulating from financial uncertainty. This company creates an effective interest for it diversified products along with creating job possibilities.
Economic:
Economic factors play an important role for Tesco. The economic factors are associated with GDP of the country and interest of other countries. In addition, the economic issues are concerned with "leverage costs, demand, profits, and pricing". Thus, entering into foreign market it is necessary for the company to be informed about any changes in policies of foreign market, and adjustments in the taxation which has the capacity to impact its financial availability. Tesco has a market share of about 30% in its home market, having control over overseas market policies must be considered.
Social:
There is a new trend that occurred. International consumers have shifted to bulk purchasing with the effect of societal development. This is the reason to meet the demand for international customers this company has increased its revenue for the items which are available to the market (Adamyk, 2019). It is undeniable that demands for food and services are always impacted with the attitudes and purchasing behaviour of the customers. This is the reason to cope up with the behaviour of the customers, this company is adjusting to provide organic foods to the customers and trying to meet the changing habits of the customers.
Technological:
Tesco has grasped opportunity with the presence of technology in the current era. With the introduction of internet it has created a streamline to deliver its product to the customer effectively. Customers are more attracted with the services of the company as they get easy availability of the product when they want (Tescoplc.com, 2022). Technology application of the company allowed to reduce labour cost and minimise all the production cost. This company has huge amount spent on energy efficiencies to meet its significant goal.
Legal:
Legal environment at the international level is much strict for Tesco Plc. At present due to the pandemic outbreak the international rules and regulations became stricter. However, there are some countries with liberal trade policies like Bangladesh, India and many others, have helped Tesco Plc expanding and developing business in a better way.
Environmental:
Many countries have strict legislation for carbon footprint (Tescoplc.com, 2022). Tesco itself, operating in home markets, has followed the climate change Act. Tesco is in an attempt to mitigate the carbon emission due efficiently operating in the foreign market. In addition, it is opting to reduce 50 % of its waste generated in its stores by 2025 in order to rise pressure on businesses to address “environmental challenges and implement business” practices that improve humanity (Adamyk, 2019). Tesco is also reducing waste generated in their stores by encouraging customers to be more socially conscious.
The application of 4P of marketing mix
Tesco's international marketing strategy examines the brand is utilising the marketing mix framework, which involves the four Ps "(Product, Price, Place, and Promotion)". Tesco's “marketing mix-based business techniques aid the brand's success in the overseas market.
Product: Tesco mainly deals in products such as bakery products, frozen food, gaming products, technological products, toys products, gift products, books, clothing and Jewellery, leisure and sports products and others (Tescoplc.com, 2022).
Price: To remain competitive in the international market, this company maintains providing quality products at a cheap rate. Tesco collaborates with its suppliers to improvise and streamline the supply chain in order to lower pricing. Tesco used to maintain low and affordable which results a great customer input. This company has reduced “promotional spending” to drop its product prices even more.
Place: Considering the overseas market, this company has expanded to Thailand, South Korea, China, Slovakia and Japan (Tescoplc.com, 2022). This company used to sell its products in these overseas markets through online and offline delivery. This enables to have a great connection between the customers and the business. Online customers feel easy to have Tesco products when they want to.
Promotion: Tesco has a potential brand image that relies on low prices. To achieve this, it has a great practice of promotional activities which creates awareness about the products to the customers. This company uses televisions ads, hoarding and charitable events. Its loyalty cards, namely Tesco Clubcard, help to target and segment its customers.
Recommendations
By analyzing the barriers and opportunities for the products in the overseas markets, Tesco to sustain in the overseas market and overcome the impact of the covid-19 crisis, opt to follow the recommendation which is determined.
Creating new product lines
Analyzing the marketing mix, Tesco must take the initiative to launch delivering of a "new line of farm products". The rebranding of items, for instance, pork, fish, beef, will effectively appeal to customers and be retained for a long time.
Shifting to the digital marketing
In the era of technology, a mega business must grab for the platform which will allow informing about all the innovations and new launch of the product to the customers at an instant. The marketing strategy will be flourished when this company adopts social media practices for advertising its product. In the last few decades, its competitors, Asda has acquired a large market share and this company continues to compete other large food companies with social media support. Tesco need to drop traditional marketing strategy and adopt digital platform to promote and attract its customers with substantial deals.
Customizing media
In its revival, the brand sees a critical necessity to focus on "the individual experience." Tesco's marketing staffs has kept coming up with a “slew of brilliant marketing concepts to go along with this strategy”. This company must provide its customers with customized products.
Conclusion
From the above discussion, it can be concluded that it is difficult for Tesco to expand its business in the international market and remain competitive for a long time. However, the Pestle analysis gives the organization in-depth knowledge regarding the international business market. Analysis of the 4Ps marketing strategy proved beneficial for the company taking a holistic approach and making effective decisions to sustain in the international market. The conducted study has shown the way it can take necessary steps to attract its customers and remove the barriers in the international market.
References

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