Tesco International Marketing Strategy
International marketing strategy is the policies and mechanisms put in place by a firm to compete effectively in international markets. It is the combination of all marketing goals into one comprehensive plan.
Tesco concepts of international marketing
Customization: Tesco tailors their products offerings and branding to the local market and culture; for example in the United States, the name “Fresh and Easy” was intended to target customers for fresh organic food and health convenience.
Working with local partners: Tesco customize its local products to the local customers; this means most of Tesco suppliers are local. “We also regularly hold local supplier events to give us a chance to meet prospective suppliers and build relationships
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With stiff competition from Aldi and Lidl driving prices deep-down, Tesco on an on-going basis restructured its pricing strategy to match with product quality and inventory cost-cutting to achieve cost recovery pricing, competition pricing, penetration pricing and price skimming while using price escalation strategy for it foreign outlets to cover cost. Under penetration pricing, the organisation sets a low price to increase sales and market share. Using the price skimming, Tesco initially sets a high price and then slowly lowers the price to make the product available to a wider market. The objective is to skim profits of the market layer by layer. Under competition pricing Tesco set prices in comparison with competitors. Truly Tesco has three options and these are to price lower, price the same or price …show more content…
Process: The process involve Tesco flow of activities, level of customer involvement and its professionalism in dealing with various issues.
Success of Tesco’s International Marketing Strategy
From the time Tesco entered South Korea, Tesco concentrated IN localizing its product offerings and this it did in association with Samsung. Tesco 's success in the country was remarkable for the fact that other leading global retailers operating in South Korea including Carrefour and Wal-Mart had exited the market as they were unable to achieve the expected levels of growth in the country. Below Figure 9 shows Tesco Plc. shops in Asian Countries such as South Korea, China and Thailand etc.
Tesco was the market leader in Thailand and was expanding its operations rapidly in China and South Korea. Tesco became the second largest retailer in South Korea in 2006. It was operating in the country through 62 stores and had a market share of 17%. Beside, Tesco entered the South Korean market in 1999, through a joint venture with the retail division of Samsung Group (Samsung) and begun operating under the banner
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