Marketing Planning - Case Study Example

MARKETING PLANNING Introduction Tesco is one of largest supermarket chains in the world. It has been operating for along time now in the market and has been able to establish an outlet in all the major towns in the world. Tesco has grown to be one of the major players in the retail business dealing with foods and drinks and other consumer goods. It is a retail outlet but has been able to diversify the range of product that it deals with. (T-online, 2008) The company and an initial goal of becoming a strong UK core business. In the last few years the industry had been record marginal growth but Tesco had been recording massive growth in its operation. This has been through given customers value for their money and offering cheaper products. Since it was established the company set out goals of becoming strong food and nonfood earlier in the UK market. Since then it has grown to be the largest online retailer in the world with more that 1 millions customer in the word. The company also set goal of diversifying its operations in the external market and a 30% of the stores are found out side the UK. The company also set out a goal of having the more loyal a committed staff in all its operation. Q1. International marketing approach In the international market the company has been using same strategies as it has been using in the domestic market although it has not tended to be more personal than in the domestic market. The company has been using direct marketing approach in the internal market same as it has been done in the local market. What have been the features of the international marketing strategy First it has been implementing direct marketing strategy with the aim of reaching the consumers in their homes. This has been enabled through the implementation of on line marketing in all its stores. This strategy has been focused on ensuring that consumers have access to the products of the company from their homes and that the process is simple and easy. Online marketing has been one of the most effective ways that has been used by the company to reach all customers in the international market. Through the strategy, the company can sell its products to all the consumers in the world. This strategy was first tested in the local market and has been extended in the international market. Tesco has been able to rise to become the leading online retailer in the UK. After a success initial start, the company has been able to expand its operation to all its new branches. Therefore the international marketing approach that has been used by the company has been direct marketing with a special focus to providing consumer with quality products in order to meet the basic aim of marketing. The company has been opening shops in different places in order to make sure that it meets the needs of the consumers. The company has also been using personal selling strategy to reach all the potential market. Through the strategy the company has been selling directly to the consumers. Though it has not been carrying out persons to person communication, the company has been engaging in promotion activities that are aimed at reaching all consumers. Q2. A comparison of the international and domestic marketing mix decisions within the organization There has been no much difference between the company domestic market and international market approaches. The same approaches that the company has been carrying out in the domestic market have also been employed in the international market as well. This has been due to the fact that there is similarity in all the market according to its line of operation. In this regard the company has been carrying out marketing approaches which have been aimed at selling the same products to the consumers. The company has been using a marketing approach which has been aimed at reaching its customer in the extern market. The similarity in the approaches used by the company in both market is because it has been using similar trend as has been observed in the market. Based on its region of operation, there is a marked similar market culture in the region. Therefore the marketing approach that is used in the region is almost similar. There has been spread of a similar consumer culture in the region and therefore a source of growth for the company. (Snuif, 2000) Therefore the similarity in its market of operation has been the main reason why the company has been implementing similar strategizes in its operation. It has been using the domestic market where it has more experience to experiment some of the approaches which are later used in the international market. It has been influenced by the level of technology and the needs of the people in the organization. The company strategy has been aimed at crating a close relationship with the consumer through the process of key account management. This has been through the use of a strategy which targets supplier and high potential consumers. This has been expressed through the strategies that the company has been taking. On-line marketing has been aimed at tapping potential consumer who uses the internet. But opening of shops in all areas has also been aimed at reaching other consumers who cannot use the interment. Therefore its strategy has been aimed at reaching all the potential consumers in that market. Q3. Justification of the organization's approach to international markets The approach that has been used by the organization to target it international market has been largely based on the success of the same approaches in the domestic market. In this case, the company has well tested approaches that have recorded success in the domestic market and theory they have a high level of success in the market. According to state model Internationalization theory the process of internationalization can be very success if a specific path is followed that will lead the organization to success. According toe marketing theories there is need for the company to have a close links with the consumer in order to ensure that they feel a part of the company. (Nemec, 2007) The goal of any internalization approach is to have a pronounced global presence and therefore have a competitive edge over the other competitors. It is at generating profit and keeping the company afloat in the international market. The degree of internationalization has been used to show a measure of success for the company and therefore it is a good indicator of sales margin relative to domestic market. It is measured as foreign sales relative to the total sales that have been sold by a company. (Karlsen, 2007) The use of online shopping can be justified in the sense that it is prescribed model that has been tested and has been found to be successful in the domestics market. If it is well applied it can lead to the same level of success that a company has been able to achieve in the domestic market. Therefore we can say that the approach that has been used by the company to approach the international market has been well tested and approved and therefore it was justified to be used. Q4. Recommendation There are several factors that have to be considered by the company that can help the company to makes more foreign sales. In this regard the company must take an approach of increasing its presence in the foreign market relatively to the domestic market. One of the recommendations will be to open more shops in the foreign market in order to reach more customers. The company has been having a plan of increasing its current 30% operation in the foreign market to 45% in the near future. If the company has to reach all the consumers in the market and in all its operation, then it will have to use all the available means in order to reach all the markets. Therefore it will need to come up with strategy that will reach different segments in the market. Since it can reach those using the internet, then it will need to open more shops in order to reach those who are not using the internet. In order to reach more costumers and move with the current technology, the company needs to improve its website to be able to access more consumers and offer more products to the consumers. The content of the website is a good determinant of the value that customer find in the website. If they can get more information about products and complete the whole business transaction through the website, then they will be using the website more. The company must ensure that the design of the website makes it easily to be used by all the customers. In this way they will prefer buying online which is much easier than physical buying. This will be in line with the current marketing trends which have tended to be more leaned on e-marketing approaches. The company must also diversify the amount of products that consumer can find in the shelves. Since it was started the company has been upholding the principle of all buying under-one-roof. The more the consumer can do all their purchases under one roof, the more they are likely to continue buying from the store. References Karlsen, S. (2007): The Pace of Internationalization. Harvard Business School Nemec, L. (2007). The steps to foreign market entry; Oxford University Snuif, R. (2000). The Internationalization Process of Small and Medium Sized Enterprises: An Evaluation of Stage Theory. Journal of Small Business Management, Vol. 34 T-online, 2008, Tesco, Retrieved from http://www.tesco.com/on 10th May 2008 Read More