Global Marketing and Sales Assignment Sample
Introduction
The aim of this paper is to prepare the marketing audit report on Tesco UK in respect to expand the business in Canada market. Based on auditing report, the justified conclusion has been made whether chosen country i.e. Canada is appropriate one for the expansion purpose (Tesco, 2020). This study would also prove to be significant for those firms who wish to enter into Canada market as the finding support with analysis of Macro & Micro environment of Canada.
Conduct of Marketing Audit
The conduct of marketing audit would act as guidance’s for Tesco in respect to understand the internal as well as external factors so that firm can fulfill their desire to enter into Canadian market. It is currently in major demand due to improving of Canada economy which gives rise to the increasing people purchasing power. This could support Tesco to gain high customer base.
That’s why, it is important to understand the Canadian political, social, economical factors so that Tesco able to analyze the external factors and drives their decision accordingly (Abou-Warda, 2015). On the basis of micro-factors such as competitors and customers, firm can analyze its internal capability and design their operations. This analysis supports the firm to make decision whether Canadian market will prove effective enough for their business.
Macro-environmental analysis
In Macro-environmental analysis, the following areas are undertaken to evaluate the Canadian market:-
Political and Legal Factor: Canada is found as the democratic country and it also contains the parliament government which contains the House of Commons. That is why, the political environment of Canada is effected by some important factors including government’s policies, politician interest and different ideologies of several parties. Here, the government parties are quiet liberal but some other leading parties switch among the conservatives and the liberals which are followed by the New Democratic Party (NDP). In this way, the involvement of the political party due to which major forms find difficulty to set up their business in Canada.
However, the government tries to maintain effective relations with the most powerful countries in whole the world and the Canada also enjoys the effective political stability (David, 2018). Because of its good relations and the political stability, Tesco can expand its new business set up in Canada. In addition, by its low crime rate as well as trustworthy policing practices, country has been set itself as the effective and attractive place for the business as well as tourism.
This political environment of Canada attracts the giant organizations to operate their business in the country and enjoy the growth and profit effectively (de la Rosa et al., 2019).
In similar manner to above, the legal environment of Canada is also very effective and strict in regards of employees as there are some important rights of the organizational employees are strictly protected by the Canadian legal authority. In this way, some important standards are such as hours of work, sick days, dismissal, vacation, minimum wages and some other standards etc. which should be abide by employers in concern of their employees.
In this case, it can be mentioned that the major companies which are thinking to expand its business in Canada, need to follow these standards. Similarly, Canadian Human Rights is also active in Canada which helps to prohibit the discrimination in terms of age, gender, ethnicity, race, and the ground etc (Ghotge et al., 2020).
This can be the major concern for Tesco while setting up its business in Canada because due to these legal issues international companies have to face several difficulties because the legal environment of the Canada is very concerned for the employees.
Economic factors:- In concern of Canada, it is 10th largest economy within the world as per 2018. Similarly, Canada has the membership of various organizations and it also has the agreement of free trade with various countries. This agreement aims to make the exports services easier and provide the benefits to the country and the people. In addition, mixed economy is also found in Canada (Faris and Rahardjo, 2020).
On the basis of these facts, it can be mentioned that other major organizations can have the opportunities in order to expand their business at the extended level. Apart from this, the GDP of Canada is supposed to be approx. USD 1.8 trillion as of 2018. Moreover, Canada also attracts the several investors as well as businesses from whole the world.
At this time, it can be mentioned that the economic factors of Canada are quite appropriate and favorable for Tesco to operate its new business set up in Canada.
Socio-cultural factors: In similar way, the Canada is examined as the 2nd largest country in whole the world through its areas however the population of Canada is not high. Moreover, the diversity is also found in Canada that is why the diversity has the importance in the Canadian history.
Additionally, one of the major issues in Canada is lack of skilled labour within several areas of business. In this way, this issue can create the problem for Tesco to operate its business in Canada with effective manner (Juutila, 2019). However, the Canadian government provides the support to the companies by offering flexible immigration system. In Canada, the immigration of people is supported by government that can be effective for the new companies to expand its business in Canada without having any issue related to skilled workforce.
In-spite of this, it is also important to identify that Canadian religion and cultural values are quite different and people have strong beliefs in it within which people cognition level or actions are largely guided by the culture. Due to presences of different cultural people, it becomes difficult for firms to focus on one specific target market which usually result in failure (Masih et al., 2019).
Micro-environmental analysis
In micro-environmental analysis, there are two factors are undertaken in order to help Tesco to analyze its internal capabilities in respect to deal with Canadian competitors and customers.
Customers:- The population size of Canada is increasing on rapid manner as it is estimated that currently it has 37,742,154 Crores and it is increased as compare to 2019 with 37,411,047 Crores (Agnihotri, 2015). It means there is a growth rate in population exist and it somewhere good for the economic development.
However, it is found that the major cause behind the increased population is because of high immigration from developing countries due to which Canada population have growth rate in population size.
(Sources: Trading Economics, 2020)
This given graph clearly demonstrated that there is increasing size of population in Canada as in 2010 it has 34.12 Crore population size but now it reached approx 37 Crore people which means that government of Canada has given enough liberty in the Visa policy and Permanent Resident policy.
The reason behind people more attract to Canadian market due to availability of large resources and earning opportunities which attracts large number of youth to enter into this country. It is true that Canada has only 30% their local residents who belong to Canada region (Benchimol et al., 2014). Besides that, majority of population migrated from the different countries such as India, USA, china etc.
In respect to consumption patter, it is found that with the increasing population definitely it also give rise the high consumption rate among the people. since 80% of population lives Montreal and Ontario cities so the consumption rate in urban population tend to be high as compare to small regions like London or different areas (Sans and Combris, 2015).
The consumption is mainly done over the consumer, durable, health and personal care along with food & beverages etc. due to which big brands like Mc-donald, Cisco and many other firms are already leading Canada market by fulfilling the needs of different demographic. In that case,
Tesco would also able to gain benefits with the entrance on Canada market due to two factors first is the increasing rate of population and second is the increasing purchasing power of people in Canada due to Tesco can target different customer segments with their innovative offering (Alok Pathak et al., 2013).
Competitors:- There are various key players exist in Canada market in the retail sector including Westom Group, Wal-Mart stores, Empire Company Ltd, Costa Canada etc (Triantafyllou et al., 2014). These players are giving strong threat to the new entrants with their respective unique strategies.
| Rank | Retailer | % of total retail sales |
| 1 | Weston Group | 10.61 |
| 2 | Wal-Mart Stores Inc. | 7.89 |
| 3 | Empire Company Ltd. | 5.37 |
| 4 | Costco Canada Inc. | 4.65 |
On the basis of above table, it is identified that every competitors is earning enough revenue through its offering and marketing strategies. In respect to this, it is necessary to identify what different strategies they are using to gain competitive advantage (Naidoo and Gasparatos, 2018). Likewise, Westom group majorly rely on the quality standard strategies within which it has major focus on the product differentiation through its quality and packaging process.
It makes the Westom group unique in compare to its competitors. Other than that, Wal-mart largely involved in the low prices philosophy within which firm focus on the low costing of product in order to attract more people. Besides that Costco Canada concentrated largely on price skimming within which they do not bother about the price but more focus on the quality and differentiation among the competitors.
Thus, these different strategies of these competitive also give rise varied marketing mix which is involved either offline marketing or selling or online selling/marketing (Omariba et al., 2014). These both are the common marketing strategies that uses by the competitors in respect to perform operation in Canada market. Thus, these strategies also prove to be significant for Tesco in terms to utilize it for entering into Canadian market.
Conclusion
From the above analysis, it is concluded that Canadian market would be appropriate country to make an expansion by Tesco due to present various benefits such as easily availability of human resources and technical expertise which support them to run its business properly.
These resources may also help Tesco to fulfill the need and requirement of different customer segment easily. However, the increasing consumption and population rate in Canada also could support Tesco to get more opportunity to enhance their customer base. But firm to become competent in Canada market need to come up with unique or innovative idea to give strong threats to local competitors in Canada region.
References
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Agnihotri, A., 2015. Can brick-and-mortar retailers successfully become multichannel retailers?. Journal of Marketing Channels, 22(1), pp.62-73.
Alok Pathak, K., Leslie, W.D., Klonisch, T.C. and Nason, R.W., 2013. The changing face of thyroid cancer in a population‐based cohort. Cancer medicine, 2(4), pp.537-544.
Benchimol, E.I., Manuel, D.G., Guttmann, A., Nguyen, G.C., Mojaverian, N., Quach, P. and Mack, D.R., 2014. Changing age demographics of inflammatory bowel disease in Ontario, Canada: a population-based cohort study of epidemiology trends. Inflammatory bowel diseases, 20(10), pp.1761-1769.
David, J., 2018. PESTEL Analysis of Australia. Howandwhat. Recuperado de https://www. howandwhat. net/pestel-analysis-australia.
de la Rosa, C.B., Cárdenas Bolaños, B., Echeverría, H.C. and Padilla, R.C., 2019. PESTEL analysis with neutrosophic cognitive maps to determine the factors that affect rural sustainability. Case Study of the South-Eastern plain of the province of Pinar del Río. Neutrosophic Sets and Systems, 27(1), p.19.
Faris, M. and Rahardjo, B., 2020. Analysis of Business Opportunities and Threats in The Household Cleaners Sub-Sector of The Chemicals Industry in Indonesia. European Journal of Business and Management Research, 5(1).
Ghotge, R., van Wijk, A., Vandeventer, E. and Álvarez, J.S., 2020, January. A Global Analysis on Microgrids through the PESTEL Framework. In 2020 IEEE International Conference on Power Electronics, Smart Grid and Renewable Energy (PESGRE2020) (pp. 1-5). IEEE.
Juutila, J., 2019. Global restaurant chains entering the Finnish market: Hypothetical Case: Chipotle Mexican Grill.
Masih, J., Rajkumar, R., Matharu, P.S. and Sharma, A., 2019. Market Capturing and Business Expansion Strategy for Gluten-Free Foods in India and USA Using PESTEL Model. Agricultural Sciences, 10(02), p.202.
Naidoo, M. and Gasparatos, A., 2018. Corporate environmental sustainability in the retail sector: Drivers, strategies and performance measurement. Journal of Cleaner Production, 203, pp.125-142.
Omariba, D.W.R., Ng, E. and Vissandjée, B., 2014. Differences between immigrants at various durations of residence and host population in all-cause mortality, Canada 1991–2006. Population Studies, 68(3), pp.339-357.
Sans, P. and Combris, P., 2015. World meat consumption patterns: An overview of the last fifty years (1961–2011). Meat science, 109, pp.106-111.
Tesco., 2020. Company Profile. [Online] available at: https://www.tesco.com/ (Accessed on: 03-07-2020)
Trading Economics., 2020.Canada Population. [Online] available at: https://tradingeconomics.com/canada/population (Accessed on: 03-07-2020)
Triantafyllou, M.K., Cherrett, T.J. and Browne, M., 2014. Urban freight consolidation centers: Case study in the UK retail sector. Transportation Research Record, 2411(1), pp.34-44.
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