Great BU7411 International Marketing Sample
Introduction
The main aim of this study is to develop an understanding of the organization which wants to move into a foreign market that it is currently not operating in.
In this way, for accomplishing the research, the selected company is Tesco in the UK and is a marketing manager, it is planning to move Tesco into the Australian market.
Tesco is identified as British multinational groceries as well as merchandise retailer that has to headquarter in England, UK (Tesco, 2019).http://Great BU7411 International Marketing Sample
At this time, assessment of the market is done to evaluate the contemporary issues such as cultural issues and market issues. Similarly, the in-depth knowledge in regards to the Australian target market and the appropriate market entry method are defined in this study.
In the end, problems with the marketing mix decision and the essential element of the marketing mix are also described.
Discuss the important issues such as cultural and marketing issues for Tesco Company when entering in Australian market
Tesco is one of the reputed retail companies that have expanded its business all across the world. Now, recently the company will expand its business in the Australian market.
Thus, while expanding its business in the Australian market the company will have to face different issues related to culture and these can be identified by effectively considering the Hofstede model. Hofstede model is one of the models that develop an understanding of cross-culture communication.
This model was developed by Geert Hofstede. This reveals the effect of the culture of society on the value of its members and how these values relate to behavior by adopting structure derived from the analysis of factors. It includes such as follows:
Power distance
Power distance reflects the people’s attitude in terms of the culture of people in the context of inequality among the people. It can be seen in the above graph that Australia’s score is 36 and the UK score is 35 it means that in Australia the people are more focused on inequality (Hofstede et al., 2012).http://Great BU7411 International Marketing Sample
As per the Hofstede model tool, it has been derived that while expanding the market in the Australian country there is an issue like Australian employees is Extremist as they can raise questions against the senior authority and this is an issue for the employees of the UK.
Individualism
Individualism Hofstede model explores where the people in the society are integrated into the groups. In terms of individualism the UK scores 89 and Australia scores 90 it means the Australian people are more focused on individualism.
As per the Hofstede model, it has been depicted that this is an issue for the company expanding its business in Australia as the Australian employees work individually and this will create an issue when they will be insisted to work in the group (Venial and Brewer, 2013).http://Great BU7411 International Marketing Sample
This will be the cultural issue faced by Tesco expanding its business in Australia.
Masculinity
Masculine is the preference in the society for attainment, assertiveness as well as material reward in terms of success. With the help of this Hofstede, dimension represents cooperation, caring for the weak and life quality, and modesty.
In terms of Masculine Australia scores, 61 and UK scores 66. It can be seen that Australia has less score as compared to Australia. This means the Australian people are more dominant towards their values (Lee et al., 2013).http://Great BU7411 International Marketing Sample
As per the Hofstede model, it can be determined that there would be an issue as they will be more focused on the valued rather than the achievements. This is the negative concern of Australian employees hired in Tesco that is expanding Australia.
Uncertainty Avoidance
In terms of uncertainty avoidance, Australia scores 51 and UK scores 35 and this can be depicted that Australian are active for the uncertainty as compare to UK employees this would be beneficial for the organization.
Thus, it can be an issue as if they predict wrong then this would be a loss for the business growth (De Mooi, 2013).http://Great BU7411 International Marketing Sample
Long-term Orientation
Long-term orientation is termed as the past connection with the current and future actions/challenges. The long-term orientation indicates adaptation as well as pragmatic problem-solving as well as a necessity (Aparicio et al., 2016).http://Great BU7411 International Marketing Sample
In terms of Long-term orientation, Australia score 21 and UK score 51 and this means that Australian employees are more punctual then UK employees and it can create issue among the employees in the organization.
On the other hand, while expanding the business in the Australian market there are different markets related issues that are identified as per the survey tool.
As per the survey, it has been determined that there are different marketing issues such as securing enough budget, managing website, identifying the right technologies for the needs, and provide ROI for the marketing activities (Leafling et al., 2014).http://Great BU7411 International Marketing Sample
In terms of generating enough traffic and leads it is the major challenge based on the 2017 state of the inbound report. In terms of securing enough budget, as per the survey tool, it is also the issue for marketing all across the world. It has been examined that getting more budget is easier rather than surveying small organizations (Rowley, 2014).http://Great BU7411 International Marketing Sample
It has been depicted that not knowing how to explain the product or service the company wants to sell. As per a survey tool, it has also been determined that there is a lack of commercial department. While expanding its business in another country the small or medium business is organized so that all can learn how products or services are sold effectively.
Moreover, while promoting the business as per the survey tool the company will face promoting issues as they would not be sure about the tastes and preferences of the people of Australia. This is an issue as there will be confusion in provides goods to the people of Australia until the tastes and preferences are not known (Tusker et al., 2013).http://Great BU7411 International Marketing Sample
As per the survey tool, it has also been identified that there will be a problem of setting product prices while Tesco expands its market in Australia. Hence, the company needs to know the status of the people as at what price they can purchase a particular product. The company has to take care that it may provide a fair price to the customers.
As per the survey tool, lack of coordination is also depicted as the marketing issue while expanding its business in another country. Another issue is not having the marketing plan and this discourages the sales effectively.
Due to this, there is less productivity effectively. In contrast to this, there is another issue which includes such as lack of brand image, personal reading, and personal branding. It is essential to treat in a good way to the customers whoever visits the stores (Constantin ides, 2014).http://Great BU7411 International Marketing Sample
These things need to be focused while expanding the business in another country. As per the survey tool, the lack of online presence is also the issue of marketing while expanding the business to another country. If the company does not have a good online presence then it can have a bad image of the company effectively.
If the organization thinks that marketing is not necessary then it is also the issue for the company as per the survey tool.
Develop the understanding related to Australian target market and the suitable market entry method
Understanding related to the Australian target market
While concerns about the selected target market for the entry of Tesco, it is examined that the Australian target market is quite effective and beneficial for Tesco as while entering into the Australian target market, one of the biggest competitor of Tesco will be Woolworth that has been getting the advantages of the Australian market which provides number off facilities to the businesses who are operating in the grocery and retail industry (Gribble et al., 2015).http://Great BU7411 International Marketing Sample
In this manner, it is also mentioned that the grocery store and supermarket industry is defined as one of the most competitive industries in Australia. However, the competition based on price has started to decrease in the last two years.
Similarly, the chain related to the smaller supermarkets has been facing the problem while completing under the increasingly price intense industry. In addition, it is also determined that the price-related competition under the supermarkets and the grocery stores are predictable in order to remain strong in the next five years (Beal & Flynn, 2015).http://Great BU7411 International Marketing Sample
Due to this, Woolworth and Coles have been attempting to improve their stores as well as enhancing their digital capabilities with respect to differentiate their brands from low-cost supermarkets.
In concern of the in-depth details related to the Australian market, it is more beneficial to adopt the PESTEL analyze of the supermarket and grocery shop industry so that the positive aspects can be determined.
PESTEL analysis is one of the important tools which are effective to assess the external environment conditions which will have an impact on the industry’s performance and encourage the organizations to come to Australia and operate their businesses (Granum et al., 2016).http://Great BU7411 International Marketing Sample
In this, the application of the PESTEL analytical tool while assessing the supermarkets and grocery stores industry in Australia is described as follows:
Political Factor – The political conditions are quite well in the Australian market as the Federal Government in Australia launched a policy related to the competition and this is effective to restrict the major players like Woolworth and Coles in order to eliminate the competition.
Due to which, Tesco has more possibilities to set up its business without struggling to perform in the industry (Pedrera & Reddy, 2017).http://Great BU7411 International Marketing Sample
Economic Factors – In Australia, the labor costs are very low due to unemployment so it is easy for the companies to find the workforce at the cheaper prices and develop their businesses. In a similar manner, here are available easing regulations that are more beneficial for the retail industry in order to pave the way in respect of new entrants.
Social Factors – It is also an important tool that can affect the new entrants in the Australian retail industry as it is most important for the organizations to achieve higher societal and community development and it is because as per the recent trends, customers prefer highly socially responsible organizations (Rosario, 2017).http://Great BU7411 International Marketing Sample
Technological Factors – In Australia, technological advancement can be found at a higher level and the government also encourages the organizations to adopt technological advancement so that they can offer quality products along with the effectiveness in order to satisfy them by focusing on their health and environment too. Tesco has more opportunities to set up its business in Australia (Bhangra, 2015).http://Great BU7411 International Marketing Sample
Environmental Factors – In this concern, the Australian government has introduced some environment-related regulations and it also supports the businesses to maintain their practices in order to protect the environment and keep the climate clean.
In this way, Tesco can set up its business in Australia and it will be supported by the Australian government by encouraging environmental friendly business practices.
Legal Factors – Taxation policies and the recruitment procedure are quite easy in Australia as these practices are considered under the legal framework (Bert et al., 2019).http://Great BU7411 International Marketing Sample
In this concern, Tesco has the opportunity as it holds the food license that is important for the grocery stores and the retail companies.
Thus, on the basis of the above factors, there is a great opportunity for Tesco to set up its business in Australia as the above factors show the positive impacts of Tesco’s growth.
The suitable market entry method
As per the analysis of the above cultural and marketing issues, it can be suggested to Tesco that the best-suited market entry method for the company is Partnering as it is considered almost essential while entering into the foreign markets (Christian et al., 2016).http://Great BU7411 International Marketing Sample
In this concern, it is defined that partnering can take a different form which starts from the simple co-marketing arrangements to the sophisticated strategic association with respect to the manufacturing firms.
If the successful partnering or joint venture is done by the company, it is beneficial for the company to provide access to the new market as well as the distribution networks. In a similar manner, If Tesco is going to enter into a foreign market, with the help of the partnering market entry method, it can be capable to increase its capacity (Wulff, 2015).http://Great BU7411 International Marketing Sample
At the same time, after entering the Australian market, if Tesco finds any kind of risks and costs, it can share them with their partners which decreases its burden. In addition, partnering will also help to provide access to the greater resources by including the specialized staff, finance and technology etc.
Identify the problems of marketing mix decisions and provide justified recommendations to adopt the element of marketing mix
Problems of marketing mix decisions
While concerns about the marketing mix, it is mentioned that the marketing mix is defined as the set of the marketing tool which is adopted by the businesses in order to pursue the marketing objectives under the target market (Fan et al., 2015).http://Great BU7411 International Marketing Sample
Therefore, the marketing mix considers the four broad levels of the marketing decision which are known as the product, price, place and promotion. On the basis of these four factors, the marketing mix decisions are made in order to develop the business and make it more profitable for its business owner.
In respect of Tesco, it is defined that if it is going to set up its business in foreign market, it will have to deal with the number of problems related to the marketing mix decisions as company made marketing mix decisions according to the UK market (Abdullah et al., 2015) but now it is going to enter into Australian market so with the same marketing mix decisions, company may have to face problems and these problems can be:
Generating Traffic and Leads
It is one of the top marketing problems as the businesses are struggling while developing enough demand in respect of their products and services (Kraus et al., 2016).http://Great BU7411 International Marketing Sample
In this manner, it is found that there is a number of channels that are available to the businesses in order to advertise their products and services and along with the number of ways to promote them, it is harder to know where to concentrate their efforts.
Securing Enough Budget
Arranging more budgets is considered the problem for the marketing at the global level as it will be more difficult for Tesco to arrange big amount as the budget because it will set the new business in Australia and to arrange more funds as the budget is not quite easy for it.
Managing the Websites
After entering into the foreign market, Tesco will have to set up its websites that are not so easy or any company because it has to focus on its content that should be as per the customer’s preferences and their demands so that a large number of customers can be attracted towards the business (Stead & Hastings, 2018).http://Great BU7411 International Marketing Sample
In this way, some important issues include different factors with managing the websites from writing as well as optimizing the content to designing the beautiful Webpages.
Identifying the Right Technologies for the Requirements
It is also considered an important problem for Tesco while entering into a foreign market and it is because the appropriate technologies can be effective for the company in order to encourage the satisfaction of the customers and turn them into loyal customers for the company.
If the company fails to select the right technology, it will find difficult to fit as per the customer’s need.
Targeting Content for an International Audience
Targeting is defined as the key component of all the marketing aspects. In this manner, to be more efficient at targeting, one of the most important things which should be done by the company is to identify their buyer personas with respect to find out who it is, they must be marketing to (Wedel & Kannan, 2016).http://Great BU7411 International Marketing Sample
In this, Tesco is going to expand its business in the foreign market and it is not an easy task for it as it has to figure out the best ways with respect to market it to the foreign audience. At the same time, it also needs to organize as well as optimize its sites for various countries.
The justified recommendations to adopt the element of the marketing mix
On the basis of the above-identified problems in relation to the marketing mix decision, it is recommended that Tesco should adopt the promotional planning as per the marketing mix element as it will be effective for the company to resolve its most of the problems with the marketing mix decision and set up the company in foreign country with more effectiveness (Isolate, 2016).http://Great BU7411 International Marketing Sample
In this way, the main purpose of promotion is to make communication in concern of the products and services in order to promote them in the international market and the communication takes place in respect of the cultures. On the basis of, it is also disclosed that the cultures vary with countries so it is essential for the companies to adopt the different approaches for promoting the business (Steenkamp, 2017).http://Great BU7411 International Marketing Sample
In this manner, the most important factors of culture are language, different values and the attitudes which influence the company’s advertisement message. In this manner, Tesco can adopt the social media tool as per the promotion planning in order to promote it in a foreign country because the social media tool is the most effective and popular tool and it can also help the company to develop a large amount of customers base (Kraus et al., 2016).http://Great BU7411 International Marketing Sample
Thus, social media will also be effective for Tesco to save its high expenses on traditional promotional tools.
Conclusion
After conducting the discussion in regards to Tesco, it is concluded that Tesco operates its operation in the UK and now it is decided to set up Tesco in Australia. At this time, Tesco will have to deal with a number of things in which issues such as cultural issues and marketing issues etc.
while entering into the Australian market. In addition, it is also found that the Australian market is found more beneficial for Tesco as it provides a number of benefits to Tesco. In this way, partnering is the most suited marketing entering method for Tesco.
Moreover, Tesco also has some marketing mix decision-related issues at the time of entering into the foreign market but these issues can be resolved with the help of the promotion planning that is the element of marketing mix decision.
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