This unit state that a report to be formulated on Zara assessing the business environment factors in the country in which business activities will be carried out including PESTLE framework for analyzing both micro and macro factors.
- Develop an understanding over 5P’s of marketing as well as discuss its relationship with macro-environment.
- Evaluate how to adapt or diversify products by Tesco for global market.
- Identify the function of marketing plan related marketing strategy of Tesco.
An organisation face different changes and modifications when diversity in the new market place influence and this will directly affect on its business operations and their functions. By this, company manager need to develop and create effective strategies or policies at the time of changes in their functional and operational activities at the large market place. Tesco is the international groceries and retailing company which headquarter is located in united kingdom. They are providing various types of goods and services to their customers in proper manner. Now they are diversify their business into Chinese market place (Durkheim, 2014). For the organisation, it is necessary for analysing the 4Ps of marketing mix which affect on Chinese market place on company.
Marketing mix of TESCO analyse the brand which cover the 4Ps such as product, price, place and promotion and also included fifth P which is people for examine the diversify of firm into Chinese market. The concept of marketing mix is the set of manageable changeable of marketing which the company mix for developing the outcome that required in the target market area. In the context of TESCO organisation, the entry of firm in the Chinese market will adopting the effective culture of the consumer in local region. Therefore, the company should take into consideration in the mind of basis standards which are described as under:
Product – TESCO has large range of goods which are offer through different stores and shops. The products offering is immense so this will provide each requirements and needs of their customers from various segments of the market place. Along with this, strategy of each product in the marketing mix of company should be evaluated and understand. They have various types of stores and different variety of goods which are gaining attention of large number of buyers towards their services and commodities (Stevenson and et. al., 2015). An organisation management will set their product development strategies and policies by which they will take care of their stores in the china through marketing in the existent goods, exportation of new products in various state of the nation and also they are gaining chance of opportunities for increasing the TESCO market share and market penetration. They should also determining revising models of effective goods to giving Chinese customers and analyse their needs and wants for diversify into their market place. For diversify into the Chinese market area, TESCO need to produce new products which satisfying their customers demand and requirements in proper manner.
Price – TESCO follows the pricing strategy which provide the lowest pricing to their goods for maintaining their quality (Koopmann, 2017). The firm will set their price according to their customer standard of living and their affordability ratio. The firm are doing regular basis work along with their suppliers which help in improving and developing effective supply chain management that can decline the rate of specific products. An organisation should looking at the condition which is the one way for getting cost advantages through increasing in efficiency of procedures, expanding their contact in the Chinese market for gaining attention of large number of customers. If the competitors who are exists in the china market area are unable to lower their product price by comparable with quantity so TESCO can easily continue a competitive cost leadership. For expanding their business operation in this market so firm need to reduce their rate of new goods as compared with their rivals by this they can gain attention of large number of buyers.
Place – TESCO required to select that place or area where they are attracting huge number of customers towards their innovative products and services in proper manner. For developing and making its success in the retail operation, firm need to make multi million pound investments in the expansion of stores at low cost places and locations. They are getting involved with same type of public and private sector groups such as local societies which are based corporations, colleges and chambers of commerce so TESCO will capable for open the websites in economical manner which determine disadvantages to the china districts (Ariely and Jones, 2012). If company can diversify their market into the Chinese market so they require to select those places where they capture or grab major opportunities related to gaining income as well as desired buyers. There are various sources by which company can deliver their products and services such as stores, E-commerce and B2B, etc. these ways are helpful in attracting large number of consumers towards new goods.
Promotion – For diversify into Chinese market TESCO need to promote their services and goods with the help of social media, advertisements, personal relation, sales promotion, etc. in the china market. Tesco also sell their goods through online basis. This is using to extent the large promotional offers and discounts like buy one get one free. An organisation segmenting their market area as well their desire customers.
Also Check: Unit 15 Cadbury BTEC Level 4