Investigation and evaluation of the opportunities of food retailer Essay

Investigation and evaluation of the opportunities of food retailer Tesco expending into Mumbai of India - Essay Example According to Czinkota and Ronkainen (2007) international marketing can be portrayed as a process of planning and carrying out transaction across the national boundaries, in order to create an exchange and to satisfy the needs of the organization. The forms of international marketing are generally export-import trade, wholly owned subsidiaries, joint ventures, licensing, management contracts and turnkey operations. This study aims to evaluate the opportunities of food retailer Tesco expending into Mumbai, India. In other words, the objective of the study is to uncover the opportunity for food retailer Tesco to setup its business in Mumbai. Tesco PLC, the UK based multinational general merchandise and grocery retailer is presently headquartered at Cheshunt, Hertfordshire, England (Yahoo Finance, 2012). It was founded by Jack Cohen in the year 1919. Based on its strong performance and determination, the company has been able to achieve colossal success in a short span of time. The compa ny is considered as one of the largest retailers of the world. Tesco is the second largest retailer in terms of net profit, just after Walmart, and the third largest retailer in terms of revenue, just after Carrefour and Walmart. ... Earlier the company used to position itself as a company which sells in large quantity and at low price. However the company has repositioned itself as a company that appeals to a mass customer through its wide range of products and value. The strategy paid off to a large extent as Tesco was successful in setting up 2000 stores more from the period of 1990 to 2005. Figure 1- Countries Where Tesco Operates (Source: DeadAnarchistPhil, 2012) With depressing economic environment, people are moving towards cheaper and value products. Some of the established players of Mumbai grocery retail industry such as Reliance Fresh, Aditya Birla’s MORE, Big Bazar, Metro Cash & Carry, and Marks & Spencer among others. (Source: Sood and Jashnani, 2012) Considering the present market conditions, the only way a company can earn profit is by satisfying the customers. Therefore proper segmenting and targeting the customers have become an indispensible task. In order to segment a market, companies n eed to consider factors such as psychographic aspect, demographic aspect, geographic aspect and behavioural aspect (Lao, 1998, p.114). According to the reports, the current strategy of the company is developed to compliment the vision, address the changing needs of the consumers and to satisfy the global nature of the company’s business. The strategy of the company is to create highly valued brands and customers with a variety of choice. This strategy helps the company to target customers from different segments of the society (Tescoplc, 2012). In addition, it also allows the company to realise economies of scale in the field of marketing and production. Moreover Tesco has the ability to sell products at a low price and therefore the company should deem catering to