Intermediate marketing QUESTIONS: 1- Distinguish between the international marketing strategies of Tesco and Carrefour. 2- Outline two opportunities and two threats to any supermarket retailer considering an entry into the Chinese market. 3- “Deciding on the global marketing program implies five global product/communication strategies firms can choose from.” As a marketing adviser, discuss which of them loo! appropriate for Tesco to adopt, clarifying the necessary and the possible dimensions in your advice.

Principles Of Marketing
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Author:Kotler, Philip, Armstrong, Gary (gary M.)
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Chapter1: Marketing: Creating Customer Value And Engagement
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Intermediate marketing QUESTIONS: 1- Distinguish between the international marketing strategies of Tesco and Carrefour. 2- Outline two opportunities and two threats to any supermarket retailer considering an entry into the Chinese market. 3- “Deciding on the global marketing program implies five global product/communication strategies firms can choose from.” As a marketing adviser, discuss which of them loo! appropriate for Tesco to adopt, clarifying the necessary and the possible dimensions in your advice.
in 2014 Tesco unveiled its first profit from China of £2 million. It hoped for more in the future. China is potentially the world's biggest retail market, with 1,3 billion customers, The
Happy Shopper Store is a 17,000 square-metre mix of traditional eastern wet market and modern western hypermarket in Tianjin's industrial zone. It is one of 39 stores that Tesco
operates with its local partner and Taiwanese food supplier, Ting Hsing. Since the signing of the joint venture (named Hymall') in 2011, the firm has expanded its workforce by 20
per cent. In 2016 it planned to open 12 more hypermarkets, including one in Beijing.
Unlike its overseas rivals, Tesco seems unconcerned about building on its established brand, Carrefour and Wal-Mart sell mostly well-known global brands, and trade under their
own names, But there is nothing in Hymall's Happy Shopper that suggests a British link. The colour scheme is orange. The managers and shop floor staff are Chinese and there are
few brands on the shelves familiar to a UK shopper. "We are going into local markets in a local fashion," said Lucy Neveille-Roufe, group corporate affairs director. "It doesn't seem
essential to use the Tesco name." The UK side provides expertise in IT, food safety and retail management. But the shops are distinctly Chinese, with lots of live fish in fish tanks
inside and bicycle parking areas outside. With less than one expatriate for every 1000 Hymall staff, Tesco appears to have a hands-off approach to its Chinese investment. This has
gone down well with local staff. "When we heard that the British firm had bought a big stake in the company, everyone was worried that it could mean big changes, but so far there
hasn't been anything that noticeable," said one staff member. "The middle managers are all Chinese. Only the most senior executives are British."
Shoppers in Tianjin did not seem to notice that their local store was partly owned by a British firm. Weifang Zhuang, who spends about 100 yuan on her daily trips to Happy
Shopper, said that the only change she had noticed in the last year was an increased variety of products. "I guess that is because the competition is increasing." she said. "Does
Happy Shopper have a British owner? I didn't know." Huge layoffs and cost cutting were never likely. This is partly because wages are low (supermarket salaries in China are usually
less than £70 for a 160-hour month). But, also, high staff numbers are needed to provide service to customers who shop more frequently, but spend less than shoppers in Britain.
Hymall stores in 2014 had about 2.3 million customers a week. Each spent less than £1 per visit, on average.
The market in 2014 was worth $240 billion (£135 billion). It was growing at double digit pace. But Tesco's position was a long way from the company's dominance in Britain, where
Tesco took one in every eight pounds spent at supermarket checkouts. Even if business increases, the company is unlikely to be a household name in China. All foreign companies
lag behind the domestic leader, Hualian, which runs nearly 2,000 stores.
Transcribed Image Text:in 2014 Tesco unveiled its first profit from China of £2 million. It hoped for more in the future. China is potentially the world's biggest retail market, with 1,3 billion customers, The Happy Shopper Store is a 17,000 square-metre mix of traditional eastern wet market and modern western hypermarket in Tianjin's industrial zone. It is one of 39 stores that Tesco operates with its local partner and Taiwanese food supplier, Ting Hsing. Since the signing of the joint venture (named Hymall') in 2011, the firm has expanded its workforce by 20 per cent. In 2016 it planned to open 12 more hypermarkets, including one in Beijing. Unlike its overseas rivals, Tesco seems unconcerned about building on its established brand, Carrefour and Wal-Mart sell mostly well-known global brands, and trade under their own names, But there is nothing in Hymall's Happy Shopper that suggests a British link. The colour scheme is orange. The managers and shop floor staff are Chinese and there are few brands on the shelves familiar to a UK shopper. "We are going into local markets in a local fashion," said Lucy Neveille-Roufe, group corporate affairs director. "It doesn't seem essential to use the Tesco name." The UK side provides expertise in IT, food safety and retail management. But the shops are distinctly Chinese, with lots of live fish in fish tanks inside and bicycle parking areas outside. With less than one expatriate for every 1000 Hymall staff, Tesco appears to have a hands-off approach to its Chinese investment. This has gone down well with local staff. "When we heard that the British firm had bought a big stake in the company, everyone was worried that it could mean big changes, but so far there hasn't been anything that noticeable," said one staff member. "The middle managers are all Chinese. Only the most senior executives are British." Shoppers in Tianjin did not seem to notice that their local store was partly owned by a British firm. Weifang Zhuang, who spends about 100 yuan on her daily trips to Happy Shopper, said that the only change she had noticed in the last year was an increased variety of products. "I guess that is because the competition is increasing." she said. "Does Happy Shopper have a British owner? I didn't know." Huge layoffs and cost cutting were never likely. This is partly because wages are low (supermarket salaries in China are usually less than £70 for a 160-hour month). But, also, high staff numbers are needed to provide service to customers who shop more frequently, but spend less than shoppers in Britain. Hymall stores in 2014 had about 2.3 million customers a week. Each spent less than £1 per visit, on average. The market in 2014 was worth $240 billion (£135 billion). It was growing at double digit pace. But Tesco's position was a long way from the company's dominance in Britain, where Tesco took one in every eight pounds spent at supermarket checkouts. Even if business increases, the company is unlikely to be a household name in China. All foreign companies lag behind the domestic leader, Hualian, which runs nearly 2,000 stores.
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