Contemporary & International Marketing India (titre original)
According to Business Object (2008) Tesco is the UK's largest retailer, and one of the top three international retailers in the world with 2,000 stores. Tesco is driving a multi-part strategy which means that Tesco target growth and benefit.
Historically, according to the case study, lots of retailers fail when they try to make international marketing by opening international stores. In Tesco's company history, according to Jasor (2005), international marketing strategy failed in 1990 when Tesco closed owned stores in France.
Le Figaro (2008) stated that Carrefour (French largest retailer) announced that they will open « Cash and Carry » stores by 2010 in India.
According to the World Bank group India has a population around 1.1 billion with an annual growth of 1.4%. India is a big country, 3 times larger than United Kingdom where 28 states are.
The gross national income is about 673 billions $ which is the 11th world biggest income. The foreign direct investment is increasing because of the positive effects of some changes in politics and economics. The current government is still increasing business interest in India. It was not the same policy 10 years ago, when it was very difficult for a company or a business to settle up in India. Now some activities are still monitored by the Indian government.
In the social point of view, there are 22 languages in India (Indian + 21 local dialects). 80% of the population are Hindu, the second biggest religion in India is Muslim. According to Asiarooms.com (2008) there are lots of different ethnics in India. Every ethnic has custom tradition. The parity is near to be equal with 944 females for 1000 males. The population density is around 363, which is high. 27.5 % of people live below the poverty line and 60% of people are full employees in agriculture.
In business and selling point of view it's a different way of selling in India. Prices are not strict, everybody can bargain items to change listed price. Le Figaro states that doing business, especially retailing is very difficult in India. Foreign retailers have to close business deal and sometimes have to buy local company.
[...] It was not the same policy 10 years ago, when it was very difficult for a company or a business to settle up in India. Now some activities are still monitored by the Indian government. In the social point of view, there are 22 languages in India (Indian + 21 local dialects) of the population are Hindu, the second biggest religion in India is Muslim. According to Asiarooms.com (2008) there are lots of different ethnics in India. Every ethnic has custom tradition. [...]
[...] Adapted from McKinsey & Company (1970) External factors included: - Market size: India is one of the future biggest market with population around 1.1 billion people - Market growth rate: around according to the GPD growth - Entry barriers: low - Technology development: Thanks to IT development, lot of new technologies are accessible in large cities in India - Competitive intensity: Low between large retailers, high between small business units - Distribution structure: India needs to pave more roads to have benefits from a distribution structure - Pricing trends: Price are lower than European one's Internal factors included: - Relative brand strength: Tesco had built a real brand image and strength - Quality: Tesco is a quality retailers, well known for its quality management and products - Competencies: Tesco has a high management which provide high competencies - Distribution centre: Tesco has big distribution centre over all England, it can create and provide high efficiency distribution centre in India thanks to internal competencies - Management strengths: Tesco have proved that its management is fuelled by high competencies Market entry mode After assessing India' attractiveness, according to Paliwoda (1993) Tesco needs to consider six important factors: - Speed: Tesco has to expect new market by 2010 to increase its world sales and keep its organisation in the market competition by investing in future's leading countries - Flexibility: Thanks to the facilitating FDI policy enter Indian market is no more difficult as it was few years ago - Risk factor: There are some risks to enter the Indian market; the more risky is to face polemic against local shop owners and having to close some stores. - Payback Period: Tesco could allow to get profit in a large period, to permit high investments if necessary - Long objectives: Tesco need to enter the Indian market to keep position in world largest retailers and to benefit from big growth of developing countries like India or China. Adapted from .D. Harrel and R.O. Kiefer (1981) According to the Portfolio matrix (adapted from G.D. [...]
[...] According to the official governmental DIPP report local investments are freely repatriable. The government is facilitating FDI policy, that's why businesses are freely allowed in all sectors including the service sectors. But there are a lot of limits on industrial projects (about locations, objectives, etc and industrials need a licence for manufacturing. According to Prakash (2007) large retailers have some trouble when they try to open large store, for example, Reliance tried to open 300 stores, the government ask to close them because of the controversy fuelled by little local shops. [...]
[...] The parity is near to be equal with 944 females for 1000 males. The population density is around 363, which is high of people live below the poverty line and 60% of people are full employees in agriculture. In business and selling point of view it's a different way of selling in India. Prices are not strict, everybody can bargain items to change listed price. Le Figaro states that doing business, especially retailing is very difficult in India. Foreign retailers have to close business deal and sometimes have to buy local company. [...]
[...] In Tesco's company history, according to Jasor (2005), international marketing strategy failed in 1990 when Tesco closed owned stores in France. Le Figaro (2008) stated that Carrefour (French largest retailer) announced that they will open Cash and Carry stores by 2010 in India. Information about India According to the World Bank group India has a population around 1.1 billion with an annual growth of India is a big country times larger than United Kingdom where 28 states are. The gross national income is about 673 billions $ which is the 11th world biggest income. [...]
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