In this report, the marketing strategies are discussed that will be beneficial for Tesco when it will be started in Brazil. It is important to develop an effective marketing strategy to enter into a new market. The purpose of this study is to develop an understanding of the global marketing strategy and its importance when the business is going to be started. In this study, different strategies are designed to increases the efficiency of Tesco when it will be started in Brazil. However, Brazil is a developing country but its political and economic condition is stable and the environment is also good for the business.

Moreover, PESTLE and SWOT analysis are discussed along with the entry strategy that will be used by Tesco that is joint venture and franchising. STP strategy is discussed to identify the right targeting, positioning and segmentation of the customers that just increases the growth of the business of Tesco. In the last, a marketing mix strategy is also explained in this study to enhance the development of the business. The conclusion of this study is that the use of a global marketing strategy will be beneficial before starting a new business in a new market. The recommendations of this study are to develop the strategies and implemented wisely that is effective for sustainable development. Tesco should introduce the products according to the culture of brazil and use social media to attract a large number of customers.

Introduction of Tesco PLC Retail company in Brazil

Tesco is a multinational company that provides the services of retailer stores in which a variety of products are available from food to clothes, sports and other luxury products. This retailing store is ranked as the second-largest retailer store globally during 2012 and also generated the large revenue 101.3$ (Wood, et al., 2016). After becoming the largest retailer store in the UK. Tesco was established its retailing store for the first time in Hungary during 1994 (tesco, 2019). According to the report of 2014, Tesco has more than 7000 stores around the world in different countries.

However, the mission statement of Tesco is to give priority to their customers and achieve their loyalty for a life time. In this regard, customers are provided better services from the Tesco company. Therefore, the company is providing valuable services to their customers. The market share of Tesco is 28.4% and it is considered as the largest share as compared to other retail stores that have only 17% of market shares like Sainsbury and ASDA. The products that Tesco is providing are: bank services, insurance, traveling, home and food products as a variety of products are available in this retailing store.

The number of stores of Tesco is increasing during 2008-2019, the number of stores was increasing from 3,571 to 6,992 approximately and it was established in 1919 (Wunsch, 2019).

The purpose of this report is to determine the global marketing strategy for Tesco as entering into Brazil. It is difficult to enter into a new market because of influencing factors that affect the performance and growth of the retailer store. Moreover, it also discussed the different marketing strategies that are needed for Tesco while entering into a new market in Brazil. In addition to, segmentation, targeting and positioning strategy that is essential for Tesco while introducing its stores in Brazil to update the economic condition of the store.

Market and competitor’s analysis of Tesco PLC Retail company in Brazil
What markets they operate in and why GDP, GNI, and population?

Tesco is operating efficiently in the global market as offering a variety of products that satisfied customers around the world. However, it is performing as a retailer store and offering different products and services like grocery items, clothing, bank, traveling, club card, recipes and magazines. As the company provides a vast range of products so that it has a large market share that is 28.4%. Tesco is operating in different countries like China, India, Turkey, Hungary, Poland, Japan and other countries in a successful way (Bohari, et al., 2017).

Structure of Tesco PLC Retail company in Brazil

There are different forms of structure that are operated by Tesco having different size and nature of products. The services that are offering by Tesco are:

· Hypermarket of Tesco

· Tesco Extra

· Metro

· One Stop

· Express

· Home plus of the Tesco

Level of competition of Tesco PLC Retail company in Brazil

The largest retailer store that is operating in the UK and other countries is Tesco. As it is operating at a large level, then it also has competitors as well. Therefore, the competitors of Tesco are Sainsbury, ASDA, Waitrose, and Morrison are the major competitors of Tesco. Hence, these four retailing stores are termed as the Big four of the UK. Additionally, in German, Aldi and Lidl are also becoming the retailing store and compete with the grocery stores of the United Kingdom. Tesco is also competing in different stores that also have a significant position in the market and among customers (Clerck, et al., 2016). As the convenience store is changing the taste pattern of people in some items and the reason is that these stores are fragmented. However, during 2015, Tesco is considered as the leading store because of its high contribution to the market share as compared to another retailer store.

Market share of Tesco PLC Retail company in Brazil

The market share of Tesco is excellent that is increasing with each passing year because of its excellent position, strategies and perfect targeting strategies. The main opportunity that is beneficial for the company as the company is manufactured the products by itself. Moreover, online shopping, club and credit card system. All are the factors that are leading towards the high market share that is 28.4% that is high as compared to other retailer stores like Sainsbury and ASDA that have only 17% of market share during 2015 (Downie, 2018).

Competitors in the chosen market of Tesco PLC Retail company in Brazil

Tesco is going to be started its retailing store in Brazil that is also an emerging country and improving the economy and living standard with the passage of time. Therefore, it is a great opportunity for Tesco to be started its business practices in Brazil. Although, it is a great opportunity for Tesco some competitors are also existing in brazil. In 2003, Tesco is started with its 118 stores in Brazil as acquiring the Bompreco and Atacadao chain store, but Walmart and Carrefour acquired the chain store of Brazil and Tesco give up. Now the position of Tesco is strong and it knows how to introduce their products and services in Brazil. Walmart and Carrefour are major competitors of Tesco that are considered as the leading retailer store that ranked first and a second position in the global market (DOOLE & LOWE, 2017).

Environmental analysis of Tesco PLC Retail company in Brazil

The environmental analysis contains the internal and external factors that have a great influence on the productivity of the organization. Therefore, this analysis is used to develop an effective marketing plan and maintain business practices effectively. The internal analysis has described the strength and weaknesses of the organization because of the activities of the person that are working within it. On the other hand, external analysis is used to identify the business environment that may disturb the performance of the organization (Deus, et al., 2017).

PESTLE Analysis of Tesco PLC Retail company in Brazil

PESTLE analysis is effective that provides guidance and direction for the organization to focus on the threats that would not disturb the growth and productivity of the business. As Tesco is going to start its business in Brazil then the following aspects should be considered and develop strategies according to them.

Political of Tesco PLC Retail company in Brazil

The political condition of Brazil is stable as the government is proactive and the political condition is not unstable. An issue that is also prevailing in Brazil is corruption and while started any business additional payments are required that is creating a problem for organizations to enter into a market. The issue of corruption may be creating a problem for Tesco at the time of entry into marketing in brazil. Although, the government is proactive corruption may damage the performance of Tesco.

Economical of Tesco PLC Retail company in Brazil

The economic condition of Brazil is also stable and good that will be beneficial for Tesco while performing business operational activities. The reason is that in this country the flow of FDI is consistent and a large number of populations both are creating opportunities to grow with high potential. The difference between rich and poor is gradually decreased and the inflation rate is also controlled by the banking system of Brazil. Therefore, it is a great opportunity for Tesco to start the business activities efficiently that will generate the large revenue and sustainable development of this retailing store within Brazil.

Social of Tesco PLC Retail company in Brazil

The social aspect of Brazil is weak and not as good as the political and economic condition of the country. Due to the inequality of economic condition among people still exist. In this regard, 19% of the population is living in poverty. When the people of the country are not able to have good purchasing power then the business growth is also disturbed. This situation may create a problem for Tesco because of poverty, people have no option to visit retailing stores like Tesco. Hence, this poor purchasing behavior of people is reduced the economic growth and development of Tesco.

Technological of Tesco PLC Retail company in Brazil

Like other developed countries, in Brazil, technology is not the advanced and poor infrastructure of technology. However, investment in the technological sector is also weak and does not take any initiative to update technology. Consequently, the country is also improving in the IT centre gradually and ranked on the 53^rd around the world. Therefore, it will create a problem for Tesco because here lack of technology and no advanced technology is existing in this country that is necessary for Tesco while operating its business practices (Islam & Jahidul, 2018).

Legal of Tesco PLC Retail company in Brazil

The legal environment of Brazil is to prolong and time-consuming because this country is bureaucratic where a large number of paperwork is required while starting any business and operational activities. Therefore, it is also creating issues for foreign businesses because of a lengthy process of taking legal permission. It may be problematic for Tesco as legal permission is taken to prolong the process and consume a lot of time.

Environment of Tesco PLC Retail company in Brazil

Brazil is a beautiful country having a variety of resources and species. Therefore, to protect the environment strict rules and regulations are designed for the industrial sector to conserve the environment. Tesco may also face some issues due to these strict laws and regulations related to the environment that is varied from country to country (Otuedon, 2016).

SWOT Analysis of internal of Tesco PLC Retail company in Brazil

It is the strategic planning tool that is used to identify the strength and weaknesses of the business as focusing on and improving the weakness and threats that have a negative impact on the growth of the business.

Strength of Tesco PLC Retail company in Brazil

It is effective for Tesco to start its business in Brazil because of a large population, high-income rate, availability of raw material, natural beauty and high chances of tourism, reducing the poverty and increasing the middle class. Therefore, all these aspects of Brazil may provide the strength in terms of economy, growth and development among all the other retail stores because Tesco is providing products at a reasonable price that is in the range of all levels of the people.

Weakness of Tesco PLC Retail company in Brazil

Weakness that may face by Tesco while operating in Brazil is that in this country are language barriers, poor infrastructure of the technology, high poverty rate and rate of crimes are also high in this country. All these factors may reduce the development and growth of Tesco.

Opportunity of Tesco PLC Retail company in Brazil

Practices to reduce corruption and take rapid action by the government and improve the reputation of the country. Hence, it is beneficial as chances of development of Tesco are increased because of a reduction in corruption. Moreover, Brazil has a direct investment with foreigners.

Threat of Tesco PLC Retail company in Brazil

The threat that may arise and disturb the Tesco while performing its services in Brazil. These threats are poor relationships with neighbouring countries, inflation in currency, terrorism and a high rate of interest. All these threats may disturb the Tesco in future when it started its business practices in Brazil.

Market entry strategy of Tesco PLC Retail company in Brazil

Market entry strategy is defined as the process that is planned for the distribution of the products and services into a new market using effective delivery methods. However, when it discusses the to enter into a foreign market then adopt the following phases:

· Creation

· Contracts Management

· Establishment

Moreover, different modes are used to enter into a new market that is:

· Exporting

· Licensing

· Joint Venture

· Franchising

· Merger

The entry mode that will be used by Tesco in Brazil is a joint venture and franchising to expand the business practices efficiently. The reason is that the joint venture has positive aspects like it has a flexible nature, profit is earned at low cost and push up is provided for the starting of a business in Brazil. Moreover, franchising is another efficient entry mode that will be used by Tesco to promote business practices with legal permission and conserve the intellectual rights of the business in Brazil. Franchising increased the growth rate, profit, motivation and proper management of the business practices (Hardaker & Sina, 2018).

STP Strategy of Tesco PLC Retail company in Brazil

STP is the marketing strategy that will be used by Tesco to enhance the marketing of its company in Brazil. Therefore, it is important for the sustainable growth and development of business practices effectively.

Segmentation of Tesco PLC Retail company in Brazil

Segmentation is divided into different phases based on the geographic, demographic and behavior of the customers towards the brand. therefore, the Tesco is used segmentation stage in which products and services will be provided to the Brazil country both in rural and urban areas. Moreover, the demographics of people are all the ages, males and females, high to low-income people and products will be available for students, employees and professionals. The behavior of the customers will be active, positive and encouraging because of the good business practices of Tesco in Brazil.

Targeting of Tesco PLC Retail company in Brazil

The targeting population of Tesco is all the ages of people according to their interests. Therefore, Tesco is providing a variety of products that will not for any specific population of the brazil. In this regard, the Tesco will target all the people of brazil belonging from different ages and interest to earn more and more.

Positioning of Tesco PLC Retail company in Brazil

Tesco is performing excellently and having a large share in the market because of effective strategies and adaptation at the right time. Tesco position the company as the retailer store with low reasonable prices through advertisement and high quality as well. It is an effective strategy that will attract the people of brazil in a large number as it will develop the perception in the mind of customers that Tesco is selling products at a low price on a regular basis.

Marketing mix plan and implementation

A marketing mix plan is an efficient tool that is used by the organization to improve performance, growth and development as well. In this regard, the marketing mix contains 4Ps that will be used by Tesco when entering into the Brazil market. However, these 4Ps are

Place of Tesco PLC Retail company in Brazil

The income distribution in Brazil is unequal that is a great opportunity for Tesco retailer store as it provides the low prices of a product as targeting the middle and lower class in brazil. It is because the majority of the population in Brazil has belonged from the middle income to lower-income customers (Luo, et al., 2015). Therefore, it will be the right place for Tesco to enhance the business both in developing and developed countries and earn a high rate of growth and productivity.

Product of Tesco PLC Retail company in Brazil

The product that will introduce by Tesco in Brazil, based on the income level of the people. As Tesco will promote the products with high quality, medium quality and low quality that will target all population of the brazil based on their income level. Moreover, Tesco will promote international brands and the products that are manufactured by the Tesco in brazil.

Price of Tesco PLC Retail company in Brazil

Price is the leading factor for Tesco as it is offering different products at low prices so that all the people belonging from different income status. The price strategy of Tesco is good as it targets all people. Therefore, At the time of performing in brazil, the Tesco will adopt the pricing strategy that encompasses all the people having different income status (Jackson, et al., 2016).

Promotion of Tesco PLC Retail company in Brazil

Tesco is considered a leading company because of adopting effective strategies. In Brazil, Tesco will also use the promotional strategy to attract a large number of customers through promotions, discount offers and other ways. The celebrity endorsement will also be effective to attract the customers at brazil and maintain the growth and development as well.

The activity plan that will be used by the Tesco to promote the business in brazil and the phases are:

Marketing mix strategy

Strategy	Implementation
Place	Easy access to Middle to lower-income people
Price	Penetration pricing, cost-based pricing
Promotion	Advertisement, public relation and celebrity endorsement
Product	Finest, Mid-range and Low-Range products

Conclusions/ Recommendations of Tesco PLC Retail company in Brazil

From the above study, it is concluded that Tesco is a leading retail store because of adopting effective strategies from time to time and satisfied the need of customers around the globe. Now, Tesco is going to be started its business in Brazil and in this report different aspects are discussed like PESTLE and SWOT analysis is explained. As a result, Tesco will consider all the strengths and weaknesses while performing in Brazil. Moreover, what is the STP strategy that will be used in terms of targeting, segmentation and positioning of the products and services that will increase the growth and development? Marketing mix strategy will be effective as it analyses the different key areas that are necessary for a business to be improved and grow. Hence, the role of marketing strategy is significant as it improves business performance and secures the future of the Tesco.

Recommendations of Tesco PLC Retail company in Brazil

From the above study, it is recommended to Tesco company is:

· Develop an effective marketing strategy

· Maintain the quality of products

· Prefer the flexible strategies and implementation

· The motivation of employees should be necessary

· Customer feedback should be maintained and responsive

· Promote the culture of Brazil

· Use social media to promote the products

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