The global supermarket retailing is expected to grow at an increasing rate. It is projected that in between 2014 and 2020 this industry will grow at 6.1 % CAGR (Persistence Market Research 2014). The industry is projected that by the year 2020 the industry will reach the value of 8,541.9 billion USD (Persistence Market Research 2014). This lucrative business option is motivating companies from across the world to expand their business and thus reap benefits from same. One of the most interesting markets to tap is India. India is accredited from being one of the nations with fastest growing middle class with approximately 149 million being categorized as middle-class households (Persistence Market Research 2014).

In this paper the marketing plan for Tesco Plc (from UK) is developed to determine its marketing mix for entering Indian markets. In order to analyze the prospects of Indian markets, a detailed analysis of overall market is done using varied theoretical models. For current market scenario PESTLE analysis is adopted. Competitor’s analysis is done through Porter’s 5 forces model. Internal and external analysis specific to Tesco Plc using SWOT model is adopted. Based on findings from these models, the marketing mix is proposed for Tesco Plc in order to enter and operate successfully in India.

Company Profile: Tesco Plc

TESCO which is a public limited company was set up in the year 1919, in Cheshunt, UK (Tesco 2015a). The company was founded by Jack Cohen. The first store was set up in Burnt Oak in the year 1929 (Tesco 2015a). TESCO ranks as number one retailer in the UK retail market and is considered to be among top retailers in the global market. TESCO including its subsidiaries have stores which are more than 6200. The company has its global presence in 14 countries in Asia, Europe as well as North America. Some of the TESCO banners are TESCO Express, TESCO Extra superstores, TESCO Metro, One Stop Convenience stores, Homeplus hypermarket, virtual stores in South Korea, small express and Dobbies gardening stores in the Scotland, UK and Northern Ireland (Hoovers n.d.).  The company has human resource of 72000 employees to deal with TESCO’s retail business such as clothing, books, furniture, software, petrol, financial service assistance, telecom, music downloads and  DVD rentals (Tesco PLC 2015). The mission of the company is to generate value for its customers and to gain customer’s loyalty for long term. The company motive is to provide assistance to its employees and customers so as to retain and create strong relationships (Tesco PLC 2015).

Overall Market Analysis

The overall market analysis on Indian markets for Tesco can be undertaken through macro-environmental analysis that is PESTEL analysis. PESTEL analysis will aid in determining varied aspects and issues of Indian markets with special reference to political, environmental, socio- cultural, technological, legal and economic factors (Bowhill 2008).

Political Factors

Politically India is experiencing a complete makeover with new government drafting new policies for overall development of the country. The Indian government has been promoting retailing industry in India and lieu of the same it allowed 100% foreign investments into India enroute wholly owned single-brand in the year 2012 (Lok Sabha Secretariat 2014). Upto 51% FDI is allowed in multi-brand retailing but under specific circumstances thus limiting the scope of FDI investments in India (Lok Sabha Secretariat 2014). Though this seems to be a positive signal for companies like Tesco to enter into Indian markets but yet with launch and promotion of ‘Make in India’ they are likely to face huge political barricades (Irani 2015).

Environmental Factors

Environmental concerns among Indian consumers are rising which is evident in their augmented consciousness while taking spending decisions. They have been demanding eco-friendly products along with eco-labeling in accordance to national and international standards (World Wide Fund for Nature 2014). Overall the environmental concern in India is comparatively low as compared to global consumers.

Socio-Cultural Factors

With the emergence of youth population and rising middle-class in India, the socio-cultural factors affecting Indian shopping trends and attitude towards retailing is under a revolutionary change (Chandrasekhar et al. 2006) (Jeffrey 2010). A transition from kirana shops to organized retailing is been experienced which gives ray of hope to retailers like Tesco (Atulkar & Kesari 2014). The shopping behavior of Indian consumers is also changing owing to changes in their lifestyles and social status. This in turn affects their consumption patterns. Further India is a home for multiple cultures and sub-cultures which drive its consumption pattern (Sikri & Wadhwa 2012). Due to the presence of such huge cultural diversity marketers face difficulties in adopting a single model or strategy to cater Indian consumers.

Technological Factors

The major technological factor that considerably is responsible for success or failure of retail stores in any nation is supply chain management. The SCM in India is highly under-developed and is insufficient too to cater growing needs organized retailing in India (Sikri & Wadhwa 2012). Further unavailability of appropriate infrastructure and inadequate distribution mechanisms adversely affect organized retailing in India.

Legal Factors

Indian retail industry is under strict surveillance as it si guarded by a number of laws namely Shop and Establishment Act, Standards of Weights and Measures Act, Provisions of the Contract Labour (Regulations and Abolition) Act, The Income Tax Act, Customs Act and The Companies Act (DnB n.d.). Along with it, the retailers need to abide by rules and regulations prevalent at regional level which further complicates and confines development of organized retailing. Slow and cumbersome legal processes discourage retailers from entering into such a lucrative industry.

Economic Factors

The purchasing power of Indian consumers is expected to be 6 trillion USD by 2015 which is considered to be the 3^rd leading following USA and China (Times of India 2011). The retail industry is considered to be of great importance for Indian economy as it contributes approximately 33%-35% towards GDP and is anticipated to mature by 25%-30% per annum (Sikri & Wadhwa 2012). Organized retailing in India only forms 5%-6% thus depicting huge scope for international companies like Tesco to cater Indian consumers (Sikri & Wadhwa 2012).

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