Market Share Analysis of UK Supermarkets

This report presents an analysis of the market share and earnings before interest and taxes (EBIT) of four major supermarkets in the UK: B&M, Tesco, Sainsbury's, and Morrisons. The analysis uses both primary and secondary data collection methods to provide a comprehensive understanding of the market dynamics. The report recommends that companies focus on developing new businesses to offer services and products at minimum cost, and provides a summary of relevant references used in the research.

Individual Business Report and
Presentation

EXECUTIVE SUMMARY
Decision making refers to main part of the modern management. The decisions are made
to retain activities of business as well as functions of company. In this report discussed about the
data collection from primary and secondary methods. There has been questionnaire developed
and respondent has been selected by using the random data sampling method. In the secondary
method of data collection, Market Share and Earnings before Interest and Taxes (EBIT) has been
determined and interpreted in an effective manner.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PRIMARY DATA COLLECTION.................................................................................................1
Data collection........................................................................................................................1
Sampling Techniques.............................................................................................................1
DATA ANALYSIS..........................................................................................................................5
Primary Data...........................................................................................................................5
Secondary Data.......................................................................................................................8
KEY FINDINGS, CONCLUSION AND RECOMMENDATION...............................................13
Findings................................................................................................................................13
Conclusion............................................................................................................................13
Recommendations................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business decision making refers to process through which firms make the better decisions
before beginning new business venture or enter in to new market place. It is procedure of making
the choices though determining decisions, collecting information and also assessing the
alternative solutions. This present report is based on discounters B&M and Home Bargains in
UK which has left UK large supermarkets in order to remain the competitive and then prevent
from reducing market shares. In this present report will be discuss about the primary data
collection and analysis by developing questionnaire. The secondary data collection methods will
be used to gather 3 years data on Market Shares and Earnings Before Interest and Taxes (EBIT).
PRIMARY DATA COLLECTION
Data collection
Data Collection refers to method for gathering the information and data from the different.
There are two different types of Data Collection method primary and secondary. In primary data
collection method data is collected for the first time and different sources of collecting the
primary data are questionnaire, observation, surveys, focus group, interviews and many others.
On the other hand in secondary method data is already collected through some other person or
affected and various sources of collecting the secondary data are articles, books, internet sources
and many others.
Sampling Techniques
Sampling refers to subset of people from whole population. Under this, researcher selects
some people from the whole population and selected by researcher for collecting the data and
information in a better manner. Random data sampling is a method to select the response from
whole population because this method is unbiased and provide equal opportunity to all the
respondents in a better manner.
QUESTIONNAIRE
Name:
Age:
Gender:
1

Contact no.
Q1) Are you satisfied from services and products of B&M ?
a) Yes
b) No
Q2) What are various factors which attract you most?
a) Location
b) Cost
c) Discounts
d) Quality
Q3) On the basis of your point of view, does Home Bargains company is able to give
satisfactory services and products?
a) Agree
b) Disagree
Q4) Do you ever used products and services of Tesco ?
a) Yes
b) No
Q5) Does discounted goods and services attract you most?
a) Yes
b) No
Q6) According to your opinion, can Tesco gain competitive benefits through starting its
new discount chain?
a) Yes
b) No
Q7) Why do you prefer discounted products more?
a) Home delivery
b) Ambience
c) Product variety
d) Space
Q8) What are various methods by which B&M can be compete with Tesco?
a) High quality product
b) Attractive Offers
2

c) Online service
Q9) On the basis of your viewpoint, how business firms can identify your preferences and
needs?
a) Interviewing customers
b) Conducting follow me research
c) Feedback forms
Q10) Suggest some methods by which Full-Discount Ltd. can retain in the competitive
market for long period of time.
Responses
Q1) Are you satisfied from services and products of B&M ? Frequency
Yes 7
No 3
Q2) What are various factors which attract you most? Frequency
Location 3
Cost 1
Discounts 4
Quality 2
Q3) On the basis of your point of view, does Home Bargains
company is able to give satisfactory services and products?
Frequency
Agree 8
Disagree 2
Q4) Do you ever used products and services of Tesco ? Frequency
Yes 6
3

No 4
Q5) Does discounted goods and services attract you most? Frequency
Yes 7
No 3
Q6) According to your opinion, can Tesco gain competitive
benefits through starting its new discount chain?
Frequency
Yes 5
No 5
Q7) Why do you prefer discounted products more? Frequency
Home delivery 4
Ambience 2
Product variety 3
Space 1
Q8) What are various methods by which B&M can be compete
with Tesco?
Frequency
High quality product 2
Attractive Offers 5
Online service 3
Q9) On the basis of your viewpoint, how business firms can
identify your preferences and needs?
Frequency
Interviewing customers 4
Conducting follow me research 5
Feedback forms 1
4

DATA ANALYSIS
Primary Data
THEME 1: Satisfied from services and products of B&M
Q1) Are you satisfied from services and
products of B&M ?
Frequency
Yes 7
No 3
Interpretation: It has been interpret from the above mentioned graph that there are 7
respondents which said that they are satisfied from the services as well as products of B & M
company. On the other hand there are 3 respondents which are not customers of B&M company.
THEME 2: Various factors which attract you most
Q2) What are various factors which attract
you most?
Frequency
Location 3
Cost 1
Discounts 4
Quality 2
Interpretation: According to opinion of 3 respondents that the main factor that attracts most is
location of company. If the location will be proper then customers will able to purchase things
from there. On the other hand there is 1 respondent is said that the cost of its products are most
attractive. There are 4 respondents which said that it provides the discounts which attract most.
On the basis of respondents quality is a main factor which attract customers more.
THEME 3: Home Bargains company is able to give satisfactory services and products
Q3) On the basis of your point of view, does
Home Bargains company is able to give
satisfactory services and products?
Frequency
5

Agree 8
Disagree 2
Interpretation: According to opinion of 8 respondents that Home Bargains company is able to
provide the satisfactory services as well as products to customers. On the other hand there are 2
respondents which disagree with this given statements.
THEME 4: Ever used products and services of Tesco
Q4) Do you ever used products and services
of Tesco ?
Frequency
Yes 6
No 4
Interpretation: There are 6 respondents which said that they were use the product and services
of Tesco from long period of time. There are 4 other respondents which said that they are not use
product and services of Tesco because of high price and low quality.
THEME 5: Discounted goods and services attract you most
Q5) Does discounted goods and services
attract you most?
Frequency
Yes 7
No 3
Interpretation: There are 7 respondents which said that the discount products and services
attract the most because it provides the product on low cost. On the other hand there are 3
respondents which are not agree with this statement.
THEME 6: Tesco gain competitive benefits through starting its new discount chain
Q6) According to your opinion, can Tesco
gain competitive benefits through starting
its new discount chain?
Frequency
6

Yes 5
No 5
Interpretation: It has been interpreted from the above mentioned graph that there are 5
respondents and according to them Tesco gain the competitive advantage with the help of
starting its new discount Chain. There are 5 other respondents which said that company can do
some things to gain the competitive advantage of Marketplace.
THEME 7: Prefer discounted products more
Q7) Why do you prefer discounted products
more?
Frequency
Home delivery 4
Ambience 2
Product variety 3
Space 1
Interpretation: There are 2 respondents which said that home delivery is the most discounted
products. On the other hand there are 2 respondents which said that Ambiance is most attractive
thing that attract the people most. There are 3 respondents which said that for the product variety
we prefer the discounted products more. On the other hand there are 1 respondent said that space
is the most preferred auto products.
THEME 8: Methods by which B&M can be compete with Tesco
Q8) What are various methods by which
B&M can be compete with Tesco?
Frequency
High quality product 2
Attractive Offers 5
Online service 3
7

Interpretation: There are 2 respondents which said that high quality of product is main methods
through which company can be competing with Tesco. There are 3 respondents which said that
online service is one of the effective ways through which company can be compete with Tesco. 4
respondents said that people prefer more online services because company provides it at home
and customers do not worry to go to stores. There are 5 respondents with said that attractive
offers provides by company compete with Tesco.
THEME 9: Business firms can identify your preferences and needs
Q9) On the basis of your viewpoint, how
business firms can identify your preferences
and needs?
Frequency
Interviewing customers 4
Conducting follow me research 5
Feedback forms 1
Interpretation: For determining the needs and preferences of customer’s company use different
ways. On the basis of opinion of 2 respondents that interview the customers is better way to
determine their needs and preferences. On the other hand, there are 5 respondents which said that
conducting Follow Me research is an effective way. There are 10 respondents and according to
them that company can take the feedback form from customers so that it can be know about the
demands and preferences of customers.
Secondary Data
Market Share
Discounted Store 2016 2017 2018
B&M 19.06% 16.28% 19.76%
Amount in () 2035 2431 3030
8

08/07/1905
0
0.05
0.1
0.15
0.2
0.25
19.06% 16.28%
19.76%
Market Growth
B&M
Year Amount
2016 2035
2017 2431
2018 3030
Mean 2498.667
Median 2431
Standard deviation 500.9395
Interpretation: It has been interpret from above mention graph that total revenue in year 2016
was 2035 that shows growth approximately 19% that followed through year 2017 and its revenue
is 2431. According to this analysis, it has been interpret that B&W doing well business as
comparison to large supermarkets. The mean is 2498, median value is 2431 and standards
deviation is 500.9395.
Big Supermarket 2016 2017 2018
Tesco -14.52% 2.60% 2.73%
Morrison 1.6% 1.4% 2.3%
Sainsbury -0.6% 2% 0.4%
9

-15.00%
-10.00%
-5.00%
0.00%
5.00%
Tesco
Morrison
Sainsbury
Year Tesco
Morriso
n
Sainsbur
y
2016 -0.1452 0.016 -0.006
2017 0.026 0.014 0.02
2018 0.0273 0.023 0.004
Mean
-
0.03063 0.017667 0.006
Median 0.026 0.016 0.004
Standard
deviation 0.09922 0.004726 0.013115
Interpretation: From the above mention calculation, it has been interpret that in year 2016,
growth rate of Tesco in year 2016 is 0.1452 that was negative. In year 2017, growth rate was
0.026 and in 2018 was 0.0273. The growth rate of Morrison is declining from 2014 to 2017 but
in year 2018 its growth rate has been enhanced and it was 0.023. Sainsbury growth rate is also
declining from year 2016 to 2018. On an average, mean value of Tesco is 0.03063, Morrison is
0.017667 and Sainsbury is 0.006. Median of Tesco is 0.026, Morrison is 0.016 and Sainsbury is
0.004726. Standard deviation of Tesco is 0.09922, Morrison is 0.0047266 and Sainsbury is
0.013115.
Operating Profit
Discounted Store 2016 2017 2018
B&M 8.89% 8.41% 7.91%
Amount in 181 205 240
10

08/07/1905
0.07
0.08
0.08
0.09
0.09 8.89%
8.41%
7.91%
Operating Profit
B&M
Linear (B&M)
Discounted
Store B&M Amount
in
2016 8.89% 181
2017 8.41% 205
2018 7.91% 240
Mean 0.0840333 208.6667
Median 0.0841 205
Standard
deviation 0.0049003 29.67041
Interpretation: It has been calculated from the above mention calculation that there is a
reduction in percentage of the operating profit but enhance in profit. In year 2016, Total
operating profit was 181 with percentage enhance of 8.89% that followed through year 2017
was 205 with minimum percentage of 8.41%. In year 2018, firm earned total operating profit of
240 with percentage of 7.91%. From this, mean of B&M is 0.0840333, median is 0.0841 and
standard deviation is 0.0049003.
Big Supermarket 2016 2017 2018
Tesco 1.80% 2.09% 2.72%
Morrison 1.35% 2.67% 2.54%
Sainsbury 3.01% 2.45% 1.82%
11

0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
3-D Column 1
Tesco
Morrison
Sainsbury
Big
Supermarket Tesco
Morriso
n
Sainsbur
y
2016 0.018 0.0135 0.0301
2017 0.0209 0.0267 0.0245
2018 0.0272 0.0254 0.0182
Mean 0.0220333 0.021867 0.024267
Median 0.0209 0.0254 0.0245
Standard
deviation 0.0047035 0.007275 0.005953
Interpretation: It has been interpret from above calculation that total operating profit earned
through firm in year 2016 is 1.8% enhance later followed through year 2017 with a percentage
enhance of 2.09% and it recorded operating profit. In year 2018, operating profit of firm was
stated at 2.72%. The mention graph showed the operating profit earned through Morrison in year
2016 was reported at 1.35% and in year 2017 it enhanced to 2.67% whereas in year 2018 it
reduced to 2.54% that states significant growth in operating profit of firm. The graph states
operating profit that showed Sainsbury in year 2016 was reported at 3.01% in year 2017 it
minimize to 2.45% it continued to go down in the year 2018 it went down to 1.82%. On an
average, mean value of Tesco is 0.0220333, Morrison is 0.021867 and Sainsbury is 0.024267.
Median of Tesco is 0.0209, Morrison is 0.0254 and Sainsbury is 0.02456. Standard deviation of
Tesco is 0.0047035, Morrison is 0.007275 and Sainsbury is 0.005953.
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KEY FINDINGS, CONCLUSION AND RECOMMENDATION
Findings
This report is based on the business decision making. Under this, data and information
has been collected with the help of using secondary sources. It is helpful in provide the better
information regarding any specific area. There has been data collected of 3 years on the market
share and also Earnings Before Interest and Taxes (EBIT). There has been interpret the data that
show relative competitiveness in context to the profit level and market share for B&M, Home
Bargains and other supermarkets of United Kingdom Tesco, Sainsbury’s and Morrisons.
Conclusion
It has been interpret from about mention analysis that customers are those which develop
the negative and positive impact on reputation of firm. The organisations find effective ways to
fulfil needs as well as demands of customers with the help of using effective techniques. In this
report, primary and secondary both data collection has been used for collected data related to
specific subject area. In primary method, questionnaire has been developed through researcher as
to gather information. In secondary method, books, articles, journals etc. has been used in a
detailed manner. Under this, data has been analysed with the help of mean, median and standard
deviation.
Recommendations
From mention analysis, it has been recommended that firm should go with developing the
new business in order to gives services and products at minimum cost. It is necessary that
researcher should use the relevant sources to collect the information and data. Tesco should
provide the discounted products to its consumers in order to attract large number of consumers
and enhance market growth in an effective manner. On the other hand, company can capture the
entire market in an easy manner and also can get the high rate of return.
13