Marketing Techniques of Tesco and Sainsbury

This assignment examines the different marketing techniques employed by Tesco and Sainsbury. It explores the limitations and constraints of marketing within these organizations and how they can be overcome. The report delves into the use of marketing research for effective marketing planning and target customer selection based on product and service categories. Additionally, it outlines methods for developing a new product's marketing mix.

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Marketing techniques used by two organisation....................................................................1
P2 Limitations and constraints of marketing.............................................................................2
TASK2.............................................................................................................................................3
P3 Use of marketing research by Tesco......................................................................................3
P4 Use of marketing research for marketing planning................................................................4
TASK3.............................................................................................................................................5
P5 Groups of customers are targeted for selected products........................................................5
P6 Marketing mix for new products and services.......................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing is a method through which a firm can be able to avail information of products
and services to member of society. Hence marketing is a process of meeting needs of customers
by doing research in market and this will help in understanding necessities of public of the
targeted market. It is basically about understanding of needs and desires of users and then
according to that products are served to them. It will also focus more on satisfaction level of the
users in market (Anda and Temmen, 2014). Tesco and Sainsbury are two companies who are
carrying out different marketing strategies to establish and to sustain in competitive market as
required in current scenario.
TASK1
P1 Marketing techniques used by two organisation.
Sainsbury is a very well known company of retailing in United Kingdom and is having
the position of second largest chain stores in the nation. Whereas Tesco is third largest store as
measured by profit, it is very renowned organisation all around the world its popularity is very
high and also it has a successful growth rate in the competitive market. Following are techniques
of marketing that is been used by these two companies to survive and grow and also to create
awareness in market about their products and services.
Sainsbury Marketing techniques (Growth strategy)
 Diversification- It is a stage of Ansoff matrix which is most risky and the chances of
growth are also very high here. The company is diversifying in market by introducing
more products in its retail store beside what already it is been providing to public of
society. It has helped firm to capture more shares in market and expansion of its business
made it known to all in new market area (Bhattacharya, 2010). Diversification methods
helps Sainsbury to develop it products and services in more diverse and expanded
manner, which has assisted in sustain and to grow effectively.
 Product development- Product development is the method which helps company to
frequently grow in market. Sainsbury is always trying to introduce new products in the
economy as to attract customers and to retain them for long period of time. This will
grow profit rates of company and will able to satisfy customers by fulfilling needs and
wants of them.
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 Market development – It is a way by which company will be providing its products in
new market, those areas which it has not yet tapped and served are targetted by it.
Expansion of its business in new area are done by company, which will help in attaining
its objectives as well as it will assist in capturing more prospects of market (Hallahan,
Kauffman and Pullen, 2011).
 Market penetration- This method focuses more on selling of products in market which it
is been offering till now and also in the same market. Its major objective is to increase its
consumers and to protect its consistent growth.
Tesco's marketing techniques
 Branding- It is a method through which a company can be able to create an image of it in
the mind of customers. Company is doing branding of its products and services to its
target customers so that they can be able to sustain in market with support of its loyal
customers.
 Brand extension- It is a method that company is using to introduce a new product and
service with help of its existing services in market. The brand name are used by it with its
new products. Its existing items has already created a benchmark in market which is
assisting the firm to launch new products.
 Relationship marketing- It is an important aspect as it helps in maintaining long term
relationship with the customers of society. Several tools and techniques are used to carry
out this activity.
P2 Limitations and constraints of marketing.
As marketing is an important aspects of business, it is very necessary for organisation to
understand each and every concept of it. Every element has its pros and cons marketing also
have such as-
1. Sale of goods act- It is an essential aspect which has to be considered by the company as
because this act describes that advertising which are done by it must avail clear
information of products and services of an organisation (Malhotra, 2012). For example a
soap is advertised as it will kill germs 100% then definitely it must be doing that unless it
should not be represented in wrong manner.
2. Consumers protection from unfair trading 2008- This acts are made to protect consumers
rights as because there are many companies which represent a different aspects of
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products and services and its actually perform very different to what it has been shown.
Therefore this act assist customers to stand up for their right being a consumers, they can
also complain in court if unfair trade has been done with them at any moment
(McKenzie-Mohr, 2013).
3. Consumer credit act- This act is implicated upon all the firms and customers who are
doing their transactions on credit basis that means, products and services are availed on
loans(Financial aid to those customers who are in need of). For example bank and
financial institutions these avail their services to customers in credit basis.
4. Acceptable language- This aspect also has to be considered the most as because this assist
in knowing correct mode of language that has to be chosen by company to convey
message and information that are related to products and services of it.
TASK2
P3 Use of marketing research by Tesco
Tesco uses every single aspect to understand current condition of market. The different
methods of marketing research has been carried out by company so that needs and wants can be
able to understand properly and to know exact necessities of public most appropriate tools has to
be used by it.
Primary research
Primary research are those method through which an organisation' researchers get
directly into the market and interact with customers to collect relevant informations and data that
will assist company to sustain in market. Quantitative and qualitative methods are involved
where qualitative involves open ended questionnaires, observation methods, interview and focus
group. Whereas in quantitative techniques researchers are more focused upon numericals and
statistical aspects, it involves questionnaires and surveys (Mentzer and Gundlach, 2010).
This sources will help knowing what actually customers are in need of and with this
company can be able to avail them what they need and this will satisfy every customers of the
company.
Secondary research
This is a methods of gathering information where companies collect data which has been
already get collected by some other researchers like, books, journals, magazines etc. it has
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internal and external sources, internal are those informations that can be attained within the
company like retail data, stock analysis and balance sheets. Whereas in external sources includes
commercial data, government stats etc (Molesworth, Scullion and Nixon, 2010).
This approach will help in developing plans related to marketing and will lead in learning
about industry and market of several places where company wants to deal with its products and
services.
Strengths
As market research has been carried out it is very clearly understood that Tesco has large
number of customers in market it is its USP that services that it provides to them are very unique
and different. It has its leading position in UK market this get known by research that get
conducted by company. Its online operations are very effectively carried out and customers are
also very satisfied with this. With gathered information company can be able to perform more
efficiently.
Weaknesses
With help of research internally it come to know that financial management of company
is quite bad proper management is needed regarding financial aspects. Brand image has also
been spoiled due to scandal that caught in public (Palmer, 2012). Collected data can be used to
properly plan upon more efforts that company can put to sustain in market and to grow in an
effective manner.
Opportunity
Research has helped company to know number of opportunity that it can avail from
market as it can be able to expand its business in international market. It also come to know that
it can increase its range in non retail sectors too.
Threats
The most risky factor that company may face and is facing is fluctuation of currency in
market. Problems that can occur are ethical issues that must be resolved by company so As to
sustain in market unless it can be a biggest challenge and problem for the company.
P4 Use of marketing research for marketing planning
The marketing use for marketing planning for Tesco company, with the help of marketing
plan by SWOT it can be analysed that in what way company will be able to implement and use
effectively all the informations that are gathered by marketing research. This method is very
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useful for a company to perform and to draw and proper business plan which will lead in
appropriate functioning of operations and activities. Following are the uses that can be attained
with help of marketing research, they are-
 It is very useful for making several strategies that will lead in a healthy and appropriate
system of planning.
 With its support a firm will be able to know about all the factors that are affecting
operations and activities.
 Strengths and weaknesses could be analysed through this which will help in preparing
and effective planning for organisation's growth.
 Opportunities can be very supporting as it will assist in knowing how to carry out the
entire task and work.
 Marketing research will also provide a path so that company will be able to perform and
enhance the productivity as well.
TASK3
P5 Groups of customers are targeted for selected products
Customers are targetted by company on the basis of the products and services that they
will be offering to them. It is an essential element as because it will help in attracting those
customers who are actually using them. There are different modes through which company can
targets its customers form market.
 Grocery- It is the product that are most used at every home hence home makers of society
are targetted. On the basis of psycho graphic method and geographical segmentation
method customers of society are targetted most (Papasolomou and Melanthiou, 2012). Its
is because tastes and preferences changes as trends of market get fluctuate, hence it is
very essential for company to know their needs and wants regarding the products that will
be offered to them. Both Tesco and Sainsbury are dealing in same category of industry as
retail they both will be concerning more upon taste and choices of customers of this
segmented market.
 Baby products- These products are not used in frequent manner it is used by mother for
their new born kids. Hence customers are targetted on the basis of demographic
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segmentation method. This is because it lies upon age factors as baby products are only
used by small child. It is very important for the firm both Sainsbury and Tesco to
understand who all are in need of it so that the customers can be targetted according to
that.
 Clothing- It is the sector which is been targetted by both cited companies on demographic
geographic and psycho-graphic basis as because services of companies are availed in
many places according to that geographical segmentations is to be considered most, their
tastes and preferences also get changes very frequently according to that customers can
be targetted.
P6 Marketing mix for new products and services.
Marketing mix are the tools through which company can be able to control several factors
that can influence operations and functions of it (Peter and Donnelly, 2011). Such as
 Product- It is very necessary for an organisation to produce those products and services
that are in trend and customers are in need of it. If company produces products which are
not in market need then there are chances where it can face challenges and threats to
sustain in the market. Core value and services has to be availed in products that is been
developed and offered.
 Price- Prices set for products has to be very effective, attractive and competitive as to
compete with other companies of market (Anda and Temmen 2014). Products has worth
when consumers are willing to pay that amount which is set by firm for a product of
services.
 Place- The most important aspect is that company must be able to avail its services and
product to its target customers, hence it is very necessary for it to locate its store at reach
of its customers.
 Promotion- As products and services are newly developed it become very necessary to
convey related information to the public so that they can get awareness about new items
of the firm.
 People- All those who are involved in transaction with the firm is said to be as people.
Manpower of the company are representatives of it they are the one who has direct
connections with customers, they most know about consumers choices and preferences,
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hence while producing a new product and services their opinion are very must to be
considered by the company.
 Process- The methods and steps involved in providing services and products to the
ultimate customers and to make them satisfied is a tough task to be performed by the
company (Bhattacharya, 2010). Therefore it is very essential to opt the correct method to
attain the customer's satisfaction.
 Physical evidence- As services as to be provided any physical element or tangible
presence is not there hence the experiences and process through which a customers has
gone through are to be considered in this aspects.
CONCLUSION
In this report different marketing techniques are used by two different organisation. Also
limitations and constraints of marketing are understood so that company can overcome them in
effective manner and can carry out its operation in appropriate manner. This report concludes
that how company van use marketing research for making effective marketing plans. Also
targetted customers are selected on the basis of different categories of products and services
provided by Tesco and Sainsbury. On its basis segmented markets are targetted so that customers
can be able to attain desired services. Companies new product's marketing mix developing
methods are described.
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REFERENCES
Books and Journals
Anda, M. and Temmen, J., 2014. Smart metering for residential energy efficiency: The use of
community based social marketing for behavioural change and smart grid introduction.
Renewable Energy. 67. pp.119-127.
Bhattacharya, C.B. ed., 2010. Introduction to the special section on stakeholder marketing.
Journal of Public Policy & Marketing. 29(1). pp.1-3.
Hallahan, D.P., Kauffman, J.M. and Pullen, P.C., 2011. Exceptional learners: An introduction to
special education. Pearson Higher Ed.
Malhotra, N.K., 2012. Basic marketing research: Integration of social media. Boston: Pearson.
McKenzie-Mohr, D., 2013. Fostering sustainable behavior: An introduction to community-based
social marketing. New society publishers.
Mentzer, J.T. and Gundlach, G., 2010. Exploring the relationship between marketing and supply
chain management: introduction to the special issue. Journal of the Academy of
Marketing Science. 38(1). pp.1-4.
Molesworth, M., Scullion, R. and Nixon, E. eds., 2010. The marketisation of higher education.
Routledge.
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Peter, J.P. and Donnelly, J.H., 2011. Marketing management: knowledge and skills: text,
analysis, cases, plans. Plano: Business pub., INC.
Online
Tesco SWOT Analysis. 2016. [Online]. Available through:
<http://research-methodology.net/tesco-swot-analysis/>. [Accessed on 5th June 2017].
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