Comparison of Marketing Mix: Tesco vs Sainsbury's

This report provides a detailed comparison of the marketing mix strategies of Tesco and Sainsbury's, two major retail store chains in the UK. It analyzes their product, price, place, promotion, process, people, and physical evidence strategies. The report also includes a marketing plan for Tesco to increase customer satisfaction and market share.

MARKETING
ESSENTIALS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
PART 2............................................................................................................................................8
Comparison of Marketing Mix....................................................................................................8
Marketing Plan...........................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is the cumulative process of different activities which are performed by
business organisation to increase customer’s satisfaction effectively. Due to increase in the
customer demand it has also increased competition in the market and make very important for
business organisation to analyse all the factors and formulate effective marketing strategies
effectively. This report has detailed comparison between Tesco and Sainsbury’s which two
major retail store chain in UK are. Report also provide marketing plan for the organisation by
analysing all the internal and external factors and distributing customers segments effectively.
There is description of different monitoring strategies which increases the potential of
organisation to compete in the market and attain core competency effectively.
PART 1

Notes:
Increase customer base: Marketing manager of Unilever plc delegates task to it’s staff for
conducting different marketing campaigns in different segmentation. While marketing team of
Unilever plc need to conduct informative marketing campaigns which convince to user or
customer to buy Unilever product effectively.

PART 2
Comparison of Marketing Mix
It is very essential for business organisation to develop effective marketing mix strategies
which increase the potential to compete in the market and gain higher profit margins effectively.
There is a comparison of marketing mix strategies of Sainsbury’s and Tesco. Both organisations
are major retail store chains in UK and uses different techniques to increase their customer’s
satisfaction and grow in the market. Due to rapid change in taste and preference of customers it
has also impacted the opportunities of retail industry to achieve objectives effectively.
Product
Product strategy focuses on the different techniques and activities which increases the
efficiency of products for customers to increase their satisfaction effectively.
Tesco Sainsbury’s
Tesco provides food, clothing, electronics, and
financial services to its customers. This also
helps company to increase its market share and
compete in the market effectively.
Sainsbury’s provides retail products, like; daily
use items, food items, groceries etc. to different
customers in the retail industry (Sharp, 2016).
Top-level management of company believes in

providing quality products to customers,
because most people within the UK always like
to buy quality products.
Price
Tesco Sainsbury’s
Tesco has implemented low pricing strategy
due to increase in the competition and to
increase customer satisfaction. Tesco focuses
on cost advantages by merging with various
supply chain effectively.
Sainsbury’s has competitive pricing strategy to
compete in the market and attract more
customers. Company analyses that customers
measures satisfaction according to money paid
for the commodity and value received from it.
Company uses effective technology to reduce
cost of operation and provides attractive prices
and make loyal customers effectively. this
helps Sainsbury’s to improve the potential of
company to earn more profits and grow
effectively in the market.
Place
Tesco Sainsbury’s
Company is established in UK and has many
stores in the country. Tesco uses two types of
distribution channel offline and online stores to
increase the sales and gain higher opportunity
to grow in the market effectively. Tesco has six
different types of offline stores which are
Tesco express, Tesco extra, Tesco Metro,
Tesco Compact, Tesco Home plus and Tesco
Superstore (Wirtz and Lovelock, 2016). This
helps to attract different customer segment
effectively.
Sainsbury’s has many retail stores in UK and
provides better distribution channel to
customers to increase its sales. Company has
also developed strategies to increase stores in
the country which enables to improve brand
image in UK and create potential customer
base. Company has developed effective
infrastructure with better hygiene factors to
increase customer satisfaction and maintain
brand image in the market.

Promotion
Tesco Sainsbury’s
Due to low pricing strategy company do not
have to invest in aggressive promotions as low
pricing products automatically attract more
customers and increase the sales of the
company. Tesco promotes its low price
products to improve its brand image in
comparison to other retail businesses in UK.
Marketing department of Sainsbury’s provides
better analysis of the market and understand
needs and preferences of customers to develop
effective promotion campaigns to increase
success rate. This also helps to increase the
potential of company to increase the sales as
Sainsbury’s provides large products and
services to make loyal customers. Sainsbury’s
also ensure high quality customer services to
improve perceived values of the company to
enhance brand value in the market effectively.
Process
Tesco Sainsbury’s
Tesco has implemented digital technology to
reduce checkout line for billing as customers
can easily bill their products at checkout kiosk.
This also helps to increase customer
satisfaction goodwill of company in the market
effectively.
Sainsbury’s has partnered with third paty
logistics to increase the potential of their
distribution channel. This has also reduced the
cost of products and improves the delivery
time (Waite and Pérez-Vega, 2018). Faster
delivery of products has also increased the
brand image of company by providing all the
products in the store. Sainsbury’s has adopted
effective information system which helps to
provide stock information about all the stores to
fulfil the requirement which is urgently required for
the customers.
People

Tesco Sainsbury’s
It uses programs such as Colleague Privilege
card, Save As You Earn, and Buy As You Earn
to gain the loyalty of its employees. Tesco’s
employees are potential and well compensated
for their contributions in making Tesco a
success.
Sainsbury’s provide training and development
to their employees which ensure high
performance workforce to achieve objectives
of the company effectively. Company also has
effective team who has skills and knowledge to
make better decision and increase customer
engagement level in the stores to improve sales
and gain better profit margins effectively.
Physical Evidence
Tesco Sainsbury’s
Tesco provides hygienic atmosphere for
customers and employees to increase their
satisfaction in the stores. Company provide
different departments of products in the same
store to increase effectiveness of company to
attract more customers.
Sainsbury’s has used its brand name and logo
in all the products and services. Company has
used effective packaging and labelling to
improve customer attraction to improve the
brand image in the market.
Marketing Plan
Aim
Increase customer satisfaction and market share of Tesco by 15% in UK retain industry.
Objectives
 To develop high quality products and services which increase profit margins by 20%
within 1 year.
 To adopt technology this increases brand value of Tesco to double its customer base by
2022.
Marketing Mix
 Product- Tesco has huge range of product varieries.

 Price- low pricing strategy.
 Place- offline and online stores in UK.
 Promotion- Low promotions due to low pricing strategy.
 Process- Mergers and partnership with value chain businesses for distribution channel.
 People- High Performance marketing teams.
 Physical Evidence- Brand logo, packaging, labeling and mouth publicity by loyal
customers.
PEST Analysis Political factors
The political powers are stable in the country which is why the organization does not have to
make a lot of changes which is making the company have a successful functioning (Pooler,
2018). There are long term strategies which Tesco has been using from a long run which is
helping the company to get in higher profit margins. Social Factors
The trends and expectations of the customers are changing which is being taken care of by
Tesco by understanding and focusing on them. There are changes which are taking place in the
products and innovations are being done so that the company can have a better functioning. The
culture is being taken care of by the organization and there is no discrimination which is taking
place in the organization which is a great factor for brand recognition globally. Economic Factors
There are a lot of factors which impact on the economic stability of the company. There is a
lot of investment which Tesco is doing in the research and development department which the
company has to take care of which required the organization to make more profits. The lifestyle
of the people is improving because the rate of unemployment in the country is reducing which is
a great factor for the organization since the prices of the products can be accordingly. Technological Factor
Demands from the customers are increasing for the products of Tesco which is making the
company make a lot of technological improvement (Lu, Poon and Weng, 2018). This is helping
the company have a stable functioning and the productivity well maintained as well. For the
reputation of the company to be intact it is very important for the organization to be able to
maintain their quality as well which is going to make the company have loyal customers.

SWOT Analysis Strengths
The organization has been in this market from a long run which is why they are used to the
changes which have to be done in the organization. There is not just experience which Tesco is
having with them but the company is also having a lot of skilled and knowledge in the market
which can be very helpful for the company’s long run in the market. Weaknesses
Innovations which are taking place in the organization are not up to the mark for the
company’s long run. The organization is not being able to fulfil the demands of the customers
from time to time which can make the customers shift from one organization to another if this
continues for a long run. Opportunities
The organization has opted for online services for the customers which are going to be very
helpful for the customers and the company to get higher profit margins. The company has taken
a lot of changes in the organization because of this online factor (Omar, 2017). The company has
made a name of the company globally which is why expanding in developing countries is a great
decision for Tesco and that will help the company to have better operations. Threats
Tesco has a lot of threats from the competitors which are in the market like Sainsbury’s,
P&G, etc. There is a lot of analysis which has to be done by Tesco so that the right decisions can
be taken by the organization which is going to be very helpful for a long run. Due to Brexit the
company has lost a lot of skilled employees which could have helped the company to maintain
the customer base in the organization.
Budget
Budget of Tesco is allocated by top level management after proper communication with finance
department and other departments. Marketing department is responsible to provide all be
incurred costs of this marketing plan to increase efficiency of the company.
Evaluation

Company has effective opportunities to grow in the market from this marketing plan. It will also
increase the innovative strategic planning of the company to compete in he market and improve
profitability effectively (Fulgoni, 2016).
Measuring and Monitoring
Key performance indicator is very productive tool which will give opportunity to company
maintain effectiveness within its all marketing operations. In this situation, marketing team
should use this tool while conducting this marketing plan as well.
CONCLUSION
This report concludes that it is very essential for business to analyse different factors
which can influence performance of the organization effectively. This also impacted the
performance of organisation by analysing different marketing strategies to increase sales of
organisation and enhance customer satisfaction effectively. Report provided marketing mix
strategy comparison of two organisation of same industry to increase the opportunity of business
to compete in the market and increase their performance effectively. Report provided marketing
plan to increase the growth opportunity of business organisation due to increase in competition in
the market. this also helped to increase the efficiency to provide customer satisfaction to
customers effectively.

REFERENCES
Books and Journal
Fulgoni, G., 2016. How to maximize the return on investment from digital marketing. Warc Best
Practice marec.
Lu, C.S., Poon, H.Y. and Weng, H.K., 2018. A safety marketing stimuli-response model of
passenger behaviour in the ferry context. Maritime Business Review.
Omar, A.A., 2017. Extensive knowledge in marketing management. Economic and Social
Development: Book of Proceedings. pp.314-321.
Pooler, J.A., 2018. Demographic targeting: the essential role of population groups in retail
marketing. Routledge.
Sharp, C., 2016. Branding Essentials for Solos and Small Firms. GPSolo. 33. p.19.
Waite, K. and Pérez-Vega, R., 2018. Essentials of Digital Marketing.
Wirtz, J. and Lovelock, C., 2016. Services marketing: People, technology. World Scientific
Publishing Company.