A Comparative Analysis of Marketing Mix 7P: Tesco and Sainsbury

This report provides a comparative analysis of Tesco and Sainsbury, two leading retail giants in the UK, focusing on their marketing strategies through the 7Ps of the marketing mix: product, price, promotion, place, people, process, and physical evidence. The report examines Tesco's product range, competitive pricing strategy, extensive promotional efforts, customer-friendly store locations, employee retention strategies, efficient purchasing processes, and emphasis on low pricing. It contrasts these with Sainsbury's focus on product quality, value-based pricing, digital marketing and customer loyalty, store locations, employee retention, customer-centric processes, and attractive store designs. The analysis highlights how each company aligns its strategies with its corporate objectives, offering insights into their approaches to domestic and international markets. The report concludes that corporate strategy significantly influences business-level strategies, ultimately impacting organizational success. The reference section includes research papers and articles that support the analysis of the marketing strategies of the two retail companies.

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MARKETING MIX 7P
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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Product.........................................................................................................................................2
Price.............................................................................................................................................3
Promotion....................................................................................................................................4
Place.............................................................................................................................................4
People..........................................................................................................................................5
Process.........................................................................................................................................5
Physical evidence.........................................................................................................................6
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

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Introduction
Tesco is one of the leading retail giants operated in UK and considered to be the ninth
largest retailer in the world. The company has already extended its business in seven countries
across Asia and Europe and quite successful in its business. On the other hand, Sainsbury is the
second largest retail chain in United Kingdom with a 16% market share in the UK supermarket
sector. Therefore, it is important for the report to evaluate and discuss different strategies and
approaches followed by both the companies to sustain its business successfully in both domestic
and international market. The report cares to put emphasis on the marketing mix 7P tool to
understand the different strategies implemented by both the companies and its impact over the
organisational success to maintain the aims and objectives of the organisations.
Discussion
Product
As far as the product range of Tesco is concerned, it can be stated that there are more
than 40,000 products offered by Tesco including food, clothing, electronics and financial service
etc. The focus of the organisation is to increase its number of customers by providing them range
of alternative products so that they can choose effectively (Ibrahim, Alkhawlani and Al-
shaghdari 2017). Henceforth, increase the number of products is identified as one of the most
important strategy that Tesco follows for both the domestic and international customers.
Sainsbury also has long range of products with a number of almost 30,000 with its own
labelled product ranges up to 20% (Steenkamp 2017). The aim of the organisation is to retain its
value customers to a great extent. Therefore, more focus has been casted on the quality of the

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product and gain more trust of the customers. It is important to note that the range of products is
almost the same as Tesco but Sainsbury is more interested in maintaining good quality of the
products. Therefore, introducing own labelled products is also a positive gesture from the
organisation where the motive of Sainsbury is to create a strong brand image.
Price
As far as the pricing strategy of Tesco is concerned, it can be argued that a competitive
pricing strategy has been incorporated into the business strategy of the company. The strategy is
highly associated with the corporate strategy of the organisation. Maximisation of customers to a
great extent is identified as a core objective that the company follows. Therefore, the competitive
pricing strategy provides strategic advantage for Tesco to set its pricing strategy in compare to
the rival organisations. From the research of Nguyen et al. (2017) it can be argued that the
competitive pricing strategy helps the business enterprises to set a price of product lower than the
competitors with the purpose of deliver competitive edge in the market. Therefore, Tesco also
maintains the same strategy in association with the organisational objectives.
In case of Sainsbury, a value based pricing strategy is followed with the purpose to
psychologically attract the customers and retain customer base for future sustainability. In
response to this, the article of Arab (2018) pointed out that value based pricing provides enough
insights into the product description and forced the customers to purchase the product due to its
value. Therefore, the value based pricing is highly effective and relevant in the context of
Sainsbury and meet the corporate objectives of the retail giant effectively.

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Promotion
Tesco follows an extensive promotional strategy in business with the purpose to attract
maximum number of customers. Therefore, both the traditional and digital promotional strategies
are incorporated into the business practice of Tesco. Wood, Coe and Wrigley (2016) opined that
putting offline and online promotional strategies easily help the business companies to gain more
advantage in the competitive market. In case of Tesco, the retail giant is trying to provide
discounts and offers to the customers as a part of the low pricing strategy such as buy one get
one free. Therefore, it will be a positive approach for the organisation to fulfil the organisational
aim of attracting more customers through low pricing strategy.
It is pertinent for Sainsbury to have a loyal customer base therefore the organisation
focuses more on the online presence apart from the traditional promotional techniques. It will
help the company to make better customer relation. Mua and Anyieni (2019) advocated that the
digital marketing techniques are very effective to create better relationship with the potential
customers and retain customer base more effectively.
Place
Tesco emphasises more on the customer friendly small stores where it is easier for the
customers to choose the products swiftly. The objective is to maximise the number of customers
by offering customer friendly approach. Lin and Peng (2018) remarked that for the benefits of
the customers it is always crucial to provide a better offer that can easily attract the customers.
Henceforth, it is very important for Tesco to set the strategy for brick and mortar store in
accordance with the vision and mission of the organisation.

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For Sainsbury it is very important to set a number of stores all around the market so that
it will attract more customers. Loyalty is considered to be one of the important aspect for
Sainsbury so that the organisation is trying to provide maximum number of products in the stores
so that customers can easily get all the required items from one single store (Marimuthu and
Venkatesan 2019). Therefore, Sainsbury opens big warehouse like stores in different regions and
also online shopping facilities for the tech savvy customers.
People
Loyalty and retention of the employees are very important for both Tesco and Sainsbury
so that both the companies are trying to satisfy the needs of the employees to a great scale that
can helpful to reduce the rate of employee turnover. As per the research of Wood, Wrigley and
Coe (2017) it can be argued that in the competitive market it is very essential for the business
organisations to retain the existing employees as a part of talent management. In response to this,
it can be stated that the paradigm of talent management is also a pertinent aspect that can
facilitate more effectiveness into the organisational practice. Therefore, it is the responsibility of
the business companies to formulate a better practice so that the employees will be motivated
high enough and it will enhance the quality in production and service of the companies. In case
of Tesco and Sainsbury also the employee retention will be very promising as both the company
are trying to make a sustainable position in domestic and international market. Henceforth,
different employee retention strategies like loyalty bonus and incentives are played significant
enough.
Process
The process in Tesco is highly depended on the efficacy of purchasing phase services. It
is very important for the organisation to offer a good experience to the customers so that they can

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feel highly convinced to visit the store again. The employees of Tesco is also trained in such a
fashion by enhancing their skills in store managers and fast billing service (Lin and Peng 2018).
It will definitely provide effectiveness into the organisational practice where the customers feel
highly satisfied with the attitude of the organisation.
On the other hand, Sainsbury is more focused on the customer loyalty and always trying
to maintain a good personal level relation with the customers. Therefore, the emphasis is
designed in such a manner where the organisation provides an exclusive service to the customers
during the post-purchasing experience. From the article of Hoang (2016) it can be argued that
good relation with the customers in post-purchasing phase is a very effective practice for the
organisations to retain loyal customers effectively. In response to this, it can be argued that
Sainsbury follows effectiveness in its business practice where most of the focus is fixed on the
customer retention and loyalty in accordance with the organisational objectives.
Physical evidence
Tesco believes that the low pricing strategy is enough to maximise customers. Therefore,
the stores are also looked very simple and less colourful. Moreover, the same practice can be
seen in case of the official website of the company (Peeroo, Samy and Jones 2016). The main
objective of the organisation is to maximise the customers rather than retaining the existing
customers. Henceforth, it becomes crucial for the organisation to get more expertise in attract
new customers by its pricing strategy only.
On the contrary, Sainsbury is more concerned about customer retention. In response to
this, the organisation is trying to design its stores with attractive colours and facilities. It is very
important for Sainsbury to provide an exclusive experience to the customers so that they will

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visit again. Zentes, Morschett and Schramm-Klein (2017) asserted that brand value and image
play significant role for retaining existing customers. Therefore, Sainsbury also follows the same
principle in order to maintain its existing customer.
Conclusion
Based on the analysis, it can be stated that Tesco and Sainsbury have different type of
priorities and objectives and the marketing mix strategy has been set accordingly that can easily
help to meet the objectives. Henceforth, the discussion intends to find out different strategies of
both Sainsbury and Tesco in both domestic and international market. Therefore, it can be
concluded that the corporate strategy of an organisation influences its business level strategies to
a great extent.

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Reference
Arab, N., 2018. Relationship between dimensions of Brand Equity and 4Ps of Marketing Mix-
Place, Product, Promotion, & Price: Coca Cola-Consumer Based Qualitative Survey.
Hoang, T., 2016. Market research and marketing plan to enter the United Kingdom food
supplements market: case: Danapha.
Ibrahim, A.A., Alkhawlani, M.A.A. and Al-shaghdari, F.M., 2017. Customers Desires on
Marketing Mix and It’s Impacts on Tesco (Malaysia). International Sciences of Management
Journal, 1(1).
Lin, C. and Peng, J., 2018. Analysis and Solution of the Problems in the Distribution of Suning
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Marimuthu, M. and Venkatesan, N., 2019. A Study on Present Situation and Features of Retail
Marketing In India. Retailing: Trends In the New Millennium, p.159.
Mua, L.N. and Anyieni, A., 2019. Merchandizing Practices and Sales Performance of
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Nguyen, L.T., Jamal, A., Brien, J.O. and Nawaz, I.Y., 2017. The effect of click & collect service
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Peeroo, S., Samy, M. and Jones, B., 2016, September. Generating Customer Engagement and
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