Marketing Strategy and Internal Relations 2: Report on Supermarkets

This report undertakes a comparative analysis of the marketing strategies of Tesco and Sainsbury's, two prominent players in the supermarket industry. The study begins with an overview of both companies, including their background, mission, vision, and core values. The core of the report lies in comparing the 7Ps of the marketing mix (Product, Price, Place, Promotion, Process, Physical Evidence, and People) for both Tesco and Sainsbury's, highlighting their respective approaches. The analysis provides insights into the strengths and weaknesses of each company's marketing efforts. Furthermore, the report proposes a marketing plan tailored for Tesco, including recommendations for product development, pricing strategies, distribution channels, promotional activities, and internal process improvements. An action plan is outlined, detailing objectives, target markets, time frames, and budget considerations. The report concludes with a discussion on measuring the success of the marketing plan and offers suggestions for future improvements.

RUNNING HEAD: MARKETING STRATEGY AND INTERNAL RELATION 2
MARKETING STRATEGY AND INTERNAL RELATION 2
Name of the Student:
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Author’s Note:

2MARKETING STRATEGY AND INTERNAL RELATION 2
Table of Contents
Introduction:....................................................................................................................................3
Company background:.....................................................................................................................3
Part A:..............................................................................................................................................3
Comparison of the marketing mix:..............................................................................................3
Part B:..............................................................................................................................................5
Marketing plan:............................................................................................................................5
Action plan:.................................................................................................................................5
Measurement:..............................................................................................................................6
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

3MARKETING STRATEGY AND INTERNAL RELATION 2
Introduction:
The officials of a business organisation have to provide attention to the distribution of
products. The marketing mix is a combination of actions, which is used by a business
organisation to promote its product in the targeted market segment. Marketing contains product,
promotion, price, place, packaging, positioning, and people. By using the marketing mix, a
business organisation identifies its marketing plan to attract the potential customers of the
targeted market. This paper aims to compare the 7Ps of marketing between two organisations
from the supermarket industry. In this report, the marketing mix of Tesco and Sainsbury's will be
compared. Both, Tesco and Sainsbury's do their business in the supermarket industry. This
research will help the authority of Tesco to formulate its marketing objectives and fix a
marketing plan to fulfil the marketing objectives.
Company background:
Tesco Plc, known as Tesco, UK based global groceries and general merchandise retailer.
Headquarter of this organisation is located in Hertfordshire, England. In 1919, Jack Kohen
established this organisation. Dave Lewis is the present CEO of this organisation. In 2018-2019,
the annual revenue of this organisation was 56.9 billion British pounds (Tesco PLC 2020). In
2018, the operating profit of this company was accounted for 63.9 billion British pounds.
450,000 employees work in this organisation (Tesco PLC 2020). The mission statement of this
organisation is “we make what matters better, together” (Tesco PLC 2020). The vision of this
company is “to become the most highly valued company by the customers we serve the
communities in which we operate our loyal and committed employees and our shareholders”
(Tesco PLC 2020). The values of this organisation rely on three core values which are “no one
tries harder for customers, we treat people how they want to be treated and we believe every little
help can make a big difference” (Tesco PLC 2020).
Sainbury's Supermarket Company, established by John James Sainsbury in 1869, is a UK
based business organisation its business in the retailing industry (About.sainsburys.co.uk 2020).
Headquarter of this organisation is located in London, UK. Mike Coupe is the present CEO of
Sainbury’s Supermarket Company (About.sainsburys.co.uk 2020). The mission statement of this
organisation is “to become the first preference for food delivering products of exclusive quality
and appropriate service at a competitive caused by working faster, simpler and together”
(About.sainsburys.co.uk 2020). The vision of this organisation is “to become the most trusted old
retailer where people love to work and shop. By putting the consumers at the heart of everything
we do and investing in our store employees and channels to provide the world-class shopping
experience” (About.sainsburys.co.uk 2020). Core values of Sainbury’s are health, sourcing,
environment, community, and colleagues”. In 2019 the net profit of this company was 219
million British pounds. 186,900 people were working in this company in 2018
(About.sainsburys.co.uk 2020).
Part A:
Comparison of the marketing mix:
In this part, the comparison of 7Ps marketing between Tesco and Sainbury’s will be done.
It will help the authority of Tesco to get a clear idea about the marketing strategy of Sainbury’s,
which is the direct competitor of Tesco.

4MARKETING STRATEGY AND INTERNAL RELATION 2
Tesco Sainbury’s
Product A wide range of products which
contains food, stationery, electronics,
clothing, cosmetic, financial services
and other products is offered by Tesco.
The product portfolio of Tesco
includes not only branded products but
also its own products (Tesco PLC
2020).
A wide variety of products are offered
by Sainbury’s which includes meat,
beauty products, bakery, baby
products, frozen food, electronics,
drinks, entertainment, and others
(About.sainsburys.co.uk 2020).
.
Price For the pricing strategy, it can be said
that cost leadership is followed by
Tesco which helps this company to
maintain a low price without
compromising with quality (Alkasim
et al. 2018). The efficient supply chain
and economies of scale helped Tesco
to maintain cost leadership strategy.
This organisation has adopted a
competitive pricing strategy to
compete with its competitors. This
authority follows different pricing for
different products (Wunsch 2019).
Place Both online and offline distribution
channel is used by Tesco. Tesco
Express, Tesco Metro, Tesco compact,
Tesco superstore, Tesco Extra, and
Tesco home Plus are the six types of
the offline store of Tesco. Through
Tesco Direct, the online business of
this organisation is operated (Tesco
PLC 2020).
Through the online platform and
offline stores, this company offers its
products. For the online platform, an
extended version of Chop Chop
application scheme is used by this
company (About.sainsburys.co.uk
2020).
Promotion To maintain promotional activities this
organisation utilizes its branded
reputation. Through media, outlets
social media, newspapers, this
organisation spreads its message. Sales
promotion, discount, are offered by
Tesco to attract the customer.
The brand ambassador of this
organisation uses celebrities like
David Beckham
(About.sainsburys.co.uk 2020). To
attract customer sales promotion, price
cut, loyalty schemes are offered by
this company.
Process Self-service machines are used to
make payments for the customer by
Tesco. Besides that, customers can pay
for the products through customer
assistants (Tesco PLC 2020).
An effective system is followed by
Sainbury’s to ensure that a wide range
of products is available at the retail
stores. For customer convenience, this
organisation has developed a smooth
online delivery procedure (the
Guardian 2016).
Physical The logo of Tesco along with is
lucrative. Due to the use of efficient
colour. A wide range of products is
well categorised in the offline stores of
A distinct colour-packaging for the
product is used by Sainbury's to make
them easily identifiable. The user-
friendly online platform of this

5MARKETING STRATEGY AND INTERNAL RELATION 2
Tesco, which is beneficial for the
customers to navigate.
organisation maximises customer
convenience (About.sainsburys.co.uk
2020).
People Near about 46000 employees manage
the business of Tesco (Tesco PLC
2020). A huge number of customer
assistants and other efficient
employees helped Tesco to achieve its
business objectives.
People of this organisation work as a
team to play a vital role in this
company. Customer Service
Department of Sainbury’s is
successful to enhance customer
satisfaction.
Part B:
Marketing plan:
A marketing plan will be provided in this part, which can help Tesco to meet marketing
goals and objectives. At the end of the marketing plan an action plan and measure for monitoring
and evaluating the progress and meetings of goals will be provided.
Tesco
Product The authority of Tesco can introduce new trendy products in their product line.
It can help this organisation to attract the potential customer.
Price A price penetration strategy can be useful for Tesco. This strategy will help
Tesco to offer a lower price initially. To muscle out its competitor, this strategy
can be helpful (Khan 2014).
Place Through personal selling, this company should sell its goods to large retailers.
To attract a large number of customers utilising large retailers can maximise the
sale of this company.
Promotion To maximize its reach to the target market segment, this company has to utilise
social media platforms like Facebook, YouTube, Twitter, Instagram, and other
platforms efficiently.
People To ensure world-class shopping experience this company can offer training and
development programs for its employee it will be useful for Tesco to transform
its human resource as a world-class workforce.
Physical For the physical evidence, it can be said that this organisation can collect
feedback from the customers regarding its products and services. It will help
this organisation to improve its business operation.
Process Research and Development Department of Tesco has to innovate new ideas and
products, which can help this company to maintain its cost.
Action plan:
The action plan will help Tesco to enhance its market share by using the opportunities.
Objectives The objective of this action plan is to help Tesco to implement the
recommended marketing plan. Improving the efficiency of the human
resource of Tesco to ensure customer satisfaction. Implement of market
penetration strategy is the third objective.
Target market Both the online and offline market segments will be targeted by this new

6MARKETING STRATEGY AND INTERNAL RELATION 2
plan.
Time frame The time frame to implement the new action plan will be 1 year.
Budget For the training and development program, this organisation has to invest
a certain amount of money. Besides that, to include new and trendy
products in the product line this organisation has to spend a vast amount
of money.
Offering This marketing plan will help Tesco to offer new and trendy products and
better customer service.
Measurement:
Whether the marketing plan is successful to fulfil its objectives or not will be evaluated
through certain parameters. Within 1 year the action plan has to deliver the desired outcome.
This marketing plan has to fulfil three objectives, which are the improvement of employees,
implementation of market penetration strategy, and increase the product line.
Objectives Measurement Timeframe
1. Implementation of a
market penetration
strategy
Whether this strategy helps
this organisation to retain its
old customers or not will be
evaluated.
Whether this pricing strategy
is helping this company to
attract a new customer.
One year
2. Enhance the product
line by including new
and trendy products
After one year, whether the
product line has successful to
include new products or not
will be measured.
One year
3. Improvement of the
employee
Feedback from the customer
will be collected to evaluate
the improvement of the
employee.
One year
Conclusion:
Thus, this report concludes that to do its business in a competitive landscape the authority
of Tesco has to maximise its product line. This organisation has to provide world-class customer
service. It will help this company to provide a better customer experience. Besides that, this
company can apply a market penetration strategy. It will help this company to attract the
customer by offering a low initial cost to the customer.

7MARKETING STRATEGY AND INTERNAL RELATION 2
References:
About.sainsburys.co.uk, 2020. Our Vision. [online] About.sainsburys.co.uk. Available at:
<https://www.about.sainsburys.co.uk/about-us/our-vision> [Accessed 16 April 2020].
About.sainsburys.co.uk, 2020. Welcome To Sainsburys Home. [online] About.sainsburys.co.uk.
Available at: <https://about.sainsburys.co.uk/?_ga=2.216425685.252413490.1587065176-
1329755066.1587065176> [Accessed 16 April 2020].
Alkasim, S.B., Hilman, H., Bohari, A.M.B., Abdullah, S.S. and Sallehddin, M.R., 2018. The
mediating effect of cost leadership on the relationship between market penetration, market
development, and firm performance. Journal of Business and Retail Management
Research, 12(3).
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Tesco PLC, 2020. About. [online] Tesco PLC. Available at: <https://www.tescoplc.com/about/>
[Accessed 16 April 2020].
Tesco PLC, 2020. Key Facts. [online] Tesco PLC. Available at:
<https://www.tescoplc.com/about/key-facts/> [Accessed 16 April 2020].
the Guardian, 2016. Sainsbury's Drops Price Match Promotion To Focus On Cheaper Basics.
[online] the Guardian. Available at:
<https://www.theguardian.com/business/2016/apr/07/sainsburys-drops-price-match-promotion-
to-focus-on-cheaper-basics> [Accessed 16 April 2020].
Wunsch, N., 2019. Sainsbury's Underlying Sales Revenue United Kingdom 2019 | Statista.
[online] Statista. Available at: <https://www.statista.com/statistics/491410/sainsbury-underlying-
sales-revenue-united-kingdom-uk/> [Accessed 16 April 2020].