Tesco and Sainsbury: A Comparative Analysis of Marketing Strategies

This report provides a comprehensive analysis of the marketing strategies employed by Tesco and Sainsbury, two prominent retail giants. It begins with an introduction to marketing and advertising, emphasizing the importance of understanding consumer needs. The report then delves into the specific marketing methods utilized by both companies, including diversification, product development, and market penetration. It examines Tesco's branding and relationship marketing strategies, alongside a discussion of the legal aspects of marketing, such as consumer protection and advertising regulations. Furthermore, the report explores the marketing research approaches of Tesco, including primary and secondary research methods, and applies a SWOT analysis to evaluate the company's strengths, weaknesses, opportunities, and threats. The report also examines customer targeting strategies based on product categories and the application of the marketing mix (product, price, place, promotion) by both companies. The report concludes by highlighting the significance of adapting marketing strategies to the changing market trends and customer preferences. This report offers insights into the competitive landscape of the retail industry, highlighting the importance of effective marketing in achieving and maintaining market share.

Introduction to Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 ...........................................................................................................................................1
P2............................................................................................................................................2
TASK 2............................................................................................................................................3
P3 ...........................................................................................................................................3
P4 ...........................................................................................................................................4
TASK 3............................................................................................................................................5
P5 ...........................................................................................................................................5
P6 ...........................................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Advertising is a technique through which a firm can have the capacity to profit data of
items and administrations to individual from society. Consequently promoting is a procedure of
addressing needs of clients by doing research in market and this will help in understanding
necessities of open of the focused on advertise (Anda and Temmen, 2014). It is essentially about
comprehension of necessities and longings of clients and after that as per that items are served to
them. It will likewise concentrate more on fulfilment level of the clients in advertise. Tesco and
Sainsbury are two organizations who are completing distinctive advertising techniques to build
up and to maintain in aggressive market as required in current situation.
TASK 1
P1
Sainsbury is an extremely surely understood organization of retailing in United Kingdom
and is having the position of second biggest chain stores in the country. Though Tesco is third
biggest store as measured by benefit, it is extremely famous association all around the globe its
prevalence is high and furthermore it has an effective development rate in the focused market.
Following are strategies of advertising that is been utilized by these two organizations to survive
and develop and furthermore to make mindfulness in Market about their items and
administrations.
Sainsbury Marketing methods (Growth system)
 Diversification:- It is a phase of Ansoff framework which is most hazardous and the odds
of development are likewise high here. The organization is broadening in Market by
presenting more items in its retail location next to what as of now it is been giving to
open of society. It has helped firm to catch more offers in market and extension of its
business made it known to all in new market range. Broadening strategies encourages
Sainsbury to create it items and administrations in more different and extended way,
which has aided manage and to develop viably.
 Product development- Product improvement is the technique which encourages
organization to much of the time develop in advertise (Bhattacharya, 2010). Sainsbury is
continually attempting to present new items in the economy as to pull in clients and to
hold them for drawn out stretch of time. This will develop benefit rates of organization
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and will ready to fulfil clients by satisfying needs and needs of them (Hallahan,
Kauffman and Pullen, 2011).
 Market advancement – It is a path by which organization will be giving its items in new
market, those ranges which it has not yet tapped and served are targetted by it.
Development of its business in new territory are finished by organization, which will help
in achieving its targets and also it will help with catching more prospects of market .
 Market penetration- This technique concentrates more on offering of items in advertise
which it is been putting forth till now and furthermore in a similar market. Its significant
target is to expand its customers and to ensure its reliable development.
Tesco's advertising procedures
 Branding- It is a strategy through which an organization can have the capacity to make a
picture of it in the psyche of clients. Organization is doing marking of its items and
administrations to its objective clients so they can have the capacity to manage in Market
with help of its unwavering clients.
 Brand expansion- It is a technique that organization is utilizing to present another item
and administration with help of its current administrations in advertise. The brand name
are utilized by it with its new items (Malhotra, 2012). Its current things has just made a
benchmark in advertise which is helping the firm to dispatch new items.
 Relationship- showcasing It is an imperative perspective as it helps in keeping up long
haul association with the clients of society. A few devices and strategies are utilized to
complete this action.
P2
As showcasing is a vital parts of business, it is extremely essential for association to see
every last idea of it. Each component has its upsides and downsides promoting likewise have, for
example,
1. Offer of merchandise act-It is a basic viewpoint which must be considered by the organization
as in light of the fact that this demonstration depicts that promoting which are finished by it must
benefit clear data of items and administrations of an association. For instance a cleanser is
promoted as it will eliminate germs 100% then unquestionably it must be doing that unless it
ought not be spoken to in wrong way.
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2. Buyers security from out of line exchanging 2008-This demonstrations are made to ensure
customers rights as in light of the fact that there are many organizations which speak to an
alternate parts of items and administrations and its really perform altogether different to what it
has been appeared. Hence this demonstration help clients to defend their privilege being a
shoppers, they can likewise gripe in court if unreasonable exchange has been finished with them
at any minute.
3. Purchaser credit act-This demonstration is embroiled upon every one of the organizations and
clients who are doing their exchanges on lay away premise that implies, items and
administrations are benefited on loans(Financial help to those clients who need) (McKenzie-
Mohr, 2013). For instance bank and money related establishments these profit their
administrations to clients in credit premise.
4. Satisfactory dialect This perspective additionally must be viewed as the most as on the
grounds that this help with knowing right method of dialect that must be picked by organization
to pass on message and data that are identified with items and administrations of it.
TASK 2
P3
Tesco utilizes each and every viewpoint to comprehend current state of market. The
diverse techniques for advertising research has been done by organization with the goal that
requirements and needs can have the capacity to see legitimately and to know correct necessities
of open most fitting devices must be utilized by it.
Primary research
Essential research are those technique through which an association' analysts get
straightforwardly into the market and cooperate with clients to gather significant informations
and information that will help organization to support in Market. Quantitative and subjective
strategies are included where subjective includes open finished surveys, perception techniques,
meeting and centre gathering (Mentzer and Gundlach, 2010). While in quantitative strategies
analysts are more engaged upon numericals and measurable angles, it includes polls and
overviews. This sources will help realizing what really clients need and with this organization
can have the capacity to benefit them what they need and this will fulfil each clients of the
organization.
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Secondary research
This is a strategies for social event data where organizations gather information which
has been now get gathered by some different specialists like, books, diaries, magazines and so
forth it has interior and outer sources, inside are those informations that can be accomplished
inside the organization like retail information, stock investigation and monetary records
(Molesworth, Scullion and Nixon, 2010). Though in outer sources incorporates business
information, government details and so on.
This approach will help in creating plans identified with promoting and will lead in
finding out about industry and market of a few spots where organization needs to manage its
items and administrations.
P4
The promoting use for advertising making arrangements for Tesco organization, with the
assistance of showcasing plan by SWOT it can be broke down that how organization will have
the capacity to actualize and utilize adequately every one of the informations that are
accumulated by showcasing research.
Strength
As statistical surveying has been done it is plainly comprehended that Tesco has
substantial number of clients in Market it is its USP that administrations that it gives to them are
exceptionally special and distinctive (Palmer, 2012). It has its driving position in UK advertise
this get known by investigate that get led by organization. Its online operations are successfully
done and clients are additionally extremely happy with this. With assembled data organization
can have the capacity to perform all the more proficiently.
Weaknesses
With help of research inside it come to realize that budgetary administration of
organization is very terrible legitimate administration is required in regards to money related
perspectives. Brand picture has additionally been ruined because of embarrassment that gotten in
broad daylight. Gathered information can be utilized to legitimately design upon more
endeavours that organization can put to manage in Market and to develop in a compelling way.
Opportunity
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Research has helped organization to know number of chance that it can benefit from
Market as it can have the capacity to grow its business in worldwide market. It likewise come to
realize that it can build its range in non retail segments as well.
Threat
The most unsafe factor that organization may confront and is confronting is vacillation of
cash in Market. Issues that can happen are moral issues that must be settled by organization to
support in Market unless it can be a greatest test and issue for the organization.
TASK 3
P5
Clients are targetted by organization on the premise of the items and administrations that
they will be putting forth to them. It is a basic component as in light of the fact that it will help in
drawing in those clients who are really utilizing them. There are distinctive modes through which
organization can focuses on its clients frame Market.
 Grocery- It is the item that are most utilized at each home henceforth home creators of
society are targetted. On the premise of psycho realistic strategy and land division
technique clients of society are targetted most. Its is on the grounds that tastes and
inclinations changes as patterns of market get vary, consequently it is exceptionally
fundamental for organization to know their necessities and needs with respect to the
items that will be offered to them (Papasolomou and Melanthiou, 2012). Both Tesco and
Sainsbury are managing in same classification of industry as retail they both will be
concerning more upon taste and selections of clients of this fragmented market.
 Child items- These items are not utilized as a part of incessant way it is utilized by
mother for their new conceived kids. Subsequently clients are targetted on the premise of
statistic division technique. This is on the grounds that it lies upon age factors as infant
items are just utilized by little youngster. It is vital for the firm both Sainsbury and Tesco
to comprehend all's identity needing it with the goal that the clients can be targetted as
per that.
 Attire- It is the segment which is been targetted by both refereed to organizations on
statistic geographic and psycho-realistic premise as on the grounds that administrations of
organizations are profited in numerous spots as indicated by that topographical divisions
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is to be viewed as most, their tastes and inclinations likewise get changes much of the
time as indicated by that clients can be targetted.
P6
Advertising blend are the apparatuses through which organization can have the capacity
to control a few factors that can impact operations and elements of it. For example,
 Products- It is exceptionally fundamental for an association to deliver those items and
administrations that are in pattern and clients need it. On the off chance that organization
produces items which are not in Market require then there are chances where it can
confront difficulties and dangers to manage in the market. Centre esteem and
administrations must be profited in items that is been produced and advertised.
 Price- Price set for items must be exceptionally compelling, appealing and aggressive as
to rival different organizations of market (Peter and Donnelly, 2011). Items has worth
when shoppers will pay that sum which is set by firm for a result of administrations.
 Place- The most imperative perspective is that organization must have the capacity to
benefit its administrations and item to its objective clients, thus it is extremely important
for it to find its store at reach of its clients.
 Promotion- As items and administrations are recently created it turn out to be
exceptionally important to pass on related data to people in general so they can get
mindfulness about new things of the firm (Anda and Temmen 2014).
 People- All the individuals who are included in exchange with the firm is said to be as
individuals. Labour of the organization are agents of it they are the person who has
coordinate associations with clients, they most think about customers decisions and
inclinations, henceforth while delivering another item and administrations their feeling
are extremely should to be considered by the organization.
 Process- The strategies and steps required in giving administrations and items to a
definitive clients and to make them fulfilled is an intense undertaking to be performed by
the organization. In this way it is extremely fundamental to select the right strategy to
accomplish the consumer loyalty's.
 Physical confirmation- As administrations as to be given any physical component or
unmistakable nearness is not there thus the encounters and process through which a
clients has experienced are to be considered in this perspectives (Bhattacharya, 2010).
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CONCLUSION
In this report diverse showcasing procedures are utilized by two distinctive association.
Likewise confinements and requirements of promoting are seen with the goal that organization
can beat them in powerful way and can complete its operation in fitting way. This report
presumes that how organization van utilize promoting research for making compelling
advertising arrangements. Likewise targetted clients are chosen on the premise of various
classifications of items and administrations given by Tesco and Sainsbury. On its premise
fragmented markets are targetted with the goal that clients can have the capacity to accomplish
sought administrations. Organizations new item's showcasing blend creating techniques are
portrayed.
REFERENCES
Books and Journals
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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 17th August 2017].
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