Marketing Mix and Plan: Comparing Sainsbury's and Tesco Strategies

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This report provides a comprehensive analysis of the marketing strategies employed by Sainsbury's and Tesco, two prominent supermarket chains. The report begins with an introduction to the dynamic business environment and the importance of the marketing mix, highlighting how different organizations use various tools and strategies to gain a competitive advantage. Task 2 focuses on comparing the marketing mix strategies (product, place, price, promotion, people, process, and physical evidence) of Sainsbury's and Tesco, examining how each company applies these elements to achieve its business objectives. The report then delves into the development and evaluation of basic marketing plans, outlining the steps involved in setting marketing goals, analyzing current marketing channels, focusing on the target market, determining strategies, setting monitoring guidelines, and using KPIs to measure results. A SWOT analysis of Sainsbury's is included to assess its strengths, weaknesses, opportunities, and threats. Finally, the report discusses a strategic marketing plan utilizing the 7Ps framework to achieve overall marketing objectives, providing an overview of Sainsbury's company profile, vision, and mission, and emphasizing the importance of cost reduction and customer value.
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MARKETING ESSENTIALS
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
P3 Comparing the ways in which different organisations applying the marketing mix to
marketing planning process for business objectives..............................................................3
P4 Developing and evaluating the basic marketing plan for an organisation........................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
In this context, one is able to see that business environment changes continuously. So for
the marketing one needs to use the marketing mix model which includes the different activities,
tools and strategies. These helps in to grab the opportunity which are available in the market to
compete with the rivals in the effective manner. Different organisation uses the different
strategies or tools to improve the performance, profitability as well as the productivity. So, in
context to this two organisation which is chose which are recommended and their names are
Sainsburys and Tesco (Ali and et. al., 2017).
TASK 2
P3 Comparing the ways in which different organisations applying the marketing mix to
marketing planning process for business objectives
Marketing mix is the model which help in the analysis of various actions and the
activities for attracting and to aware about the product or services to the customers at the
marketplace. This one is the tool for promoting the goods and services with having deep level of
market information which is deliver to the customer. In reference to the selected companies or
organisation, they utilises these tools in well manner so they can able to compete in the market
by gaining advantages and achieve the new opportunities at marketplace.
Basic Sainsburys Tesco
Product It refers to the finished goods which is
ready to be sold out in the market to full
fill the customer needs and
requirements. It refers to the tangible
object which can be touched and feel
and intangible object which is said to be
the services which can only be feel.
They are having two format one is the
local stores and the second one is the
supermarket which are offering more
than 30.000 product in which about
Tesco is one of the largest company
which provides the wide range of the
products which includes the food,
electronic and clothing and some
financial services etc. In each category
of the product Tesco provides the large
number of variety of choices from the
brand, type, international cuisine,
regional products and some other
choices which makes the customer not
to get lack of choice.
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20% of these are from their own brand
(Saliani and et. al., 2017). Which
includes the food, stationery products
and toiletries.
Place It is the platform where buy and seller
both come for selling and for buying the
product. Buyer comes to buy the
required product where as the seller
comes to sell its product in exchange of
money. They have created many retail
store and also many supermarket 24*7
where customer can easily come and to
buy their required product.
This is one which is spread far and in all
over the world. They are having the two
main channel of distribution which is
online and offline. Tesco is having six
types of stores which is Tesco extra,
Tesco compact, Tesco superstore, Tesco
home-plus, Tesco studies, Tesco
Express and Tesco metro.
Price Pricing strategy of the Sainsburys is to
provide the product in such range which
can create the value for the customer
with maintaining the quality of the
products and services. Their price of the
basics and kids product is very low
which is able to attract most of the
customer which are also of the excellent
quality.
Tesco likes to maintain the low prices of
their product which can be reliable for
all of their customers and they try to do
so without reducing the quality of the
product or running itself in loss. Their
strategy of pricing at low cost of their
product which are making them to
surpass the all expectation for becoming
one of the leading supermarket chain
(Yuliantoro and et. al., 2019).
Promotion Sainsburys know how to use the above
the line and below the lime promotional
strategy for attracting the customer and
build the brand name. They have
launched “Nectar reward card” through
which they are able to increase the sales
and also build the customer loyalty. In
Due to having the low cost product
selling with the higher quality they are
able to maintain their market which is
one of the best marketing or
promotional activity. They also uses the
television advertisement, sponsors some
charitable events, offers some
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this customer get some points which
can be used for the next purchase.
promotional brands and many more. All
the advertisement focuses on only one
thing which is the low cost with the
better quality products.
People Sainsburys have the well trained experts
which are professional in their work
which are responsible to carry out the
all process in the business. They are the
employees, staffs, worker or the higher
authority of the company.
The sales assistants of the brand are
responsible for the success of the brand.
They uses the program which is known
as the Colleague Privilege Card which
says that “save as you ear and buy as
you earn” which helps in ginning the
loyalty of their workers which also built
the trust towards the brand or company.
Process They have created the online shopping
which can enable their customer to buy
their product in just some clicks. They
are also finding some new store format
which can attract the new customer and
are selecting the location for their new
store (Yusi and et. al., 2018).
The process refers to the making their
customer happy by providing the best
services which includes the fast billing
and giving priorities to their customer in
online as well in offline.
Physical
evidence
They are having the different store
design which is able to build trust in the
customers. The selves in the store are so
attractive and impressive. The trolley
and the basket quality are very high for
the shopping convenient.
Tesco is not having overly elaborated
stores like other grocery stores. They are
having all the store clean and attractive
by spending very low cost. Offers are
also there which are able to make their
customer buy more than they need.
P4 Developing and evaluating the basic marketing plan for an organisation
Marketing plan refers tot he document which company uses them to outline the
marketing strategies and to determining about how to spread the awareness about their products.
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Generally, the marking plan are flexible in nature which can be adjusted with the need of the
market team.
To developing the marketing plan there are some steps which need to be follow for the
best marketing plan which are going to be discussed further (Mas and et. al., 2017).
Set a Marketing Goal
This is the first step for developing the marketing plan. One must have to start with
setting the marketing goal. Sainsburys need to first set the goal for proper strategy.
Analysing the current Marketing channel
This one id the second step in which the Sainsburys need to develop the solid marketing
strategy which need to analyse about what you are doing to increase the revenue and for the long
lasting business. They think about the methods which are going to use by them for introducing
their product to the new customers. They need to find the channel which works best for the
starting business with analysing about the channel which have been used by your brand in the
past and which one were the most successful in relation to others and who they re going to help
you in achieving your goal (Kanyurhi and et. al., 2016).
Analysing and focusing on your target market
This is one of the most important for the marketing planing where you need to analyse
your market for which you are trying to develop the strategy or plan. In this you need to analysis
for your target customer which are going to buy your product in which you need to keep in mind
during the making plan for the marketing is that whether your targeted customer are interested in
the product, it is also need to analyse that in which product your customer are interested in.
Determining the Strategy
After analysing the current strategy and about your target customer, then Sainsburys is
able to make the best strategy which will help to achieve the goal. You need to make strategy in
such a way that where your customer spends their most of the time, either on television or on
social media etc. Once the team has agreed on the marketing strategy then you need to set up the
parameters which can measure the effectiveness of your strategy.
Set monitoring and recording guidelines
After having the strategy Sainsburys need to set the guidelines which tells about the
process of monitoring the performance along with recording the results. The company is able to
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use the different tools which can help in tracking the processes which can help in setting the
productivity and the overall effectiveness of the marketing strategy (Gundala and et. al., 2018).
Use KPI's to measure results
Key performance indicators such as subscription, sign-ups, response rate and some other
specific methods for determining the success of strategy. KPI is able to find out specific ways
which can help you to determine that how your strategy is working.
SWOT Analysis of Sainsburys
It is the analysis which can help the brand to get the information about themselves which
is related with their strength, weakness, opportunities and threat.
Strength
They are having the right expansion
moves.
The business philosophy of the brand
helps their customer to live well at low
cost.
Having wholesale and retail banking
facilities.
They are having the innovative
promotional strategies.
They provides coupons which are able
to attracts more customer(Ascarza and
et. al., 2016).
Weakness
They are not able to retain their own
customer which is one of the difficulty
for the Sainsburys.
They are having very low margin for
creating or selling the low cost product
which are not giving more profit to the
business (Mahdad 2019).
They are experiencing the high growing
cost in sense of using the latest
technology for their stores.
Opportunities
They are having the opportunities to
grow in the village area which can
provide them the high customer base.
They should reduce the production cost
and also need to reduce the
maintenance cost which is not
Threat
They are having the threat of
competition from their rivals.
They need to retain their customer base
which are getting diverted towards the
other store.
They should use the optional low cost
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necessary which can help in increasing
the profitability of the business.
technology which are having the same
benefits in relation with the high cost
technology (Gyulai and et. al., 2017).
Strategic marketing plan which can be applied with the 7ps for achieving the overall
marketing objectives
For making the proper plan one should need to evaluate some of the given component
which can really help in creating the best strategy plan.
Company overview
Sainsburys comes on second place in the term of supermarket chain. They are having the
16% of share in the supermarket sector. It was founded in the 1869, by John James Sainsbuty.
This company became the largest company in year1922.
Vision and mission
The main vision and mission of this brand is to sell their product in less price for their
customer so they can be able to live high quality of life within low cost. There objective is also
about making more profit which can be used to increase the business as reinvestment. They have
also the objective to provide the high quality product with many choices (Gong and et. al., 2016).
Sainsburys need to decrease the production cost which can create in big profit which can
also be applied to their customer so they may able to purchase their product in low cast which
ultimately leads to increase the sales of the products. Low production cost is able to give the
company some extra revenue which can be further use for building some new branch or building
like some new stores or supermarket which is said to be reinvestment to the company which can
help in increasing the customer base. In this the brand need to keep in mind that the product
which they are reducing their cost should be in demand and is able to match the standard quality
with ability to full fill the customer requirement. As per due to cost reduction, they need to
reducing their pricing for their customer which can attract the customer for purchasing more than
the required unit. They need to open their new store where they have the large number of
customer which can able to get there for their purchase. For this they need to hire experts or
some professional who can help in this for getting the objectives. This process should be in
smooth manner that there could no any chance of error which can create the compromise the
quality of the product.
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CONCLUSION
From the above discussion, the marketing is one of the best way to creating awareness to
the target customer which can help in increasing the sale of the products or services. This uses
the marketing mix with applying the marketing plan which can help in creating the strategy for
increasing the productivity as well as the profitability. There are many tactics in which any one
can be used as the best marketing strategy. In this, there is also discussion about the creating and
evaluating the basic marketing strategy which can help the business to grow and to launch some
new product in the market. By the help of suggested organisation there is discussion about such
in the detailed.
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REFERENCES
Books and Journals
Ali and et. al., 2017. The implementation of Islamic work ethics and marketing mix: innovative
work behavior evidence from Tok Keramat Catering. Journal on Technical and
Vocational Education, 2(1), pp.45-52.
Saliani and et. al., 2017. The effect of electronic marketing mix on the willingness of customers
to buy online (Case study: Universities of Mashhad). International Journal of Advanced
Studies in Humanities and Social Science, 6(3), pp.227-233.
Yuliantoro and et. al., 2019. IMPLEMENTATION OF MARKETING MIX STRATEGY FOR
START-UP BUSINESS: FRUIT COMBINING. Russian Journal of Agricultural and
Socio-Economic Sciences, 87(3).
Yusi and et. al., 2018. Marketing Environment and Marketing Mix: The Basic Factors in
Increasing Sales Performance (Survey on Agribusiness Small and Medium
Enterprises). Journal of Economics and Business, 1(1), pp.19-33.
Mas and et. al., 2017. The analysis of 7P marketing mix strategy on powder herbal products and
red ginger candy in Batu city home industry. Management and Economics Journal
(MEC-J), 1(1).
Kanyurhi and et. al., 2016. Internal marketing, employee job satisfaction, and perceived
organizational performance in microfinance institutions. International Journal of Bank
Marketing.
Gundala and et. al., 2018. Perceptions of integrated experiential learning of graduate marketing
students. Journal of the Scholarship of Teaching and Learning, 18(2), pp.74-89.
Ascarza and et. al., 2016. The perils of proactive churn prevention using plan recommendations:
Evidence from a field experiment. Journal of Marketing Research, 53(1), pp.46-60.
Gyulai and et. al., 2017. Robust production planning and control for multi-stage systems with
flexible final assembly lines. International Journal of Production Research, 55(13),
pp.3657-3673.
Gong and et. al., 2016. Integrated planning of BEV public fast-charging stations. The Electricity
Journal, 29(10), pp.62-77.
Mahdad 2019. Optimal reconfiguration and reactive power planning based fractal search
algorithm: A case study of the Algerian distribution electrical system. Engineering
Science and Technology, an International Journal, 22(1), pp.78-101.
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