Business Report: Tesco and Sainsbury - A Comparative Analysis (2024)

This report provides a comparative analysis of two major retail organizations, Tesco and Sainsbury, examining their business operations, marketing strategies, and financial performance. The report begins with an overview of each company, including their locations, structures, and product offerings. It then delves into their marketing mixes, analyzing pricing, product strategies, place, and promotional activities. The report further explores the economic aspects of both companies, including profit, supply and demand dynamics, and market share. A SWOT analysis is conducted for each company to identify their strengths, weaknesses, opportunities, and threats. The Porter's Five Forces model is also applied to assess the competitive landscape. The report concludes with recommendations and a summary of the findings, highlighting key factors that impact the companies' performance. The analysis is supported by references to relevant academic sources.

The context of the
Business

Table of content
 INTRODUCTION
 Overview of the buiness
 Marketing Mix, Economy
 SWOT analysis
 Porters five forces
 CONCLUSION
 REFERENCES

INTRODUCTION
 The business is a concept or defined as a organisation with engaged commercial industrial and
professional practices in the company. The business is the term which also refers to the organised efforts
and practices of the person in order to manufacture and Sales Production services in order to get profit
first of this report going to compare to organisation and about their size location and the global
environment for stop along with this the organisation going to illustrate about the marketing mix and the
promotional practices which are adopted by the organisation. Along with this report explain about the
internal and external factors which create impact on the organisation and about the supply and demand.

Overview of the business
 TESCO
 ABOUT: Tesco is the multinational groceries Merchandise
retail organisation which provides variety of the product
like grocery crockery furniture clothing shoes and many
more.
 LOCATION: The organisation is situated in Welwyn
Garden City United Kingdom.
 STRUCTURE: the organisation which follow her
organisational structure. In this structure the responsibilities
are separated into several parts in order to ensure the work
and practices will be done in a very appropriate manner

Overview of the business
 SAINSBURRY
 ABOUT: Sainsbury is the trading organisation and
second largest chain of the supermarket in the United
Kingdom.
 LOCATION: Organisation is situated in London United
Kingdom.
 STRUCTURE: Sainsbury is following functional
structure because it helps the company to operate
appropriate activities and practices in the organisation.

Marketing:
 TESCO
 Price: Tesco organisation provides a huge variety of the product and services several Store. The
organisation also provide variety of the products like food pet care products beverages Bakery products
technologies gaming products electrical products in order to create more customer base towards the
organisation.
 Product: The organisation is following cost leadership in the pricing strategy. Along with this they
provide lowest price product and services at the same time they maintain quality
 Place: Tesco has more than 6900 store in 11 countries. So that they can get more customer base.
 Promotion: The organisation is using digital marketing and social media platform in order to promote
their product and services which are provided by the organisation..

Marketing:
 Sainsbury
 Price: The organisation Sainsbury has provide wide range of their product and services under their marketing mix
product strategy for stop the focus on quality management and innovation in order to get more opportunities. Along
with the organisation provide a unique taste of their product ad with premium quality range.
 Product: The organisation pricing strategy is rely on the providing the customer about the value for money and
main quality of the goods and services in order to ensure about the customer retention.
 Place: The organisation has approximately 598 supermarkets and 714 convenience store full stop in this there are
45 stores that are operate 24/7 and the remaining ones open till midnight on Friday.
 Promotion: The promotional strategy which are adopted by the organisation that they followed above the line and
below the line promotion strategy in order to Grab more customer attention and build a brand name

Economy of TESCO
 Profit: The organisation Tesco in the UK is over 360 million pounds and came to 2.2 billion in 2020 according to the
investigation. Statistics and facts the organisation Tesco is a British grocery and general Merchandise organisation which operate
globally. Tesco is the company which is most valuable United organisation. Tesco brand value globally is 8.5 billion USD.
 Supply and demand when in the market the demand of the respective product is crease then the organisation occurs modification
in their supply chain and it will leads to work the enhancing price equilibrium and quantity of the product.

Economy of Sainsburry
 Profit: The financial year profit of the Sainsbury organisation is 25 million British pounds before text and after text 152 million
British pounds
 Supply and Demand: Sainsbury is the company which driven by the demand of their goods and services. If the demand of the
product in the market has been increase then the company will keep and enhance their supply in the Marketplace.
 Market share: Tesco and Sainsbury organisation had the largest share withholding 40 2.3 % of the market together as of May
2021.

SWOT analysis of the TESCO
 Strength
 The organisation provide variety of the product so it is major strength of the organisation
 The organisation of rate globally this is the another strength of the company
 Weakness
 The organisation is not capable to handle the challenges of new entrants in the Marketplace
 Financial planning is not constructed appropriately and efficiently.

SWOT analysis of the Sainsburry
 Strength
 The organisation choosing appropriate expansion moves which are major strength of the company.
 The organisation have innovative promotional strategies that help the company to get more positive outcomes
 Weakness
 The company have low margin rate that is major weakness for the organisation
 The organisation growing cost is another weakness of the company

Porters Five Forces model of
TESCO and Sainsburry
 Porter's five forces model help the company to get more competitive advantages in the Marketplace and overcome the
threat.
 Threat of new entrants: small rules and regulations for new rivalry in the Marketplace developed red for the company
Tesco and Sainsbury.
 Bargaining power of suppliers they both are operating at very large level so they have thousand lock suppliers in more
than countries that caters appropriate power to the organisation to accept their suppliers about their prices.
 Threat of substitute of products they both are retail company which trade in huge variety of goods and services so they
have major threat of substitute products in the Marketplace