Tesco and Sainsbury: Marketing and Competitive Advantage Analysis

This report examines the competitive landscape of Tesco and Sainsbury, two major supermarket chains in the UK. The report delves into the factors influencing research selection, including market share, profitability, and customer satisfaction. It explores the concept of competitive advantage, highlighting strategies like cost leadership, differentiation, and focus. A literature review covers topics such as pricing strategies, product quality, and marketing activities. The research methodology includes both primary and secondary data collection methods, with questionnaires used to gather consumer insights. The report analyzes data variables, presents a Gantt chart for project management, and discusses research evaluation techniques. Findings reveal customer preferences, marketing tool effectiveness, and factors driving competitive advantage, ultimately providing recommendations for enhancing market position and performance. The report provides valuable insights into the retail sector and the strategies employed by leading companies to maintain a competitive edge.

Research Project

Table of Contents
TASK 1.................................................................................................................................................3
1.1 Introduction...........................................................................................................................3
1.2 Factors contributing in to research selection..........................................................................3
1.3 Literature review....................................................................................................................3
1.4 Project Specification..............................................................................................................5
1.5 Gantt Chart............................................................................................................................6
TASK 2.................................................................................................................................................7
2.1 Resources used in the research....................................................................................................7
2.2 Research investigation.................................................................................................................7
2.3 Data variables..............................................................................................................................9
TASK 3...............................................................................................................................................11
3.1 Research evaluation techniques.................................................................................................11
3.2 Data analyses tools....................................................................................................................11
3.3 Recommendation.......................................................................................................................17
Task 4.................................................................................................................................................17

TITLE: To create competitive advantage in supermarket chain- A study on Tesco and
Sainsbury.
TASK 1
1.1 Introduction
It is essential for each and every organization is to perform their business in an efficient
manner and meet short and long term targets. There are various function including marketing,
finance, HR etc. plays a prominent role in the success for every business entity (Luand et. al.
2012). But, corporation is tries to use variety of strategies in order to gain competitive
advantage over other firm. It can help to provide success in future and provide a long term
benefit for both customer as well as company. There is different approach such as cost
leadership, differentiation and focus can be used by the cited firm in an effective manner.
This report is based on Tesco and Sainsbury and their competitive advantage in the UK
market (Beneke,= and et. al., 2012). Both firm’s having giant in the market and sharing more
than 40 percent which is higher than any other retail business company. But, in the last 5
years, due to new competitors and other external factors their performance and growth rate
are constant which need to develop different approach to gain competitive position and
provide a long term growth to its business in an effective manner.
1.2 Factors contributing in to research selection
In this research project, it is one of the most complex task for a researcher to select a suitable
topic. There are various factors which influence of such process. Therefore, project manager
is required to use variety of approaches to identify a suitable topic. In the context of given
case, Tesco which is one of the most valuable brand in the United Kingdom, facing different
challenges in the performance such as reduction in market share, profitability and so on
(Ramakrishnan, 2010). The marketing managers to required main causes and develop new
strategies which can provide competitive position in the market as compare to rival
companies. Therefore, they need conduct a research and select a variety of tools and
techniques which can be used in the near future. The first factor is business performance
which including market share, sales revenue and profit. Additional, customer satisfaction
level is another element create issue for the company and meet its short and long tern targets
in an appropriate manner.
1.3 Literature review
Competitive advantage is related with the strategic gain over other company and provide long
term success. According to (Hattersley, Isaacs and Burch, 2013), if a firm need to develop

core competency they already build competitive superiority. Such kind of edge need
expertise, approaches, knowledge and god relationship with customers. Therefore, business
enterprises try develop design and develop comprehensive product and service which are
high quality can create uniqueness. On the other hand, as per (Wen, 2010) in retail sector
price is one of the most sensitive and set in a manner which can be affordable for every
segment of customer. In the given case, Tesco sue competitive pricing strategy where product
is very on other firm. They try to below price of their product as compare to rival business
units. (Kanchan, Kumar and Gupta, 2015), said that if company can meet attain success
without the satisfaction of their customer. Because, success is depending on customer
demand which is dynamic in nature over a period of time. Marketing manager of Sainsbury,
conduct market customer survey over a period of time and also gather feedback where they
can understand changing need and meets established goals and target in an appropriate
manner.
Product quality and competitive advantage:
This is significant for a company to focused of product quality where they need to develop its
product by using high quality of materials, design, technology and other aspects. According
to (Padgett and Galan, 2010), there is direct relation between product quality and customer
satisfaction and it will transform in to high performance. Thus, there are large number of
retail firm build their own TQM and QAD. The main aim of such department is to meet
minimum standard of products and service set by the government bodies and authorized
organization. Retail firms are more concentrate on product quality and make their own
system which provide minimum quality assurance leads to increase customer satisfaction in
an appropriate manner.
Pricing strategy and competitive advantage: There are wide range of pricing strategy used by
a company. In the given case, retail companies are mostly using discount and competitive
pricing. Because, in such industry main objectives is to generate sales and quantity rather
than value. (Rajaguru and Matanda, 2011) mentioned about the role of pricing and sales
turnover which having a direct relation. Of a firm offering a variety of products at lower price
it transforms performance at the next level. (Tidy, Wang and Hall, 2016) argued that, price is
not providing competitive advantage to the firm, the only thing which enhanced
organizational performance related with after sale service.

Marketing activity and competitive advantage: There are large number of marketing tools and
techniques implemented by an organization to promote its product and create awareness in
the public. But the mots difficult task is related with the selection of promotional tool and its
change according to the environment. According to (Smith, 2010), role of marketing
approach in the business performance and competitive advantage is too significant. It
involves branding, market research, customer relationship management, public relation,
logistic and supply chain etc. This is an integral part of marketing function and it
effectiveness help to meet their aims. Thus, large corporation are focused on developing
comprehensive strategies and tactics and implement in an appropriate manner. Thus, Tesco is
spending billions of dollars on marketing and promotional aspects to gain advantage in the
market. (Yeh, and Yeh,2016). Argued that, marketing activities are only tool for create and
providing information rather than competitive superiority. They should be concentrate of
product range, quality, pricing, after sale services and other aspects which meet customer
expectation and enhanced their satisfaction level. Without marketing activities they not not
achieve long term success specially in the retail sectors which is more significant in the UK
market.
1.4 Project Specification
Background of the report
Supermarket is one of the mots competitive and attractive sectors for business organization.
Therefore, large number of companies are focusing on this sector and develop their
competitive advantage to make long term gain. This report related on Tesco and Sainsbury
and its strategies to attain such goal in an appropriate manner.
Research Aims:
To identity impact of marketing approaches to meet its gain competitive advantage in the
retail- A study on Tesco and Sainsbury.
Research Objectives:
 To identify various approaches of marketing in retail sector.
 To determine impact on such strategies on competitive advantage.
 To evaluate current performance of the company.
 To recommend various to in order to gain competitive advantage.

Research Question:
 What approach of marketing in retail sector?
 What is the influence of marketing approaches on competitive advantage at Tesco and
Sainsbury?
 What is the current business performance of Tesco and Sainsbury?
 What kind of recommendation can enhance competitive advantage?
Research methodology:
This is one of the integral part of the study, provide all the relevant information such as
research philosophy, research approach, data collection methods, data analyses tools and so
on (Raut and Das, 2011). In the context of current research, both primary and secondary
technique has been used and for data evaluation, qualitative approach more suitable for the
researcher in developing recommendation and conclusion.
1.5 Gantt Chart
This part of the report talk about the research proposed plan where researchers need to follow
it. The main objective of this part is to control cost and complete all activities in an effective
manner.
Figure 1Gantt Chart

TASK 2
2.1 Resources used in the research
This part of the study related with resources are used by the research to make a report more
effective. This required a variety of resources such financial, material, human and
information. Information resources belongs to data which are going to be used by the
researchers (Izogo, 2015). The primary information plays a vital role to provide an
appropriate solution. For this, project manager required that to identity their sample size
among given population. There are different approaches involves observation, interview and
questionnaire to collect relevant data. On the other hand, there are also another types of data
which is known and secondary data collected through research articles, online journals and
books to develop their conclusion (Five Emerging Trends for Supermarket Retailers to
Leverage in 2016, 2017). Further, this is the responsibility of project manager is to provide
enough financial resources so that they can carry out a research in an effective way. The
another resources which related with the human resources which contribute in gathering data
also plays a vital role.
2.2 Research investigation
Questionnaire is a primary approach of data collection where an individual prepares a set of question
and related with their research. The main objectives of this questionnaire to gain relevant information
and meet their research aims and objectives in an effective manner.
Questionnaire
Name:
Age:
Gender:

Email:
Q.1 Are you visited Tesco and Sainsbury Store?
 Yes
 No
Q.2 Which store you mostly visited
 Tesco
 Sainsbury
 Any other
Q.3 How many times you visit retail store in a month?
 1 time
 2 time
 3 time
 More than 3 time
Q.4 Where you get product information?
 Online
 TV
 New paper
 Other
Q.5 In your point of view, which is more suitable tool for marketing?
 Digital media
 Social Media
 Print Media
 Any other
Q.6 Which is most suitable for Tesco for competitive advantage?
 Expand product range
 Expand market share
 Lower price
 Product quality
Q.7 Are you satisfied with product quality?
 Yes
 No
Q.8 Are you agreeing with company marketing campaign?
 Agree
 Disagree

 Highly agree
 Highly disagree
Q.9 Are you satisfied with product pricing?
 Satisfied
 Highly Satisfied
 Dissatisfied
 Highly Dissatisfied
Q.10 Please mark your recommendation.
2.3 Data variables
This phase of the research is related with the provide various information and data.
Researchers required that to collect these data and know customer opinion.
Q.1 Are you visited Tesco and Sainsbury Store? Frequency
Yes 18
No 02
Q.2 Which store you mostly visited? Frequency
Tesco 12
Sainsbury 5
Any other 3
Q.3 How many times you visit retail store in a month? Frequency
1 time 5
2 time 6
3 time 3
More than 3 time 6
Q.4 Where you get product information? Frequency
Online 6
TV 8
New paper 5
Other 01

Q.5 In your point of view, which is more suitable tool for
marketing?
Frequency
Digital media 8
Social Media 8
Print Media 2
Any other 2
Q.6 Which is most suitable for Tesco for competitive advantage? Frequency
Expand product range 6
Expand market share 7
Lower price 4
Product quality 3
Q.7 Are you satisfied with product quality? Frequency
Yes 16
No 04
Q.8 Are you agreeing with company marketing campaign? Frequency
Agree 10
Disagree 5
Highly agree 2
Highly disagree 3
Q.9 Are you satisfied with product pricing? Frequency
Satisfied 11
Highly Satisfied 5

Dissatisfied 3
Highly Dissatisfied 1
TASK 3
3.1 Research evaluation techniques
3.2 Data analyses tools
This is one of the most critical task in the research where researchers required to interpret
these data. In this part, thematic approach has been used and develop an appropriate tools and
techniques to meet its short and long term goals and target.
Theme 1 Customer frequency on visited Tesco and Sainsbury Store.
In this question related with the supermarket store visit by customers. The main aim of this
question is to identify number of visitors which help in develop marketing strategies for
competitive advantage.
Yes No
0
2
4
6
8
10
12
14
16
18
18
2
Figure: 1
Interpretation: According to the above given figure 1 from them, 18 respondents visited
Tesco and Sainsbury, whereas 2 are not visited. It shows that, the majority of respondents
regularly visit.
Theme 2 Customer mostly visited store.
There are large number of supermarket chain located in the United Kingdom. Among them,
Tesco and Sainsbury are one of the leading firms. In this question, researchers want to know
about the customer opinion about their store and their preference.

Tesco Sainsbury Any other
0
2
4
6
8
10
12
12
5
3
Figure: 2
Interpretation: As per the above provided figure 2, it has been interpreted that, 12 respondents
out of 20 are like to visit Tesco, 5 visited Sainsbury and rest of them approx. 3 are willing to
visited another place. It shows that, Tesco having competitive advantage in terms of market
share.
Theme 3 Customer opinion on store visit in a month.
There are different types of customers visit on daily basis to the store. Marketing manager are
required to analyses their frequency of customer. The main aim of this question is to
categorizes the customer on the basis of such frequency which help to get the relevant
information and develop suitable strategy in order to gain competitive advantage.
25%
30%15%
30%
1 time 2 time 3 time More than 3 time
Figure: 3