Comparative Analysis of Marketing Mix Strategies: Tesco vs. Sainsbury

This report presents a comparative analysis of the marketing strategies employed by Tesco and Sainsbury. The first part of the report examines the marketing mix of both companies, covering product, price, place, promotion, process, people, and physical evidence. The second part focuses on a marketing plan for Tesco, including a situational analysis using SWOT and PESTLE frameworks, marketing objectives, segmentation, targeting, positioning, and a detailed marketing mix for the launch of an organic juice product. The report also includes budget allocations and a monitoring and controlling plan. The analysis provides insights into the retail industry's marketing practices and strategic planning, including the competitive landscape and external factors influencing the companies' operations.

Marketing Concepts and Analysis

Table of Contents
TASK 1 ...........................................................................................................................................3
Marketing mix of two organizations............................................................................................3
TASK 2............................................................................................................................................5
Marketing plan.............................................................................................................................5
REFERENCES................................................................................................................................9

PART B
TASK 1
Marketing mix of two organizations.
Heading Tesco Sainsbury
Product Tesco offers a wide range of
products to the customers through
large number of stores in different
countries. The products include
beverages, food, bakery products,
electronic items, baby products,
clothing etc (Ramanathan,
Subramanian and Parrott, 2017).
Tesco sell the products under
different brand names like Tesco,
Tesco Lotus, Everyday Value,
Company offers various products and
services under different categories. It
sells more than 1500 products under
own brand name. It includes frozen
food, electronics, bakery, cleaning
products etc.
Price Tesco is currently using competition
based pricing strategy for selling its
products to the buyers. It is easy for
the company to use this strategy
because large number of companies
are offering the products in the
industry.
Tesco sell its products after taking
into consideration the rate at which
other firms are offering their
products.
Sainsbury develop pricing according
to its positioning strategy. Company
is using premium pricing strategy for
selling the products at high price in
the market as compared to the price
at which competitors are selling their
products (Vajarodaya and Fernando,
2019).

Place Company offers the products
through more than 6900 stores in
various countries. Tesco sell its
products through offline as well as
online channels.
Under offline method, company
firstly sell its products to
wholesalers then wholesalers sell
them to retailers. Then, retailers sell
the products to ultimate buyers.
Tesco also sell large number of
products through online websites .
Company is selling its products
through 1,415 shops that includes
convenience shops, supermarkets,
hypermarkets etc. Customers can
also buy the products form online
stores. In year 2017, company has
received more than 2,50,000 orders
online each week.
Promotion Tesco is using various promotional
channels for promoting its products.
Company is promoting the products
through traditional methods like
television and it is also investing
funds to promote goods through
social media platforms like Twitter,
Facebook etc.
Further, Tesco also organizes
various campaigns and trade
exhibitions to increase the sales of
the products.
Company has used various
celebrities as brand ambassadors like
Daniel Beckham, Jamie Oliver etc.
for promoting the products in
different countries. Sainsbury also
promotes the products through sales
promotion etc (Loo and Leung,
2018).
Process To ensure easy availability of the
products in the stores, Tesco has
installed the software that notify
whenever the level of inventory is
low.
Moreover, company also started
Sainsbury is actively involved in the
process of research and development
activities to determine the need and
demand of the customers. Further, it
also focuses on collecting feedbacks
from customers at the stores and

online process for delivering
products to the customers (Wirtz and
Lovelock, 2016.).
through social media pages.
People Sales force of Tesco plays an
important role in marketing of the
products of the firm.
Further, company has appointed
employees that are working in
customer service department. These
employees help to resolve queries of
the buyers regarding the products.
Sainsbury has skilled and talented
workforce that helps to sale the
products of the company to the
customers. Employees of the firm
also works with the suppliers to buy
raw materials. This help to maintain
the quality of the products. Further, it
also conducts training sessions for
staff members that helps to deliver
value to the customers.
Physical evidence The products of the company are
sold in attractive packaging that are
easily identifiable by the customers
in the shelves of the stores. Further,
online website of Tesco helps
customers to view the products from
different angels.
Company has developed strong
strategy to market its products with
the help of physical evidence. The
stores of Sainsbury have different
designs that attracts customers to buy
the products of the firm. Further, the
good quality of trolleys help to
provide better shopping experience
to the customers.
TASK 2
Marketing plan
Executive Summary :
Marketing plan refers to the document that outlines all the efforts that firm will made to
achieve marketing objectives within a particular period. It helps to increase the number of
customers of the organization. Tesco will launch organic juice for existing as well as potential

customers. Marketing plan will outline marketing objectives, marketing mix, situational analysis,
tactics, budget, monitoring and controlling etc.
Overview of company :
Tesco is a multinational organization that belongs to retail industry. It offers a wide range
of products under different brand names through superstores, hypermarkets, convenience shops
etc. It sell the products in various countries like UK, Thailand, Poland etc (Nykiel, 2016.).
Marketing Objectives :
 To increase the sale of new product by 10% up to year 2021.
 To decrease the cost of operations by 5% up to year 2020.
 To increase the profit by 10% up to year 2022.
Situational Analysis
SWOT :
It is a framework that helps the organization to determine internal strengths and weakness
as well as external opportunities and threats. SWOT analysis of Tesco is as follows -
Strengths -
 Tesco is one of the largest retail company in UK.
 Company has large number of stores such as Tesco Metro, One stop, Tesco Express etc. It offers a wide range of products in different categories like clothing range, financial
services, food items etc.
Weakness -
 There are certain stores of the firm that are not performing well in some countries due to
lack of proper research of the market. Due to high level of debt, profits of the company are negatively affected.
Opportunities -
 Tesco is having opportunity of launching organic products in the market that will help to
improve the sale and profitability of the firm. It should focus on emerging countries like South Korea etc. for launching new products.
Threats -
 Tesco is facing intense competition from various companies such as Sainsbury, Aldi etc.
PESTLE -

It is a tool; that helps the company to monitor the factors that are existing in external
environment. External factors that affects the operations of Tesco are as follows-
Political
Tesco is having its operations in various countries therefore it is affected by rules and
regulations of government of different countries. Example- Tesco Tax proposed by government
will impact profits of firm.
Economical
Labour cost is the main economic factor that affects the profitability of the firm. Tesco
should focus on cost of borrowings in UK.
Social
It includes change in demand, beliefs, preference and taste of consumers regarding the
product. Tesco should focus on consumer shopping trends.
Technological
It involves change in technology for producing and distributing products for the buyers.
Tesco has already installed RFID technology that helps to provide better shopping experience to
the customers.
Legal
It includes legal laws and regulations of the government that are to be followed by the
company such as Data protection act, Health and safety act etc (Luo, Roach and Jiratchot, 2015).
Environmental
It involves regulations of the government that helps to protect the environment from
negative impact.
Segmentation-
Marketing manager of Tesco will segment the whole market on the basis of different
factors like demographic such as age, income etc, behavioural etc.
Targeting-
After segmentation, particular segment will be targeted for offering new product.
Company will target people of 19-40 age group under demographic factor.
Positioning-
It refers to creating the image of product in the minds of customers. For positioning of
new product, Tesco will develop pricing, promotional strategies.

Tactics:
To increase the sale of organic juice, company will appoint new skilled and talented
employees that will help to increase the sale of product. Further, firm will implement advanced
technology that will help to improve the process of producing organic juice (Loo and Leung,
2018).
Marketing Mix:
Product-
Tesco will launch Organic juice firstly in UK after the success of the product in the
country, it will be offered in other developing countries like South Korea. Product will contain
all natural ingredients with no artificial colours. It will be available in different size that is 25 ml
and 50 ml.
Price-
Company will adopt penetration pricing strategy because initially organic juice will be
sold at low price to the customers. This will help to attract large number of customers towards
new product.
Place-
The product will be available through offline as well as online channels. Firstly, product
will be sold to wholesaler then wholesaler will sell to retailer. Retailer will ultimately sell it to
customers. Organic juice is also available through online channels.
Promotion-
Company will invest funds for promoting new product through online platforms like
Facebook, Instagram etc. It will also launch promotional campaigns for attracting consumers.
Process-
Tesco will develop online process for delivering organic juice to the buyers as well as
firm will also provide free service of home delivery to the customers.
People-
Tesco will appoint new sales force for promoting the sale of new product in the market.
Physical evidence-
Organic juice will be available in attractive packaging that will be easily visible to the
consumers.
Budget :

Expenses Amount ()
Fixed asset 8000
Salary of Marketing Manager 4000
Salary of Sales force 3000
Working capital 2000
Traditional marketing channels 1000
Social media platforms 2000
Total 20,000
Monitoring and Controlling :
For monitoring and controlling marketing plan for the new product, marketing manager
of the firm will take feedback from customers. Further, sale of new product will be measured to
determine the impact of marketing plan (JAIN, 2017).
REFERENCES
Books and Journals-
JAIN, M.K., 2017. An analysis of marketing mix: 7Ps or more. International Journal of Advance
Higher Education Research & Development. 1(7).
Loo, P.T. and Leung, R., 2018. A service failure framework of hotels in Taiwan: Adaptation of
7Ps marketing mix elements. Journal of Vacation Marketing. 24(1). pp.79-100.
Luo, A., Roach, S. and Jiratchot, C., 2015. The effect of the 7Ps of the marketing mix on air
freight customer satisfaction and repurchase intention. Journal of Supply Chain
Management Research and Practice, 9(2). pp.28-36.
Nykiel, R.A., 2016. Marketing Your Business-A Guide to Developing a Strategic Marketing
Plan.
Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network
operations and marketing to enhance customer satisfaction. International Journal of
Operations & Production Management, 37(1). pp.105-123.
Vajarodaya, C. and Fernando, M.S.C.L., 2019. Factors Influencing Purchase Intention towards a
Retail Clothing Company. International Research E-Journal on Business and
Economics. 3(1).
Wirtz, J. and Lovelock, C., 2016. Services marketing. World Scientific Publishing Company.