A Critical Comparison of Tesco and Sainsbury
In this assignment, there will be a critical comparison of the UK’s biggest retailers Tesco and Sainsburys, outlining their marketing strategy, the key factors of their success and also the advantages and disadvantages of both companies. Also there will be, analysing the two companies in terms of size and perception, in the sense of the growth of both companies over the years and perception on how the Tesco and Sainsburys are perceived by their customers and also themselves.
Also in this essay will be comparing the two companies financial turnover, their market share and market growth. I will be outlining the general performance of Tesco and Sainsburys in terms of how they are doing which is how they have grown over the years with the products and services they offer their customers. Tesco has the biggest market share of 31.6%, in which they are controlling a large sector of the retail market and they also run 50% of the grocery market while Sainsburys has 22% of the market share. They sell a huge product range and they buy in big volume and sell it cheap while Sainsburys only buys products with popular names and their own branded products. They have the supermarket super power which is their location, Tesco largest acquisition that enabled them to acquire nearly 1/3 of the retail market but Sainsbury do not have this power of land acquisition.
Tesco has achieved this level of success by selling Everything-products, Everywhere-place which is national and overseas, Everyone- people, they target everyone. With this strategy Sainsburys have had a hard time keeping up with the retail giant. Where Tesco tries to attract people from all classes of people Sainsburys on the other hand attract the middle class people with their middle class prices and Tesco is all bout by reducing their prices to attract heir customer Sainsburys is particular about the quality of the food they offer their customers.
Tesco is also the second clothing retailer with their clothing range
Also in this essay will be comparing the two companies financial turnover, their market share and market growth. I will be outlining the general performance of Tesco and Sainsburys in terms of how they are doing which is how they have grown over the years with the products and services they offer their customers. Tesco has the biggest market share of 31.6%, in which they are controlling a large sector of the retail market and they also run 50% of the grocery market while Sainsburys has 22% of the market share. They sell a huge product range and they buy in big volume and sell it cheap while Sainsburys only buys products with popular names and their own branded products. They have the supermarket super power which is their location, Tesco largest acquisition that enabled them to acquire nearly 1/3 of the retail market but Sainsbury do not have this power of land acquisition.
Tesco has achieved this level of success by selling Everything-products, Everywhere-place which is national and overseas, Everyone- people, they target everyone. With this strategy Sainsburys have had a hard time keeping up with the retail giant. Where Tesco tries to attract people from all classes of people Sainsburys on the other hand attract the middle class people with their middle class prices and Tesco is all bout by reducing their prices to attract heir customer Sainsburys is particular about the quality of the food they offer their customers.
Tesco is also the second clothing retailer with their clothing range
References: Blackwell Science Ltd. 2002 Food Service Technology, 2, p13 Blackwell Science Ltd Blackwell Science Ltd. 2002 Food Service Technology, 2, p14 (b) Kotler, P., 2001 Kotler, P., 2001. Principles of marketing. Third European edition. Essex: Pearson Education Limited. Page 434 Kotler, P., 2005 Retail week, 2005. Fashion, September 23, 2005, p.2 Sainsburys http://www.jsainsburys.co.uk/index.asp?PageID=418&news_filter=all&Year=2006&NewsID=803 [Accessed 25 October 2006 Stauffer, J.E., 1994