A Critical Comparison of Tesco and Sainsbury

2154 Words May 5th, 2008 9 Pages
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
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Tesco has continued to improve this strategy by reducing their prices in which has made it hard for rivalry companies to put up with companies like Sainsburys who’s prices are not as low as the Tesco prices.
The leader has the largest market share and usually leads the other firms in terms of price changes, new product introductions, distribution coverage and promotion spending. The leader may or not admired but other firms forfeit its dominance in the industry. (Kotler,2001,p430)
In this case, Tesco is the largest food retailer in the UK and has proved to be the market leader to rivalry competitor Sainsburys. They have kept a constant look at the growing desire on the consumer constant quest for new and cheap products this in which Tesco have proved to be their main priority as they have continued to introduce new products and also at cheap prices. They also have the strap line ‘Every little helps’ (Tesco.com, 2006), this shows that they care for their customers and will continue to lower prices in order to gain customer loyalty and to be the market leader. With this strategy Sainsburys have had a hard time keeping up with the low prices as that are the second largest food retailer in the UK. Sainsburys also have the strap line ‘Good food cost less at Sainsbury’s’ (Kotler, 2005, p689) this describes their healthy range and yet at a cheap price. They have also started selling organic food at cheap prices which in my opinion is a wrong move because
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