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Competitive Strategies Employed By Uk Supermarkets Marketing Essay

2339 words (9 pages) Essay in Marketing

5/12/16 Marketing Reference this

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This is the research proposal aiming at the proposed research of the competitive strategies of the 2 giants supermarkets in London namely Tesco & Sainsbury’s. Different supermarkets are operated in London but these of the two are the most popular & aggressive in the market regarding to their strategies adoption in the area of the Market Research & Analysis. Tesco is one of the prominent retailers in the world. They have 2300 supermarkets & convenience stores with 326000 people are serving. It is the largest private sector employer, largest food retailer having 1900 stores in UK. Sainsbury’s is also a large scale supermarket in UK having 30000 products, serving more than 18.5 million customers per week in 3000 branches. Brand identity of the products is giving healthy, safe, fresh & tasty food. Quality & fair prices are recognized in the business.

Research aim & objective

The academic research is proposed to focus on the strategies of the supermarkets in London. Focal point is aiming towards the leading supermarkets of Tesco & Sainsbury’s. On going through the competitive study of the strategies adopted by the supermarkets in their business following of the research questions I have planned-

Find out the area of activity of the supermarkets & their plans in future.

Identify the competitive strategies adopted by both of the supermarkets for doing their business developments in London.

Impact of the critical strategic analysis tools can be made in the business.

What could be the suitable, feasible & acceptable suggestion the direction through which the supermarkets can improve their performances with avoiding the present weaknesses in the day to day operations in the business?

These are all of the focal research questions on the basis of which projected research will be formed. Research Questions will be directed towards formulation of the aims & objectives of the proposed academic research.

Literature Review

The Strategic development of supermarkets is the way of direction of the business development adopted by super stores in the prospective business planning in order to get optimum customer satisfaction, profit maximization, service orientation, fair trade, custom, policy measurement, strategy marketing, with the growth & development, Long term planning of the business for the purpose of the mobilization of the resources & using them intimately to increase the probabilities & aspirations in the business aiming to seek in the Going Concern [Garewala,2008] Tesco was the first UK business to make £2 billion profits in early 2008, the review of Tesco over the last 80 years, information report in a standardized format the assess the future strategic development opportunities joint. First store was opened in Edgware in the North London in 1929 with the combined efforts of Sir Jack Cohen, founder of Tesco with a partner in a firm of tea suppliers, T.E. Stockwell. Form that time the company was grown & has reflected the changes in the retailing [Edward,2009] Before the second world war the most grocery stores served the customers but self service stores were on their way, later on they had developed & became the superstores as we known today, the company floated on the stock exchange in 1947 with an initial share price of 25p, Tesco became a popular name in the high streets of UK as it can take the advantage of the commercial economies of the scale through the buck purchase of the supplies, the existence of the resale price maintenance limits the ability of Tesco as competitive in the existing trading conditions, The system allowed their suppliers to sale their products for a set price, other strategy used by Tesco in the business planning & development is to achieve the customer loyalty, stamps were being used in the exchange of the cash & goods [Nicholson,2007] Tesco developed their business strategies in 4 parts, one is for the strong UK core business, 2nd is for the non-food, 3rd is for the retailing services & 4th is for the international services, With keeping the focus on the customer development they planned to help the customers in the flexible shopping, bringing the prices sensitivity in the business, offering the convenience of the either large or small stores with bringing of the sensitivity & value of the complicated markets [Fraser,2009] Different research studies have been done focusing on the strategies of the Tesco in the Market Research & Analysis. They had been point out that Tesco is a glance customer oriented superstore having wide capacity & potentials of the growth in the business. Strategic activities behind the achievement of the recent market in the emergent situations are their competitive strength. However there is weakness of the availability of the researches on the marketing strategy of the research with analyzing the strategic tools of the implementation such as cost leadership, focused strategy, product differentiation & other generic models. The proposed academic study is aiming to find out those aspects as the core business study in the research process.

The improvement suggests that the strategy being pursued by the Sainsbury’s chief executive Justin King is now started to deliver, the figures were welcomed by Mr. King who this month celebrates his first year at the helm of the struggling company [King,2009] According to the Edward Garner, a spokesman for TNS super panel said that they are starting to see the positive results from the Sainsbury’s drive to improve their supply & availability problems, its market share has lifted considerably from its low point of 15.3% seen in the September last year, but over the four weeks they had recruited 3000 new shop staff for delivering more food to shop stores to try to fill gaps on its shelves, there is totally 15.8% of the supermarket share of spending involved in the last year in Sainsbury’s [Garner,2009] The board is chaired by Philip Hampton appointed chairman on 19th July 2004, in 2006 board consists of the two executive directors, six non executive directors as well, during the last year company has compiled with the provisions of the combined code on the corporate governance. There is a clear division of the responsibilities between the chairman & the chief executive which is set out of writing & has been approved by the board, the review of the performance of the company with its principal operating subsidiaries set out during the year is in financial review of the annual report [Malpant,2008] Many researches have been done on the strategic planning of the Sainsbury’s in the market giving the appraisals of their performance measurements, growth tendency, market share, control & management of business, rating of the company however still it hasn’t make any study in depth towards the market development & product development strategies adopted by the Sainsbury’s in the emergent market for the growth of the business. There is a little research has been done on the exact perception of the market considered by the Sainsbury’s as their regular business activity. The proposed research will be trying to find out the norms of the market development which are measured in core process of the management of the supermarket with showing its impact on the public towards the business development in London.

The strategic aims of the proposed academic work is to make the comparative analysis of the both of the giant supermarkets in London with making the analytical review of the adopted policies & strategies in the framework of the research. It will be focusing on to find out the weakness in the strategic management development of the supermarkets in the competitive business environment with suggesting the suitable & feasible guidelines in the business development in the emergent market.

There are different kinds of strategic analysis tools applies in the supermarket, i.e. Swot, Pestel, Ansoff matrix, Poters generic, Poters five forces, Marketing Mix analysis. Using these different tools different supermarket is operating their business & makes their business strategy.

I choose Marketing Mix for my research. Marketing mix conducted with 7P’s (Product, Price, place, Promotion, People, Process, Physical evidence)

Product- it involves gives customer value. And range of different type of product found in one place.

Price- In supermarket customer get reasonable price of good product. And also found companies own branded product in low price.

Place- In giant supermarket, here is the place where consumer can get the goods through the different channels.

Promotion- It refers about the offer of the product like, buy one get one free, half price etc.

People- It reflects about the customer service and also involving management, customer, employees.

Process- it about the method of service can customer get like, self check out, home delivery etc.

Physical evidence- It refers to the using a service & product. While serve to the customer, it is important that give advice customer what they get or not.


The research will be using the systematic terminology of Yin methodology. This will be an exploratory & causal research giving focus on the implementations of the strategic plans of the business by the reputed supermarkets in London. Analytical review will be taken of Tesco & Sainsbury’s as a giant & leading supermarkets in London making means & ends relationships of the different variables in the strategic planning. On going through the methodological issues of the work study, study will be impacting through the data gathering & data analysis perspectives.

Data Gathering- Primary data will be gathered with regular visits in the supermarkets. Survey will be conducted about the customer’s choice to accept the products as per the brands available in the market. Observation will be made about the tendencies of the customers towards constructing their purchase profile in the supermarket. Questionnaires will be raised to the customer making enquiry about the suitability of their choices & their reasons behind the acceptances.

Interviews will be taken to collect information about the commensurate strategic plans of the business.

Secondary data will be gathered with reading different books, journals, articles, magazines, news paper for the data gathering. Such a methodological approach is seen the different empirical studies of the supermarkets giving the adaptable & useful conclusions. Qualitative & quantitative data will be gathered for the purpose of executing the academic research.

The research will be a representative sample analysis will be measured on the basis of the clustered sampling scheme for the group of the customers. It will be useful to implicate the results of the market development strategy of the supermarket & plans for the future development. It will analyze the strategic tools applicable in the day to day business operations of the supermarket along with the finding out the weaknesses to take the remedial actions.

Data Analysis- Imperative analysis of the collected data is the strategic goal of the study. The research will be based on the cause & effect relationships of the variables available in the business in the respective analysis. Grounded theory will be used in the systematic analytical review of the information focusing on the area of the research.

Competency of the researcher will be presented in the research in the technical utility of the Programs Evaluation & Review Techniques [PRET]. In the techniques strategic programs information got from the interviews with the employees & managers will be studied in depth to grasp the strategy of the supermarkets in the business.

For my research proposal I choose questionnaires method for data collection from supermarkets customer. My question format conducted with 5 question of marketing mix. This questionnaires format served to 10 respondents of supermarket to get research findings.

Data Presentation- Data will be presented with the help of using charts, diagrams, tables based on the trial interviews & questionnaires raised for the data gathering. Useful statistical techniques of chi-square test, regression analysis, co-relation, central tendency will be used to presenting effective information in the tables & charts.


Questionnaires format under marketing mix strategic analysis. The findings are given below:

Price- Among the 10 respondent, 7 answered a, 2 answered b and 1 answered c.

Therefore, most of the customer like low price for purchasing product from supermarket.

Product- Among the 10 respondent, 6 answered a, 3 answered b and 1 answered c.

Therefore, most of the customer like variety ranges of product for purchasing product from supermarket.

Promotion- Among the 10 respondent, 3 answered a, 5 answered b and 2 answered c.

Therefore, most of the customer likes half price for purchasing product from supermarket.

Place- Among the 10 respondent, 4 answered a, 5 answered b and 1 answered c.

Therefore, most of the customer likes parking facility for purchasing product from supermarket.

Process- Among the 10 respondent, 8 answered a, 1 answered b and 1 answered c.

Therefore, most of the customer likes self check out system for purchasing product from supermarket.


Research & Development is done in the business activities in order to act as the tool of guidance & direction in the imperative business plan. It gives the strategic critical success factor for an organization in order to develop its market status. The planned research will be the useful guideline for the customers to determine their product search as well as it will help the supermarkets in knowing about their weaknesses & effective measures to overcome that weakness in commensuration of the remedial actions. The research will be exclusively devoted towards the growth & development of the supermarket strategy in London; therefore it will present the positive norms & standards towards the aim of the research. Confidentiality of the strategic information in the business will be made in order to not to disturb the issues of the supermarkets in the close market competition. Confidentiality will be assured as interviews will be taken personally for the every employee in a convenient time and opinions will be recorded in a separate sheet in order to draft an academic report. Potential consumers will be requested to give opinions about their choices of the products & brand acceptances in the view of the focal point in the research analysis to draw the suitable & perspective conclusion & recommendations.

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