A Critical Comparison of Tesco and Sainsbury Dissertation

In this assignment, there will be a vital comparison of the UK's biggest retailers Sainsbury and Sainsburys, outlining all their marketing strategy, the key factors of their success as well as the advantages and disadvantages of both companies. Also there will be, analysing the 2 companies with regards to size and perception, or in other words of the growth of both firms over the years and perception on how the Tesco and Sainsburys are perceived by their clients and also themselves.

Also from this essay will be comparing both companies financial turnover, their very own market share and market growth. I will be setting out the general efficiency of Sainsbury and Sainsburys in terms of how they are doing which can be how they have grown over the years together with the products and services they offer their customers.

Tesco gets the biggest business of 31. 6%, by which they are managing a large sector of the retail market and they also run 50% with the grocery industry while Sainsburys has 22% of the business. They sell a massive product range and they buy in big volume level and sell this cheap while Sainsburys only buys products with well-known names and the own top quality products. They have the supermarket super electrical power which is all their location, Sainsbury largest buy that empowered them to get nearly 1/3 of the housing market for full retail list prices but Sainsbury do not have this kind of power of property acquisition.

Petrol station has accomplished this standard of success by selling Everything-products, Everywhere-place which is national and abroad, Everyone- people, they focus on everyone. With this strategy Sainsburys have had difficulty 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 section class rates and Petrol station is all round by minimizing their prices to attract heir customer Sainsburys is particular about the standard of the food they provide their customers.

Sainsbury is also the 2nd clothing retailer with their clothes range Cherokee and Florence and Sally brands. They are also the second mobile phone top-up retailer in the UK. While Sainsburys is intending to involved by just introducing their garments range after they employed the former Bhs shopping for director to consider the function as a buying director because of its Tu garments (Retail week, 2005, p2) and they no longer offer any kind of mobile top-up services.

Earnings and proceeds: Tesco, the UK's biggest supermarket group as provided their first-half profits greater than £1 billion and beat City forecasts on progress. Their earnings also come to £1. 13 billion in six months at the conclusion of august against forecasts, but Britain's number-one store posted by £1. 152 billion. They will sales also rose simply by 10. 2%- with non-food sales getting by doze. 6% as well as the also built on their intentional expansion strategies, improving abroad sales by 21 %. The total sales at Tesco for six-month period struck £22. 7 billion, a rise of 12. 7% about the same period recently. (Times online, 18/10/2006) They have continued to provide their customers with great products which are reflecting on their income t the final of the trading year. Sainsburys on the other hand, the main executive of Sainsbury's said ‘We have got continued our good sales performance through the second quarter of the year and possess benefited via spells great weather plus the focus this places on clean and healthy and balanced food'. Total sales intended for quarter two up several. 6 percent (8. zero percent not including petrol) Like-for-like sales intended for quarter two up 6. 5 percent (6. 6 percent excluding petrol) Total product sales for first half up 7. 8 percent (7. 4 percent excluding petrol) (jsainsburys. co. uk) L Sainsbury, Britain's third-largest supermarket group, reported its 7th quarter of successive revenue growth, driving up underlying sales, excluding petrol, by simply 6. 6th per cent in the 16 weeks to August 7. First quarter underlying product sales growth at Sainsbury's was ahead of the initial quarter, once underlying sales increased by simply 5. several per cent, more than...

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