A Competitive Analysis on Tesco
Tesco and Sainsburys rivalry goes way back and has been going on for over decades now. Tesco was founded in 1919 by a man named Jack Cohen. Its very first store opened in 1929 by T.E. Stockwell, and in 1932 Tesco became a PLC. Sainsburys started in 1869 and is part of the “multi-national company J Sainsbury in both the UK and the USA” (2008). The main focus of this essay is analysing Tesco against Sainsburys in their performance when it comes to marketing and how well they are market oriented and sales orientated, their ability to understand customers and its consumers and also their marketing mix.
Market orientation for Tesco and Sainsburys ...view middle of the document...
Based on Sainsbury’s as a team, they aim to “innovate IT and value creation through market orientation. Sainsbury’s do not tend to focus so much on what is coming from them to their customers rather than outward appearance. They do this through “driving towards establishing a dialogue with customers, understanding and anticipating customer change” (2008). This is what makes Tesco and Sainsbury’s different because they have different ways of portraying the market orientation of their businesses.
The sales orientation for Tesco and Sainsburys are slightly different. Tesco uses their Clubcard as a way to not only draw customers closer to them but to also provide their customers with discounts/ make them eligible to discounts within the store and online. Tesco PLC (2014) states that, the Clubcard they provide their customers with is the most important now as it is a way for customers to unlock greater value for themselves. In contrast to this, Sainsbury’s uses this similar method which is called the Nectar card. On this card Sainsburys are giving out points based on how much customers spend. From this card they can also get some offers to spend in store. Both Tesco and Sainsbury use this similar method, however Tesco tend to offer a lot more for their customer on all products available in store.
Every organisations ability to understand their customers and its consumers is very important. For Tesco they make sure that they are doing this as it is the best way to build customer and consumer relation with them as a business. Recently as a part of a campaign, Tesco bosses decided to send out thousands of senior staffs including the executives as a way to win over disgruntled customers. By running this campaign, Tesco are making customers see that all the members of staff involved with Tesco are willing to help their customers no matter their position within the business. This is an advantage for Tesco because it will leave a positive impact on customers making them want to keep coming back to shop. This will also help with competitors because customers will now feel that Tesco is the best place to shop as it is more welcoming from the top of the hierarchy to the very bottom.
Tesco seniors said that “understanding customers even better is critical to our future success and there is no better opportunity for office colleagues than by supporting our stores in the run-up to Christmas”. Whereas with Sainsburys, just stick to having their employees understand their customers. “We work hard to understand what customers want and what they value” (Sainsbury’s, 2014). The involvement of no senior member of staff besides the manager here and there could be seen as not enough being done to actually draw customers to them. However on a positive note, it could show that Sainsburys do not need anyone but themselves to keep their customers happy and to understand exactly what...