Production Concept

The report helps in the analysis of the marketing strategies along with the marketing processes of the two different organizations namely Sainsbury and Tesco which are being able to compete in the entire market. The marketing is essential for the business as this helps in increasing the overall sales and productivity of the organization and this helps in creating and building trust between the different individuals and reputation for the business is increased in an effective manner.

There are different marketing concepts which can be analysed from the diagram such as the following:

Production Concept- The consumers will favour the products which are available and this is highly affordable in nature. In the production concept, the management of the company mainly focuses on improving the overall production and distribution efficiency.

Product Concept- This helps in analysis of the products which helps in favouring the ones which offers proper and efficient quality along with different innovative features as well (Bailey and Alexander 2017).

Selling and Marketing Concept- The main aim is to create different sales transactions and build more profitable relationships with one another. Furthermore, the marketing concept includes achieving the organizational approach effectively.

Tesco is British Multinational Company of groceries which is headquartered in London, United Kingdom (Tesco plc, 2018). The founder of the company is Jack Cohen and the number of locations include more than 6553 locations and the areas served by the company are India, United Kingdom, Malaysia, Thailand and Hungary. The number of employees who are working in the organization are 476000 till the year 2017 and the revenues earned by the company is £55,917 million.

It has been seen that the advertising strategy which has been used by Tesco has helped the company with the implementation of relationship marketing with the customers. Tesco has applied the everyday low prices which is being adopted by the company in providing the customers with the same kind of products at a lower price and this has improved their brand image in the organization as well with implementation of the Ansoff Matrix in which the product development strategy has been adopted by them (Bettis et al. 2015).

Sainsbury is the second largest chain of the supermarkets in the United Kingdom with more than 16.9% share of the supermarket sector in the United Kingdom. The company was founded in the year 1869 by John James Sainsbury and the industry in which the Sainsbury is operating is in the retail sector (Sainsburys.co.uk, 2018). The number of locations in which Sainsbury is operating is 1415 shops and the key people who is involved in the Sainsbury activities is David Tyler and Mike Coupe. The number of employees who are working in the organization are 181900 till the year 2017.

Product Concept

On the other hand, Sainsbury has gained huge popularity and gained success in the competitive market wherein this has been seen that the company is following the customer centric approach which has helped the company in becoming more popular in providing the customers with sophisticated kind of experience effectively. The quality management approach is being followed by Sainsbury wherein there was a time crisis in which all the other supermarkets suffered from the horse meat issue and Sainsbury was the first supermarket which did not compromise on quality and they provided the customers with meat itself (Baker and Saren 2015).

The marketing activities which are related to success of the marketing for Tesco helps in including that the company mainly focuses on providing the customers with the different kinds of strategies which are being adopted by Tesco in the entire market to become more competitive in nature (Peeroo, Samy and Jones 2015). The main motive of the company is to provide the customers with premium quality products however at a lower price which will be effective for them to become more successful in nature. Tesco tried to adopt the relationship marketing with the different customers and this helped the company in managing the differences in an effective manner.

Furthermore, the approach which is being applied by the company is relationship marketing which helps Tesco in managing the different customers with outstanding kind of service in an effective manner. In the respective article, this has been seen and analysed that the company is focusing mainly on the providing the customers at cheap prices products which are of high quality and this is beneficial for the company as well to gain competitive advantage. The personalised marketing has helped Tesco in becoming successful in maintaining proper and effective relationships with the different customers and this helps the company in becoming popular in comparison to the other competitors in the entire market (Jaworski 2018).

The company Tesco tried to implement customer profitability analysis, in which this was seen that the company tried to sell the same quality products to their customers in the market at a lower price than the competitors and this was a great competitive advantage strategy which was adopted by Tesco in order to stay ahead of the other competitors in the market effectively (Mollah 2014). This is the case of the relationship marketing of the customers which has helped the company in becoming more customer focused and this was helpful for the company in gaining competitive advantage in the entire market as well. With the implementation of the EDLP strategy, this has been successful in nature for the company to become more competitive with regards to providing quality products to the customers at an affordable rate.

Selling and Marketing Concept

The respective article Tesco Success Story (2018) has been able to analyze the customer focused strategy along with implementation of EDLP strategy, Tesco has been successful in attracting the strong customer case and this strategy has allowed them to develop the business to the full potential to become more successful in nature.

The marketing activities which are being related to the Sainsbury is the quality approach in which the company tried to provide the customers with the best quality products and services in an efficient manner. This has been noticed that the company tried to include the different kinds of strategies which has helped them in analysing the strengths and which will be influential in nature to become more successful (Kumar 2015). Furthermore, the Sainsbury tried to provide the customers with the best quality products such as providing the authentic kind of quality of meat and this helps in managing the customer relationship effectively as well.

Furthermore, this was seen and analysed that with the implementation of the Ansoff’s matrix, Sainsbury tried to implement various techniques such as diversification of the different products in the market which will help in becoming more effective in nature in comparison to the other companies in the market (Ibrahim et al. 2018). After the incident of crisis related to horse meat, there was huge surge in the sales of Sainsbury as the products which are being sold by them did not contain any horse meat and this benefitted their sales and profitability in the entire competitive market as well.

In the respective article (Ruddick, 2018), this has been analysed that the sales of the supermarket Sainsbury and this has helped them in benefitting while the other supermarkets such as Asda was selling horse meat in place of beef meat and this reduced their brand image and sales in a negative manner.

Tesco applied different techniques along with various approaches of the customer centric which helps them in becoming successful in nature. Furthermore, the proper and accurate kind of customization is essential in nature which has helped the company in gaining strong customer base and this helped the company in gaining more competitive advantage by selling the similar kind of products which are being sold by them at an affordable and cheap rate (Dibb and Simkin 2016).

Tesco tried to adopt EDLP strategy in which this has been seen that there are various kinds of transformation which has been undertaken by Tesco in order to become more successful in comparison to the other competitors such as Asda. Tesco wanted to satisfy the different needs of the customers in the market which this helped them in increasing the overall sales of the company in a positive manner. The customers were treated as the assets of the company wherein they tried to provide them with the various requirements effectively.

Tesco’s Marketing Strategies

Sainsbury tried to gain and achieve success in the entire market in which they tried to implement different relationship marketing strategies which helped them in managing the different demands of the customers in an effective manner. This has been seen that the actual surge or the raise in the sales of the meat and the other products as they were genuine in meeting the demands of the customers in an effective manner.  

Furthermore, the respective article has helped in analysing the different kinds of strategies which has helped the company in managing the different kinds of needs and demands of the customers in an effective manner. it has been seen and analysed that in the article it was published that the main focus is the important reason for Sainsbury was to satisfy the customers and the customers shop with them in an effective manner (Bailey and Alexander 2015). This has been seen that Sainsbury is better than the other competitors in market such as Asda as their main aim was to satisfy the different customers in the market with proper implementation of the strategies and fulfil their needs without making any kind of compromise with the products which are being delivered by the company.

Conclusion 

Therefore, this can be concluded that the both Tesco and Sainsbury applied different kinds of approaches in the market which has helped them in managing the different demands of the clients in an effective manner. Furthermore, in Tesco it was seen that the relationship marketing and customer-centric approach has helped the company in managing the different demands of the clients and this helped the company in becoming popular in nature. On the other hand, the Sainsbury tried to improve the sales of the company in which this has helped the entire company in being successful in nature and this helped them in becoming successful in the different ventures which has been undertaken by them effectively.

References

Bailey, A.R. and Alexander, A., 2017. Cadbury and the rise of the supermarket: innovation in marketing 1953–1975. Business History, pp.1-22.

Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.

Bettis, R.A., Gambardella, A., Helfat, C. and Mitchell, W., 2015. Qualitative empirical research in strategic management. Strategic Management Journal, 36(5), pp.637-639.

Dibb, S. and Simkin, L., 2016. Market segmentation and segment strategy. Markefing theory: A student text, Sage, Los Angeles, pp.251-279.

Ibrahim, A.A., Alkhawlani, M.A.A. and Al-shaghdari, F.M., 2017. Customers Desires on Marketing Mix and It’s Impacts on Tesco (Malaysia). International Sciences of Management Journal, 1(1).

Jaworski, B.J., 2018. Commentary: advancing marketing strategy in the marketing discipline and beyond. Journal of Marketing Management, 34(1-2), pp.63-70.

Kumar, V., 2015. Evolution of marketing as a discipline: What has happened and what to look out for. Journal of Marketing, 79(1), pp.1-9.

Mollah, A.S., 2014. The impact of relationship marketing on customer loyalty at Tesco Plc, UK. European Journal of Business and Management, 6(3), pp.21-55.

Peeroo, S., Samy, M. and Jones, B., 2015, December. Customer engagement manifestations on Facebook pages of Tesco and Walmart. In Computing, Communication and Security (ICCCS), 2015 International Conference on (pp. 1-8). IEEE.

Ruddick, G. 2018. Sainsbury’s sales surge following horse meat crisis. [online] Telegraph.co.uk. Available at: https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9939340/Sainsburys-sales-surge-following-horse-meat-crisis.html [Accessed 3 Aug. 2018].

Sainsburys.co.uk. 2018. Sainsbury’s. [online] Available at: https://www.sainsburys.co.uk/ [Accessed 3 Aug. 2018].

Tesco plc. 2018. Tesco PLC. [online] Available at: https://www.tescoplc.com/ [Accessed 3 Aug. 2018].

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