ASDA And Sainsbury's Business Analysis

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The modern marketing concept can be expressed as “the achievement of corporate goals through meeting and exceeding customer needs better than the competition” (Fahy, 2012, p.5). Over recent years, Tesco has been extremely successful in this field. “It is the UK’s biggest retailer by sales and also the nation’s biggest private employer, with more than 330,000 staff” (Winterman, 2013) working in over 3100 stores (Holton, 2014). Pre-taxed profits are in the billions and it’s the world’s third largest supermarket group trading in twelve different countries (Winterman, 2013). According to ‘Retail Week’ Tesco has cornered most of the British market with sales figures above a combined total of its nearest two competitors of ASDA and Sainsbury’s (Anon,…show more content…
Not only will Tesco find stiff competition from its main rivals: Morrison’s, Sainsbury’s, and Asda, but the big four supermarkets are under pressure from smaller competitors as prices become less of a differentiator for shoppers. According to research from Kantar Worldpanal, which examined the purchasing habits of 30,000 British households in 2013, they found that only Sainsbury’s out of the big four increased its market share and that was merely from 16.4 to 16.6% (Silvera, 2013). Apparently, the main reasons are the increased growth of other smaller companies. “Aldi had 32.7% year-on-year sales increases and Lidl and Waitrose also performed well with respective growth rates of 14.3% and 9.7%. The combined growth of Lidl, Aldi and Waitrose have taken three market share points out of the grocery market over the past three years, forcing the major supermarkets to compete for an ever-smaller middle ground” (Silvera, 2013). One major reason given for this shift is Aldi’s claim to focus on giving customers value for money. (Silvera, 2013) Tesco’s competitor claims that its “core purpose is to provide value and quality to our customers by being fair and efficient in all we do”. (Anon, Business Case Studies,…show more content…
A group of people that influence an individual’s attitude when purchasing is called a reference group. Some reference groups may be formal such as members of a group or society, whilst others may be informal such as friends. Reference groups might influence the public providing information about their products (Fahy, 2012, p.75). Recent developments by Tesco in this field include a Facebook page (Anon, Tesco Facebook, n.d) and Twitter feed (Anon, Tesco Twitter, n.d) which both can be used for brand communications, competitions and new
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