Topics: Supermarket, Sainsbury's, Online shopping Pages: 16 (5071 words) Published: April 5, 2014

Table of Contents
Company Information 4
Comparison and Contrast of Tesco and Sainsbury’s Performance5 Store Format5
Store Format of Tesco and Sainsbury’s7
Store Design of Tesco and Sainsbury’s10
Advertising/Promotion of Tesco and Sainsbury’s13
Customer Segmentation of Tesco and Sainsbury’s 16
Multi-Channel Platforms of Tesco and Sainsbury’s 18
Multi-Channel Marketing of Tesco and Sainsbury’s18
Problems Faced By Tesco And Sainsbury’s20
Recommendations for Success21


In the modern day scenario, the continuous change within the business structure is greatly influencing the worldwide marketplace in terms of grocery retail segment (Tesco, 2012). This statement can be further explained, as the changing structure mainly includes the dominance of trading and retailing firms (Wrigley, 2010). With reference to the international market scenario, grocery retailers have appeared as one of the dominant players within the food chain that includes the major part of the world. Dynamic economic conditions have compelled the leading retailers to re-evaluate the strategies related to the marketing channels. The varied altering trends in grocery retailing have created various opportunities for the suppliers and the manufacturers. With reference to the competitive market scenario, the retailers have enforced certain strategies and advanced plans as regards to the consumers’ behaviour (Memedovic, 2010).

Company Information

Tesco is considered to be the one of the biggest retailers in the global perspective. In the year 1997, it had established itself as the one of the prominent and trusted names in the field of grocery retail. Tesco represents the largest online grocery business; it targets its customers on the basis of purchase behaviour. The opportunities provided by Tesco within the websites facilitate to meet the requirement of its target consumers comprising the younger audience as well as the wealthy family audience (Datamonitor, 2004). J Sainsbury plc represents the parent as well as the host company of Sainsbury’s Supermarkets Ltd. It represents the third largest supermarket chain within the United Kingdom. It has implemented and executed certain strategies along with plans that ensure the sustainability within the competitive market scenario. Sainsbury’s vision is to be a trusted retailer (Irish Food Board, 2011). In accordance with the retailing business, the objective of the study is to compare and contrast between Tesco and Sainsbury with respect to their performance in various areas. The respective areas include store format, store design, advertising and promotions, customer segmentation and multi-channel platform. In this study, Mehrabian and Russell's approach-avoidance model will be applied. This model represents the effects of the store environment upon the consumer behaviour. In accordance with Mehrabian and Russell's approach-avoidance model, it has been further revealed that it lays emphasis upon nonverbal responses related to environmental factors that act as a major determinant of change in behaviour. Comparison and Contrast of Tesco and Sainsbury’s Performance Store Format

The store format of an organisation has profound impact on the purchasing decisions. In several instances, store atmosphere, interior design and overall store environment determine the reaction of customers with respect to product purchase and consumption. The store environment comprises certain indications, messages and propositions to the customers. It can enhance the positive feeling and direct the anticipated consumer behaviour such as high inclination to purchase or longer time to stay in retail store (Gilboa & Rafaeli, 2002). Store atmosphere is a vital component of image of an organisation. For several retailers, aspects such as store layout, colour, lighting and music among others help to influence the...

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