Tesco Compared to Sainsburys

There was a time when the market leader in UK supermarkets was Sainsbury’s but in the past few years Tesco has shot ahead. Some of the reasons for Tescos dominance

Clever Marketing. I am always impressed by how Tesco’s knows exactly how to get me to go shopping there again. If I haven’t been shopping for a  few weeks, they will send vouchers giving me £5 off my next £30 shop. The really clever thing is that usually I spend £20-£25 on a shop at Tesco. Not only do they get me to go shopping, but I spend an extra £5. (My house always has piles of food boxes, I need to buy to get some minimum order delivery )

Cheaper Prices. Some customers are price sensitive; in this regard Tesco has a reputation for being cheaper than Sainsbury’s. Whether this is true I don’t know. But, they certainly have a reputation for being cheaper. This is probably helped by their Tesco value range which is markedly cheap.

Catering to both Sectors. Tesco have catered to both the price sensitive market, but also the up market sector. The Tesco value brand is supposedly ugly on purpose. But, the finest foods caters to the upmarket sector; the kind of customer who might go to Marks and Spencers. They are practising price discrimination quite effectively within their own store.

Opened the most stores. Tesco seem to have opened the most stores showing a flexibility to open different sized stores reflecting the location. For example, Tesco metro stores in city centres.

Diversification. It seems there is no area where Tesco has not been able to diversify into – electrical goods, insurance, banking, mobile phones. These non food lines have offered scope for greater growth. It also gives people more reason to shop at Tesco’s – you can get pretty much anything you might need all in the convenience of one hypermarket.

Related

2 thoughts on “Tesco Compared to Sainsburys”

  1. You have a typo in this paragraph

    Catering to both Sectors. Tesco have catered to both the price sensitive market, but also the up market sector. The Tesco value brand is supposedly ugly on purpose. But, the finest foods caters to the upmarket sector; the kind of customer who might goto Marks and ***Spensers. They are practicing price discrimination quite effectively within their own store.

    ***Spencers !

Comments are closed.

Item added to cart.
0 items - £0.00