Marketing Mix Product

Tesco Provide food and non food items

Saintsberry Provide an own-brand offer, and more recently it has added nutritional labels to the front of packs now on more than 5,000 products. Relatively high price to target upper and mass market Smaller out lets in compare to other rivals, with 792 outlets. More targeted to youngsters Targeting young segments through TV, Feed your family for a fiverMostly on television

Asda A wallmart owned retailer provides number of food and non food items targets on both lower and upper class Price leadership to focus on low end customers

Waitrose More focus on food items to target top end customers. More focus organic products

Price

Premium and value range to target different type of customers 2282 outlets, more convenient stores and online trade, hyper markets, catalogue business Tesco Club Cards, spending in Advertising 4 times on Waitrose. Spend mostly on TV and press. Targeted promotions to individuals, based on their purchases Convenient stores. Catalogue business, High technology, customer friendly

A premium pricing focus on upper and mass market With 197 outlets concentrated in the wealthiest region. Waitrose online Spending massively on Tv, and also new technology, Promotion based on USP

Place

With 356 outlets lower than of its rivals,

Promotion

Prices that cannot be beaten is promotion message, press and TV advertising

Physical evidence

Encourage youth shoppers into its stores, stop selling eggs from caged hens.

Astra extra special premium range aims the mass shoppers to its stores.

People

Well maintained staff, with medical and mental care from Tesco

Well maintained staff

Well maintained staff

Extensive fair trade range of products, treating producers fairly, eco packaging, The fact that it holds a Royal Warrant to supply groceries, wines and spirits to the Queen helps reinforce its reputation for quality. Employee owned cooperative, bonuses in extra profits. (14% stake)

Table-1: Marketing Mix Analysis PESTEEL ANALYSIS Political Factors y y There is a growing pressure group of influential advisors seeking to restrict the growing power of the supermarkets.(Page-18) UK government urges the supermarkets to reduce carbon emission in the industry.(Page-15,para04)

Economical Factors y y y Spending on food accounts for 13% of all consumer spending (Page-7, para-1) Food and drink is the last thing consumer cut in the budget if the money is tight Increased sales in non food selling in supermarkets

Social factors y y 1 Key consideration of the shopper is convenience-everything under one roof and that should be close to their home or work.(page-06, para-2) Online shopping will grow up to 40% by 2025. (Page-08)

y y y y y y y

Significant moves on non food items selling by the super markets. 80% of Waitrose customers are less or no price sensitive (Page-13, Para-5) Increase in aging population. Trend towards one stop and bulk shopping Rapid increase in Mass affluence people Increased health consciousness- Organic food Customer expect superior customer service from the retail stores

Technological y y y y Advanced development of technology in business People seek for more convenient online virtual store Increased social media penetration Development of digital media

Environmental Factors y y y Pressure from the UK government to reduce carbon emission in the industry (page-8) Shoppers more concern about food miles and green issues. Organic food demand is increased and its perceived as a premium product range

Ethical factors y y y Consumers seek more ethical source of what they buy and food miles Waitrose strong relationship with its suppliers Its an employee owned cooperative and employees receive a bonus each year based on the company performance(14% Stake)-Page-15, Para-3

Legal Factors y y y Competition commission raised concerns to offer greater protection to suppliers. (Page-18) Competition commission restricts the acquisition of stores by the big rivals in the industry.(Page5, Para-2) Advertising standard authority regulates the advertising industry

Tesco

Asda Saintsberry

Mark & Spencer

Waitrose 2

Strengths Holds royal warrant to supply groceries and wines to queen Elizabeth. John Lewis Partnership on the UKs leading retailer. More focused on food for the top end of the market A worker owned cooperative more loyal workers and experitised staff More ethical credential for Waitrose Superior customer service and award winning retailer for mass market 85%

Weaknesses Store are more concentrated in UK Though its a leading retailer operating in a small scale comparing to others in the industry More focused on Food retailing spending on advertising (0.3%) in sales Split of advertising more focused on TV (79.8%)

Threats Rapid increase in outlets The false advert about outdoor bred Pork- a bad word of mouth for Waitrose Less number of non food selling Increasing channel insensitivity will undermine the exclusivity of the brand. Less spending in advertising High competitor profiles with high economies of scale

Opportunities Online virtual store Expanding to Scotland Favourable completion commission report People aware of food miles and ethical credentials Growing trend of online shopping Customers seek for more customized shopping The high penetration of social media networks and digital media Increased mass affluence segment in the population

Figure2: SWOT Analysis Ansoff Matrix-Figure-3 PRODUCT Present MARKET New channels Present New Non food selling, new from duchy originals Organic food for US market, New

New

Overseas Out of the London

Competition Committee Partners Chefs Employees Competitors Government

Management Loyal shoppers

Shopper s Potential shoppers

Service Quality SpecificationsWaitrose SERVQUAL MODEL- Figure-6 y y Superior customer satisfaction Management commitment to service quality

Figure-5 Stakeholder mapping

Understanding customer expectations y y y Service Quality y y y y y Reliability Responsiveness Assurance Empathy Tangibles Focus group study Panel research Management by walking around

Employee Performance- Waitrose y y y Employing training and development Reward management Score card systems

Managing service expectations y y y Advertising split Internal Marketing Minimum level service standards requirments