Pest Analysis

Product:

As we know that there are many competitors of Sainsbury in U.K. such as Tesco, Asda, Morrison and Marks and Spencer. Tesco is the market leader with 30% for retail food market in U.K. and Sainsbury is second biggest supermarket with 18% of retail market. It remains same as last year in this credit-crunch as well just because of its different types of marketing strategy for different products. For example, Sainsbury is selling its own products as well like Sainsbury’s basic, Sainsbury’s be good to yourself, Sainsbury’s organic (SO), and Sainsbury’s taste the difference. Sainsbury is selling basic yogurt which has 0% fat at £0.49 where as Tesco and Morrison selling its own yogurt which has 2% fat at £0.79, so basically the people who are health conscious they prefer to buy some particular products from Sainsbury’s and the people who go to Sainsbury will buy every product which they need for daily use because its human mind-set that they will not go to another store to buy different products if they get at one store and at same price.

Price:

Sainsbury has different strategy to show that they are selling their products at lowest prices in the retail market. Here I am sharing my personal experience; Sainsbury is comparing its prices with Tesco because it is the market leader so Sainsbury is showing two different prices for one product. They put the price of Tesco on one label with heading “Price Check” and on another label they put their own price which is lower than the price of Tesco or same.

So when customers go to Sainsbury they don’t need to remember the price of Tesco because they can show the price of Tesco for some particular products, but Tesco is not following this strategy so customers think that Tesco is selling same products at more price than the Sainsbury’s.

Place: -

Place means place of Sainsbury’s and place of product in Sainsbury’s. It is serving 18 million people with 290 convenience stores and 502 supermarkets where customers can...