Marketing Comunications

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Introduction
In the United Kingdom (UK), there are about 92, 796 grocery stores that can be categorized as follows; retail stores, convenience, stores, supermarkets, hypermarkets, and online stores (Li, 2008). The industry’s market share is dominated by Sainsbury, Tesco, Asda, and Morrisons. According to Petinger (2012), Tesco dominates the UK grocery market share by 23%, followed by ASDA and Sainsbury both at 13%, and lastly Morrisons at 12%. Combined together, the big four, as they are referred to, make up over 60% of the total market share.

Considering the above depicted figures, the notion that the UK grocery market is oligopolistic is inescapable. However, and as stated by the big four players appear to be losing market share due to overgrowth of the industry (The Telegraph). Nevertheless, and as stated by Ruddik (2014), Sainsbury officially replaced Asda as the number two grocery supermarket in the UK as from December, 2013. This paper will critically analyze the marketing communications strategies deployed by Sainsbury’s top three industry competitors, in addition to offering recommendations for changes to be effected by Sainsbury, based on the analysis.
Tesco
According to Steinner (2012), Tesco divides its target audience or customers into two groups; high-end and low-end. It aims to achieve this division by utilizing the ClubCard data to personalize customer shopping experience. The intent is to satisfy both upmarket and price sensitive customers, by understanding how likely to be swayed the customer is in terms of price and quality. Tesco has also increased its holistic target on family customers with the introduction of the low priced Tesco Hudi tablet.
Communication Objectives
Tesco’s communication objectives rev...

... middle of paper ...

.... The Telegraph. Accessed on 11th June, 2014 from http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10571062/Sainsburys-overtakes-Asda-for-first-time-in-a-decade.html
Steiner, R. (2012). Tesco to target customers according t their wealth by using their Clubcard data to personalize their website. The Daily Mail. Accessed on 11th June, 2014 from http://www.dailymail.co.uk/news/article-2164660/Tesco-target-customers-according-wealth-using-Clubcard-data-personalise-website.html The Telegraph. (2013). New landscape for “big four” supermarkets. The Telelegraph. Accessed on 11th June, 2014 from http://www.telegraph.co.uk/finance/comment/telegraph-view/10461521/New-landscape-for-big-four-supermarkets.html The BBC. (2014). Morrisons Restructuring Sparks Fears of New Price Wars. BBC. Accessed on 11th June, 2014 from http://www.bbc.com/news/business-26556924

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