Every business has aims and objectives. The similarities that Tesco and Asda have for their aims and objectives are that both want to maximise their sales and profits. They both want to become the main supermarket in the United Kingdom. Asda are hoping to reach the success of their partners Wal-Mart. The one big similarity with the two businesses is that they want to provide the customers with cheap and really good quality products. A difference in Tesco’s and Asda’s aims and objectives it that Asda want to have highly trained staff who can be really helpful and friendly to the customers. Tesco haven’t discussed about the training of their staff in their aims and objectives. Another difference is that Tesco want to remain the current market leaders however Asda are hoping to expand through Wal-Mart. Tesco’s have no aim to tackle the problem of food waste however Asda do. Asda want to recycle their waste in a responsible fashion. They also want to be able to find ways in which they can tackle the problem of food waste. They also want to help voluntary services and many charities in Great Britain. Tesco haven’t included anything about voluntary services in their objectives or aims but Asda have. One more difference for both businesses aims and objectives it that Asda want to have cleaner stores and wants the packaging of their products to be at high standards.
Asda and Tesco both have similar marketing techniques, as they both penetrate the price. They both use above the line and below the line promotion for their products. For above the line promotion, they will use television adverts to promote their products. They also use billboards and advertise in newspapers. Promotion will also involve online advertising on websites. Asda and Tesco have their own websites where people can choose their own products and can purchase online. For below the line promotion, they will do special offers and give vouchers to their customers to make them purchase again. However a difference in marketing techniques for both businesses is that Tesco have a catalogue which can get sent to their target markets houses. This can give them the option of looking at what product they might want to buy from right in their hands. They can always keep the catalogue and look at it if they think they might need something new. Asda unfortunately do not have a catalogue which could get sent to the public’s homes. They have one catalogue online to be viewed which is different to Tesco’s. The customers may not like having catalogue’s delivered to their house and find it much easier to access a catalogue online.
Branding is a way of developing a brand through a marketing mix. It’s also a way of creating your own types of products in the company but with a new brand name, however it’s still part of the company. Branding is important for both Asda and Tesco. The similarities about branding are that both businesses have their own labelled products. . An example is frozen food, they might be expensive from other stores but with Asda’s brand it can be sold cheaper allowing more customers to buy their products. Tesco also have their own branded eggs and sell their own cornflakes. Kellogg's Cornflakes cost £1.98 from most supermarkets. However Tesco's own branded cornflakes cost £0.39 which is a definite bargain. The price drop is huge and Asda also do this with their products. A major difference in branding for both businesses is that Asda also have a clothing brand in the name of George. They sell clothes for all ages at cheap prices. Tesco don’t have a clothing brand made yet except for their (F&F). Clothes which you may buy from Marks & Spencer's may be £100 but at Asda George, you can buy them for £40.The brand gets more recognised as it gets advertised by celebrities such as Miley Cyrus. Using Children TV stars is a clever technique to attract kids to shop with their parents. Tesco haven’t used celebrities to promote their products. Both Tesco and Asda have their own distinct colours which separate them from each other. Asda use green and Tesco use blue. One other difference which Asda do but Tesco doesn’t. In Asda adverts, they pat their bottom which gives them their own identity. If you see that on adverts, you will know straight away it’s to do with Asda.
Relationship marketing is so important for both Asda and Tesco because it’s a way of a business’s interacting with their customers and building a really good relationship for a long time between the company and the customers. Both businesses want to create a strong relationship between them and their customers. A similarity is that they both have a points card which works when an item is bought, it puts a certain amount of points onto your card. This is really useful for customers who can save their points and then use them later on in the year. However the big difference in relationship marketing for both Asda and Tesco is that Tesco have a loyalty card for their customers and Asda don’t. They give a Tesco Clubcard, which is really popular in stores & has been successful for many years. It has over 15 million members in counting. Part of that success has been allocated to the expertise they have developed in managing their Clubcard and thus their personal relationships with individual customers. This will attract the customer to return to the store to use their points and not let them go to waste. This is a value of a lifetime customer. The difference between the Tesco Clubcard and Asda’s Money Card is that Asda Money Card is similar to a credit card but just used for Asda. If you’re a member of the loyalty scheme for Tesco, you will have the right to use Clubcard Clubs, which contain wine, baby and toddler, healthy food, food and Christmas clubs.
Survival strategies are a list of strategies which are needed to be able to survive in the market. Without these strategies, the business could go a bust. A strategy which Asda and Tesco both have is that in order to survive in the market, they will sell the products at a cheap price or maybe sell it as a pack for a little bit more money. Both businesses can downsize their business. Fewer stores will mean less stock needed, which then will need less money. They both also put a lot of promotional offers every few weeks to keep the business going. Tesco’s are giving an end of season sale which offers up to 50% of Selected laptops and accessories. The same goes for Asda on their products. They also do travel at cheap prices. However there is one difference in the survival strategies for Asda and Tesco. This is that if Asda ever need money help, their partners Wal-Mart will help them because Asda helped them grow. Asda also survive by keeping all their staff & recently they shared around £27 million in bonuses. Tesco’s haven’t ever given that much bonuses for their staff.
Asda and Tesco have both diversified. Asda have because around many area’s they have begun to sell petrol at petrol pumps near their stores. This means a new product has been introduced and targeted towards a new market which being drivers. This is similar for Tesco’s as well because Tesco’s have introduced pet insurance which aims at a new market, being owners of pets.
by
radoric (student)
