In this coursework I have chosen two of the giant Supermarkets, Tesco and Sainsburys and compare them in terms of competitiveness.
G.C.S.E Coursework
Year 10
Business Studies
By
Nizar Dahan
0 DT
In this coursework I have chosen two of the giant Supermarkets, Tesco and Sainsburys and compare them in terms of competitiveness.
Is Tesco more competitive than Sainsbury's?
I will be comparing the two above shops on the following topics:
) Prices.
2) Friendliness.
3) Car parking.
4) Different services e.g. café, Internet shopping, crèche.
5) Range of products used.
6) Opening hours.
7) Cleanliness.
8) Convenience e.g. on a bus route.
9) Advertising.
0) Special offers.
1) Speed of service.
2) Busy/queues.
3) Quality of products.
4) Presentation of goods
Introduction to Tesco
The UK supermarket chain Tesco has reported a surge in pre-tax profits to £1.2bn for the last financial year. The company said it had continued to gain customers from all of its competitors, and had increased its share of the food market to 16.7%.
Tesco also announced that it is creating 21,000 new jobs worldwide.
Nine thousand of those jobs will be in the UK, where it plans to open 55 new stores and 30 new express shops.
Chief executive Terry Leahy said the group was successful because "we look after customers and we look after staff".
Complaints upheld
The supermarket chain has been competing heavily on price and has invested £280m in its price campaigns over the last year.
But as Tesco was trumpeting the success of its pricing policy, the company was ticked off by the Advertising Standards Authority (ASA) for claims made in some of its advertisements.
The ASA upheld two complaints from the rival supermarket Safeway about a national press advert and leaflet.
The ASA said Tesco's claim that "no other supermarket is more committed to cutting prices" could not be substantiated.
The authority also ordered Tesco to stop saying independent research had shown it to be 14% cheaper than Safeway.
The ASA said the way the figures were calculated in the research meant Tesco prices would actually be less than 14% cheaper.
Tesco said the ruling disappointed it.
Health and beauty
The 14.1% rise in pre-tax profits at the supermarket chain was accompanied by a 12.7% rise in-group sales to £15.77bn.
The company said it has increased sales of non-food goods, particularly health and beauty, and home entertainment, which has helped to boost profits as non-food items are more profitable than food.
The international business also helped to boost profits.
Tesco now describes itself as an international group, as it operates in nine countries and has 65,000 staff overseas.
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Tesco said the ruling disappointed it.
Health and beauty
The 14.1% rise in pre-tax profits at the supermarket chain was accompanied by a 12.7% rise in-group sales to £15.77bn.
The company said it has increased sales of non-food goods, particularly health and beauty, and home entertainment, which has helped to boost profits as non-food items are more profitable than food.
The international business also helped to boost profits.
Tesco now describes itself as an international group, as it operates in nine countries and has 65,000 staff overseas.
The company said Korea has the potential to become a significant engine of growth for the group.
Pensions boost
The company also used its annual results to make its policy on pensions clear.
It said that in stark contrast to many other employers, in the last year it had moved 59,000 employees from a defined contribution pension scheme to a defined benefits scheme.
With a defined contribution scheme, the employee bears the risk of their pension fund performing poorly.
But under a defined benefits scheme the employer bears the risk, as a member of staff is guaranteed a pension equal to a certain proportion of their final salary.
A new accounting standard, known as FRS17 has forced companies to include detailed figures for their pension schemes with their results, and as a result many firms have switched to defined contribution schemes.
But Terry Leahy said the company could afford to keep its scheme going, and saw it as a good way of attracting staff.
Introduction to Sainsbury's
Sainsbury's has fired the first shots in the bidding war for rival supermarket firm Safeway. It has confirmed it is "considering" an offer of more than £3bn for Safeway, the fourth-largest chain in the UK.This trumps the £2.65bn already put on the table by Morrisons.
Safeway's board has accepted that offer - but industry observers had already forecast that the matter would not end there.
Meanwhile, Wal-Mart is also likely to make a £3bn-plus move, it is said.
Like US-owned Wal-Mart, Sainsbury's views buying Safeway as an ideal chance to make ground over the industry leader Tesco.
Chief executive Sir Peter Davis said Safeway's decision to "relinquish its independence" was a unique opportunity.
He told Sky News: "From a customer's point of view we believe this is a good proposition" and would mean more choice.
Sainsbury's would be likely to have to sell some stores if its bid is eventually successful.
Wal-Mart, the world's largest grocer, already owns Asda.
Product list
I will be comparing the prices of about fifteen to twenty products from each of the superstores.
I will be taking products from each of the different aisles and comparing quality and costs. The products I will compare are as follows:
. Cotton buds, bag x 300
2. White loaf organic 800g
3. Baileys Irish cream latte gift pack 70cl
4. Bart Simpson chocolate sandwich bars x 10
5. Kellogs cornflakes 250g
6. Ladies trouser socks, cotton soft, black, 4-7 x 2
7. Canderel artificial sweetener tablets x 100
8. Kp hula-hoops original 12 x 27g
9. Anchor New Zealand butter, original 250g
0. Cod fillet chunky, in crispy breadcrumbs 300g
1. Bernard Matthews' turkey steaks, crispy crumb x 4 283g
2. Sony videotape t240 x 3
3. Free from corn pasta penne 500g
4. Refuse sacks, with tie handles
5. Bananas loose
6. Fresh thin and crusty pizza, cheese and tomato 270g
7. Chicken tonight sizzle and stir balti sauce 455g
8. Blue lilies, oriental stargazer
Prices
Sainsbury's prices. Tescos prices
. £1.09 1. £0.44
2. £0.89 2. £0.84
3. £11.99 3. £10.76
4. £0.79 4. No product available
5. £0.95 5. £0.99
6. £4.50 6. No product available
7. £1.39 7. £0.99
8. £1.33 8. £1.46
9. £0.77 9. £0.77
0. £2.99 10. £1.75
1. £1.72 11. £1.68
2. £4.99 12. £3.49
3. £1.99 13. £1.69
4. £2.79 14. £2.26
5. £0.85 15. £0.85/kg
6. £2.29 16. £2.29
7. £1.89 17. £1.78
8. £4.99 18. No product available
CONCLUSION
My conclusion is that Sainsbury's have a wider selection of products than tesco, but that tesco is better value for money. Some of the products were equally the same price in both of the stores.
Friendliness
Tesco
Most of the staff in Tesco don't seem to be as friendly as a few simply because they are not experienced at working with other people, not because they themselves are not nice people but because the staff in tescos are mainly youths who do not have the experience of the elder staff.
Sainsbury's
Sainsbury's try to employ older staff with more people skills and who like communicating with other people. Some of the staff who are younger do not work straight away with people, they are employed to help around the store with the tidying up and the stacking of the products etc.
Parking facilities
Tesco
There is a fairly large parking space for this superstore; it was purposely built for the Tesco shopping centre.
Sainsbury's
There is a larger parking space here than there is in Tescos, this is because his superstore is larger than Tescos.
`Different services
Tescos
Tescos have got a number of different services, It has got a restaurant and a café for people who want to take a break or have something to eat, it has got a bakery inside it for convenience so that people do not have to go to another shop. It also has internet shopping for elderly people or people with a disability who find it hard to get out and about so they will be able to do their shopping from home. There is also a cash point on the outside wall so that if someone is short of money they will be able to use the machines instead of going all the way to the bank.
Sainsbury's
Sainsbury's have several different services
They have a large café, which is also a rest area. They have a restaurant for people to go and eat if they get hungry, they have a bakery, and an off license which sells alcohol. They sell a wide range of cigarettes for people over sixteen years of age. They too have Internet shopping for people who are unable to travel around at ease. There is a bank there as well for people who need to take out cash for shopping.
Opening hours
Tesco
Monday 8:00am - Saturday 10:00pm
Sunday 10:00am - Sunday 4:30pm
Sainsbury's
Monday 7:00am - 11:00pm
Tuesday 7:00am - 11:00pm
Wednesday 7:00am - 11:00pm
Thursday 7:00am - 11:00pm
Friday 7:00am - 11:00pm
Saturday 6:00am - 10:00pm
Sunday 10:00 - 4:00pm
Cleanliness
Sainsbury's
I think that Sainsbury's policy about cleanliness is firm and is more attended to by the staff.
When the staff in Sainsbury's attends to a spillage or to clean up a mess they do it fast and without hassling the customers. The aisles are also bigger than those in Tesco. The speed of the cleaning service in Sainsbury's is quick.
Tesco
I don't think that Tesco is as clean and looked after as Sainsbury's is, the aisles are relatively compact and small so if there is a spillage of some kind, when it is attended to the aisles get blocked. Also the speed of attending to any spillages around the store is very slow.
Advertising
Sainsbury's
Sainsbury's form of adertisement is quite eye catching. They advertise via newspaper, using e-mail, through the television services, sent by mail and many more other ways.
Their way of advertisement on television is appealing due to the fact that it contains a celebrtity chef. If it was just a normal unknown person it would not be noticed as much.
Tesco
Tesco have a similar way of advertisement. They too use internet services to send information, and newspapers to send special offer packages and television informing of sales or price reductions in their products.
Special offers
Speed of service
Busy/queues
Quality of products
Presentation
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