Successive Supermarket in Hounslow, “Asda” or “Tesco” or “Morrison’s”.
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The main aims and objectives of this proposal are
1. To analyze the successful supermarket in Hounslow.
2. To analyze and evaluate the reasons that made it the most successful one.
3. To evaluate the defects of the equivalent opponent supermarkets.
4. The marketing strategy that made it successful.
5. To make recommendations for the competitor to gain the top position in the Hounslow.
This proposal research is done across Hounslow and among the three supermarkets that stood among the top big 4 in UK retail markets. Supermarkets are nothing but self service stores which are probably in the form of a grocery store which have a variety of household merchandise, food etc. They sell every household product that are essential for the regular daily use. They are usually large in size well organized into various departments depending on the type of the product. They are even found as small convenient stores and are limited in the range of the products that are sold in that.
They typically contain dairy products, fresh products, meat and baked items. They also even sell packaged goods, canned, pet supplies, pharmacy items, cleaners, clothes, alcohol etc. They also sell regularly used household products. The size and location of the supermarket also matters for the success of it. These two factors contribute a lot for the business as they have many advantages. A suburban market occupies a large amount of space. If such a supermarket is located near to the residential areas then it accounts to a good success as such supermarkets relatively sell low priced goods, convenient shopping hours may be for 24 hrs and good parking facilities. The supermarkets opt for lower margins by having sales in large volumes.
2. LITERATURE REVIEW:
This proposal of mine deals with the leading supermarkets of UK “ASDA”,”TESCO” and “MORRISON’s” in Hounslow. This topic is an essential topic as it deals with the success of one supermarket among the two leading in the UK supermarket chain. Hounslow is the area where people mostly of a certain community live. Such areas are very peculiar for any business as customer satisfaction is very important for its success. As the main success of any business lies in the way it deals with the customers. Tastes and the products vary with the people. Imagine of solely selling beef burgers in India absolutely no doubt the business shuts down in days. Definitely in any part of the world when we plan a business there should be an exact planning about the business and the tastes of the people in that region and whether the business survives there. 2.1 Top most supermarkets in UK:
The main market share of the UK supermarkets comes from Tesco, Sainsbury, Asda and Morrison’s. These four markets are called the big4. These are the biggest in UK market. Hounslow which means the land of hunting. It was located on the Great West Road. The major population in Hounslow is of Indians. The people here had arrived from India after independence. They were brought here by the British Empire to serve them as workers. After few years their population had increased due to migrants from India and also from Asia. Out of the top 4 supermarkets there are only 3 in Hounslow. Tesco, Asda and Morrison’s are the three top supermarkets in Hounslow besides there are also few good ones like Iceland. Here we are going to compare among the three top supermarkets. 2.2 Asda:
Associated Dairies & Farm Stores Limited was the first name of Asda when it was founded in 1949 in Leeds. It 1965 the adoption of name Asda was made after the merging of the Associated Dairies and Asquith supermarkets chain. Its name was abbreviated as Asquith and Dairies. It had many mergers and takeovers in the early years and in that process it had sold out The Dairy division and it had no connection with it from which its name was derived. It was in the year 1989 its business expansion took place after it buyed the format stores of Gateway Superstores the main rival. In that process the management faced main troubles in selling different products. It mostly duplicated the system of the Wal-Mart. In 1999 it was purchased by Wal-Mart. It was sold to Corinth services limited which was a subsidiary of Wal-Mart in 2009. At present Asda is the one of the largest chain supermarkets in UK and it stands in the second place and having an individual market share of 17% all over the UK supermarkets. Marketing:
Asda’s main marketing campaign is a well known one which is based on the prices of the goods which is “Asda price”. It was its most popular campaign which was started in 1977. Since 30 years it has advertised with many celebrities tapping their pockets with the coins or money they saved by shopping in Asda. They sponsored the “Sheffield Wednesday F.C” for two seasons and also they were the most successful seasons for the club even. They were really popular for that campaign as the club stood first in the first season and third in the second season. They used a CGI smiley face campaign used in Wal-Mart called “rollback”, where the meaning of that advert states Asda is the most affordable one than others in this country. One of the popular campaigns of Asda in recent years is the slogan “More for you for less” advertised as children singing the slogan and at the same time double tapping their pockets. They advertised during the 006 FIFA world cup with England player “Michael Owen” and in the year 2007 they promoted the rollback campaign with celebrities Paul Whitehouse and Victoria Wood as employees in Asda.
Asda started a new campaign ASDA smart price with logo This campaign of Asda is nothing but selling the products at very price which are of equivalent in quality to original products. They sell products that are from farmers and which are of their own brand. The main advantage of Asda supermarkets is they occupy large space and sell almost all household products at reasonable low prices and the main advantage of the stores is that they provide a vast parking space for the customers. This is an advantage for the customers to shop at an ease. 2.3 Morrison’s:
It was holding fourth position in the supermarket chain in UK. It was founded in 1899 by William Morrison. At the beginning it was just a butter and egg stall. Later his son took over the company and he opened new self service shop in 1958 in Bradford. That store contained three checkouts and it displays the prices of the products on them and later in the year 1961 he opened a new supermarket. Until the year 2004 Morrison’s stores were mostly located in the north of England. The Morrison’s acquired Safeway Company. In the year 2004 this deal took place and later the Morrison’s is having 403 stores across UK. After the takeover of Safeway the conversion of stores was the largest in the history of British retail industry. Its decision not to enter into convenience store sector was a bad decision by the Company as it sold most of its small stores to its rivals and many to the supermarket giants in the country. It sold many branches to Waitrose. It sold many of its joint venture stores to its competitors. It finally ended most of the Safeway stores completely and started moving further into the market in complete Morrison format. Marketing:
In 2007 it changed its old look and introduced new brand image and changed its concept to Morrisons value range from Bettabuy. Marc Bolland(2007) said “Reflecting our nationwide presence and our many new customers, we will be making Morrisons the food specialist for everyone”. They changed the logo and modified the caption “More reasons to shop at Morrisons” and replaced it with “fresh for you every day” or “fresh choice for you” and “Food specialist for everyone”. They planned and changed their complete look for attracting the customers and to capitalize its geographical expansion after the acquisition of Safeway. They changed all their advertising techniques, uniforms, vehicles etc. They launched their new look
Website and with new slogan in the televisions came out. In the mid of 2010 they changed their advertising strategy which is to drop the celebrities in their advertising campaign and to concentrate completely on the freshness of the products which are to be sold in the Morrisons and in their competent supermarkets. Their first new campaign was to tell their customers that they sell the pure 100% fresh British meat. In this new campaign they changed their slogan “fresh choice for you” to “Eat fresh. Pay less”. 2.4 Tesco:
It holds the top position in the UK holding a market share of roughly 30%. It was third in the world in respect to the revenues and second in profits. It was one of the successful UK grocery retailers and had spread its wings in the global market having stores in 14 countries. Jack Cohen in the year 1919 introduced the chain. He gave the name Tesco to his stores after he bought tea from “T.E. Stockwell” and from those initials and from the starting two letters of his surname COhen he named it and opened his first store in Middlesex in 1929. It entered into the London Stock Exchange in the year 1947 and it opened a self-service store in the year 1956 and in the same year it opened its first supermarket. The main growth of Tesco took place in-between the years 1950-1960 it had many acquisitions with many other stores and supermarket chains and now it is having a total of 800 stores. Its main specialization is in food and drink and later it moved into all household essentials. Marketing:
It was the first to introduce the Clubcard and was the only retailer to make profits on internet shopping. Tesco uses its own brand products it also includes the best brands for the up market, medium range Tesco products and also low price products in all categories. In the year 1997 it marketed using the phrase “The Tesco Way” and it was the standard slogan for Tesco during its expansion in national and global markets. The use of new technology across the years was also the successive secret of Tesco as it was the first to introduce self-servicing tills and cameras across the stores. In prevention of brand image it is using defamation policy proceedings in the global markets. The main slogan of the Tesco during its advertising campaign is “Every little helps” and it had advertised its products with many recognizable actors saying the slogan of the Tesco in the television. 3. RESEARCH METHODOLOGY:
In this proposal my main research goes across Hounslow and among Asda, Tesco and Morrison’s and my main objectives are to find the most successful supermarket in Hounslow, to find the reasons that made it the successful one, the defects or backdrops the competitors, the marketing strategy that made it successful and to make recommendations to the competitors about what they are lacking that made them to remain back in the business. 3.2 Research Methods:
In my proposal I am going to use Qualitative and Quantitative methods for my research. These two are my primary and secondary research methods. In my research I am going to prepare a questionnaire for both research methods and approach the customers that are entering and leaving the three stores and interview them depending on the questionnaire and some part of my research is also done on the marketing techniques that these three retailers are using to attract their customers and increase their sales. 3.3 Primary Research:
The primary research method in my proposal is Quantitative method. Quantitative approach:
In this method the research is done on the quantity basis that comprises of size of the supermarket and the different types of products that are available in the supermarket. In this quantity means not only in the regard of the size but also the extra benefits that the customers get. In this quantitative approach my questionnaire is mainly depending on the ease of the customer during shopping at certain supermarket. It also contains questions that request the reasons that made them to shop at an ease at that supermarket. The products they purchased and their feedback. The products most customers are interested in and the reasons. This type of questionnaires gives an idea of the reasons that are attracting the customers to certain supermarket. 3.4 Secondary Research:
The secondary research method in my proposal is Qualitative method. Qualitative approach:
In this method the research is done on the quality basis that comprises of the product quality and the customer demand on certain product and marketing strategy of the store in that area. The quality of service by the employees in the store. In this quality also regards to the type of the customers that are visiting the store and the kind of products they are buying. I am going to prepare my questionnaire depending on the products the customers are buying and their feedback on the products and the reasons they possess for buying that product. Availability of the same in the surroundings and the reasons for buying it only in that supermarket and not elsewhere. Such simple questionnaire gives an idea about the customer’s views and tastes which helps for the development of the business.
3.5 Sample Questionnaire:
* Why shopping here?
* What type of products that are purchased regularly?
* What about the quality?
* Are the products available in near stores?
* Why to buy them here only?
* What about the service?
* What problems they face at shopping in that store?
* What made them easy to shop at that store?
* What about the prices?
* Where else are they cheaper?
* What about the location of the store?
* What about the timings?
* Are they flexible?
* What about the safety laws that are followed in the store? * Are they satisfied?
* What about the products purchased?
* Did they need to shop elsewhere after shopping in here? Why? * What are the extra facilities that are available during shopping here?
7. http://www.telegraph.co.uk/finance/newsbysector/epic/mrw/ 8. http://www.marketinguk.co.uk/Marketing/Morrisons-new-strategy-will-focus-on-using-freshness-as-a-differentiator-between-Morrisons-products-and-those-offere
d-by-their-rivals.asp 9. http://www.marketingmagazine.co.uk/news/1015594/Morrisons-adopts-celeb-free-activity/ 10. http://www.tesco.com