This report compares the marketing propositions of two competing brands, Tesco and Sainsbury’s. It provides a situation analysis of the market, critical analyses of their existing marketing strategies and recommendations for future strategies. Both companies are long-established UK grocers. They are number one and three in the fiercely competitive UK food retail market, which is growing steadily. The market is much consolidated: the five top players take 80% of it. High market concentration has caused a public backlash, criticism in Parliament and talk of limits on market share. Emerging technologies and consumer demand for high-margin convenience foods and organic products present growth opportunities. Tesco’s strengths are brand recognition and innovation; weaknesses are reliance on a single brand and little free cash. Sainsbury’s strengths are a reputation for quality and good own-brand products; weaknesses are supply chain problems and low profits

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