Overview /Summary

 The primary purpose of this study is to understand the importance of pricing and quality strategy in the retail industry, and how organisation’s use these to gain the competitive advantage. In addition, this study will help us understand the factors which influence the pricing and the quality and how to sustain competitive advantage.

Introduction            

The retail market of the UK has become very competitive in the past years and because of that they are too much of competition in the market if we take a look at some of the major retail organisations and their growth in the market share has fallen down. In order for businesses to keep up with the market and have a decent share in the market the companies needs to be very competitive to gain any advantages over their competitors. 

The growth in the retail industry has expanded in the United Kingdom, with the two big names in the retail industry (Sainsbury, 2014) and (Tesco, 2014b). but because of many organisation’s available to the customers it has become harder for everyone and tighter, so everyone is offering a better value for money.

(Rego, Morgan, and Fornell, C, 2013).ü

 

In comparison to 1993 to 2013, it has been reported that the retail has grown by 313%, since the retail industry has grown so much and competition increasing this is why organisation are driving the concept of niche market, differentiation with stores and the brands are becoming a main method of differentiating and marketing. The main concept which is expressed as the primary benefits for the organisation’s which is involved in the retail trade. (Delliote, 2014)ü

Because of the increased pressure in the market, this has resulted organisation to choose pricing and quality or both, as an important aspect to deal with customer’s requirement and pricing has been chosen as one of the main method to handle competition and competitive pressure.

 

 

The intense competition will lead to a price war as most of the supermarkets are using price as a fundamental method of gaining the market share. This means that organisation are willing to suffer on their margins and it will lead to the main question if the strategy of low pricing is effective or not.

 These big organisations have to make sure that they provide good quality and services, because if they do not keep up with it then their rivals will drive them out them from the market. (Telegrpah.co.uk, 2015)

The focus of this study is to analyze the factors behind the success of a supermarket to be competitive and gain the share of the market. üThe research proposal will be conducted on two major retail organization and attempt to find out that why is one gaining more share in the market than another and why they are selling their products and services cheaper than the other one. In this research proposal I am hoping to find out if goods and services are sold cheaper to the consumer are they same standards as anywhere else or if not does this bother the customers.ü

I have decided to do my research proposal on this particular issue because the researcher wants to find out if one of the organisation is selling their products cheaper than the other is the quality of the products the same as the other organiastion or is the business making profit if they are selling their products for less. The other reason is to find out since there is too much of competition in the retail industry in the UK are these big businesses still making any profit or just surviving. When I have completed my project on this issue I will be able to understand because of the competition in between these major retail organisation are the small local businesses getting affected by this as well and if yes then how are they dealing with it in order for them to survive and run their businesses smoothly what steps are their taking.

The reason behind why I have chose to do my research on this particular issue, Is that recently I have been watching news on television about the competition in the UK between supermarkets in the retail industry. In addition, I have been reading news article, which are also talking about the raise in the UK supermarket. So this got me curios that if they are that much of competition how are the suppliers provide them with the goods they need. I was reading an article on the guardian.com that suppliers and farmers are struggling to provide goods to their customers so this is why I decided to do my project on this particular issue. (Rupert Jones (2016) theguardian.com)

One of the main reasons, behind the supermarkets success is the ease of opening new stores rather than big, out of town supermar