To analyze the impact of digital marketing on the growth and performance of retail industry. A study on Sainsbury's

This report analyzes the impact of digital marketing on the growth and performance of the retail industry, with a focus on Sainsbury's. It discusses the concept and importance of digital marketing, trends in retail, various digital marketing strategies used by Sainsbury's, challenges faced, and recommendations.

Inquiry project

Table of Contents
Title: "To analyze the impact of digital marketing on the growth and performance of retail
industry". A study on Sainsbury's....................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Project aim:.............................................................................................................................1
Project Objectives:..................................................................................................................1
Concept and importance of digital marketing in context to organization..............................1
Various digital marketing strategies used by Sainsbury's to improve performance and gain
growth at marketplace............................................................................................................3
The challenges faced by Sainsbury's while using digital marketing strategies to improve
performance and gain growth at marketplace........................................................................5
Recommendations..................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

Title: "To analyze the impact of digital marketing on the growth and
performance of retail industry". A study on Sainsbury's
INTRODUCTION
Digital marketing is also considered to be online marketing that aids entity in promoting its
goods, services, brands and others. Moreover, this is also helpful in developing stronger
connections with clients through using different kinds of digital tools. Additionally, it is the
modern techniques by which firm may effectively monitor as well as track its campaigns &
invest money on them (Adivar, Hüseyinoğlu and Christopher, 2019). The organisation that is
undertaken for this report is Sainsbury’s, which is one of the second largest supermarkets chain
within UK. Also, it has also become the largest groceries retailer in year 1922. Respective entity
is founded in 1869 by John James Sainsbury. The topics which are going to be discussed in this
report are trends in retail and analysis of organisation. Moreover, some recommendations are
also provided in this report.
MAIN BODY
Project aim:
"To analyze the impact of digital marketing on the growth and performance of retail
industry". A study on Sainsbury's
Project Objectives:
 To identify the concept and importance of digital marketing in context to organization.
 To determine the various digital marketing strategies used by Sainsbury's to improve
performance and gain growth at marketplace.
 To examine the challenges faced by Sainsbury's while using digital marketing strategies
to improve performance and gain growth at marketplace.
Concept and importance of digital marketing in context to organization.
Digital marketing is considered as the essential concept for organisation as this is applied
to promote their commodities and facilities. Moreover, the main intent of business is to maximise
the base of consumers as well as sales through facilitating efficient goods quality. In addition to
this, this targets particular segments of consumer base as well as is interactive (Behera and et. al.,
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2020). It is upon a raise and incorporates email ads, search results ads and others which involve
marketing with client’s feedbacks or two ways interactions among clients and firm.
Importance of digital marketing
 Cost effective and faster: Digital marketing is reasonable in comparison to traditional
marketing. In case, business which have bounded resources, spends money for
advertising traditionally is not enough. Moreover, even the requirements to print flyers
for their business is costly as well as time taking. But with digital marketing, firms may
initiate the procedures immediately. they have to perform few analysis and thereafter try
other forms of digital marketing Better ROI: Various firms claim that performs online advertisements, either this is paid or
free and have effective return on investment. Additionally, this is possible to have greater
conversion rate or return on investment as much of their consumers may be seen online.
In case they are become competent to understand its targets audiences are and lay out the
strategy which it required for turning its leads into consumers.
Digital Trends in retail
Retail industry is transforming themselves in respect to intensify competition as well as
new challenges following the COVID-19 disruption. Also, as New Year comes trends get
changed within the retail as well as e-commerce (Bollweg and et. al., 2020). In year 2020 and
2021, it has been seen that huge growth into social commerce, influencer marketing and
advanced retail shopping experiences. As an outcomes of pandemic, e-commerce grocery
platform such as instacart are currently the new norms for millions of shoppers worldwide.
Retailer continues to explore its experiences of online shopping. Also, from advancement
of technology into retail sector for surprising new partnership of sales channel, in this the top
trends in retail are discussed below:
New approach to influencer marketing:
Influencer marketing utilised to become all about selfish, effectively formed captions as
well as heavily edited products shots. But in year 2021, it has been observe a key shift into ways
the influencer and brands perform together. Additionally, the influencer content have slowly
transited to raw, real aesthetic and this modification would continue within 2022 trends of retail
sector.
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In addition to this, from a perspective of media mix, video would be 2022’s the much
essential medium for influencer partnerships. Additionally, with various brick-and-mortar outlets
closed, shoppers may not try upon apparel or test gadgets into-stores- and video is the other best
aspects.
In fact, several brands has already initiated partnering along with influencers for
developing as well as sharing content on tiktok, Instagram reels and other for fostering and
building digital communities (Kim, Kim and Hwang, 2020). Furthermore, bandier partners with
leaders of particular sector to run workouts upon IG live, thereafter publishes videos to IGTV for
that that miss the live stream. Also, this is the means to bring brand’s community together by
shared interests while also explaining their durability of gear.
AR-powered shopping experiences
The innovative retail trends of AR that is augmented reality, machine learning and artificial
intelligence (AI). Moreover, it has been observe that AR into retail is not new, this moves from
nice-to- have a crucial part of retailer’s e-commerce offerings. As so several shoppers continues
to depend upon online shopping at pandemic times, retailers leverage AR technology for
bridging the gaps among physical and digital. Based upon the IBM’s 2020 reports of retail index
which COVID-19 have enhanced the shift towards digital shopping through roughly around 5
years. Whereas the brands such as IKEA, home depots and target whole have proprietary
experiences of AR shopping, AR powered commerce is not for mega brands
Various digital marketing strategies used by Sainsbury's to improve performance and gain
growth at marketplace.
Digital marketing strategies are explained as a series of actions which utilise online
marketing channels for attaining several objectives. Moreover, the channels may incorporate
owned, paid and gained media. Additionally, it is the action plan which enables them in building
as well as launching its online marketing strategy with success (Ritz, Wolf and McQuitty, 2019).
In respect of Sainsbury’s the various digital marketing strategies which can be utilised by them
to improve performance and gain growth at marketplace are described below:
 Social media marketing: It is considered as essential digital marketing strategy as it
includes all an entity does via social media channels. Within changing periods,
individuals become busy and it utilise social media for connecting with customers as well
as gain vital information related to specific goods and services. In addition to this, it is
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also utilised by company like Sainsbury’s for keep in touch with consumers and
maximise the business sales. Within respective organisation, marketers may utilise
Instagram, twitter and many more for maintaining the effectual communication and train
its campaigns for improving organisational performance and productivity.
 Email marketing: It may be described as an efficacious strategy of digital marketing
which incorporates mobile applications and other channels for sending the information
via mail, influence individuals and produce sales. Moreover, this is facilitating value to
clients as well as over the periods which transforms people into its consumers.
Additionally, it directly assists in developing awareness among individuals related to new
commodities and facilities within competitive marketplace (Vieira and et. al., 2019). In
addition to this, Sainsbury’s which is one of the largest retailers may utilise e-mail
marketing as digital marketing strategy which might aids in reaching targeted clients and
formulate strategic directions which enhances the organisational growth and
performance.
 Content marketing: It may be described as the kinds of digital marketing which is
utilised for creating, publishing and distributing content for targeted customers online
which may assists in enhancing sales. Moreover, this has been analyse that in case the
content is effective as well as attractive thereafter it would be an opportunity for entity
for maximising the business performance. Additionally, this is whole regarding
developing sustainable, building relations with consumers which may potentially drives
towards firm’s sales as well as high profitability. Sainsbury’s may influence various
individuals and targets customers through forming effectual content as well as marketing
tactics which develops organisational performance.
 Search engine optimisation (SEO) marketing: Search engine optimisation often
performs hand in hand along with content marketing. Moreover, while consumers are
performing investigation for that gym shoes to purchase, it would possibility click upon
one of the initial three outcomes which appears upon Google. Into the mind, the athletic
shoes’ marketing team desires for assuring its articles highlights into those top outcomes
(Wang and Wang, 2020). It is performed through optimising content for users
experiences and assuring the technical components are into place that allows search
engines crawler to simply identify and index particular content. Furthermore, this is
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utilised through organisation to obtain a business to rank higher within Google search
results, in which this maximises the traffic of search engine to business websites. It is
vital to acknowledge that SEO is challenging for entities in which content indexing is
developing through informing individuals. It may be utilised by Sainsbury’s to provide
top rank to their firm into retail brands which might influence various customers.
The challenges faced by Sainsbury's while using digital marketing strategies to improve
performance and gain growth at marketplace.
Within current’s ever changing as well as exploring the digital world, al firms have to faces
one of the other challenges while promoting its brands. Whereas various brands aspire for
attaining similar objectives via same channels, challenges may fluctuate. So, Sainsbury’s have to
face some challenges while using digital marketing strategies to improve performance as well as
gain growth at marketplace are described below:
Targeting the appropriate audiences effectively
The initial and first thing which an effective organisation would perform is determining
its target audiences within competitive marketplace. Additionally, with enhancing the number of
internet users day by day as well as its desires modifying almost each second, so within
respective organisation targeting the appropriate audiences have become one of the huge
challenges for them.
Lead generation using social media
When this comes towards several social channels, various businesses and firms like
Sainsbury’s do not understand for remaining constant. Moreover, several of them feel that this is
whole about paid campaigns which it supposed to perform for brand awareness as well as lead
generations. Though, both of them are regarded as constant challenge with ever- enhancing
market competitions.
Recommendations
As per the above analysis, it has been recommended that Sainsbury’s can adopt the new
retailing trends which would assist them to enhance their organisational performance and
success. Such as AR that is augmented reality, machine learning and artificial intelligence (AI).
Moreover, it has been observe that AR into retail is not new, this moves from nice-to- have a
crucial part of retailer’s e-commerce offerings. As so several shoppers continues to depend upon
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online shopping at pandemic times, retailers leverage AR technology for bridging the gaps
among physical and digital.
In addition to this, it is also recommended to them for adopting various digital marketing
strategies such as social media marketing, content marketing, email marketing and others as
through using these entire tactics respective organisation can become competent to enhance
organisational performance and success. Such as Social media marketing which is undertaken as
essential digital marketing strategy as it includes all an entity does via social media channels.
Within changing periods, individuals become busy and it utilise social media for connecting with
customers as well as gain vital information related to specific goods and services. In addition to
this, it is also utilised by company like Sainsbury’s for keep in touch with consumers and
maximise the business sales. Within respective organisation, marketers may utilise Instagram,
twitter and many more for maintaining the effectual communication and train its campaigns for
improving organisational performance and productivity (Zhu and Gao, 2019).
CONCLUSION
As per the above report, it has been concluded that digital technology plays vital role within
organisational performance and growth. Additionally, it aids entity in promoting its goods,
services, brands and others. Moreover, this is also helpful in developing stronger connections
with clients through using different kinds of digital tools. Additionally, it is the modern
techniques by which firm may effectively monitor as well as track its campaigns & invest money
on them.
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REFERENCES
Books & Journals
Adivar, B., Hüseyinoğlu, I.Ö.Y. and Christopher, M., 2019. A quantitative performance
management framework for assessing omnichannel retail supply chains. Journal of
Retailing and Consumer Services, 48, pp.257-269.
Behera, R.K. and et. al., 2020. Personalized digital marketing recommender engine. Journal of
Retailing and Consumer Services, 53, p.101799.
Bollweg, L. and et. al., 2020. Drivers and barriers of the digitalization of local owner operated
retail outlets. Journal of Small Business & Entrepreneurship, 32(2), pp.173-201.
Kim, W., Kim, H. and Hwang, J., 2020. Sustainable growth for the self-employed in the retail
industry based on customer equity, customer satisfaction, and loyalty. Journal of
Retailing and Consumer Services, 53, p.101963.
Ritz, W., Wolf, M. and McQuitty, S., 2019. Digital marketing adoption and success for small
businesses: The application of the do-it-yourself and technology acceptance
models. Journal of Research in interactive Marketing.
Vieira, V.A., and et. al., 2019. In pursuit of an effective B2B digital marketing strategy in an
emerging market. Journal of the Academy of Marketing Science, 47(6), pp.1085-1108.
Wang, W.Y.C. and Wang, Y., 2020. Analytics in the era of big data: the digital transformations
and value creation in industrial marketing. Industrial Marketing Management, 86, pp.12-
15.
Zhu, G. and Gao, X., 2019. Precision retail marketing strategy based on digital marketing
model. Science Journal of Business and Management, 7(1), pp.33-37.
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