Marketing and Data Analytics: Internal and Market Analysis of Sainsbury

This report provides detailed information about the internal analysis and market analysis of Sainsbury, the second largest chain of supermarkets in the United Kingdom. It also discusses environmental analysis, marketing communication strategy, segmentation, targeting, positioning map, and peer analysis.

Marketing and Data Analytics

Table of Contents
Introduction......................................................................................................................................2
COMPANY PROFILE....................................................................................................................3
INTERNAL ANALYSIS.................................................................................................................3
MARKET ANALYSIS....................................................................................................................5
Environmental analysis....................................................................................................................5
Marketing Communication strategy................................................................................................6
Segmentation...............................................................................................................................8
Targeting......................................................................................................................................8
Positioning map...........................................................................................................................8
Peer analysis....................................................................................................................................8
FAME..........................................................................................................................................8
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11
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Introduction
Marketing and data analytics is the procedure which states about Collection of data and analyses
of data for improvising the marketing performance of the company. In this report company
called Sainsbury has been defined (Bąska and et.al 2019). It is second largest chain of
supermarkets in the United Kingdom and this company deals in groceries, Super Stores and other
products. This report provides detailed information about the internal analysis and market
analysis of this organisation. Environmental analysis is also being discussed in this report along
with this various marketing communication strategy has been mentioned in this report.
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COMPANY PROFILE
The organisation that is chosen in this regard is Sainsbury PLC. It is known to be one of the
largest grocery Supermarket chain in United Kingdom full stops the retailing chains of United
Kingdom are said to be one of the prominent aspects where the deal with a lot of entities like that
of dealing with customer product as well as enhancing the profitable standards. In this regard the
Sainsbury organisation is more towards establishing its retail in choices in the field of groceries
and it has been established in 1969. The founder of the organisation is John James Sainsbury and
this concept is brought about in order to be one of the grocery supermarket chain and to be a lead
in retailing sector of United Kingdom. There are certain entities that will fall in regard to its
planning where there are also formulations that have put forth its merging with the company but
fortunately that was blocked by different competitive market chain. Idea this company was
founded in 1869 and having a shop in Lane London. But this company started working
effectively and it has achieved all the milestones and become the largest retailer of groceries in
the entire United Kingdom. By working effectively Sainsbury has become the market leader and
it has won the hearts of their customers by providing them quality products at affordable prices.
Earlier this company was established as a partnership organisation but letter on this company
started living in fresh foods and other packed groceries for example tea and sugar has been
effective products of this company which helps them to earn high profitability and growth in the
market. Sainsbury is helping their customers to eat better and therefore their providing better
value accessible Innovation and quality products so that consumers can easily purchase the
product of this company.
INTERNAL ANALYSIS
The internal environment of any organisation referred to its operational standards as well as the
performance that is oriented with the organisation (Shah and et.al, 2019). These are brought
about by certain specifications that the organisation or revision as developed and also follow US
based on their need for reaching the growth prospects. For this it is necessary that an
understanding will have to be carry forwarded and also an essential factor to determine whether
the organisation is in the race or in the pace of development. To determine the internal
atmosphere of the organisation Sainsbury the organisation chooses SWOT analysis as the major
tool to describe all the factors that are essential to be carry forwarded. SWOT analysis is one of
the most prominent internal analysis that will bring about the strengths weaknesses opportunities
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and threats that are in regard to the organisation. This SWOT analysis will also be one of the
base to determine the standard as well as the speculations that are in charge of the organisation. It
is as follows:
Strengths: the strength of the organisation is its mode of operations as well as the processes that
are well specified and also oriented. The business is full of Strategies and the organisation also
incorporated several employees in order to take care of all the sector and that is regarded to be
one of the major strengths that is bring about a lot of customer base and also the profitable
standards are increased to certain level that it has a good reputation in United Kingdom (Ilin and
et.al, 2017).
Weakness: weaknesses of the organisations possible standards are those that will act as barriers
to its operational policies. Weaknesses are said to be modified at regular intervals of time such
that they can be in return term to be the strengths of the organisation in order to move ahead with
the policies of development. The weaknesses that will fall in regard to the organisation Sainsbury
is that the same concept that the organisation is following is also being tackled by many other
supermarket and there is nothing new. In this regard the organisation will have to work upon the
strategies in order to bring about uniqueness in its ideologies and also stand firm with its policies
without any competitive rivalry.
Opportunities: the significant performance of the supermarket is such that it can easily get into
the global market and also can increase its base with expanding into other countries. All that the
company needs to do is to incorporate policies that stand unique and that will determine its
standards. Globalisation is one of the most prominent aspect that is necessary for every
organisation to stand firm in the competitive atmosphere and also to increase its base. In this
regard the opportunities that fall globally are said to be taken care about by employing standard
that will match the cross cultural analysis when trying to move ahead. This can be done by
establishing its relationships with every other country and also learning the tactics that are
necessary since it has already attained its base in the host country (Joll and et.al, 2018).
Threats: the threats that are in regard to the organisation Sainsbury are such that there is a lot of
competition that is prevailing in the supermarket chain of United Kingdom. Almost the
organisation is being taken over by Tesco company which is also one of the largest retailer in
United Kingdom. The organisation will have to find measures and also means in order to win
over the competitive atmosphere and also the factors that are contributing for competition. The
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business environment will first have to be understood and only then a certain formulation can be
derived. In this regard the organisation can work upon the factors and strategies that can make it
stand in the competitive atmosphere and also it can derive its position.
MARKET ANALYSIS
Considering the market analysis of the organisation Sainsbury it is said to be one of the most
reputed organisations in United Kingdom which is known to be the best grocery supplier
(Elavarasan and et.al, 2020). It is not an easy task to incorporate the means and policies that are
in charge of bringing about a good name and fame for an organisation. All that they organisation
deals with is to bring about the services and offer consumer goods as well as banking services
such that they can be essential for every customer. Their establishment in terms of marketing
race is said to be one of the probable factor that will have to be discussed over and over because
of the sources that are being incorporated. There are also numerous strategies that are being
described by the organisation in terms of defining its stakeholders which play a major role while
dealing with the operational enhancement. Also the company is said to be one of the appropriate
one that will deal with a quality of products and that is preferred by many. There are various
sources of income for the organisation and also there are certain shareholders that will hold the
organisation in the services that are being offered. The competitive rivalry is also at its perk with
regard to the retailing sectors and the organisation Sainsbury said to be one of the most
established one initially (Longhurst and et.al, 2020). It has also expanded its business operations
into certain countries and is operating in durable conditions. There are also certain distribution
centres that are in regard to the organisation that will work upon the commodities and also
meeting their expectations. Certain business emulations that will fall in regard to the organisation
are analysed and also identified over and over again such that the internal as well as the act or
external factors are said to be dealt in a prominent manner.
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Environmental analysis
Environmental analysis refers to the strategic tool it is an ongoing process to recognise all the
external and internal factors which can impact the overall performance of the organisation.
External analysis also helps the organisation to form various strategies so that organisation can
compete with such environmental factors and protect them from any kind of loss (Neuling, and
et. al 2018). There are some factors which impacts the overall performance of Sainsbury.
Economic factors
From the last couple of years the fuel prices whether it is diesel and petrol are continuously
rising which is impacting the profitability of this organisation. Sainsbury is totally dependent on
road based transportation and with the help of road transportation this company is shipping all
their products across United Kingdom (Neufcourt, and et.al 2019). When the cost of petrol and
diesel get increases then automatically the products of this company becomes expensive because
company has to pay a lot of money in fuel. It will impact the lower income customers of the
company because when company will increase the prices of the products they will not be able to
purchase them. Apart from this higher salary expectation of employees is also one of the primary
economic factors of this company. Company has to pay a higher salary and wages to their
employees across the United Kingdom and it is very important to satisfy the demand of
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employees because they can easily switch to other companies. Apart from this Sainsbury is
continuously increasing there Supermarket chain throughout United Kingdom and other states as
well and therefore they are creating a strong economic position of this company. Apart from this
competition is also increasing in the market Asda and Tesco is giving tough competition to this
company and therefore it is also one of the economic factor which is impacting the overall
profitability and growth of this company.
Social factors
A big part of revenue is being derived from fast food items of this company. But as per the
present situation the population of United Kingdom is continuously shifting to Healthy products
and organic which do not include any kind of Fast Food and junk food (Casals and et.al 2019).
This social culture climate is affecting the profitability of this company and they need to change
their fast food menu and it is the responsibility of this company to include more healthy products
such as salads and organic fruits and juice so that they can get the attraction of customers.
The reason behind using these two factor is that they are the most important factor for the
company and having a lot to company as well if this factors and problems will not get resolved
then this company has to face lot of losses in the coming year.
Marketing Communication strategy
Communication strategies are the policies and plants which is being prepared by the
management so that company can attend all the communication objective. Communication
strategies can be applied on the internal communication as well as Marketing Communication
with the customers. The primary reason for forming communication strategies is to communicate
all the goals and targets of the company to their audience and make a healthy relationship with
them so that organisation can achieve all their objectives. This company also focusing on
communication strategy so that they may communicate in a proper way to their customers so that
company can find out the issues faced by the customers and apart from this they can provide the
latest information about the products and services.
DRIP model
Drip is one of the way through which advertisement message can be passed to the customers and
Company can also set broad communication objectives and goals (Weersink and et.al 2018).
This is one of the popular communication models which are used by most of the companies so
that they can have a good relationship with their customers. Drip model consists four elements
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such as differentiate reinforce inform and persuade. Is model shows the consumer behaviour and
their perspective and with the help of this model organisation can generate and awareness about
the product and how it changes the preference of consumers and their purchasing behaviour.
Differentiate
As the name suggests this element will help the organisation to differentiate their products and
services with their competitors. Although it can be difficult for this company but with the help of
proper positioning in the market company can know the difference between their products and
others and how they can improve their products that consumer do not sweat.
Reinforce
The objective of this element is to remind the aim of the product and also the benefits of the
product to their customers and create a new transaction (Mansour and et.al 2020). Reinforce will
help the organisation to let consumer know why the product is beneficial and superior as
compared to other companies product and how benefits consumer will get by using the product
of Sainsbury.
Inform
As the name implies inform means offering and making the target audience aware about the
product. This element states that it is very important for this organisation that they must
communicate all the offerings to the customers this can States about new features benefits
availability values of the product so that consumers can easily buy them.
Segmentation
Segmentation refers to dividing targeted customers and Markets into small groups. In short
Sainsbury can divide the Marketplace into small parts and segments so that they can easily
identify customers and make their .products accessible to the potential buyers. Sainsbury
operates in the market bi segments such as retail Financial Services and others.
Targeting
As simple as the name targeting means those consumers company wants to serve with their
products and services. Sainsbury is targeting families to sell their products (Herwig and et.al
2019). To target them companies taking help of television and other marketing tools so that
company can reach to their target audience.
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Positioning map
Positioning map helps the company to depict that what their target market thinking about the
production services. Positioning map is helpful for the marketers so that they can understand
about the products and also they can identify their target market. Positioning map help the
organisation for the marketing communication and they can easily communicate with them
intended audience.
Peer analysis
Peer analysis is one of the popular methods of analysing the financial situation of the company
this method is being used by the investors and analyst so that they can know the company stock
and find the good peers of the group. This analysis method is also used for knowing the
overvalued and undervalued stock. This method is useful for investors so that they can analyse
the leverage and profitability of the organisation.
FAME
Fame provides useful and comprehensive data which organisation to provide specific and when
official products and services to their customers. It is also helpful for the organisation because it
compare the overall financial strength and health of the organisation. It also help your
organisation to find out the competitors and help the organisation to form different strategies so
that they can easily give the competition to other companies who are dealing in the similar
business. FAME also helps the management of the company to promote the products at the right
time so that they can easily target the intended audience. This analysis help the organisation to
find out the coming opportunities in the market so that they can grab the opportunity is easily
and earn good. Along with this it also provides all the financial information that is financial
strength information about shareholders and merger and acquisition to the management so that
they may take for those decisions in the favour of the company.
Peer analysis to readers
This analysis provides a lot of benefits to the readers the first and foremost benefit is that it helps
that investors to know the over and enter value of shares so that this analysis they may take their
decisions whether they would like to go for the investment or not (Leung, 2019). Apart from this
it also incorporates different metrics and profitability ratios to the investors and readers so that
they can know the overall profitability and effectiveness of the organisation.
Impact on company’s financial performance
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Peer analysis impact the overall financial performance of the company. It helps the organisation
to know the undervalued stocks so that management can make certain changes in their Strategies
and they can provide liquidity to their stock so that more and more new customers can invest in
them. This analysis also helps the organisation to improve their efficiency and it also assists them
to know the overvalued stock as well so that it will help your organisation to create goodwill and
reputation in the market. This analysis also provide information about price to earnings ratio
price to sales ratio and adding before interest and tax so that company can know the accurate
profits and how much efforts they have to put so that they can achieve the desired profit. This
analysis also help the management to know the other companies which are dealing in the similar
industry and with the help of these analyses company can make more efforts in the promotion
and marketing strategies so that they may earn good competitive edge.
Business decision
Business decision is one of the systematic visual and Quantitative approaches of the organisation
to address and evaluate all the necessary choices that can be faced by the business in the
upcoming future (Severin, and et.al 2020). It is important for the organisation that they must
choose proper business decisions which provides fruitful result today organisation and it is
totally depends on the management. Management has to choose different decisions which are
about capital investment formation of Strategies and marketing of the products and services. By
having proper business decision analysis company can choose such decisions which provides
them high quality and transparency and help them to generate more revenue.
Conclusion
After analysing the entire report it has been found that this report provide detailed information
about marketing and Data Analytics. This report provides detailed information about the profile
of company. Apart from this it is status about internal analysis of the company and it provides all
the necessary information about the strategies cultures and resources adopted by the
organisation. Apart from this market analysis is also being mentioned in this report which help
the company to analyse the consumer trend and competitors as well. Environmental analysis has
also been mentioned in this report which states that how external factors impact the profitability
of the organisation. Along with this marketing communication strategy has been elaborated in
this report so that company can easily communicate with the target audience. Peer analysis is
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also mentioned in this report with stakeholders to analyse the financial health and position of the
company
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Weersink, A., Fraser, E., Pannell, D., Duncan, E. and Rotz, S., 2018. Opportunities and
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