STP Strategy and Marketing Mix of Sainsbury

This report discusses the STP strategy and marketing mix used by Sainsbury, the second largest supermarket chain in the UK. It explores the segmentation, targeting, and positioning strategies employed by the company to attract and retain customers. The report also delves into the elements of the marketing mix, including product, price, place, promotion, people, process, and physical evidence. Additionally, it assesses the relationship marketing tactics used by Sainsbury and their impact on the company's overall strategy.

Marketing Management

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. STP strategy........................................................................................................................1
2. Marketing mix ...................................................................................................................2
3. Assessment of their relationship marketing strategy with current tactics..........................5
2. Recommendation about the way organization can improve its marketing strategy...........7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing is several activities that are undertaken by manager in order to promote its
products and services to maximum number of individual so that company can enjoy huge
profitability and market share. Sainsbury is second largest chain of supermarket in United
Kingdom that was initially established in 1869, 152 years ago having around 1428 shops. The
company have 116400 employees and deals in products such as hypermarket/superstore,
convenience shop etc. The main aim of report is to understand the way marketing contribute in
enhancing overall profitability of organization. So, this report has highlighted crucial points
related to STP strategy used by company to attract and retained millions of customers within
organization for longer time frame. It has also included marketing mix techniques and
relationship of marketing strategy in context of current tactics. At last, it has contained
recommendation that can be used by firm to improve its marketing strategy to grow and expand
business in retail industry of UK.
MAIN BODY
1. STP strategy
Marketing manager of Sainsbury to promote growth and success of enterprise has make
use of STP strategy that has contributed in inducing more and more people within organization.
Through STP marketer is able to identify appropriate strategies that could be used to motivate
customers to be part of specific organization for satisfaction of their respective requirements
(Taylor, Reilly and Wren, 2020). So, the way Sainsbury marketing manager has segmented,
targeted and positioning can be illustrated as follows:
1.1 Segmentation: It is process of marketing in which manager segment group of
individual into smaller category so that needs, preferences and interest of each of
them can be easily. There are various basis that are used by Sainsbury marketing
manager to segment people in order to find appropriate strategies to motivate them to
have products and services of it rather than other competitors. Marketing manager
has statemented people on basis of demographic, geographical, psychological and
behavioral. Such as it has in demographic classified people in context of age,
gender, location, disposable income and ethnicity to find alternative method that can
motivate them to be part of organization. Geographical is also one of the segment
that has been used by manager as it has classified people on the basis of location or
1

place they stay so that they can easily approach the store and can make purchase.
Furthermore, psychological factor, in this Sainsbury manager has segmented people
on the basis of their interest, preferences and needs to decide type of product to be
offered to them for satisfaction of their respective needs (Alalwan and et.al., 2017).
Different people have different behavior, traits so manager has segmented people on
basis of behavioral that contributed in achievement of end objectives of company.
1.2 Targeting: It is second element of STP which state the way company will target
specific group of individuals to enjoy maximum profitability and market share.
Likewise, Sainsbury has targeted people of all age group that is from younger
generation to old, gender such as both male as well as female. At the same time,
individuals that are belonging to medium to low income group to make purchase to
satisfied their needs (Nilsson, 2019). So, Sainsbury marketing manager has mainly
targeted household and individuals that are living in society.
1.3 Positioning: Marketing manager of Sainsbury has put its maximum efforts to
position company image in minds and hearts of customers so that it can generate
maximum revenue. Such as company have around 1428 shops across United
Kingdom and other countries that helps wide range of customers to come in
organization. Moreover, recently sainsbury has its presences in online sites that has
provided ease and comfort to customers to have products and services to fulfill their
respective requirement (Valos and et.al., 2017). Company by delivering services to
customers as per their expectancy is able to maintained competitive positioning in
external environment. Likewise, it can be stated that company has created brand
image as providing good quality products and services at reasonable prices that
contributed in adding more and more customers.
2. Marketing mix
Marketing mix is set of actions that are used by manager of company to promote
products and services to several individual that are living in society so that they are motivated to
make purchase in order to satisfy their respective wants (Purwanto and et.al., 2019). So, it is
strategic tools or marketing techniques used by manager to enhance sales volume and revenue of
organization to maximum extend. The way marketing mix strategy used by Sainsbury manager
can be interpreted as follows:
2

2.1 Products: It is item that is offered to customers so that their needs can be satisfied in the
best possible manner. Company have wide varieties of branded products such as 15000 that
contributed in meeting needs of diverse range of people and achievement of end objectives of
company. Such as Sainsbury deals in clothing, health, beauty, frozen foods, electronics and other
options available for customers. Furthermore, it can be stated that company has more
emphasized on maintaining quality of products and services in order to maintain strong
reputation in market. Company has make use of biodegradable packaging of products that has
influence people to have it to satisfy their basic requirements. Thus, it innovative, attractive
design, packaging of product of Sainsbury has lead in adding more and more customers in the
firm.
2.2 Price: It can be defined as amount of payment that is made by individual in return to have
products or services that fulfill their respective needs. It is marketing mix strategy in which
company by setting appropriate price of products tries to attract customers so that end objectives
can be achieved. Sainsbury has make use of competitive pricing strategy as it set prices as per
other competitors in market so cutting price contribute in building and maintaining customers
loyalty. Moreover, company by providing qualitative products at reasonable rates is able to
attract medium and low income group people in the organization (Zebal, Ferdous and
Chambers, 2019). At the same time manager of Sainsbury has make use of discrimination
policy to set price of various products for diverse range of people that are belonging to high
income group to low. For example: premium prices is used to attract high income group
individual while reasonable price for other individual. Thus it can be stated that price is also one
of the element of marketing mix of company that has contributed in engaging maximum
individual.
2.3 Place: This is an element which specific the place at which customers can get products and
services of company. It can be stated that Sainsbury has 714 convenience stores and 598
supermarkets among them 45 stores operates 24*7 hours so customers can easily make purchase
as per their ease and comfort. Self services, check outlet and other counters are present in
supermarket shops that contribute in providing more ease and comfort to customers. Sainsbury
also have its presences in online sites that helps individuals to easily review varieties of products
and select best among them. It also has provided home delivery services to customers as they
can easily place order online through phone call or website. So, both online as well as offline
3

channel are place at which people can make purchase of various products and services to fulfill
their needs.
2.4 Promotion: It specify about the way company will promote products or generate awareness
among them so that they can be pursued to be part of it for satisfaction of their respective
requirement. Likewise, Sainsbury has organized campaign and make advertisement in television,
radio and newspapers to create awareness among people about existing products and services of
company. Furthermore, it has make use of sales promotion method that is various offers and
discounts on several occasion so that customers are ready to purchase and opted it rather than
any competitors. Official website of company also act as an promoter as it has provided all
necessary information about products, services so that they can take right decision (Saura,
2020). Nectar reward card is also one of the strategy that has been used by Sainsbury to build
sales and retained customers' loyalty. Thus, overall it can be stated that promotion techniques
has helped in enhancing profitability and market share.
2.5 People: These are individual that are involved in influencing customers to make purchase by
providing them necessary information about the products. Sainsbury has well experienced,
trained and highly skills, capable individual that are ready to give their best so that company can
retained its market share in long run. Store manager continuously monitor and evaluates
performance of each individual thus find alternative method that could be used to improve their
productivity. Manager has make use of financial incentive, healthy organizational culture to
motivate employees to make optimum utilization of their capabilities that has yield growth and
expansion of business. Therefore, dedicated employees by giving their best is able to make
customers happy and satisfied to maximum extend.
2.6 Process: Various process and procedure that need to be completed by specific individuals of
company are clearly defined that contributed in reducing conflict and confusion thereby leading
maximum outcome. Recently with development in technologies, Sainsbury has make its
operation online so that people can conveniently make purchase of products and services as per
their respective requirements (Homburg, Jozić and Kuehnl, 2017). Moreover, the company has
come up with new stores formats to provide more ease and comfort to customers to come and
easily make purchase of products to satisfied their overall needs. Information technology is used
by manager of company to have accurate data related to employees performance and
productivity so that necessary steps can be taken to improve their productivity for growth and
4

success of enterprise. Therefore, it can be stated that efficient and effective process of Sainsbury
has yield maximum profitability by delivering services to customers in limited time frame and
cost.
2.7 Physical evidence: It is also one of the aspects of marketing mix that contribute company in
attracting millions of customers in minimum time possible. Manager in order to create
differentiate positioning has focused on designing innovative layouts of the store to addressed
needs of wide range of people residing in the society. Furthermore, the quality of trolleys as well
as baskets contribute in ensuring better customers shopping experience (Gregory, Ngo and
Karavdic, 2019). At the same time the layout of shelves is more impressive that offer more
convenient shopping to people thereby helping in building strong brand image of company in
retail industry. Therefore it can be stated that innovative design of products as well as stores lead
in increasing sales and customers loyalty of company.
3. Assessment of their relationship marketing strategy with current tactics
Relationship marketing can be defined as several steps that are undertaken by manager of
company to build and retained relationship with maximum number of customers so that they are
motivated to have its products rather than other competitors. So that main emphasis of
relationship marketing is to create strong emotional connection with customers to specific brand.
Moreover it has been understand that there are numerous benefits of relationship marketing that
can be enjoyed by company such as retention of customers, expansion of firm in terms of sales
volume and profitability. Therefore, Sainsbury marketing manager has make use of different
techniques related to relationship marketing so that it can retain competitive positioning in
market for longer time frame. Such as :
Prioritizing customers services: This is the first and foremost steps that has been taken by
manager of Sainsbury to build relationship with customers. As manager has prioritize activities
to deliver services to customers in minimum time and cost so that they are motivated to make
more purchases in future circumstances. In order to deliver consistent and better support
company have make use of digital technology that helps in quick services as customers can
easily books, make payment online (Keegan and Rowley, 2017). Thereby get home delivery of
products to satisfied their respective wants in better manner. Likewise, Sainsbury offers 24*7
hours services to customer's so that they are free to make purchase any time required without
any further delay.
5

Content marketing: Another approaches that has been used by Sainsbury marketing manager to
established and retained customer's relationship is content marketing. It has hired talented,
knowledgeable and experienced employees that are capable of design appropriate content that
contribute in attracting maximum number of individuals within firm. All valuable information
such as price, features of products and services are added in the content so that customer's can
take right decision to purchase in order to satisfy their respective wants (Gotteland, Shock and
Sarin, 2020). Thus, it can be stated that effective content on various social platform as well as
official website of company has helped in increasing overall sales volume of company.
Email marketing: Marketing manager of Sainsbury has also make use of email marketing to
connect with millions of customer's in order to achieve the end goals. Company send email to
various individual regarding existing offers of company, promote launch of new products so that
they can be informed and take good decision to meet their requirements. Email marketing has
helped in generating awareness among number of customer's about the company and its deals on
several bases. So, that they can take decision regarding whether they need to purchase the
products or not to fulfill requirements.
Implement loyalty Program: It can be stated that Sainsbury to promote customer's retention
and commitment has make use of loyalty program. Rewarding, cards are some of the program
that helps in relationship marketing and helps company in retaining maximum market share in
external environment. Likewise since 2002, Company has been rewarded has UK largest
supermarket chain engaged in loyalty program such as Nectar card (Shams, 2018). Furthermore,
while making purchase either through online or in stores, customer's have opportunities to earn
one point each for every £1 spent. So, loyalty program operated by Sainsbury marketing
manager has lead in maximizing overall sales volume of company.
Listening to customer's: It is also one of the few steps or approaches that has been used by
marketing manager of Sainsbury in context of relationship marketing for better outcome. Such
as Social media sites, email and survey are some of the techniques that are used by manager to
gathered information about customer's recent taste and preferences so that right decision can be
taken to fulfill their needs (Varman, 2018). It has also encouraged customers to share their
feedback so that company can make necessary changes and improvement in its operation so that
they can be more happy and satisfied. Therefore, overall listening top customer's needs and
6

changing accordingly has contributed in marketing relationship and achievement of company
objectives.
So it can be stated that Sainsbury through focusing on customers relationship marketing
is able to grow and expand its business operation in international market. At the same time
resolving problem or key issued faced by employees in limited time has also yield in customer's
loyalty and building strong brand image of company in hearts and mind of customers.
2. Recommendation about the way organization can improve its marketing strategy
From the above study it can be interpreted that there are many more strategies or step of
actions that could be taken by marketing manager of Sainsbury in order to improve its marketing
strategy. Therefore, several suggestions that could be used by company to enhance its customer's
satisfaction and profitability can be illustrated as follows:
 It can be suggested that marketing manager of Sainsbury needs to put more efforts and
time to define market in order to segment or classified individual that can be motivated
to have its products to satisfied their requirements. Shopping styles and behavior are
also some of the factors that could be considered while segmentation. Sainsbury targeted
all types of individuals so it must add more varieties of products that can meet their
expectancy level. While company in order to strength its positioning should focused on
providing more qualitative products and services to customer's at minimum price
possible.
 Another suggestions that need to be implemented by manager in context of marketing
mix is that it needs to make designing, packaging of products more innovative and
creative so that people are attracted. Moreover, company needs to focused on digital
marketing as in recent trends most of the people make use of social media for
entertainment and fun. So, Sainsbury by making optimum utilization of social platform
can generate awareness among several individuals and expand its business international
market.
 Suggestions related to relationship marketing for Sainsbury is that manager needs to
focused on understanding existing needs as well as preference of people in order to
identified key action that could contribute in better outcome. Furthermore, consistently
posting necessary information of website, social media such as facebook, twitter and
other platform can helps in generating awareness among maximum respondent. Thereby
7

enhancing overall sales and profitability of company in retail sector (Brown, Crosno
and Tong, 2019).
 At the same time, company needs to focused on recruiting highly talented employees
that are capable to market products and services through digital technology. So that
various operation related to marketing can be easily performed and company sales can
be enhanced to maximum level.
So, all these are three suggestions that can be implemented by manager to helps company in
achieving its end goals.
CONCLUSION
From the above analysis, it can be interpreted that marketing helps in promotion of
products and services of company to customer's so that it can generate revenue. Marketing
manager of Sainsbury has make use of various strategies and key actions to induce customer's
within organization. Moreover, it can be summarized that marketing mix used by managers has
yield in growth and expansion of company in UK as well as in international market. At last, it
can be concluded that manager by putting its best efforts towards relationship marketing helped
in building strong brand image. It is also understand from above report that marketing manager
needs to conduct market analysis on continuous basis in order to have correct information
regarding recent trends and the way company can easily cope up with to maintained its
competitive positioning. Furthermore, it can be stated that manager through making use of
digital platform can generate awareness among diverse range of customer's living across
worldwide.
8

REFERENCES
Books and Journals
Alalwan, A. A and et.al., 2017. Social media in marketing: A review and analysis of the existing
literature. Telematics and Informatics, 34(7). pp.1177-1190.
Brown, J. R., Crosno, J. L. and Tong, P. Y., 2019. Is the theory of trust and commitment in
marketing relationships incomplete?. Industrial Marketing Management, 77. pp.155-
169.
Gotteland, D., Shock, J. and Sarin, S., 2020. Strategic orientations, marketing proactivity and
firm market performance. Industrial Marketing Management, 91. pp.610-620.
Gregory, G. D., Ngo, L. V. and Karavdic, M., 2019. Developing e-commerce marketing
capabilities and efficiencies for enhanced performance in business-to-business export
ventures. Industrial Marketing Management, 78. pp.146-157.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3). pp.377-401.
Keegan, B. J. and Rowley, J., 2017. Evaluation and decision making in social media
marketing. Management decision.
Nilsson, T., 2019. How marketers argue for business–Exploring the rhetorical nature of
industrial marketing work. Industrial Marketing Management, 80. pp.233-241.
Purwanto, R. M and et.al., 2019. Study the importance of business ethics and ethical marketing
in digital era. Journal of Critical Reviews, 6(5). pp.150-154.
Saura, J. R., 2020. Using Data Sciences in Digital Marketing: Framework, methods, and
performance metrics. Journal of Innovation & Knowledge.
Shams, S. R., 2018. The evolution of marketing as an innovative knowledge stream: The
evolving role of stakeholder causal scope. In Innovation and capacity building (pp.
151-166). Palgrave Macmillan, Cham.
Taylor, M., Reilly, D. and Wren, C., 2020. Internet of things support for marketing
activities. Journal of Strategic Marketing, 28(2). pp.149-160.
Valos, M. J and et.al., 2017. Integrating social media within an integrated marketing
communication decision-making framework. Journal of Marketing
Management, 33(17-18). pp.1522-1558.
9

Varman, R., 2018. Violence, markets and marketing.
Zebal, M., Ferdous, A. and Chambers, C., 2019. An integrated model of marketing knowledge–a
tacit knowledge perspective. Journal of Research in Marketing and Entrepreneurship.
10