Marketing Management: Key Concepts, Theories, and Strategies for Sainsbury's

This report discusses the key concepts and theories of marketing management and how they are applied in Sainsbury's. It includes an analysis of the external factors that affect marketing strategies, such as political, economic, social, technological, legal, and environmental factors. The report also covers SWOT analysis, Porter's five forces model, and recommendations for Sainsbury's to improve their marketing strategies.

Marketing
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Understand the key concepts and theories while executing marketing strategies..................1
SWOT analysis.......................................................................................................................3
TASK 2............................................................................................................................................6
Understand the external environment of business which affect their marketing strategies.. .6
Porter five forces model.........................................................................................................8
TASK 3............................................................................................................................................9
Analyse the market situation and issues which are faced by an organisation along with the
recommendations....................................................................................................................9
Analysing marketing strategies of Sainsbury's.....................................................................10
TASK 4 .........................................................................................................................................11
Recommend appropriate marketing strategies for an organisation......................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Marketing management is a process of maintaining discipline in organisation by for focusing
on procedures and practical applications of techniques, methods and marketing orientations. It
ensures that organisation utilise resources in effective manner so that they can eliminate wastage
from operations (Müller and et.al., 2018). It keeps on track on various functions of all
departments so that they can offer quality products to their customers which assist in
achievement of collective goals and targets. This report is based on Sainsbury is which is a
supermarket company located in London, United Kingdom. It was founded in 1869 by John
James Sainsbury's. This report will include key concept of marketing which assist in effective
delivery of goods and services. External environment of market is analysed so that marketing
strategies can be created in effective manner. This report will also include evaluation of internal
factors along with identification of competitive advantages. Recommendations are also provided
so that organisation can improve their marketing strategies in order to achieve their goals.
MAIN BODY
TASK 1
Understand the key concepts and theories while executing marketing strategies
Businesses use marketing strategies so that they can advertise their services and products
among their customers in large market area. It effectively increases their brand value by
communicating with audience on a regular basis which is essential for growth (Pencarelli and
Forlani, 2018). Sainsbury's uses marketing mix in order to pursue their marketing objectives in
required manner. This framework helps in developing marketing plan for an organisation so that
they can cover large market area. It includes seven elements which also refers to 7 P’s of
marketing mix which are discussed below:
Product: This is the element in which organisations deals with their customers which
involves tangible and intangible goods and services. It is important to manufacture or produce
quality goods and products which assist in attracting large number of customers. Sainsbury’s
offer huge variety of products to their clients which includes clothes, groceries, financial
services, electricals, home cares and many more. They ensure that demand and requirements of
their customers should be fulfilled in proper manner. Managers of Sainsbury’s maintain standard
in their products and services so that they can achieve their targets. This marketing mix element
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should be developed in unique and creative manner which should effectively compete with their
competitors. Products should be offered according to the preferences of the targeted audience so
that they can acquire large market share in appropriate manner.
Price: This element defines the value of goods which organisation offer to their audience
in order to acquire market area. Organisations set their prices according to their cost involved in
production at manufacturing so that they can earn higher profitability (Rumpf, Boronczyk and
Breuer, 2020). It is essential to offer prices which customers easily willing to pay according to
the quality and standard of services and products. Sainsbury offer affordable prices of their
services and products so that they can engage customers from different areas and regions. It
helps them in achievement of the targets and objectives by offering prices which generates
revenues along with retaining customers for longer period of time.
Place: This factor suggest the area of distribution which organisation select to offer their
products and services. Managers of organisation should take decision to position their offerings
at best possible location. Sainsbury's have their stores in centre of the city so that they can easily
attract the large number of customers. Organisations should be accessible in effective manner so
that it become more convenient to connect with customers. Sainsbury's have also their presence
over internet which helps in providing services in cost effective manner. Managers plan about
location while considering about different factors like needs, culture, marketing strategies and
market environment change. In also includes warehousing, transportation and logistics which
should be focused in order to cover large market area.
Promotion: This element is responsible for maintaining interaction with customers in
most appropriate manner. It assist organisation in convincing customers for buying their
products, goods and services (Breitbarth. and Huth, 2019). Sainsbury's uses online and offline
platforms for advertising their offerings so that they can share features and advantages of their
products. Promotion publicize products according to the preferences of the targeted customers
which helps in achievement of targets. Attractive advertisements and promotions help
Sainsbury's in developing the interest of potential audience which increase the sale of
organisation. It involves various methods of promotion such as direct marketing, sales
promotion, personal selling and many more.
People: It includes all the individuals who are involved in the process of manufacturing,
production, selling and contacting with customers in order to sell goods and services. It is
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important for an organisation to hire skilled and talented employees so that they can increase
their profitability. Sainsbury's have various departments like copywriters, support desk,
programmers and customer services which performs major operations. It helps in maintaining
healthy relation with customers in appropriate manner which assist in further growth and
expansion. People of organisation take reviews and feedbacks from customers which provides
better opportunities to improve the services and products. Growth of business majorly depends
on the performance and productivity of the people working in an organisation.
Process: Organisation should ensure that they take correct procedures while creating
services for their targeted audience. It is important to verify and check procedures on regular
basis so that they can eliminate mistakes and errors. It assist in maintaining better quality and
standard in services and goods (Kumar, Shankar and Aljohani, 2020). Sainsbury's train their
employee so that they can improve their productivity which results in positive outcomes.
Excessive cost can be reduced by organisation by tracking their regular activities which directly
maximizes the profitability rate of overall organisation. Corrective measures should be taken for
improper activities and process so that organisation can achieve their goals by attracting large
number of customers.
Physical evidence: It refers to the physical experience which is availed by customers
through products and services. This assist in maintaining required interaction with customers so
that they can increase their sale and profitability. Physical environment is vital factor which
attract customers which should be maintained in positive manner by organisation. Sainsbury's
ensures that the ambience of store remain positive so that they can enhance the experience of
their customers. Branding and labelling of products should carried out in proper manner so that
customer engagement can be improved in effective and efficient manner.
SWOT analysis
This management framework helps organisations in analysing their internal
organisational factors so that they can formulate strategies to deal with them. It is important to
analyse internal factors in order to achieve competitive advantages which is essential for growth.
Sainsbury's uses SWOT analysis so that they can identify different weaknesses and strengths.
The SWOT analysis is mentioned below:
Strength Weaknesses
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 Loyal customer base: Customers of
Sainsbury's give positive feedbacks and
reviews for the organisation which is
the major strength of Sainsbury's. They
provide quality products and services to
their customers which help in retaining
them for longer period of time.
Customer satisfaction is essential for
higher profitability which is highly
focused area for them. Customers give
priority to Sainsbury's which develop
their brand image in targeted market.
 Unique promotional strategies: In
order to compete in market with
competitors, Sainsbury's use innovative
and creative promotional techniques. It
help them in improve engagement rate
of their existing customers and attract
new customers in effective manner.
They use advanced technology so that
they can create their unique identity
among the customers. Sainsbury's uses
various digital marketing strategies so
that they can increase their customer
traffic.
 Variety of products: Sainsbury's offer
large number of varied products to their
customers which help in satisfying their
customers (Kauffmann and et.al., 2020)
They cover all the segments of market
by providing products to all age group
 Lower margin: In order to capture
large market share, Sainsbury's sell
their products on lower margin. This
create impact on their profitability rate
(Zahay and et.al., 2021). They should
use economies of scale in their
production method so that they can earn
good revenues during selling their
products on lower margin. This is one
of the major weaknesses of Sainsbury's
that they reduce the price of their
products so that they can compete with
their competitors.
 Growing cost: Regular increment in
the rates and prices of retail products
affect the operations of Sainsbury's in
negative manner. Shopping experiences
of customers get disturbed due to
fluctuations in the prices. This affect
the growth rate and profitability of
overall organisation.
 Changes in preferences: Constant
changes in taste and preferences of
customers leads to lower profitability of
an organisation (Donthua and
Kumarand Pandey2020). It is difficult
for Sainsbury's to alter and modify their
products and services in short period of
time. It involves huge investment which
disturbs the budget of over all
organisation. It requires research and
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individuals. Customers find it more
convenient to find all the products and
services at one place which is strength
of Sainsbury's. This helps them in
maintaining engagement of customers
for longer period of time which results
in higher growth.
development to analyse the needs and
demands of customers as Sainsbury's
have large number of customer base.
Opportunities Threats
 Expansion: Rapid growth and
expansion in the retail sector help
Sainsbury's in achievement of their
targets and objectives. They have
opportunity to expand their business in
Asia and Africa as they have evaluated
higher demands in these areas.
Successful expansion help Sainsbury's
in increasing the number of their
customers which is positive factor for
an organisation.
 Online presence: They have
established website in order to offer
products and services to customers in
large market area. During the time of
pandemic, Sainsbury's have earned
higher revenues by allowing their
customers to shop online from websites
and applications. It increase the
accessibility and reachability which is
essential for better development of
business. It provides opportunity to
 Higher competition: There are large
number of competitors have entered the
market which affect the growth of an
organisation. Competitors like Tesco
and Aldi offer same variety of products
which is negative factor for them.
Customers can switch their mind
towards other organisation if they offer
slightly lower prices to them. This
involves higher risk in retaining
customers because of large number of
organisation offering similar products.
Sainsbury's can retain their customers
by maintaining healthy relationship
with them.
 Increase in e commerce companies: It
is negative factor for Sainsbury's that
large number of e commerce
organisations are emerging on regular
basis. It highly create impact on the
productivity and profitability of an
organisation. Customers prefer
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save lot of time and efforts of
customers as well organisation.
 Technological advancement:
Sainsbury's adopted large number of
innovative ideas in their operations so
that they can attract customers and
audience. They have implemented self
checkout machines in their stores so
that they can save lot of time of their
customers. It also assist in providing
services to their customers for 24 hours
which results in higher revenue
generation.
purchasing things online for their
convenience which lower down the sale
of offline stores of Sainsbury's.
 Rules and regulations: It becomes
challenge for Sainsbury's to follow all
the rules and regulations in their
operations. Different countries possess
different laws which is difficult for
them to implement. Sainsbury's have to
alter their policies which consume lot
of time thus results in slow operations.
TASK 2
Understand the external environment of business which affect their marketing strategies.
It is important to analyse the external factors so that business can formulate decisions and
plans according to that. Sainsbury's focus on factors which affect their profitability and
productivity so that they can achieve growth and success (Bouchet and et.al., 2018). Analysis of
external environment results in smooth operations which is essential for achievement of success.
Macro factors should be evaluated so that risks and opportunities can be identified in appropriate
manner. Sainsbury's uses PESTLE analysis in order to examine external factors which are
mentioned below:
Political factors: Policies and actions of government create great impact on the
operations of organisation. This includes various policies and laws such as free trade disputes,
corporate taxation, anti competition issues and other fiscal policies. Sainsbury's should focus on
all these factors as it can disturb the performance of overall organisation. Sainsbury's majorly
distribute their products and services in UK which is positive factor for them as they have
developed business friendly policies. The government support operations of Sainsbury's in
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appropriate manner so that they can grow business in appropriate manner. They pay all taxes and
follow guidelines which help them in commencement of smooth operations.
Economic factors: The determinants like inflation, growth and decline of economy, cost
of living, unemployment rate and credit availability are included in economic factors.
Organisations should establish their operations according to the economic factors of the country
so that they can grow their business (Avery and et.al., 2020). In order to sustain for longer period
of time it is important to consider all the economic factors so that businesses can earn revenues.
Sainsbury's offer prices which are easily affordable by their potential customers so that they can
attract them in best possible manner. The employment rate of UK is higher which is positive
element for Sainsbury's which assist in influencing customers in buying their goods and services.
Social factors: Marketing strategies and analytics should be developed according to the
social factors of a country where organisation offer their products and services. Expectations of
customers, health and safety, population growth rate, health consciousness, age distribution and
cultural norms are social factors. It affect the revenue generation rate of an organisation which
should be analysed by them. Sainsbury's identify the taste and preferences of their customers so
that they can satisfy by providing customized services and products. Sainsbury's offer large
variety of products for all age group and cover all genders which assist in their better growth and
development.
Technological factors: It is important for organisations to focus on the technological
factors as it provides new opportunities to them. Artificial learning and automation plays major
role in advancement of operations so that organisation can capture large market area in
appropriate manner (Barryand and Gironda, 2019). Sainsbury's enjoy technological benefits as
UK have advanced technology which helps in maintaining quality and standard of products.
Creative and innovative ideas can be implemented in development of products and services with
the help of technology. It assist in matching the current market trends of market which is
essential to retain customers for longer period of time.
Legal factors: Changes in regulatory environment should be analysed by organisation as
it affect the profitability and revenue generation of an organisation. Protection of intellectual
property, licences, legislative impact on the employment are comes under legal factors.
Sainsbury's follows all the rules and regulation of the country where they offer products and
services which help them in maintaining their brand image. Sainsbury's fulfil all the requirements
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and guidelines which is mandatory for the commencement of operation so that they can eliminate
unnecessary threats and challenges. Each and every employee of Sainsbury's have to commence
operations according to the rules and regulations so that they can increase profitability.
Environmental factors: It should be noted that organisations have to formulate
strategies which maintain the balance in their environmental factors. Organisations have to focus
on the sustainability be reducing their negative impact from environment (Koc and et.al., 2020).
Environmental laws such as energy consumption regulation, disposal law and environmental
protection law should be followed by Sainsbury's. It is essential to use resources in effective
manner so that productivity can be maintained in required manner. They involve various
corporate social responsibilities in their operations which provides benefits to all the stakeholders
of organisation. Sainsbury's try to eliminate carbon footprint and global warning which assist
them in developing their business.
Porter five forces model
Organisations have to evaluate their environment and market so that they can understand
the competition which can hamper their success. It is essential to identify strengths and
weaknesses which can be accessed by analysing competitive environment of an organisation.
Sainsbury's uses porter five forces model in their operations so that they can work in effective
manner. The model can be discussed as follows:
Competition in industry: It suggest the power of competitors which can lower down the
profitability of an organisation (Bassano and et.al., 2019). Large number of competitors results in
lower profitability and vice versa. There are large number of competitors of Sainsbury's in the
retail sector like Tesco which can affect their growth. Sainsbury's offer higher quality products in
affordable prices which help them in retaining their customers. It help them in cutting the power
of competitors in large extent which help Sainsbury's in higher profitability.
New entrants in industry: Force of new entrants may affect the power of organisation
which affect the brand value. Nowadays large number of competitors are entering market which
is threat for Sainsbury's. They should maintain good relationship with their customers which help
them in overcoming the power of new entrants.
Power of suppliers: Suppliers are the important part of an organisation as they provide
vital resources, raw materials and other tools. Suppliers can increase the cost of their products
and services which direct affect the profitability rate of an organisation (Slimane, Chaney,
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Humphreys and Leca, 2019). Sainsbury's is not dependent on limited suppliers as they deal with
large number of suppliers which help in cutting down the power of suppliers. This helps in
maintaining their proper budget which is required for smooth operation s.
Power of customers: This suggest the power of customers can lower down the prices of
products and services. Sainsbury's have large number of loyal customers who gives priority to
them which help in overcoming this challenge. Sainsbury's offer high quality products and
services which help them in retaining customers for longer period of time. The prices or amount
which they charge from their customers define the quality of their services and products which is
also a positive factor.
TASK 3
Analyse the market situation and issues which are faced by an organisation along with the
recommendations.
STP analysis
This framework assist organisations in analysing the market area in order to identify the
demands and requirements of the targeted audience. This marketing strategy provides
opportunity to maintain interaction and communication with the customers on regular basis.
Sainsbury's uses this framework in order to identify the most suitable segment for them so that
they can offer products and services in appropriate manner. STP can be discussed as follows:
Market segmentation: This is the initial stage of this framework which divides different
segments of customers based on particular characteristics. Sainsbury's also segment their
audience so that they can offer products and services to potential customers. It eliminate wastage
of efforts and resources so that organisation can achieve growth and success. There are various
traits which are considered during segmentation which are discussed below:
 Behavioural segmentation: It includes the rate of interaction and communication with
an organisation. The number of times customers interacted with audience by availing
their services should be noted (Bachmann, Ohlies and Flatten, 2021). Sainsbury's
consider this trait while segmenting the customers so that they can understand the
number of times customers buy products.
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 Geographic segmentation: Dividing customers based on region, province and their
country is included in this type of segmentation. Sainsbury's focus on this factor so that
they can capture market share in most effective manner.
 Demographic segmentation: Organisations include education level, age, gender and
occupation so that they manufacture products according to that (Shah, Azhar and Bhutto,
2019). Sainsbury's covers almost all the age and gender people which facilitate them in
achieving higher revenues.
Market targeting: The second stage of this framework targets the potential audience
according to the segmentation. Sainsbury's target the segment which help them in generating
higher profitability in effective and efficient manner. Marketing campaigns and evaluation helps
them in targeting the appropriate segments which are discussed below:
 Profitability: This involves the measurement and willingness of potential customers to
spend the money. The value of customers are evaluated so that organisation can easily
target their customers. Sainsbury's select segment who can easily pay amount without any
negotiation which help in better growth.
 Reachability: Customer acquisition cost is measured in this factor so that organisation
can target their appropriate audience (Srinivasan and Ramani, 2019). Sainsbury's measure
the audience according to demographic regions so that they can offer products and
services in cost effective manner.
 Size: Organisations prefer to target the segments which are larger in size so that they can
maintain huge customer base. It assist in future growth and expansion of business in
appropriate manner. Sainsbury's can target audience which larger number of potential
segment which results in positive outcomes.
Positioning: This is the last stage of this framework which suggest that organisation
should place and position their products in most appropriate manner. This should be highly
focused by organisation as they have to make their products and services unique which assist in
competing with competitors (Tangpong, Hung and Li, 2019). Sainsbury's eliminate similarity in
their products so that they can gain competitive advantages in effective manner. There are
majorly three types of positioning which are functional positioning, symbolic positioning and
experimental positioning.
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Analysing marketing strategies of Sainsbury's
Sainsbury's uses various unique and attractive promotional tools and techniques so that
they can communicate with their customers. They use various offline techniques like radio,
television, newspapers, articles and billboards. It help them in sharing information about their
products to large number of people at same time (Ketter, 2018). Online methods which are used
by Sainsbury's includes different social media platforms like Facebook, Instagram, YouTube and
Twitter. It includes relevant and informative content with graphics which develop the interest of
customers. They provides discount to their customers according to their buying pattern and
occasion which results in longer retention. Sainsbury's also included home delivery services of
goods and products which is highly appreciable by most of their targeted audience.
Recommendations
 Large number of campaigns should be involved by Sainsbury's according to the
preferences and interest of their customers. This help in influencing the behaviour and
mindset of customers to buy their products and services.
 Technological advancements should be used by them so that they can improve the quality
of their promotional marketing strategies. Sainsbury's should invest in technological
advancements so that they can attract customers.
TASK 4
Recommend appropriate marketing strategies for an organisation
Organisations have to increase their brand awareness in market so that they can increase
their sales and profitability. There are various recommendations for Sainsbury's so that they can
improve their marketing strategies which are mentioned below:
 Organisations can leverage influencers for promoting their products and services so that
they can influence customers in desired manner (Rayburn, Anderson and Sierra, 2021).
Sainsbury's should hire influencers as they have large number of followers which help in
better promotion.
 They should analyse the demands and requirements of customers so that products can be
offered in appropriate manner. It can satisfy the needs of the targeted audience which
help in better expansion. Social media websites can be used to analyse the reviews and
feedbacks of customers so that performance can be improved.
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CONCLUSION
From the above report it can be concluded that organisations have to communicate with
their audience on regular basis. Marketing is important part of each and every organisation so
that they can make people aware about their products and services. It assist in maintaining
understanding between customers and organisation which is positive factor. This report include
about marketing strategies which assist businesses in promoting their products. External and
internal environment of an organisation should be assessed so that strengths and weaknesses can
be identified. This report involved about competitive strategies which an organisation have to
achieve for their growth and expansion. Actionable recommendations are provided so that
organisation can improve their marketing strategies in appropriate manner.
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