Applying Marketing Principles in the Global Environment: A Case Study of Sainsbury's

This report discusses the application of marketing principles in the global environment using Sainsbury's as a case study. It covers Kotler's five product level model, brand equity, marketing mix, and key marketing principles. The report concludes with recommendations for Sainsbury's to succeed in the international market.

Applying Marketing
Principles in the
Global Environment

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Company's Overview-..................................................................................................................3
Kotler's five product level model-...............................................................................................3
Concept of Brand equity in Sainsbury's-.....................................................................................4
Marketing Mix of Sainsbury's-....................................................................................................5
Key marketing principles in International market-......................................................................6
Recommendations-......................................................................................................................7
Conclusion...................................................................................................................................7
References........................................................................................................................................9

Introduction
Marketing has a main role in the successful operation of any business entity. It allows to
represent the quality and other information about the products which are offered by the company.
In order to grab the attention of the customers in the given market, it is very much important to
build some innovative techniques of marketing in the firm (Palmatier, Petersen, and Germann,
2022). A set of business principles has been introduced which is useful in taking various decision
related to the distinguish method which could be used for the promotion of products in the
business institution. This report will explain the necessity of these marketing principle in the
development of the business taking the example of Sainsbury's. It will also state some
recommendations regarding the utilisation marketing strategies in the international market, so
that Sainsbury's does not have to face any risk in their operational activities.
Main Body
Company's Overview-
In United Kingdom, Sainsbury's is one of the famous supermarket chain, which was
started in the year 1869 in Holborn. John James Sainsbury has established this company with an
objective of serving good quality services or products to the customers in the country. Firstly, he
has established a shop which was located in area which is known as Dury Lane. Currently, this
supermarket chain has been distributed in three distinct part which are Sainsbury's supermarket
which are consist of numerous stores, others are banks and Argos. Company is focusing on
introduction of new product line to their customers which will be of supreme quality
(O’Sullivan, and Ngugi, 2022).
Kotler's five product level model-
This model defines the different set of product line which can be offered by a business
organisation, in order to satisfy the all demands and expectations. Different elements through
which this model has been formed is discussed below-
 Core benefit- This aims on providing such goods or services to the customers which
have enough potential to fulfil the basic needs and expectations. Sainsbury's is trying to
develop such products in the UK market which belong to the minimal price range and at
same time they should be easy to use.

 Generic product- It related to those type of products which have limited characteristics
and those will be sufficient for the proper functioning or presentation of that product.
 Expected product- When consumers are easily forecast the benefits and offerings of the
products which are offered by the companies is considered as expected products.
 Augmented product- To attain the certain uniqueness in the product, companies often
add some attributes and features in their products which are able to provide the better
customer experience in comparison to the competitors (Ramani, and Srinivasan, 2019).
 Potential product- It is the combination of those goods and services of the business
institution which will ensures the future benefits which will be experienced by the
management.
Concept of Brand equity in Sainsbury's-
It is crucial for any firm to establish a strong value in the market, as it will ensure the reach of the
new product and services which is introduced by the product department of the company. Brand
equity is the structure which is followed by the company to enhance its market image by taking
the help of unique product and services. While considering the brand equity in the management
of the company, teams always emphasis on the components which will make the product easily
identifiable and also retain extreme good standard of quality. Sainsbury's is utilising several
methods to increase its brand value of the product-
 Improvising the quality of the product- In United Kingdom, people are highly selective
in grocery items. For this Sainsbury's is continuously adopting changes in their products,
though which they can modify the offerings of their services by making it healthier and
affordable (Mix, 2022).
 Examining the activities of rivals- So many competitors are present in the market such
as Asda, Tesco, Morrison, making it tough for the Sainsbury's to attract the customers in
the global market.
 Compatibility in the brand image- Company has worked in selling product of those
brands which are capable of fulfilling the preferences and expectations of the consumers.
Sainsbury's branding team focuses on considering the guidelines and advices of the all
department who are contributing in the production of new output in the market.
 Proper attention to the needs of customers- Sainsbury's research and development
team has been managed in such a way through which company will analyse the all

demands of the customers and move forwards with the motive to fulfil them. These
actions of the company are the main reason behind the success and good reputation
among the market. Moreover, it also helps the firm to achieve the competitive advantage
by gaining more market share.
Marketing Mix of Sainsbury's-
Sainsbury' is using different types of components which are helpful in making the best marketing
strategy for the company. Marketing mix allows the company to identify its strength which may
assist the management to gain the different advantages in the market. A brief description on the
different factors which are involved in the formation of marketing mix of the company has been
stated below-
 Product- Wide range of product has been introduced by Sainsbury's, which helps the
company to eliminate the threat of substitute product which may be offered by its
competitors in the given market. Company has developed an effective strategy which
focuses on grabbing the attention of customers such as selling the local products as well
as their own brands (von Freymann, and Cuffe, 2020). This will support the customers to
find all the products which they want to use at one single place.
 Promotion- Use of above the line which is related to the implementation of radio,
television as the medium through which company can inform their customers about the
product (Magnani, 2022). And on the other hand, below the line promotional strategy is
connected with the usage of sales promotional structure, along with this endorsement of
their brand by collaborating the celebrities. Such advertising planning are opted by
Sainsbury's as the company know that how they can manipulate the purchasing power of
the consumers.
 Price- Every customer wants to achieve the complete value of the amount which is paid
by them, in order to purchase any product or services. Sainsbury's is trying to accomplish
this need of the customers by providing products in their budget and also maintaining the
quality. Company is also thinking about their own interest which is concerned with the
holding up the customers with them for the longer period of time. This will help
Sainsbury's in increasing the loyalty of their brands in the UK market.

 Place- The overall business of the firm is expanded in the various parts of the world. Till
now, it has almost around 500 supermarkets and more than 700 market. They are
basically established in such areas where customers easily reach and purchase the product
of their own choice. Moreover, Sainsbury's is expanding its operational activities so that
they can offer services to the consumers till mid night.
 People- Company believes that staff and employees are key to attain the success. For this
management has been started various internal programs through they can offer complete
training to their workers on different aspects. By this employee get the opportunity to
work effectively and can bring necessary changes which are needed for the betterment of
the services which are provided by the supermarkets.
 Process- This section of the marketing mix is concerned with development of the
technologies and method of production which is used by the Sainsbury's. In this company
is focusing on their existing customers in the market and interpreting their wants and
changes in their preferences. Sainsbury's tries to direct their all business functions
towards completing the demands of the customers in the given market. For instance, they
are providing online platforms to the people which could be useful in the shopping of
groceries by using their websites.
 Physical evidence- Company is using good packaging for their product which enhance
the safety of product from getting damage. Hiring of such effective staffs which are able
to provide the better experience to the customers (Hockenberry , 2019). It formulates the
proper arrangement of the services within the organisation and works in removing those
inefficient factors in the management which may obstruct the performance of
Sainsbury's.
Key marketing principles in International market-
Sainsbury's must build an optimum framework to set up good marketing environment in the
international market. Company can take help of marketing principles which are listed below-

 Identification of market- Firstly, Sainsbury's have to examine the condition of the
global market in which currently it is operating. This is necessary to find out the trends
and behaviour of the customers, about their expectations from the companies which are
coming to start their business in their home market.
 Culture and language- Sainsbury's is using various methods through which they can
easily connect to the overseas customer base. By following this, company has formulated
such practices in the business institution in which they focus on providing the
information in the language which they speak, along with this building such
advertisement which shows the respect towards their culture and values.
 Implementation of successful marketing plan- After considering all the external factors
which can affect the process of the business in the market in different countries.
Sainsbury's is focusing on constructing such plan of action which supports in fulfilling
the all requirements of these factors. By taking innovative steps in the formulation of new
marketing policies for the international market company reduce the risk of loss.
 Partnership with local business- By contacting the local business Sainsbury's can
simplify its practising to promote its product and services in the global market. It will
give the advantage of having complete knowledge about the taste and preferences of the
customers in those countries in which Sainsbury's is trying to locate its business. This
will also help in eliminating the extra cost of the company and ensures the good return.
Recommendations-
There are several complexities which is currently faced by Sainsbury's in the international
market. It is necessary for the firm to resolve such issues, otherwise it will become hurdle in the
success of the company in the overseas market. Company should involve new method of
technologies in its marketing operation as it will support in avoiding the situation of limited
customer reach. Digitalisation is the most famous trends in the field of marketing, which is
extremely used by every company. Sainsbury's can take adopt the online feedback and reviewing
system for the customers (Chautard, and Collin-Lachaud, 2019). This will result in finding out
the changes which is required by Sainsbury's for the particular product and services. Promoting
the products and other stores schemes or plans on the online platform, this will result in getting
the response of the audience who are living in the different countries of the world. Sainsbury's
should pay necessary attention towards the alteration in the business strategies, because for the

development of the business in the overseas market it is important to utilise different set of
actions for to achieve the desired success in the growth of the business.
Conclusion
The above report went into a detailed discussion which is related to the marketing
structure which can be opt by the company for the effective promotion of the product and
services. It has elaborated the Kotler's five product level model to explain the variance in the
needs and demands of the customers. This report discloses the marketing mix of Sainsbury's and
how effectively company is building its business policies to formulate the efficient strategies for
the promotion of their product in the market. In addition to this, implementation of marketing
principle on functioning of the business at the global level.

References
Books and journals-
Chautard, T. and Collin-Lachaud, I., 2019. Introducing the storytelling analysis methodology in
marketing: Principles, contributions and implementation. Recherche et Applications en
Marketing (English Edition), 34(3), pp.27-46.
Hockenberry, T., 2019. Marketing isn't just for products and services. The Journal for Quality
and Participation, 41(4), pp.17-19.
Magnani, G., 2022. The Cultural Adaptation of the Marketing Mix. In Marketing in Culturally
Distant Countries (pp. 93-130). Springer, Cham.
Mix, A.P.M., 2022. BAB III MARKETING MIX. Manajemen Pemasaran Hasil Pengelolaan
Bank Sampah Melalui E-commerce, p.81.
O’Sullivan, H. and Ngugi, I., 2022. Marketing Mix. In Encyclopedia of Tourism Management
and Marketing. Edward Elgar Publishing.
Palmatier, R.W., Petersen, J.A. and Germann, F., 2022. Marketing Analytics: Based on First
Principles. Bloomsbury Publishing.
Ramani, N. and Srinivasan, R., 2019. Effects of liberalization on incumbent firms’ Marketing-
Mix responses and performance: Evidence from a quasi-experiment. Journal of
marketing, 83(5), pp.97-114.
von Freymann, J.W. and Cuffe, B.P., 2020. Can Higher-Order Active Learning Modalities
Improve Student Learning Outcomes in a Marketing Principles Class?. Journal of the
Academy of Business Education, 21.