Marketing Principles of Sainsbury

Marketing principles

TABLE OF CONTENTS
COMPANY OVERVIEW ..............................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Concepts of marketing and marketing process of Sainsbury.................................................4
1.2 Benefits and costs of marketing orientation for Sainsbury....................................................5
TASK 2............................................................................................................................................6
2.1 Macro and Micro environmental factors which affects the marketing decision of Sainsbury
......................................................................................................................................................6
2.2 & 2.3 Segmentation and targeting strategy for Sainsbury ....................................................7
2.4 & 2.5 Effects of buyer behaviour on marketing activities of Sainsbury in different buying
situations & new positioning strategy for company ...................................................................8
TASK 3............................................................................................................................................9
3.1 How developing new product helps in achieving sustainable competitive advantage to
Sainsbury .....................................................................................................................................9
3.2 Providing convenience to customers with the help of appropriate distribution channels......9
3.3 Prices set by Sainsbury reflects its marketing activities......................................................10
3.4 How company would integrate its promotional activity to achieve its marketing objectives
....................................................................................................................................................10
3.5 Additional elements of extended marketing mix.................................................................11
TASK 4..........................................................................................................................................11
4.1 Marketing mix for two different consumer market segments .............................................11
4.2 Difference when Sainsbury marketers its products to business rather than consumers......11
4.3 Difference between international and domestic marketing of Sainsbury............................12
CONCLUSION .............................................................................................................................12

COMPANY OVERVIEW
Sainsbury has been regarded as the 2nd largest supermarket chain that currently exists in
UK. The company was founded in the late 1860’s by John James Sainsbury. The company then
became one of the largest grocery retailers by the year 1922 (Sainsbury, 2014). Presently the
company is split into three major divisions being Supermarkets, Convenience Stores as well as
banks. Its present head office is in Holborn London. It has been operating around 1200 stores in
the present times and employees over 161000 employees.
Sainsbury has made its vision of being one of the most trusted retailers that people can
rely upon. It wants the people to consider Sainsbury as a place where people can shop and also
love to work in such a manner so as to make the life of consumers an easy one. This ideology is
clearly reflected in its marketing code of practice. In order the consumer loyalty, Sainsbury has
made an attempt to create marketing communications that are decent, honest, truthful and there
to maintain consumer confidence.
The company has further made the strong culture as well as values as a part of its identity
that has further led to successful operations of company. It has further been revealed that
Sainsbury is a well-known company in terms of being able to assess the consumer data as well as
personalize the efforts related to consumer marketing. They have further been able to assess the
results constantly as well as taken significant part for bringing a significant improvement in its
performance.

INTRODUCTION
In today’s highly competitive environment, it is highly essential to develop appropriate
marketing principles in order to enhance competitive advantage. For the same, the present report
is based on the scenario of Sainsbury which has been declining its sales due to existence of
competitor’s effective marketing strategies (Armstrong, Adam and Kotler, 2014). In this regard,
marketing director of the company is highly concern to review its existing marketing activities
and develop new marketing strategies. With the help of this, they are able to enhance their sales
and effectively maintain their consumer base.
Under these activities, Sainsbury requires adopting some of the best promotional and
advertising techniques. Through this, they are able to fulfil the needs and demands of their
customers. Further, the present study covers different aspects of marketing planning as well as
repositioning of various marketing activities in order to boost up the overall revenue against the
competitors.
TASK 1
1.1 Concepts of marketing and marketing process of Sainsbury
According to the American Marketing institution, marketing is a set of activities of a
process which helps in communicating, delivering and exchanging offerings so that value for
customers can be created.
In addition to this, it can be determined that marketing is a process which helps in
analysing current and future market opportunities for any particular company by selecting its
target market (Smith, 2014). The whole marketing process of Sainsbury determines through
various elements used in this. These fundamentals are follows:
Market Environmental Scanning:
These factors are present inside or outside the Sainsbury and impact their performance as
well such as:
Porter 5 forces analysis: With the help of analysing this element, company can easily test
the effectiveness of their industry and rivalry among competitors (Lilien, Rangaswamy and De
Bruyn, 2013).
Pest Analysis: These are the external factors which affect the business activities such
political, economic, social, technical factors, etc.