Principles of Marketing: Market Analysis, STP Strategy, and Marketing Mix

This document provides an overview of market analysis, segmenting targeting positioning (STP) strategy, and marketing mix in Principles of Marketing. It discusses the market trends, competitors, and customer attitudes. It also explores the launch of a new health drink by Sainsbury and its potential opportunities and threats. The document further delves into the segmentation, targeting, and positioning strategies used by Sainsbury. It concludes with insights into the product, price, promotion, and place elements of the marketing mix.

PRINCIPLES OF
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body ......................................................................................................................................3
Market Analysis .........................................................................................................................3
Segmenting Targeting Positioning .............................................................................................5
Marketing mix.............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a business function that is performed in order to attract more number of
customers towards a product and service. Main aim of marketing is to aware customers about the
products of company and retain them for longer period of time. Here, it is performed to increase
in sales & profitability of organisation (Anabestani and Tolabi Nejad, 2019). In the current
report, Sainsbury that is renowned grocery retailer of UK has been taken into consideration. It
deals in both food and non food segment. In the current report, organisation is going to launch a
new health drink with lower calories. Here, marketers got this idea through extensive market
research that will help them to cater the needs & requirements of buyers in significant manner.
The current report comprises an analysis of current market trends, competitors and attitude of
customers. In addition, STP strategy of product is also discussed in present report. Further, it will
comprises a detailed marketing mix along with several channels that can be used for effective
distribution of product. Moreover, it renders a detailed prospective about new product that will
help organisation to enhance their market share and meet with requirements of buyers in an
effective manner.
Main Body
Market Analysis
It is analysed that Sainsbury is a renowned organisation of retail sector which owns
higher market share in retail industry of UK. It provides a range of clothes, foods and drinks and
perceived as a reputed company by consumers (Andersson, 2018). Customers have trust over
brand thus it will be easy for managers to launch a new product. Now, people are more conscious
about health so work in this healthy and lower calories energy drink will be beneficial for
company. It will provide a huge scope of growth and success.
Key Market Trends:
As per the current market trend, it is crucial for managers to stay aware about needs and
requirements of consumers. It makes them enable to earn higher profitability that is significant
for long term growth. To grow in current competitive market place, it is vital to adopt new and
advance approaches of marketing and promotion. So, marketers of Sainsbury are planning to
launch a new product with similar brand name. They adopt creative techniques of promotion and

advertisement. These all methods will help managers to ensure long term sustainability of entity
at market place.
Key competitors of organisation:
Competitors put a great impact on current and future performance of organisation thus it
is vital to analyse the strategies and policies of rival firms to stay in competitive market place for
longer duration. Here, competitors of Sainsbury are discussed as under:
TESCO: It is also working in the similar field and acquires large share in retail industry
of UK. TESCO considers as one on the leading and most renowned supermarket company of
country (Christopher, 2016). It has also wide presence in international market place. It is
analysed that organisation is currently operating in nearly 13 countries with a range of outlets.
Therefore, it provides extensive competition to Sainsbury that need to evaluate on timely basis.
Customers also perceived as highly reputed brand which provides quality goods. This
positioning of brand mat hamper existing performance of respective entity.
ASDA: It is also a multinational company that operates business at wide level in UK. It
also deals in groceries and general items with a number of stores across the globe. Here,
organisation has positive image at market place which allows it to earn tremendous profit
margin. Marketing strategy of ASDA is remarkable and help to attract more number of buyers.
Thus, it also provides higher competition to Sainsbury through its effective marketing practices.
Therefore, managers of Sainsbury should analyse current market and also position of
rival firms as apart from above stated companies there are several other organisations such as
Redbull, Lucozade that are working specifically in the field of energy drink. So, there is a
requirement to analyse current market place on regular basis.
Customers attitude and behaviour in respective market
Customers are the key stakeholders of an organisation and affects its performance in
significant manner (Dogu and Albayrak, 2018). It is analysed that consumers in retail sector are
more technology oriented and wish to get all the necessary products & services at their own
place. Thus, trend of online shopping and digital marketing is evolving rapidly. Here, customers
are also health conscious and prefer get such products and services that are better for health and
help them to stay fit and active. Due to changing attitude of buyers organisation have decided to
come with a new product that will help to gain higher market share.

Identification of issues and opportunities based on current scenario
Strengths Weaknesses
 Here, Sainsbury is going to launch a
new product that will contain lower
calories specifically for health freaks.
With this, organisation will able to
strengthen its position at market place.
 It will help organisation to attract more
number of buyers that will eventually
lead it towards higher sales and profit
margin.
 Managers will launch new product that
will required higher investment which
may reduce down overall sales and
profit margin of organisation.
 Here, it is analysed that organisation
will merely target youth, adults who are
more conscious about health that will
restrict its target market to a particular
segment.
Opportunities Threat
 Launch of a new product will enhance
the existing product mix of organisation
that is crucial to enhance target
segment at market place.
 With this, managers of organisation
will be able to attract more number of
buyers and get competitive edge.
 It may hamper existing image of brand
at market place as they are going to
launch a new product under same
brand name.
 There are several entities that are also
working in similar field and will affect
sales and profit margin of respective
organization.
Segmenting Targeting Positioning
It refers to a strategic approach that is used to divide whole market into smaller segments
and target most appropriate segment that will help to earn higher profit margin (Doyle, 2016).
Main aim of STP is to position the product and service among target audience in right manner. It
is a crucial strategy which is generally used by mangers in order to get an edge over competitors.
Here, Sainsbury undertakes STP approach in following manner:
Segmentation:

It refers to bifurcation of whole population in smaller segments so that it will be easy to
target a specific segment. There are different basis can be used for segmentation which are stated
as under:
Demographic: Under this, population is divided as per different variables such as age,
income, gender, occupation and more. It is used by several organisations in order to select most
suitable target audience.
Geographic: This segmentation is based on location and help to meet with requirements
of several customers who are residing at different location. It is generally used by those
companies that operates business at different destinations.
Psycho graphic: Under this, factors that are related to traits, characteristics of an
individual are included. Here, whole population is divided on the basis of numerous variables
such as values, attitudes, personality, lifestyle of customers.
Behavioural: It depends on buying behaviour of customers. It is analysed that different
people have different buying and spending habits that affect their purchasing behaviour.
It is analysed that psycho-graphic segmentation seems to more suitable for the purpose
of new product (Heath and McKechnie, 2019). Here, Sainsbury is going to launch an health
drink with lower calories that will prefer by youth and working individuals who are more
conscious about health. In addition, customer group of organisation is generally belong to higher
income group people who are conscious about status and lifestyle. Further, organisation can used
demographic segmentation in terms of age and income level of customers. The product is more
suitable for young audience who are consider as health freaks. It is analysed that organisation is
launching product specifically for higher income group of people. Therefore, they are using
appropriate methods of segmentation to target right audience.
Targeting:
It is second and most crucial stage of STP approach as in this managers determine a
specific group of customers to target. Target segment need to select with due consideration
regarding sales and profit margin. Potential of growth and success in that particular market need
to analyse before selecting target audience (Ioanid, 2020). Manager need to be well aware with
requirements and needs of target customers in order to meet with their needs and requirements in
an efficient manner. In context of Sainsbury, they will target young adults between the age group
of 21 to 35. People of this age group are also called as working professionals who wish to remain

fit and active. Therefore, marketers are planing to launch health drink with lower calories. In
case of demographic segmentation, they are targeting people with higher income who are ready
to pay extra amount for quality goods. Therefore, organisation is targeting such a segment that
has higher potential to generate huge profit margin and will make it enable to sustain at
competitive market place for longer duration.
Positioning: After targeting the next step is positioning under which products and
services are positioned in the mind of customers. It refers to the way in which a brand is
perceived by consumers. Positive positioning of product is essential to attract more number of
new buyers and retain existing ones for longer run. Here, it is analysed that Sainsbury has been
positioned itself well at market place. Customers have great trust over organisation that is
essential to survive at market place for longer run (Rafiq, 2020). So, it is easy for managers of
respective company to launch a new product and ensure long term survival. They will position
new product under the same brand name that will help to attract more number of buyers. In this,
health drink will positioned as a product the is better for health and will help to boost the energy
level of consumers. With this, customers will perceive it as as quality product that good for
health. Therefore, existing positioning of brand will really help organisation to establish the new
product among target segment.
It is analysed that Sainsbury is providing a range of products in both food and non food
segment. The newly launched health drink will help managers to meet with evolve needs and
requirements of customers. It will prove highly beneficial for health conscious people who wish
to boost their energy with minimum efforts. Nowadays, it is examined that there are several
energy drinks are present at market place but have higher calories. This drink will provide
several benefits to customers by boosting their energy level with minimum level of calories.
Therefore, organisation will be able to earn higher sales and profit margin with the launch of
new product.
Marketing mix
It is an effective tool and technique which refers to organisation utilize in order to
enhancing profitability and productivity of company (Rittenburg, 2016). It includes company
used effectively which result as providing various products and services for customer. In context
of Sainsbury, it includes they are launching new products such as health drink with low calories.
It involves management team planing regarding this products and services which refers to

providing those customers which are health conscious so which are mentioned various elements
such as.
Product-: It is process which refers to organisation offered for customers in order to fulfil
the needs and wants of customers. It relevance of organisation, it serves health drink with low
calories in order to those customers who prefer this kind of drink because many people are health
conscious so they avoid unhealthy food (Shareef, Dwivedi and Kumar, 2016). It involves they
are leading supermarket chain in United Kingdom in order to providing various products and
services. This new product organisation launch in market in order to beat the competitor and
gaining market share. It is essential for organisation to analysis the customer need and demand
and then serves of customers. Here, effective packaging need to use for health drink that provide
ease to customers to carry product from one place to another. There are different variants, colour,
logos will used in packaging to differ the product with existing brands. It will help to attract
more number of customers towards product that is essential to earn higher sales and profit
margin.
Price-: It is refers to organisation charge for products and services which are delivering
for customers in order to they are offered wide variety of products and services. In relevance of
Sainsbury, it involves organisation using premium pricing strategy for Health drink with low
calories in order to attracting large numbers of audience as well as gaining competitive
advantages. It providing this products for those which are prefers more drinks and it is different
from competitors which result as developing brand image in the mind of customers. It involves
establishing pricing strategy in order to providing high quality products and services.
Promotion-: It is factor which plays vital role in order to promotes the products and
services and attracting large numbers of customers (Thaichon and Ratten, 2020). It includes
organisation utilising various promotional platform which are helps to increasing profitability
and productivity of company. In reference of organisation, it is refers to they are promoting
health drink with low calories in order to utilising various digital platform such as what's app,
Instagram, twitter, you tube and social media platform. It includes used as traditional platform
such as billboards, trade show, radio, news paper and many others.
Place-: It includes organisation developing new strategies in order to products and
services easily reached to the customers. It is process which refers to customers retain longer
period of time due to products and services are easily reached. In context of Sainsbury, it

involves health drink with low calories they are utilising effective distribution network such as
they are providing products and services through online and offline mode. It consider as
corporate website is an effective tool because they are attracting large numbers of customers
providing products and services on the basis of deliver various discounts and offers.
Hence, it involves marketing-mix element which refers to organisation using effective
tools and techniques in order to promotes health drink with low calories products as well as
attracting large numbers of customers. It includes providing wide range of products and services
for customers in order to increasing sales revenue and many more.
CONCLUSION
With above discussion, it is monitored that marketing is a business function to promote
and advertise a product and service at wide level. Discussion has been carried out regarding
launch of a new product that will be a health drink with lower calories. There are several tool
used in marketing such as STP and marketing mix in order to prepare attractive strategies to get
an edge over competitors. Moreover, this launch will beneficial for organisation in terms of
enhancement in existing sales and profit margin.

REFERENCES
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