Sainsbury Marketing Strategy Analysis

This assignment examines Sainsbury's marketing strategies by analyzing their product offerings, pricing, promotional tactics, and distribution channels (place). It delves into customer segmentation based on demographics, value, behavior, and channel preferences. The analysis aims to understand how Sainsbury utilizes marketing tools and techniques to gain a competitive advantage.

INTRODUCTION TO MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Describing the manner in which marketing techniques, survival strategies as well as
branding and relationship marketing used to market products....................................................3
P2 Stating the limitations and constraints of marketing..............................................................4
TASK 2............................................................................................................................................5
P3 Presenting the use of marketing research in the contribution of developing marketing plans
.....................................................................................................................................................5
P4 Market research for market planning.....................................................................................6
P5- Explain how and why groups of customers are targeted for selected products....................7
P6- Develop a coherent marketing mix for a new product or service.........................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing are activities of a company associated with buying and selling a product or
service. It includes advertising, selling and delivering products to people. It is used to create the
customer, to keep the customer and to satisfy the customer. It includes the coordination of four
elements called the 4 P's of marketing such as product, price, place and promotion. The present
report is based on Sainsbury and Hilton which are the leading organizations of their concerned
sectors. Sainsbury is the leading retail business units of UK that offers wide range of products or
services to the customers. Further, Hilton is the one of the famous hospitality business unit that
offers accommodation services to the customers at affordable prices. In this, report will develop
understanding about different types of marketing tools and techniques. Besides this, report also
depicts segmentation, targeting and positioning strategy that is used by business units to entice
customer’s decision making.
TASK 1
P1. Describing the manner in which marketing techniques, survival strategies as well as branding
and relationship marketing used to market products
Ansoff Matrix is a strategic planning tool that provides a framework to help executives,
senior managers, and marketers devise strategies for future growth. Market penetration, market
and product development as well as diversification are the four elements of Ansoff matrix which
aid in strategic planning. In case of J Sainsbury the company has good profits and good market
share. But when compared to competitors the market position is not that strong. In this case there
J Sainsbury needs to apply generic business strategy for growth in its retail business and strategy
for future development of company (Henley, Raffin and Caemmerer, 2011). In generic strategies
market penetration is a viable solution for the business by increasing the market share and
targeting more customers. Moreover diversification is risky but there are good chances of
growth. Diversification can be in both products or services. Product diversification is there at
Sainsbury`s retail industry business.
However diversification in group`s business can be good developmental opportunity for
the business. Similarly other competitors such as Tesco have high diversification in business,

apart from retail they are into telecom and automobile industry as well (Madsen and et.al., 2015).
So J Sainsbury have good option for business diversification, as such strategies are good for
businesses as if one business suffers in adverse circumstances, the other may not. Besides this,
Hilton also places emphasis on employment of market development and expansion (Barrett and
Weinstein, 2015). Hence, by establishing the new hotels business entity would become able to
attain high margin. Besides this, by placing emphasis on brand recognition, identity and image
both the business units such as Sainsbury and Hilton can gain strategic advantage over others.
P2 Stating the limitations and constraints of marketing
The Consumer Rights Act 2015 became law on 01 October 2015, replacing three major
pieces of consumer legislation - the Sale of Goods Act, Unfair Terms in Consumer Contracts
Regulations, and the Supply of Goods and Services Act. It was introduced to simplify, strengthen
and modernize the law related to shopping rights.
As with the Sale of Goods Act, under the Consumer Rights Act all products must be of
satisfactory quality, fit for purpose and as described.
The rules also include digital content in this definition. So all products - whether physical or
digital - must meet the following standards:
 Satisfactory quality: Goods shouldn't be faulty or damaged when you receive them. You
should ask what a reasonable person would consider satisfactory for the goods in
question. For example, bargain-bucket products won’t be held to as high standards as
luxury goods.
 Fit for purpose: The goods should be fit for the purpose they are supplied for, as well as
any specific purpose you made known to the retailer before you agreed to buy the goods
(Chatzipanagiotou, 2010).
 The goods supplied must match any description given to you, or any models or samples
shown to you at the time of purchase.
. By considering all the above mentioned aspects it can be stated that Sainsbury is obliged
to sell retail products or services according to the advertisement placed by them. Besides this,
company cannot serve false information to the customers regarding products or services offered.
If business unit found with undesirable activities then they are obliged to give penalty for the

same. Besides this, government authority can also take strict action in against to the undesirable
activities which are performed by Sainsbury.
TASK 2
P3 Presenting the use of marketing research in the contribution of developing marketing plans
Market research and marketing analysis is highly significant which is used to gain
valuable insights about customers, market conditions and the competitive landscape. There are
mainly two types of market research techniques that can be used by Sainsbury namely qualitative
and quantitative tools. Quantitative research is considered to have as its main purpose the
quantification of data. This allows generalizations of results from a sample to an entire
population of interest and the measurement of the incidence of various views and opinions in a
given sample (Garoufallou and et.al., 2013). Qualitative research is considered to be particularly
suitable for gaining an in-depth understanding of underlying reasons and motivations. It provides
insights into the setting of a problem. At the same time, it frequently generates ideas and
hypotheses for later quantitative research. Sainsbury conducts qualitative research with the
motive to get answer of the following questions:
 Who makes up the target audience?
 What do they want?
 When do they need it?
 Where does it sell best?
 How can it be taken to them?
 Why do they want/need it?
 What are our competitors doing?
 How is our market changing?
In this way, by making assessment of all the above mentioned aspects Sainsbury would
become able to develop highly competent plan. Information which will be assessed through
market research helps in setting suitable marketing mix, targeting, segmenting and positioning
strategy (Figge and et.al., 2002). By taking into account the above mentioned aspect it can be

stated that outcome of research helps in making competent plan which make contributes in the
organizational growth and success.
P4 Market research for market planning
Market research refers to the collection of data in respect to market and products as well
as services in terms of features and customers’ needs and wants. On the basis of results of the
market research it can be determined that in what features must be in product. Marketing is the
process of developing and implementing a plan to identify, anticipate and satisfy consumer
demand, in such a way as to make a profit. The two main elements of this plan are market
research to identify and anticipate customer requirements and the planning of an appropriate
marketing mix to meet these requirements (Figge. and et.al., 2002). Market research involves
gathering and recording information about consumers, market, product, and the competition in
an organized way. The information is then analyzed and used to inform marketing decisions.
There are three main ways of gathering information for market research:
1. From internal information already held by an organization, e.g. details of existing customers
and their spending habits.
2. External primary information - i.e. information collected at first hand by interviewing
customers and potential customers to get their views about a company, products and services.
3. External secondary information - using published sources of information e.g. those produced
by marketing organizations about products, markets and brands.
Marketing planning can then be used:
1. To assess how well the organization is doing in its markets.
2. To identify current strengths and weaknesses in these markets.
3. To establish marketing objectives to be achieved in these markets.
4. To establish a marketing mix for each market designed to achieve organizational objectives.
Service organizations like the Inland Revenue and Abbey will carry out marketing to find out
about the sort of service that their customers and clients require in order to create an appropriate
marketing plan. Manufacturing organizations like Cadbury Schweppes, Corus, Audi and Nissan

will carry out product research in order to create an appropriate marketing plan for their products
(as well as associated services).
A simple definition of market research is 'keeping those who provide goods and services in touch
with the needs and wants of those who buy the goods and services.'
P5- Explain how and why groups of customers are targeted for selected products
Group of customers are targeted for selected products. This is because every customer
cannot purchase the all product as their preference differ from each other. Thus, it is the reason
due to which specific products are targeted for the specific sort of customers. Customer targeting
is the business process that defines which customers to market to (Cockburn, and et.al., 2014).
For each direct marketing campaign, be it email or direct mail, there is a decision to be made on
who will, and who will not receive the campaign. Influencing factors related to that decision
include:
 The type and cost of the media
 Merchandising
 Offer
 Past Customer Performance, most commonly referred to as Regency, Frequency, and
Monetary – RFM for short (Dziri, 2013).
The objective is to select the “best” collection of customers to mail a particular campaign to,
among the entire inventory of available customers.
Often, since the marketing campaign is a fixed cost, the definition of best is defined as
maximizing the return on marketing investment, which is often restated as maximizing revenue
under fixed circ.
1Customer profile characteristics (demographics) - the classic traditional marketing approach.
2. Customer value current and future. Targeting the most valuable and most growable
segments in a matrix of current against future are the most common approaches

3. Customer behavior in response and purchase (observed and predicted). This is often
known as RFM or FRAC analysis.
4. Customer multi-channel behavior (channel preference). Grouping customers according to
channel preference
P6- Develop a coherent marketing mix for a new product or service
Product
 Sainsbury main products are FMCG
and other products.
 Sainsbury is providing multiple
services to the customers (Hartley. and
Claycomb, 2013).
Price
Products are sold at low price in the market. It
can be said that penetration pricing strategy is
followed by the business firm.
Promotion
In retail stores all products are advertised.
Place
All products are sold through retail stores.
CONCLUSION
From the above report, it has been concluded that marketing tools and techniques are
highly significant. Besides this, it can be inferred that by laying emphasis on brand recognition,
identity and image Sainsbury and Hilton can gain strategic advantage over others. Further, it has
been articulated that Sainsbury would become able to develop highly competent plan through the
means of information gained via market research. It can be revealed from the report that research
makes contribution in the development of significant plan.

REFERENCES
Books and Journals
Barrett, H. and Weinstein, A., 2015. Corporate entrepreneurship, the marketing mix, and
business performance. In Proceedings of the 1997 Academy of Marketing Science (AMS)
Annual Conference. Springer International Publishing.
Chatzipanagiotou, K., 2010. Internal‐market orientation: a misconceived aspect of marketing
theory. European Journal of Marketing. 44(11/12). pp.1667 – 1699.
Cockburn, J., and et.al., 2014. Macro-Micro Models, in Cathal O’Donoghue Handbook of
Microsimulation Modelling. Contributions to Economic Analysis. 293. pp.275 – 304.
Dziri, R., 2013. Avoiding Strategic Drifts in a Hypercompetitive Market. GRIN Verlag.
Figge, F. and et.al., 2002. The sustainability balanced scorecard–linking sustainability
management to business strategy. Business strategy and the Environment. 11(5). pp.269-
284.
Garoufallou, E. and et.al., 2013. The use of marketing concepts in library services: a literature
review. Library Review. 62(4/5). pp.312 – 334.
Hartley, R.F. and Claycomb, C., 2013. Marketing mistakes and successes. Wiley.
Henley, N., Raffin, S. and Caemmerer, B., 2011. The application of marketing principles to a
social marketing campaign. 29(7). pp.697 – 706.
Madsen, T. K., and et.al., 2015. The Market Orientation of Domestic and International New
Ventures, in Shaoming Zou , Hui Xu , Linda Hui Shi Entrepreneurship in International
Marketing. Advances in International Marketing. 25. pp.21 – 44.