Marketing Process & Planning for Sainsbury: Functions, Mix, and Analysis

This report discusses the marketing process and planning for Sainsbury, including the marketing concept, functions, mix, and analysis. It evaluates the marketing mix adopted by Sainsbury and provides recommendations for improvement. The report also includes a marketing plan for the launch of a new product line, including a situational analysis, competitor analysis, and development of marketing strategies.

Higher National Diploma in Business
Management
Unit 2 Marketing Process & Planning
The Marketing Concept,
Functions and Mix (Part 1)
Marketing Planning (Part 2)
Name:
ID:
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Table of Content
Part 1: Briefing Paper
1.0 Introduction p
2.0 An explanation of the concept/definition of marketing in the 21st century
p
3.0 Description of the role of marketing function with examples from the
chosen organisation p
4.0 An analysis of how the marketing function works and interacts with other
departments p
5.0 An explanation of the extended marketing mix and examples from selected
supermarket p
2.0 An evaluation of how the marketing mix adopted by the selected
business (or business unit) contributes to the success of the organisation in
meeting their overall business objectives p
3.0 Recommendations p
9.0 Conclusions p
References p
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1.0 Introduction
Marketing is a process which helps in increasing the consumer awareness. It
is to increase the knowledge of the customers. They should well aware about the
products and services. Marketing Management focuses on the planning, creation of
new ideas and implementation of strategies. This would help in increasing the area
of the business area. This report includes the marketing management of the
Sainsbury company. Sainsbury is one of the largest marketing chains of the UK. It
deals with the groceries, home items, hard wares, financial services, apparels and
many other products. It is well known for its product's quality at the lower prices. With
all these promotional activities, it also considers the corporate social responsibility.
Sainsbury always make strategies and policies after considering its stakeholders.
Stakeholders like employees, customers, dealers, producers and all those who are
related to the company.
2.0 An explanation of the concept/definition of marketing in
the 21st century
Marketing is a process of promoting and communicating about the goods and
services. It is to increase the sales of the products. Sainsbury company has
promoted its products through advertisements in radio, television, media, etc. It has
adopted many new strategies also. Like It has started the process of redeemable
points system and vouchers. Along with these it also gives gift cards, tokens of the
food. These can be used in clubs, restaurants, stores, gaming zones, food zones
etc. It helps the Sainsbury to maintain its customers for the longer period. The
strategy of Sainsbury company has increased its popularity among all age groups.
The company time to time sponsors and endorses its products. The Sainsbury
company has also adopted the latest technology. It started selling its products online
to attract more customers. Sainsbury offers its products at affordable prices in
reasonable time. Otherwise the customers will prefer to buy from the nearby local
shops.
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3.0 Description of the role of marketing function with
examples from the chosen organisation
Marketing function is a process which includes the planning, identifying the
type of customers. Which forming the promotional strategies, transportation, packing
of the products and its labelling. Also the development of products and the pricing of
the product. It includes all the activities which are related to the marketing. These
mixes help the formation of the Sainsbury 's strategies. These strategies help in all
the other departments also. Like in human resource department, production, sales,
manufacturing.
 Promotion- it promotes the products through email, social media, increasing
awareness among the people.
 Pricing- after considering all the cost to reach the final product, the pricing is
done.
 Financing- marketing department helps in raising the funds through equity and
debts. It analyses the sources and requirements.
 Product management- it tries to find the gap between the customers’ needs
and wants. Then plan the product that will satisfy the customers.
 Selling- the selling by the marketing department is done after the personalised
communications with the customers about the product.
4.0 An analysis of how the marketing function works and
interacts with other departments
Marketing function is not only concerned with the selling of the products. But it
studies the customer's behaviour to increase the market coverage. The Sainsbury 's
marketing management examines its market time to time. At the same time, it works
with the other departments. It interacts with them about the new products and
amendments in the current products if needed.
 Marketing department and the finance department-The marketing department
interacts with the finance department to increase the sales of the Sainsbury.
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This department helps the finance department about the utilisation of the
available sources. It also suggest the extended marketing mix includes the
three more ps along with the 4s. The 3 Ps are people, process and physicals
how the profits will be increased. It helps in forming the budgets, examining
the prices and cost of the various items.
 Marketing and the human resource department- The human resource
department helps the marketing management to find the competent
employee. As the marketing management requires the candidates who is well
qualified, have good knowledge and have good experience. As to continue
the reputed position, Sainsbury needs skilled employee who can study and
analyse trends.
 Marketing and the production department- the marketing plays an important
role for the production department. They work together for the research of the
new products, its designing, packaging, manufacturing and pricing of the
products. The marketing department of the selected company always checks
the quality. Also it checks whether it meets the standards of the law.
5.0 An explanation of the extended marketing mix and
examples from selected supermarket
The marketing mix shapes the company's future. The 4ps of the Sainsbury are
discussed are below-
1. Product- Sainsbury offers great variety of food items to its customers. It
focuses on new ideas and quality by focusing on the technology.
Simultaneously it also launches new products with the existing range. As with
the growing health consciousness, it produces healthy products. It makes
ready to eat products, low fat food items, gluten free products. These items
also include the biodegradable food packaging and fresh organic foods. A
wide variety in home products like of furnishings, kitchen products are also
available. It uses the surveys, focus on the targeted groups, trends, demands,
etc.
2. Price- After selection of the product it wants to sell. The next most crucial step
is pricing of the product. For pricing it considers the various costs. It includes
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its cost of production, its delivering cost, marketing cost .and all the other
costs that helps in reaching the product at final level. Sainsbury always adopt
the good strategy while finalising the price of the product. It provides the good
quality product at the affordable prices. It works with the proper strategy to
reduce the price. As for this it buys the fresh fruits and organic food items
directly from the local vendors.
3. Promotion- After selecting the product and its price. the next step is to
promote it. It is to expand its market cover. Sainsbury advertise its products
through advertisements, by campaigning through newspapers, media, etc.
along with these strategies it has also new tactics. Like it gives vouchers, gift
cards, fun cards, food coupons to attracts its customers. These can be
redeemable at the restaurant, some sports club, etc.
4. Place- It is one of the most important determinants of 4 P s. It helps in
determining at which place it has more number of customers. Sainsbury
analyse the customers taste, habits of the various areas. Accordingly, the
products are distributed by the company. It has many sores in South east
London.
The extended marketing mix includes the three more ps along with the 4s.
The 3 Ps are people, process and physical.
 People- for every successful move there is a need for the interaction. this may
be between producer and customer. It could be between the employees and
the owners of the company. As in Sainsbury there is always interaction
among all the stakeholders. This helps it to make it second best supermarket
chain.
 Process- the smooth running of the chosen company depends upon its quick
and efficient process. It takes few minutes to process the the customer's
demand. Sainsbury has click and collect service online, where customers get
instant products.
 Physical evidence- the customers of the Sainsbury always get attracted by the
tangible products of its supermarket. For example its products designing,
decor of the store, quality of the trolleys,etc.
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2.0 An evaluation of how the marketing mix adopted by
the selected business (or business unit) contributes to the
success of the organisation in meeting their overall
business objectives
With the adoption of the marketing-mix strategy, the Sainsbury company
continues to hold its position in the UK market. It helps in analysing the past
performances of the company. It also examines the future prospects and the
different segments of the market. With the more emphasis on the research it has
now 608 expand its business from food to the clothing brand, financial services,
coffee shops, petrol pumps, etc. it does not charge extra for the products. It is
because it purchases directly from the small shopkeepers. There is an increase in
the employees and variety of products every year.
3.0 Recommendations
Sainsbury has to concentrate more on increasing its profit by adopting the
new techniques. As there is cut throat competition in the market. It has to emphasise
on its vision and goals. As the selected company has to compete with the new
entrants by learning about their strategies. It should increase its counts of
supermarkets by researching more places. The cost of running the stores should be
considered primarily. As the transportation, electricity, availability of the employees,
rent or lease should be low. The chosen company should close the stores, which are
running in loses. The company can increase its suppliers who can provide more
cheap products, but without compromising the quality. Employees will be motivated
time to time. So that they will not lose the customers but increase the value of the
stores.
9.0 Conclusions
From the above study, it has been concluded that the Sainsbury company is
successful in running the businesses. It is working hard to complete the mission. It is
focusing on the internal as well on its external factors. All its employees, customers,
dealers and suppliers are having good relations with the Sainsbury. From a single
store, it is now running hundreds of supermarket chains in the UK and open new in
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the short period. With its good strategies it can tightly holds its ranking in the top
supermarkets chain.
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References
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix.
Testing the effectiveness of the commercial marketing mix in a social
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behavior toward a brand: Evidence from the foodservice industry. International
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Kumar, A., Shankar, R. and Aljohani, N.R., 2020. A big data driven framework for
demand-driven forecasting with effects of marketing-mix variables. Industrial
marketing management, 90. pp.493-507.
Lim, W.M., Jee, T.W. and De Run, E.C., 2020. Strategic brand management for
higher education institutions with graduate degree programs: empirical insights
from the higher education marketing mix. Journal of Strategic Marketing. 28(3).
pp.225-245.
Nguyen Viet, B. and Nguyen Anh, T., 2021. The role of selected marketing mix
elements in consumer based brand equity creation: milk industry in
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Nguyen-Viet, B., 2022. The impact of green marketing mix elements on green
customer based brand equity in an emerging market. Asia-Pacific Journal of
Business Administration.
Praesri and et.al, 2022. Marketing mix factors and a business development model for
street food tourism. Journal of Hospitality and Tourism Management. 52.
pp.123-127.
Purohit, S., Paul, J. and Mishra, R., 2021. Rethinking the bottom of the pyramid:
Towards a new marketing mix. Journal of Retailing and Consumer
Services. 58. p.102275.
Solimun, S. and Fernandes, A.A.R., 2018. The mediation effect of customer
satisfaction in the relationship between service quality, service orientation, and
marketing mix strategy to customer loyalty. Journal of Management
Development.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the
balance right. In Social Marketing (pp. 29-43). Psychology Press.
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Table of Content
Part 2: Marketing Plan
1.0 How the strategic marketing plan links with the overall organisational
mission, corporate strategy and objectives p
2.0 Clear and SMART marketing objectives p
3.0 Marketing research to support the new product line launch p
4.0 A situational analysis p-p
4.1 Marketing audit, making use of appropriate analytical tools including
SWOT, Pestle and 5C analysis p
4.2 A competitor analysis including the market segments p
4.3 Sub-segments p
4.4 Articulation of the new product value-proposition in the eyes of the
customer p
4.5 Development of the marketing strategies applied to the extended marketing
mix p
4.6 Setting of an overall marketing budget, including allocation of planned
spend p
4.7 Tactical actions p
4.8 Identifying appropriate control and monitoring measures to ensure
achievement of objectives including metrics to measure success such as
Return on Marketing Investment (ROMI) and Customer Lifetime Value (CLV)
p
5.0 A comprehensive media plan that supports the planned marketing
campaign p-p
5.1 A media budget p
5.2 Recommendations and rationale for selected and integrated multi-media
activities within the set budget that meet the marketing objectives p
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5.3 Appropriate digital, offline and social media channels for communication
p
5.6 Full justification for a multi-media plan based on quantitative and
qualitative criteria p
References p
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1.0 How the strategic marketing plan links with the overall
organizational mission, corporate strategy and objectives
The marketing plan frames the future picture of the company. Accordingly,
Sainsbury's marketing efforts will be planned. It plans the marketing activities like
advertising, promoting products, etc. It focuses on the mission of the organization.
As Sainsbury has clear target to become customer's first choice. It wants to serve
delicious food with great quality at best prices. For this it motivates its employees to
put their best efforts, motivates them time to time. It says that it is always
organizational 's combined efforts for the Sainsbury's success. the Sainsbury always
wants customers to live long and healthy. After considering the health and quality,
the Sainsbury has launched Sains health drink. This drink is totally natural. Along
with this it wants to maintain its respect and dignity in the society. It always wants its
workplace to be the best place for its employees. For all these objectives it always
emphasizes on providing the outstanding services to all its stakeholders.
2.0 Clear and SMART marketing objectives
The objectives of the marketing include increasing customer satisfaction,
accelerating the profitability. The growing health concern in the world will increase
the value with the launch of Sains health drink. Also an addition in the health
products, boosting the morale of the employees. Sainsbury always have the clear
objectives. it always frames its policies after considering the corporate social
responsibilities. It always knows,” what are its objectives' and how to achieve them”.
Sainsbury always plans accordingly that it will be long term. It also analyses the
competitors, and their strategies. Sainsbury always put best efforts to reach the goal
in the targeted time. Along with all the efforts, it timely checks whether the objectives
and goals are met or not. After all the plans there is the quality check review. Which
identifies whether the products are healthy, meeting the customer's safety laws.
3.0 Marketing research to support the new product line
launch
Marketing research includes the gathering of the information. It is about the
market that wants to include, targeted customer, understanding the viewpoint of the
brand. Sainsbury has the well-defined process of launching of new product line. The
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launch of Sains health product line will be an addition to its growth. Its research for
marketing, results in the successful launch. It firstly finds out the targeted customers,
their needs. It checks the product which is going to be launched will be sustainable in
the market or not. As it checks the validation of the products. It considers the others
factors. It includes the cost of launching, the running cost of the product line, its
future prospects. Sainsbury always considers the each and every aspect related to
the product. Before the launch of the product line, there is a pre promotion with the
involvement of gym active members. It is through television, social media,
newspapers, hoardings, billboards. It always keeps a substitute plan. As if at the end
the launch gets failed. The footnote is always there which has solutions to the
problems. If they such problems arise at the that time, then they will be solved
immediately.
4.0 A situational analysis
4.1 Marketing audit, making use of appropriate analytical tools
including SWOT, Pestle and 5C analysis
Sainsbury' marketing audit includes the examining and testing of all the
marketing tools. It examines both internal as well as external environment. A good
marketing audit helps in analysis of the opportunities and threats. It shows the clear
picture of the company. Whether company is having any gaps in the strategies,
policies, and in operational activities. Sainsbury uses different tools like SWOT,
Pestle and 5C. Its analyses are as follows-
 SWOT- SWOT means strengths, weakness, opportunities and threats.
Sainsbury has accepted the opportunity regarding the health after covid19.
Sains health drink is running successfully in 1000 supermarket in the UK. as
Its supermarket has skilled labor force. This brand has good reputation the
UK. Simultaneously there is a rising concern about the increasing food prices
at the global level. It is affecting its all the departments. Rise in the prices is
the big threat also. As increased prices might be loss of the customers.
Emerging new companies virtually with more options can be problem for the
company. Company can make avail new partners and new options in this
global world.
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 Pestle- Pestle includes the political, economic, social, technological, legal and
the factors of the environment. Political factors directly affect the Sainsbury 's
profits. As when UK left the European Union, it profitability decreases
drastically. Economic factors are affecting the company like Increase in the
prices of the fuel. Others factors like rise in the prices of the raw material and
increase in the salaries of the employees. To maintain its position, it has to
considers all these points. Social factors include the behavioral changes in the
customers. For this it includes the rapid changes in the taste of the customers,
fluctuations in the trends, etc. The company always has to considers the legal
factors. The products should not be hazardous, can be fit according to the
law. Sainsbury time to update his technology. It launches new services as per
the convenience of the customers. Like it has started the online services.
Earlier it was selling only through the stores. All the services it provides are
environmental friendly. Sains health dink is totally natural with the
biodegradable packaging. It is also trying to reduces the waste from the
products. Now a day it is also working in reducing the carbon emissions.
 5C- the Sainsbury's 5C is one of the most effective and simple method to
analyze the environment. The 5 cs includes customer, climate, collaborators,
competitors and climate. It includes both macro and micro environment. It
shows the actual situation in which the company is working. On the basis of
this the launched product will run successfully. It finds out the strengths and
weaknesses of the company. It shows the entrants of the new competitors,
availability of the resources, efficiency of the human resources. It also
considers the level of satisfaction of customers.
4.2 A competitor analysis including the market segments
The competitor analysis of the Sainsbury includes the analysis of its competitors.
With the launch of the Sains health drink, ever competitor is launching health drink.
These segments analyze every aspect of the company and its growth prospects. It
gives a view about its competitor's products and their strategies. There are 4
segments of market which analyses the customers. It includes the geographical,
demo graphical, psycho graphic and customer behavioral. The geographical includes
the country, city, climate and population density. While the demo graphical includes
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the family size, income, population, religion, race and occupation. The psycho
graphic emphasis on the personality and social class. The customer behavioral
emphasis on the taste, attitude, loyalty and benefits. It shows what type of services it
is giving to its customers and what is their satisfaction level. It checks whether its
current customers are switching to its competitor’s product.
4.3 Sub-segments
The sub segments included by the Sainsbury are the volume segmentation. It
includes the segmentation of the product space and the benefit segmentation. In
volume segmentation the customers are divided into low, medium and high. This
segmentation is based on the customers of the Sains health drink. As according to
this, some users repeat its products, some ignores while some uses sometimes. In
product space segmentation, the customers are asked to buy and compare with the
brands of the existing products. The Sainsbury asked for the reviews by the
customer. Benefit segmentation includes the benefits that customer is gaining from
the services and the products. After that Sainsbury considering all the points. On the
basis of that it launches new advance products.
4.4 Articulation of the new product value-proposition in the eyes of
the customer
The Sainsbury articulate the Sains health drink to solve the customer' s problems.
The proposition actually identifies the main problem of the buyers. It analyses the
benefits that the product is offering. Also it also gives the difference between the
customers 's wants and needs. With the help of articulation, the customers are
directly contacted. It could be through online media, sources of marketing or different
advertising techniques.
4.5 Development of the marketing strategies applied to the
extended marketing mix
The extended marketing gives addition to the Sainsbury' s standard marketing
techniques. It is related to the new launch product. It helps the company to amend it
policies to cope up with modern techniques. These are people, process, and
physical evidence. People here refers to all the stakeholders that are connected to
the company. It is mainly concerned with employees working in the company and its
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customers. Process considers the procedure used to serve the customers. Physical
evidences can include the promotional materials, decor etc.
4.6 Setting of an overall marketing budget, including allocation of
planned spend
The budget of the Sains health drink marketing includes the revenue needed
for the marketing goals. Sainsbury set up its marketing budget on the basis of its
marketing objective. It is usually for a year. this budget considers the return the
company will get and off course the cost incurred in it. it decides how the raised fund
will be allocated. The following budget
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Capital 0 1850000 2260000 2515000 2777000
Investment 1000000 0 0 0 0
Total 1000000 1850000 2260000 2515000 2777000
Marketing Outflow
Marketing 250000 250000 175000 185000 175000
Publicity 100000 85000 80000 77000 90000
New Product Development 500000 75000 0 0 0
Closing Capital 1850000 2260000 2515000 2777000 3042000
4.7 Tactical actions
Sainsbury markets its newly launched drink through all its marketing outlets. It
uses the same marketing techniques in all its environment. It integrates and links all
the marketing tools. It focuses on providing the quality products at the best prices. It
focuses on increasing the customer base.
4.8 Identifying appropriate control and monitoring measures to
ensure achievement of objectives including metrics to measure
success such as Return on Marketing Investment (ROMI) and
Customer Lifetime Value (CLV)
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The Sainsbury checks its marketing success by controlling and examining. It
emphasizes on the marketing investment return and customer lifetime value related
to the Sains health drink. In return of marketing investment, the company checks its
achievement by purchasing your own products. By watching the video of drink
products and searching the product online and reads its reviews. It is to be checked
how much the product is influencing the market. If there is needed, then use control
methods. It will be by setting own ROMI goals, determining core metrics, A/B testing
and if needed experiment by using different campaign channels. Sainsbury also uses
customer lifetime value method to ensure its success. The success of the CLV can
be measured by determining the average order value of one year. Then the number
of average transactions done during that period. Then the average number of
customers are stacked with the Sainsbury. It shows the clear picture about the
addition, deletion of the customers.
5.0 A comprehensive media plan that supports the planned
marketing campaign
5.1 A media budget
Sainsbury spends on the printing, broadcasting and on other advertising techniques.
This technique needs media budget to promote the product. Media plays a very
important role in the promotion of any product. It is within the reach of every aged
group, every income group. The budget is as follows.
Particulars Year 1 Year 2 Year 3 Year 4
Opening Capital 0 4195000 4352000 4527000
Investment 4000000 0 0 0
Total 4000000 4195000 4352000 4527000
Marketing Outflow
Social Media
Instagram 20000 25000 20000 30000
Linkedin 10000 10000 15000 20000
Facebook 15000 10000 15000 20000
Publicity 100000 112000 125000 145000
New Product
Development 50000 0 0 0
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Closing Capital 4195000 4325000 4527000 4742000
5.2 Recommendations and rationale for selected and integrated
multi-media activities within the set budget that meet the marketing
objectives
The health drink is in great demand among the youths. So it should be
marketed through the social media like Instagram, face books, etc. . Instead of
paying great fees to the celebrity, the social media influencers should be hired. They
make trending videos on reels, Instagram, face books, you tubes, etc. The cost of
these influencers is also within the budget.
5.3 Appropriate digital, offline and social media channels for
communication
Sainsbury uses various channels to promote Sains health drink. It uses
billboards, hoardings near the fitness centers. The promotion should be done
through electronic mails, messaging apps, video conferencing, etc.
5.6 Full justification for a multi-media plan based on quantitative
and qualitative criteria
The investment done in the launch of new product Sains health drink was initially
high. But in the subsequent years the running cost of product was average. As it has
already big name related to quality and healthy products.
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