Environmental Analysis of Sainsbury's: Marketing Strategy and Recommendations

MS4UK41O PRINCIPLES
OF MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
Assessment 1 ...................................................................................................................................3
INTRODUCTION AND BACKGROUND....................................................................................3
Environmental analysis ...............................................................................................................3
SWOT Analysis and Secondary data sources..............................................................................4
Conclusion and recommendations...............................................................................................6
ASSESSMENT 2 ............................................................................................................................7
EXECUTIVE SUMMARY ............................................................................................................7
INTRODUCTION ..........................................................................................................................7
Summarizing Current situation of the organization ....................................................................8
Developing marketing strategy ...................................................................................................8
Discussion on use of Marketing Mix to improve growth and market share................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Assessment 1
INTRODUCTION AND BACKGROUND
Principles of marketing are marketing ideas a company may use to developing an
effective strategy fo0r product promotion. The report will undertake the environmental analysis
of Sainsbury's with the use of relevant frameworks and models. It will identify the current
position of the organization in relation to their competitors with the key issues impacting the
organization. This report will be based on Sainsbury’s, which is one of the largest supermarket
chains in the United Kingdom with a high market share in the industry. It offers a wide variety of
high quality food products at various stores all over the country. The company was established in
1869 by John James Sainsbury and his wife Mary Ann as a small shop in London. It started as a
retailer of fresh foods and goods and later it expanded into packaged groceries such as sugar and
tea. The company has a mission to provide great value and convenient shopping experience for
the customers. Its vision if to become the most trusted retailer in the world where people love
top shop and work. This includes treating people in the business and supply chain fairly and
giving equal consideration to everyone associated with the brand.
Environmental analysis
Macro analysis
For conducting the macro analysis of Sainsbury’s, PESTLE analysis has been undertaken:
 Political factors- The political scenario is UK is stable, which will positively impact the
chosen organization. However, owing to Brexit, there is unrest and food and consumer
product shortages (Achinas and et.al., 2019). These may negatively impact Sainsbury for
those products whose raw material is imported from EU.
 Economic factors- Owing to Brexit, the national British income has decreased. This will
further reduce the disposable income of the consumers thus impacting their spending
habits. This impact the organization in a negative manner as its sales may be reduced.
The customers will be spending on the essential goods on priority.
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 Social factors- The consumers have become more health conscious post pandemic. This
will imply that the organization will need to develop more healthy products to improve its
sales. They also want to adopt a sustainable lifestyles which would be reflected in the
food choices. This also needs to be considered by Sainsbury.
 Technological factors- Considering the competitors, industry trends and consumer
demands (Vilardi and et.al., 2020). It is important for the food retailers like Sainsbury to
adopt latest technology for their operations as well as customer service. Sainsbury’s has
opened Just Walkout- powered convenience stores which are called as SmartShop Pick &
Go.
 Legal factors – Sainsbury needs to follow employment and consumer laws in UK. As per
the Consumer Rights Act 2015, the organization has to follow appropriate legal
procedures if any of its products are found to be faulty or if it adopts unfair terms during
its operations.
 Environmental factors- Owing to the current awareness about climate change and carbon
footprint, Sainsbury has to take various steps. It has to ensure that the processes used for
sourcing raw materials and making products are environmentally friendly.
Micro analysis
Product issues
Currently, owing to the uncertainty due to brexit and covid pandemic, Sainsbury may
face issues of reduced product choices for the customers.
Marketing issues
Sainsbury undertakes effective marketing strategies to attract the potential and retain the
existing customers. However, the company faces issues due to robust marketing strategies of the
other giant retailers in the market (Syafril and Hadziq, 2021). Further, it also finds the need to
develop its sales and marketing team to be able to study the behavior of consumers and adopt
suitable marketing tactics.
Management issues
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