Marketing Strategy for Sainsbury's: Segmentation, Targeting and Positioning

This report discusses the marketing strategy for Sainsbury's using segmentation, targeting and positioning. It also covers the current situation of the company, their objectives for the marketing plan and how the marketing mix can be used to improve growth and market share. The report also includes an analysis of Sainsbury's using the BCG matrix.

Principles of Marketing
Assessment 2

Contents:
INTRODUCTION...........................................................................................................................1
Summarise the organisations current situation............................................................................1
Develop the marketing strategy based on segmentation, targeting and positioning ...................2
Discuss how the marketing mix can be used to help the organisation in order to improve the
growth and market share .............................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing has been defined as promotional activities of a company to encourage the
purchasing or selling of the products and services. Promotional activities consist advertising,
selling, distributing as well as delivering goods and services to consumers or many other firms.
Marketing plan refers to the advertising strategy which a manager of business will apply to sell
their goods and services in the market. To define the concept of marketing plan the chosen
organisation is Sainsbury's which is multinational grocery food retail company (Kim and Kim,
2018). It was established in 1969 by John James Sainsbury's at UK. The company deals in food
products, grocery item many more products related to house hold in their super market.
This report highlights the current situation of chosen organisation as well as marketing
plan by using marketing mix tools to improve growth and market share.
Summarise the organisations current situation
In this report the selected organisation is Sainsbury's which is British grocery food retail
company. The company deals in grocery and food related product like packed house hold items,
pulses, spices, beauty products and many more. It has near 1400 stores and supermarkets across
the world as well as there are around 180,000 employees working in their superstores, forecourt
shop, convenience shop and super market in order to provide product and services to the large
number of customers. It also sponsors many football players, associations and teams to promote
their product in all over the world as well as encourage people to play sports and build their
career in it. Sainsbury's is market-oriented organisation which focuses of satisfying the demands
or desires of its customers. The company invest huge amount in its marketing activities to make
sure products and services are targeted to its grocery or supper market. It promotes it products
through multiple channels on both national and local level. The sales of the company are
declining due to increase in competition, advance technology, innovative marketing and pricing
strategy of the new competitors and many more. The management of Sainsbury's decided to
extend their business operations in new market in order to increase their market share. Extension
strategy includes adding extra features in products, repackaging as well as changing the price of
product. For this they have to develop effective marketing strategy to promote their product in
target market in order to attract large number of customer (Sainsbury'ss, 2022).
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Objectives of marketing plan
The main objective for the marketing plan for Sainsbury's would be for the organisation to
increase their market share with the retail sector.
 To increase awareness of brand
 To gain competitive advantage over rival
 To increase online presence
Discuss how the marketing mix can be used to help the organisation in order to improve the
growth and market share
Marketing mix is the sum of four elements and factors of marketing that is 4Ps which
create the marketing strategy. The 4Ps stands for product, price, promotion and place which is
essential for business to increase their market share. Marketers of Sainsbury's can use marketing
mix tools for their extension strategy in order to enhance their growth and market share. For this
they have to decide their marketing objective for extension to make effective plan to accomplish
goals. By changing marketing mix, the marketers of Sainsbury's can invent a strategy which will
increased market share. The 4Ps of marketing mix in reference to Sainsbury's are as follows-
Product- It includes product design, brand name, quality, warranties, positioning and
packaging. For the extension strategy professionals of Sainsbury's must change their product
design and make it attractive to attract large number of customers. As well as they must also
change their packaging to make product safer so the customers increased their experience and
engaged more with company for life time. They can also improve their quality of product by
adding more variety and fresh items to add value to customers (Novela and Hansopaheluwakan,
2018). For example they can introduce different lunch option other than Sandwich, wrap and
salads in their products sold in busy cities areas where there are workers.
Price- It includes list price, credit terms, payment period, discounts, offers and many
more. In order to increase market and achieve high growth they can decrease their price of
product so people and specially women can afford the product easily. Management of Sainsbury's
must offers various discounts to attract large number of customers by using social media to
spread awareness about offers like buy 2 get 1 free, discounts offers and many more (Prabowo
and Sriwidadi, 2019).
Promotion – It includes sales promotions, publicity, advertising and many more.
Marketers of Sainsbury's can use various promotional techniques like social media marketing,
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digital marketing sale promotion by giving innovative offers like lottery, free gift and other. Also
they will increase their promotional activities by sponsoring more teams, players and other in
order to promote their product across the world. They can also increase their publicity by offering
many discounts on their online website, advertising on TV by famous influencers, celebrity,
putting holding on many famous places, main market and many other places in order to spread
awareness about their brand across the world (Yuruk-Kayapinar, 2020).
Place – It includes location, area, distribution channel like store, shops, online website
and many more. Sainsbury's can earn big market share by opening more stores in main market,
new market to make easy for customers to buy product easily. As well as it is also beneficial to
them to reach large number of customers to opening new stores with various profitable offers in
new market for customers. They can also expand their business online by developing their
personal website and app, so customers from different countries can buy branded product at
minimum time and cost. They can also share information on their social media page and account
to spread awareness about their new product, features and stores so customers can easily grab the
opportunities and buy better quality product at affordable price.
Marketing Analysis of BCG
Explain BCG
BCG Matrix refers to the strategic marketing or managing tool which enables in
determining the position of a organisation unit as well as the future potential of products it has to
offer to achieve success. It has two dimension which is classified into 4 category as it helps the
management of Sainsbury's to decide in which unit they have to invest for growth as well as
which unit they have to close in order reduce loss. The BCG matrix in context to Sainsbury's are
shown below-
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Star quadrant of Sainsbury's- Strategic business unit with high market share and high
growth rate are belong to this quadrant. The brand strategic and financial service strategic
business unit of Sainsbury's are start as well as many product which creates huge amount of
revenue for business. Professionals must invest in this unit by conducting deep research about
trends to add more innovation in order to attract large number of customers and increase its
potential for growth.
Dog Quadrant of Sainsbury's- Strategic business unit with low market share and low
growth rate is belong to dog quadrant. The plastic bag, artificial flavoured and synthetic fibre
strategic business unit of Sainsbury's are dog by which company have to face huge loss form
many year. So the professionals of Sainsbury's have to stop investing in these unit in order to
reduce loss in future.
Question Mark Quadrant of Sainsbury's- Business unit with low market share and
high growth rate is consider as question mark. The confectionery and local food business
strategic unit of Sainsbury's are question mark which have huge growth rate and demands. So
the management of Sainsbury's need to give more focus and conduct research to increase their
reach and offer more this type of product in their stores to increase market share.
Cash Cows quadrant of Sainsbury's- Business unit with high market share with low
growth rate is consider as Cash Cow. International food and supply chain management business
unit of Sainsbury's are Cash Cow as previously it gain huge popularity but now people and
suppliers are decline their interest in it. So, the management have to stop investing in it and
operates it as long as its profitable.
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Develop the marketing strategy based on segmentation, targeting and positioning
Marketing strategy is a plan of marketers of company for reaching its potential consumers
and converting them into customers of their goods and services. Marketing strategy of
Sainsbury's contains the business's value proposition, data on target consumers demographics,
key brand messaging as well as high level elements (Lim, 2021). Marketers of Sainsbury's can
develop effective marketing strategy by using STP model for their expansion and development of
company. STP is stands for segmentation, targeting and positioning which helps the marketers to
set their target market.
Market Penetration Strategy – IT is growth strategy which deals with business current
product selling to current market. Sainsbury's can increase their sales, revenue and customers
base by reducing cost of their products to attract large number of customer in order to win in
competition market.
Product Development Strategy- It is growth strategy which focuses on introducing new
products and services for existing market as well as targeted customer. Sainsbury's can use this
strategy by launching new line of product and adding more or new favours in their current
products in order to increase market share.
Diversification Strategy- It is very risky growth strategy which deals with offering new
products in new market in order to expand business. Sainsbury's can adopt this strategy by add
new line of product in new fashion market such as clothing after conducting research to increase
revenue.
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Customer Driven Strategy – It is growth strategy which deals in new line of product in
new market in order to target new segment and customers. Sainsbury's can adopt this strategy by
expanding their business in international market to increase their target segment and customer
base across the world.
As per above analysis, it has determined that Customer Driven strategy and product
development strategy is most effective strategies for Sainsbury's as they increase their market
share to expand their target segment by offer their new products in international market.
Segmentation-It is first step of this model which is helpful for company to decide their
target segment on the basis of multiple variables of segmentation such as age, interest, location,
beliefs, status, profession and many more. The marketers of Sainsbury's must make effective
marketing strategy to increase their market share as they should target people between the age
group of 15 to 60 to retain them long term in order to increase loyal customer base. They can use
government report in order to get clear data about the income level of people, how many numbers
of people belong to this age group, number of houses and females who buy grocery item in
country and many more. In today world there are many people and youth who generate interest
and passion in healthy and fresh or packed items. As marketers of Sainsbury's must target these
people as well as people who are more interested in branded product and prefers to try new
grocery items or brands in order to follow healthy lifestyle.(Nghiêm-Phú, 2022).
Targeting- In this step the company must decide their niche market on the basis of size,
profitability and reachability. The marketers of Sainsbury's must evaluate how big their segment
and target audience and possibilities of future growth to find out the spending capacity of people.
They must target females, people who prefer quality products, youth who are passionate about
healthy food and grocery product which belong to higher income group. These people are more
concerned about health, better quality product or fresh food items as well as they are ready to pay
the given price of product. These type of people give more time to maintain their health and
lifestyle by purchasing packed or fresh items with high standard quality.
Positioning- The last stage of STP model is positioning, which allows the marketers of
Sainsbury's to make their product different from the competitors to attract large number of
customers. They can increase their sales by offering better quality retail and grocery product to
large number of customers through innovative and advance technology like developing website
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for solving problems of customers, extending business by opening online store, promoting
products on social media to increase value and experience of customers (Nguyen-Viet, 2022).
CONCLUSION
As per above presented information, it is concluded that marketing is most important
activity and function in an organisation to promote their product and services to large number of
customers in target market. Effective marketing strategy can be formulated by marketers of
company by implementing STP model, 7Ps of marketing mix to increase the experience of
customers. They can attract large number of customers by offering them many offers like
discounts, gifts vouchers, gifts on certain amount of purchasing and many more at their
supermarket located in main area which helps the customers to reach and buy product easily.
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REFERENCES
Books and journals
Kim, M.S. and Kim, J., 2018. Linking marketing mix elements to passion-driven behavior
toward a brand: Evidence from the foodservice industry. International Journal of
Contemporary Hospitality Management.
Lim, W.M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing, 29(5), pp.453-469.
Nghiêm-Phú, B., 2022. Customers' perspectives on marketing mix elements in social media-
based purchases. International Journal of Internet Marketing and Advertising, 16(1-2),
pp.81-97.
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.
Novela, S. and Hansopaheluwakan, S., 2018. Analysis of Green Marketing Mix Effect on
Customer Satisfaction using 7p Approach. Pertanika Journal of Social Sciences &
Humanities.
Prabowo, H. and Sriwidadi, T., 2019. The Effect of Marketing Mix toward Brand Equity at
Higher Education Institutions: A Case Study in BINUS Online Learning
Jakarta. Pertanika Journal of Social Sciences & Humanities, 27(2).
Yuruk-Kayapinar, P., 2020. Basic Marketing Strategies and Marketing Mix in Small-Scale
Sports Events. In Principles and Practices of Small-Scale Sport Event Management (pp.
147-173). IGI Global.
Online
Sainsbury'ss. 2022. [Online]. Available Through: <https://www.Sainsbury'ss.co.uk/>
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