Marketing Plan for Sainsbury's Women Clothes: SWOT and PESTLE Analysis
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This marketing plan focuses on Sainsbury's women clothes and includes SWOT and PESTLE analysis to evaluate the company's performance. It also provides recommendations for improving the brand image.
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EXECUTIVE SUMMARY The present study is based upon Sainsbury which is one of the top firm in UK and also deal at different location, also the chosen product for this report is women clothes which need to be revamp. Also, the study has reflected by using SWOT analysis that it has a brand image and also deal at global level by offering product at reasonable rate. In addition to this, through PESTLE analysis, macro environmental factors has been considered because it affect the business performance directly. Also, 4P’s of marketing also used by the company in order to determine the strategies used by the company to improve the brand image. Further, the describe ways also assist business to improve the brand image and stay ahead in competition.
TABLE OF CONTENTS EXECUTIVE SUMMARY.............................................................................................................3 INTRODUCTION...........................................................................................................................5 Description of a company and product........................................................................................5 Competitive organizational environment by using environmental analysis tools.......................6 Marketing mix.............................................................................................................................9 Recommendations for improving its brand image.....................................................................11 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................14
INTRODUCTION Marketing plan is the document which lays out the marketing effort of a business in order to promote the product in market. In the current environment, company are focusing upon different marketing strategies in order to promote the business product in market. The entire study will shed a light upon marketing plan and tools used to evaluate the current company’s performance which include opportunity and threats. The chosen firm for this report is Sainsbury which is one of the top and international firm in UK who is deal with range of variety of products to their customers which include grocery, clothing and different furniture. Moreover, the report presented a description of a company along with its product line in order to revamping. Further, with the help of analytical tool, the current study will apply environmental analysis tool that assist to determine threat and opportunities. Lastly, it uses marketing mix for the chosen product and then recommend the ways through which bran image can be enhanced. Description of a company and product Sainsbury is one of the largest supermarket in UK and with its quality of product, it is considered as a second largest chain with a market share of approx. 16%. In 1995, Tesco overtook the quoted in order to become a market leader and that is why, it ranked second and third. Currently the company has approx. 1500 stores at global level which in turn reflected it offer best variety of product to their customer with an affordable price. Also, it has more than one lac employees working all over the world and that is why, it focused upon its management style in order to retain the employees for a longer term. In addition to this, the company is deal under retail sector and that is why, there are different channels in which the company is operating which include grocery, clothing, food and beverage, beauty products etc. Currently the company also merge with Argos in order to offer the product online so that effective results can be generated (Chernev, 2020). This helps the company to improve the performance and generate effective results in term of financial performance. The chosen product range for the present study is women clothes which need to be refurbishing. It is chosen over the others because as per the changing trend, the company must change the product that helps to meet the defined wants of customers. This assist to create a positive impact and that is why, this product line is chosen in order to attract the customers towards it.
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Competitive organizational environment by using environmental analysis tools Themacroandmicroenvironmentalfactoraffectedthebusinessperformancein negatively as well as positively. Also, this factor includes internal as well as external factor that needs to be consider in order to identify which factor affected the business directly. That is why, to determine the competitive environment, both macro and micro environmental tools are used which are as mentioned below: Pestle analysis:The strategic framework is used to determine the macro-environmental factor where all external factors are considered in order to identify its impact over the business performance. These factors are as mentioned below: Political factor:The factor is deal with uncertainty in political condition of a country and this in turn affect the performance of a company. Such that in 2016, due to Brexit, the retail industry affected the entire business in negative manner. Also, increase in the cost of foreign products that rise the cost of offering in the company (DO, 2021). On the other side, recently i.e. 2020 pandemic also affected the entire UK as well as world in opposite manner. Thus, due to which country faces lockdown situation that affected the business performance and decrease its financial performance as well. To cope up with such situation, company offer online products to satisfy the need and this in turn affect the entire business performance positively. That is why, it can be stated that political factor affected the entire business performance in adverse manner if effective strategies are not opt. Economic factor:Change in the economic performance of a country affect the business like Sainsbury in negative manner. This factor deal with rising fuel cost, rising salary, inflation rate and employment of a country. That is why, it is necessary for the company to look after this factors before implementing any product within new country. Such that changes in price of a country due to inflation rate the company’s product rate also increases that affect the business performance (Westwood, 2019). This in turn affected the sales because customer is not ready to spend product at high rate. In addition to this, due to increase in unemployment rate of a country, company decreases the salary that also affect the business performance. However, during the pandemic, Sainsbury does not fire any employee and even hire many in order to balance the employment rate of a country.
Social factor:There are many factor that affected the entire performance of a company and that is why, there is a need to consider social factor so that it does not affected business adversely. As quoted firm is deal in grocery and that is why, it is essential for the business to offer healthy product so that it meet the customers need. This is so because after pandemic, majority of the people changes their diet and become health conscious. That is why, company should focus upon healthy diet so that it helps to remain competitive in market. Apart from this, fairtrade movement is also related to the present factor where customer are also increasingly consciously from where the food has come from. Therefore, company also needs to focus upon this in order to meet the defined aim (Guo and et.al., 2018). Technological factor:It is deal with the factor i.e. related to advance technology in which bog data and artificial intelligence need to be complied. In this case, Sainsbury should focus upon different tools that helps in smooth functioning of a business. Currently, the company is also focusing upon the online shopping and that is why, it helps to meet the demand of customers so that it helps to increase the overall performance. In addition to this, chatbots and robots can be used in order to improve the profit and also helps to generate the better outcome. This in turn help to improve the overall performance of a company and this help to generate the better outcome in term of financial performance. Legal Factor:This factor is deal with laws and legislation that need to be complied by company in order to generate the better outcome. This laws include employment rate, equal opportunity act so that it will help to generate the better outcome and smooth the business operations as well (Sudari and et.al., 2019). Moreover, with an introduction of new sugar tax in UK, the companies operate in retail industry needs to modify their product so that it helps to save money. Environment factor:This factor is deal with the environment and also help to save the environment from pollution. Moreover, the company already comply with the sustainability act in order to generate the better outcome. Also, Sainsbury is working to reduce the carbon footprint in its operations so that it helps to create a positive impact over the business performance. That is why, it can be stated that with the help of such factor, company is able to focus upon environment and create positive impact.
SWOT analysis:This tool is used to determine the internal factors that affect the overall business performance and also examine which areas needs to improved that helps company to enhance its brand image. The tool is as mentioned below: Strength: Due to having a brand image at global level, the company can rapidly move to its international market. Initially, the company is deal with small grocery store and that is why, with strong ability and skills, it become one of the top and international firm. The company uses effective promotional strategies that helps to promote the business product in market. Also, one of the top example is Brand Match Promotion where each product sold by comparing the same with competing brands like Tesco and Aldi (Othman and et.al., 2020). This strategy helps to attract the range of customer and improve brand image as well. The company’s business philosophy is also considered another strength of a firm because it follows low-cost strategy that helps to retain customers of all the income segments that assist to make them loyal towards a brand. The coupons offered by the company also helps to attract range of people because it is designed by taking into account research data on shopping behavior that helps to meet the customer demand. Sainsbury has an extremely experienced leadership team that helps them to attract customer and manage thousands of employees at global level. This in turn reflected that company also have an excellent branding and advertising across UK. Weaknesses: The brand switching is considered as a weakness for Sainsbury because it faces ;lots of risk from brand switching instead of loyalty programs. With growing competition in market within retail space, company faces issues with regard to added risk to most retailers due to lost volumes. Thus to minimize the same, company trying to cut down the cost in order to keep retaining the customers (Verma and Singh, 2017). It is poor to use advance technology in the workplace and due to growing cost, it also affects the business performance in order to identify the shopping experience. That is
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why, it can be stated that it affected the overall performance of a company in adverse manner. Opportunities: Having a brand image and offering product at low cost create an opportunity for the firm to enter into the emerging market so that financial performance of a company increases. Thus, it can enter into emerging market via joint ventures or partnership in order to explore new markets (SWOT analysis of Sainsbury,2021). In this modern era, there is a need to focus upon the advance technology and for that self- checkout machines could also help in Sainsbury to open its store 24 hours which in turn boost the sales as well. By grab the opportunity of online sales, it tie-up with Argos that helps to focus upon e- commerce so that customers can attract and Sainsbury can meet the demand as well. Threats: Competition is considered one of the biggest threat that affect the performance of a company adversely (Budiyono, Muliasari and Putri, 2021). Such that in UK, it faces strong competition from Tesco, Aldi, Lidl and Asda because they all offer the same product at reasonable rate. There is a need to present the products in unique and differentiated manner so that it affects the overall performance in negative manner. However, the market and customer need are fluctuating, so it become difficult for the company to focus upon such aspect to meet the demand of customers. Changes in the political performance of a country also affected the whole business negatively because it is quite difficult for the company to manage political instability. Marketing mix Marketing mix is the tool which comprises of 7 P’s and these are the key element which involved marketing of a good and service to interact significantly. For the chosen product line that needs to revamping, the marketing mix is as mentioned below: Product:There are different variety of products offered by Sainsbury which include grocery, health and beauty product, bakery items, beer and wine products etc. This in turn
reflected that the company is deal at large range of products which helps it to improve the overall performance and grab attention of many customers. In addition to this, it also deals in household products with pet care that helps to meet the demand of customers so that they can assist to improve the brand image at global level. Place:Initially, the quoted firm was started its operation at Drury Lane in London i.e. 22 years ago and then due to high quality of offering, it started established its unit at different location that entails its presence at global market (Othman and et.al., 2019). Currently the company has more than 500 supermarkets and more than 700 convenience stores that provide whole day service to their customers. This in turn reflected that the company know how to deal with different location in order to generate the better outcome so that the overall performance of the company raise. Price:The pricing style of Sainsbury is low because it offers products to meet the demand of customers at low and affordable manner. This in turn assists to makes a use of price discrimination policy as per the positioning of a product in order to create a high end market. Along with this, company is able to provide value for money so that it helps to improve the brand image. Moreover, in order to retain the customer for a longer term. it also tries to maintain the quality of product and services offered to them. Also, the chosen organization does not believe in price-cutting strategy because it has also made good use of price discrimination that assist to position itself in a market. Sometimes, to stay strong in the market, it uses competitive pricing strategy in order to tackle the prices set by tits competitors. Promotion:The company uses effective and modern form of marketing strategy that helps a business to improve the overall performance and also attract the customers towards it. Earlier, it uses traditional source of promotional strategy that helps to communicate the views to their customers (Jermsittiparsert, 2019). This include TV, radio, newspaper that helps to attract the range of people. In addition to this, company also uses customer loyalty schemes that helps to attract range of customers towards it. In addition to this, it can be stated that with the help of effective promotional strategy, company is able to grab attention of many customers towards it and encourage customer to take an advantage of such strategy. In the official website of the company, quoted firm also offer token, gift vouchers and gift cards that can be redeemed from the outlet only.
This help to draw attention of customer and create positive impact over the sales performance. Recommendations for improving its brand image It is necessary for the company to improve the brand image because pandemic affected he entire business performance. Thus, to improve the same, there are some branding strategies suggested that helps a company to sustain brand at global level. These are as mention below: It is suggested to Sainsbury to use Keller’s Brand Equity Model that helps to build a strong brand and also shape up how the customer think and feel about the product. It is so because it includes four stages that helps a company to understand each key point of a customer so that effective solution can be taken (Gunawan and Wahyuni,2018). Along with this, company also able to let customer understand about the meaning of brand so that effective efforts can be put to meet the customer need. It is further recommended to the company to develop a brand audit that helps to get a clear picture of all the customers so that effective results can be generated in order to make effective actions. This in turn assists to determine the views of customers that helps to develop strategy. For example, by using survey form company is able to determine the need of customers and improvement areas. This in turn assist to make actions so that financial performance can be improves and company is able to stay ahead in the competition. In addition to this, Sainsbury is lacking to digital marketing strategy and that is why, it is suggested to focus upon social media marketing where Facebook, Twitter and Instagram can be used to provide regular post about new offers and discount. This helps to attract the customers and let them know about new offers offered by company so that they can took an advantage of the same (Braciníková and Matušínská, 2017). This helps to improve the brand image of a company and create a positive impact over the customers because interacting them directly through social media sites leave positive impression. In addition to this, it has been also suggested to the company to focus upon its website so that company can address the customer need and anyone at global level can check the offerings of a quoted firm. Further, it assists the company to generate the brand image because online presence always helps the company to improve the overall presence in
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market. This in turn assist to provide better customer experience so that company can fulfill the market needs as well. It is also suggested to the company to focus upon the creative parts which means that focusing upon innovative parts helps a business to gain effective response. It is so because focusing upon innovative product assists to meet the market needs and this automatically help to improve the brand image as well. In addition to this, the overall business product can be improve by focusing upon the innovative products and improve financial performance as well. CONCLUSION By summing up above report, it has been concluded that Sainsbury has a brand image at global level, but there are different areas which are considered as weaknesses that need to be improved. The study also concluded that by using Pestle analysis, its macro environmental factor
analyses whereas through SWOT analysis, study reflected that it has a strong presence in market while there is a need to focus upon its operations to emerge in the emerging market. With the help of marketing mix, it also summarized that company should adopt effective strategy to refurbish the chosen product line in order to improve the business performance. Moreover, by using the suggested ways, company is also able to improve the brand image and generate effective results in near future.
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