Strategic Marketing for Sainsbury: Market Entry Options and Market Segmentation

STRATEGIC MARKETING

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
PESTLE...........................................................................................................................................4
MARKET ENTRY OPTIONS:.......................................................................................................7
Concepts of market segmentation and targeting, critical evaluations of target market of
Sainsbury .....................................................................................................................................8
Porter's generic strategy can use by company to gain competitive advantage..........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

EXECUTIVE SUMMARY
Strategic marketing related to the term used by the business in respect of differentiating
their business with the other competitors business through examining its internal and external
working environment. This report based upon the Sainsbury company which is one of the
second largest chain of supermarket in UK and carrying the business at larger scale. They are
planning to expand the business in India in respect of bringing new and creative ideas to retain
the customer needs and preferences for longer way. It is also mentioned in this report about the
view point of external analysis of India in context of retail sector. This can be conducted through
undertaking the PESTLE analysis and also its opportunities and threats are examined through
various perspective. In this the mode which is relating to merger and acquisition are undertaken
to expand the business in India. It also carries various usefulness and positive aspect in selecting
this market entry mode. Sainsbury used cost leadership strategy that help them to gain
competitive advantages.

INTRODUCTION
Strategic marketing refers to the terms which is used by the business in respect of
differentiating their business with the other competitors business. The main reason of choosing
their strategies is to examine the strength and weakness of the business or examining the external
factors which results in affecting the working of the business to promote the business at larger
level. By this aspect, it results in providing the valuable products to the customers. Present report
is based upon the Sainsbury company which is founded in 1869 by John James Sainsbury. In
UK, they carried to be the second largest chain of supermarket dealing in wider range of
products or services.
In this report, the matters will cover the aspects relating to PESTLE as Sainsbury is
planning to expand the business in India. It also includes the modes of market entry regarding
expanding the business through different modes. It further covers the market segment and porter
generic strategy to examine the competitors in the market regarding promoting the same products
or services.
PESTLE
It refers to the macro factors which is examined in respect of identifying the working of
the external environment and its impact upon business. It includes the following aspects such as:
1) Political: The external factor which affecting the working of the country in India is relating to
the government polices or changes in taxes rate. As government of India is imposing the strict
government norms regarding imposing taxes in the import and export of the products. Through
this manner, the impact raised regarding changes in taxation rate of importing the products in
India (PESTLE Analysis of The Retail Industry, 2020). In case of Sainsbury, they are planning to
expand the business in India through dealing in importing and exporting the products. Through
choosing the entry mode, it helps through dealing with the joint venture business.
Thus, in such case the opportunities which they gained is relating to the facing less
competitors in market. As if the taxation policies is higher, it restricts the company to enter into
the India in respect of expanding the business. Thus, Sainsbury adapts this opportunity in respect
of working under the set norms designed by the government (Zhao and Dou, 2019). But in case
of threat, the issues is faced regarding imposing strict norms of government on particular
products which they restrict to not import in India. The factors which they can deal is through
undertaking the merging procedure in respect of strategic alliances, in which they merge the