Strategic Marketing: Market Audit, Competitor Analysis, and Customer Analysis for Sainsbury

This presentation provides an analysis of the market audit, competitor analysis, and customer analysis for Sainsbury. It also identifies key strategic marketing objectives for the marketing plan and discusses macro and micro economic factors affecting Sainsbury.

STRATEGIC
MARKETING

Introduction
 Market audit is helpful to enhance the company’s marketing performance and find out
the areas of issues which can be solved using strategic techniques.
 The present report will analyse various effects which may affect one of the largest retail
brands in UK, Sainsbury.
 The company deal in retail market providing services like clothing, groceries,
electronics and others. Further, the report will give information about competitor and
stakeholders analysis.

Market audit
 The market audit is the study of business marketing environment analysis, in order to
achieve business goals, strategies, various opportunities, principles to ascertain the
various of problem.
 It also evaluates the complete business promotional atmosphere and the main purpose
here is to find out the market strategies that are working or not for success.

Market size
 The market size is the figure of potential buyers of services or products within the
market. So, the present company Sainsbury needs to understand target customer in
order to determine their market size. One of the most important tasks for managers is to
measure the potential value that market has. Therefore, they need to focus on
competitor market share in order to find out customer needs through interviews,
surveys and feedback (Haque, 2021). The company must estimate the new market size
on the basis of customer demand. On the basis of market share the company can find
out the percentage of sales and revenue in the business market. It is stated that if the
company is selling large number of quality products will likely to have a high
percentage of revenue or sales (Marketing audit, 2021). By using various technique
company can evaluate and measure the market situation and its size. Example-
customer surveys, suggestion from experts, testing market strategies and finding out
new launches.

Trend data
 Trend analysis is a method used by company to predict stock of future price
movements on the basis of current market trend data (Parey and Rasul, 2021). In order
to find out the market situation the company uses previous data and trade volume, to
forecast the long-term direction of business market sentiment for success. There are
many ways to find out trend data such as collecting data from past trends, time series
data. With the help of comparison between data the company can find project and
patterns.

Competitor's analysis
 It is the method in which the firm identify various competitors and their marketing strategy,
research their sales and products, new launches, and other relevant factors (Kurita and et.al.,
2021). Finding out target customers is the main task followed by Sainsbury. The company
discover pricing method, promotion method and customer segmentation in order to figure out
their competitive advantages.
 The purpose behind using this method is to understand the strength and weakness of competitors
and find out market gap (Nassauer and Legewie, 2021). By analysing this, Sainsbury can enhance
its business strategy to achieve customer satisfaction and business goals. Competitor analysis on
the basis of various strategies, discount offers, advertisement and others.

analysis Sainsbury Walmart Amazon
Marketing strategy Providing quality products and services at
true and fair price.
The company focuses on understanding
customer needs and introduced everyday
low prices.
The company focuses on targeted online
marketing channels
Promotion or marketing communication
mix
The company uses sales promotion through
database marketing in order to build its
brand name.
The company focuses on sales promotion
such as attractive discounts, special offers.
The firm invests in promotional activities like
online advertising, pay-per click and social
media.
Mission and vision statement Treating customers fairly and offering high
quality services and provide better return to
stakeholders for achieving financial goals.
To help customers worldwide save time and
money in order to satisfy customers and
employees both.
By innovating new solution to make things
faster and cost effective.
Pricing strategy The company make a better use of price
discrimination policy as per their market
positioning of the product and services.
To attract large numbers of customers in
order to achieve higher sales volume.
The company focuses on customer
satisfaction by offering them wide range of
products at reasonable price.
Innovation The focus is product innovation as it looks
after improving new goods and enhancing
the existing products.
The firm has been utilizing the new
technologies and doing in-house innovation
in order to compete in the market and
protect its innovation using patents.
The firm increased focus on technology and
new innovations and machine learning to
satisfy customers.
Cost leadership strategy The company practices cost cutting policy in
order to gain market share for short run and
long run.
Cost leadership generic strategy of Walmart
is increase sales in order to achieve
profitability and decease prices.
The generic strategy for competitive
advantage used by amazon is to minimize
operational costs and price of its online
retail store.
Selling product The company uses bio gradable packaging
made from potatoes and sells them.
The firm offers a wide range of products like
hardware, furniture and health goods.
The firm evaluates competitors pricing
method as basis for pricing amazon basics
goods in order to target customers.

Macro and micro economic factors
affecting Sainsbury
 For successful running of the company both external and internal factors such as competitors and employees, has to be
taken into consideration (Velvizhi and et.al., 2021). If both of them are properly controlled, the company would surely
have the strength to go very far away an compete market. In order to do this successfully and achieve goals, a PESTEL
analysis has to be carried out. PESTEL is a strategic business planning tools in order to understand external
environment for future requirements.
 Political- The company have to compete against unknown forces and to find out the resources with economical and
values of quality (Song and et.al., 2021). A few years ago, it is noted that the corporation tax is at 28%, this indicates if
companies would save large amount of money because of this low corporation tax.
 Economic factors- the biggest challenge faced by Sainsbury is increased cost of fuels. Therefore, it affects the supply
chain and global food crisis would result having increase cost of products (Geebren, Jabbar and Luo, 2021) This may
affect the overall sales of the firm as the customer would have a low power of purchase thus, they would be more
careful about spending and buying less luxury products. Ultimately, it might lead to job losses and increase
unemployment. If the Sainsbury provide employment to labours, then labour cost has to be kept on mind and have to
stay on the budget. This scenario could hamper the financial position of Sainsbury, as it cannot achieve more profits.

 Social factors- In order to keep up with the customers and satisfy them according to their preferences,
Sainsbury need to understand social trend (Cheba and et.al., 2021). If customers are not happy with the
service and facilities provided by company, then they have a large number of other retail company. So, the
firm train their employees to be friendlier and more helpful to their clients in order to attract more customers.
Keeping in mind about customer preference will definitely help the company to drive more profit and sales
(Sainsbury’s PESTLE analysis, 2021). The company also has to keep track on market situation by providing
facilities which are more socially and actively accepted in the current business of retail marketing. The firm is
also involved in social Responsibilities for public welfare like arranging social activities and sponsor games.
 Technological and legal factor- in order to achieve success in technologies like inventory management, stock
controlling and others, the company needs to use correct method and tools. Adopting techniques like
computerised checkout will help the firm in many ways such as less human errors and paperwork. If the
company use online shopping facility efficiently with a better delivery system, then it can be very profitable
(Fengyi, 2021). The company is well bounded by various legal problems such as national low wage policy,
alcohol selling age restrictions and others. Therefore, the firm needs to maintain various types of laws like
competition and health and safety and customer laws.

 Environment factor- the company has contributed a lot to reduction of carbon
footprint in order to encourage eco-friendly environment (Wajid and Zafar, 2021). The
firm must make availability of organic foods which are at a good selling price.
 Business microenvironment represents to the internal factors that might affect
the business operation of Sainsbury. competitive rivalry may affect the business
activities as many companies is producing same products. This may affect prices and
market shares which impacts other internal factors suppliers and customers. If the
customer is not satisfied by services provided by the firm, then it may affect the
business. As the suppliers are more interested in finding innovative products that are
unique. Additionally, the firm provide true and fair facilities in order to satisfy both
suppliers and customers on the basis of their needs and preferences.

Customer analysis
 The company used various method and new techniques such as marketing mix to attract the
customer. The customer analysis plays a vital role in order to understand the preference and
taste of clients. By offering more quality of products and consistent values while making
shopping is all customer wants.
 Moreover, customer has advantages to switch from one brand to another, thus, this fall under
power of customer category (Wisetsri and et.al., 2021). The firm has classified their
customer in various categories with respect to their needs. The management has a continuous
approach towards customer satisfaction as they attempt to provide facilities. to save money
and time, the customer would like to purchase things online or find out the ways to buy
varieties of products in competitive price.
 The company’s stakeholder include:
External stakeholders Internal stakeholders
Suppliers
Local government
customers
Managers
Employees
Shareholders
Workers
Other staff members

Stakeholders’ analysis
 Above mentioned stakeholders are most important person that the company want their
business to expand and earn more profit and improves business performance. Shareholder
are the person who owns shares and made an investment to get these shares and gain
profit in through dividends (Saha and et.al., 2021). The company’s manager performs
business activities in order to achieve growth and development. Staff member and
employees put best efforts to continue help the company in order to achieve strategic
business goals. Therefore, the firm create more jobs offer and train its staff using learning
and development plan. The company established local charity scheme which supports the
local government and community. So, this creates major impact on competitive
advantages and services provided to customers to increase market reach.

Identifying key strategic
marketing objectives for the
marketing plan The company should include various strategic marketing objective analyse market research in order to target
audience and determine budget to set financial market goals. The main objective of marketing plan is to increase
relationship with customers and improve brand awareness among clients. Ultimately, it can increase financial
position and develop new market strategies in order to achieve specific goal. Using SMART goals, the company can
effectively achieve customers satisfaction.
 Market growth and stability is main objective of the firm in order to achieve brand’s defined goals. Providing clear
direction and highlights the intention of the marketing and business team. The company should offer various kinds
of information to review competitive advantages. Meeting customer needs with right products and services
according to their convenience. Targeting and segmentation capabilities of the company shows detailed data about
customers’ needs and taste. For this, social media is a powerful way to connect and interact with ideal clients. Using
cost effective option will provides option to firm for profitability achievement.


conclusion
 To conclude, acquiring new customers can be critical for many companies but above-
mentioned strategies can be beneficial for Sainsbury. By testing different elements, the
company will be able to find out competitors’ strategies.
 The company must try events and mobile marketing in order to attract new customers.
In addition, there are various internal and external factors that affect the company so it
is mandatory to find out the solution using new techniques.
 Furthermore, the report concluded that retail market is constantly evolving and its
important for the company to evolve in a right way.

References
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 Kurita, J. and et.al., 2021. Evaluating Apple Inc Mobility Trend Data Related to the COVID-19 Outbreak in Japan: Statistical Analysis. JMIR
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<https://www.mbaskool.com/pestle-analysis/companies/17990-sainsburys.html>
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