Strategic Marketing: Market Audit, Competitor Analysis, Customer and Stakeholder Analysis

This report discusses the market audit, competitor analysis, customer and stakeholder analysis in strategic marketing for Sainsbury. It also covers the impact of macro and microeconomic factors on Sainsbury's business and identifies key strategic marketing objectives for the marketing plan.

Strategic marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

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. 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.
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. 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. 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. 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
To attract large
numbers of customers
in order to achieve
higher sales volume.
The company focuses
on customer
satisfaction by
offering them wide

positioning of the
product and services.
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. 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. 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.
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. 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. 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. 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. 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. 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.
Stakeholders’ analysis
The company’s stakeholder includes:
External stakeholders Internal stakeholders
Suppliers
Local government
customers
Managers
Employees
Shareholders
Workers
Other staff members
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. 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
Books and Journals
Online
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