Marketing Intelligence Report: Customer Analysis for Sainsbury's

This marketing intelligence report analyzes customer behaviour and purchase decisions at Sainsbury's. The report begins with an introduction to the importance of understanding customer behaviour for business growth. It then delves into the stages of the purchase decision-making process, exploring theories of buyer behaviour, and identifying factors that influence buyer behaviour. The report further examines market research techniques, including qualitative and quantitative methods, and discusses the use of secondary data to achieve marketing objectives. It addresses the validity and reliability of market research findings and outlines a market research plan for Sainsbury's. Additionally, the report analyzes market size trends, competitor analysis, and the organization's opportunities and threats. It concludes with techniques for assessing customer response and designing customer satisfaction surveys, offering a comprehensive overview of marketing intelligence related to Sainsbury's.

STUDENT ID:
STUDENT NAME:
ASSIGNMENT ID:
ASSIGNMENT TITLE: MARKETING INTELLIGENCE
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Table of Contents
Introduction......................................................................................................................................3
Task 1 (Essay)..................................................................................................................................3
Task 2...............................................................................................................................................5
2.1 Different types of market research techniques..........................................................................5
2.2 Using secondary data to achieve market objectives..................................................................6
2.3 Validity and reliability of market research findings..................................................................6
2.4 Market research plan to obtain information in given situation..................................................6
Task 3...............................................................................................................................................7
3.1 Market size trends in given market............................................................................................7
3.2 Competitor analysis for an organization....................................................................................8
3.3 Organization’s opportunities and threats for a product or service.............................................8
Task 4...............................................................................................................................................8
4.1 Techniques for assessing customer response.............................................................................8
4.2 Design customer satisfaction survey.........................................................................................9
4.3 Reviewing success of the survey.............................................................................................10
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................11
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Introduction
Customers are important factor for business organizations that seek to grow their business. When
they plan to take the business forward and strategize further steps, they need to identify buying
behaviour of their core customers as well as that of new and prospective ones. In this respect, the
following assignment tries to analyse aspects of purchase decisions and buyer behaviours of
customers of Sainsbury's through conducting market research. It can be helpful for management
of Sainsbury's to formulate future plans for business growth and development.
Task 1 (Essay)
1.Stages in purchase decision making process: In the purchase decision making process, the
customers have to go through five stages that determine their purchase decision factors (Gergova
and Kim, 2016, p.26).
1. Need recognition: This stage involves the company to recognize what exactly are the needs of
the customers. Customers realize some personal needs and buy products to fulfill those needs
and return back to normality. For Sainsbury’s it is an opportunity to convince new parents to
make purchases for their newborn through availability of various choices among baby care
products.
2. Information search: Information search follows need recognition that implies gathering
information about a product after customers have successfully identified their needs. For
example when a customer realises the need to replace his torn shoes, he seeks information about
shoes available in Sainsbury's and other retailers from various sources while simultaneously
Sainsbury’s has to rely on its brand image to remain ahead of its competitors.
3. Evaluation of the alternatives: In this stage, customer start asking questions on various
aspects such as “ do he really need the product”, “do he need that particular product or shall look
for alternatives”, “ will the product fulfill his needs”. Then they make comparisons between
choices based on price, quality, range of options, service, etc. In this regard, customers tries to
evaluate if they really need shoes or can make of use alternatives and what are the choices
available in Sainsbury's’.
4. Purchase decision: This stage resembles the stage to make the final purchase. After the
customer has made evaluation of all options based on information gathered and identified the
best one, he makes logical conclusion of either to go ahead with the purchase or cancel it. In this
regard, the customer will assess the best shoe according to his requirements and buy it.
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5. Post purchase evaluation: The final stage includes roles and responsibilities of the marketer
and feeling of satisfaction or dissatisfaction of customers after purchase. If the customer is
satisfied with bought shoe, he will remain loyal to Sainsbury’s thereafter and promote their
products based on his experiences.
2. Theories of buyer behaviour in terms of individuals and market: Buyers are people who
make daily purchases to fulfill their needs and desires. Behaviour of their purchases are
evaluated to identify factors that drive purchase making decisions, such as what customers buy,
how much they buy how they respond to company’s marketing strategies. Two theories have
been identified regarding buyer behaviour.
Cognitive dissonance theory: Cognitive Dissonance theory emerges from social psychology
and refers to conflicting attitudes and behaviours of people. The theory states that cognitive
dissonance occurs among buyer when they hold conflicting attitudes or beliefs regarding a
product or service specially after making purchase (Kah and Lee, 2016, p.375).This theory
allows controlling the risk of dissonance when customer has high level of commitment.
Diffusion of innovation theory: This theory refers to spread of innovation among consumers in
the form of new ideas, behaviours, products, service and process (Zendehdel et al. 2015, p.172).
The theory explains the needs for innovation and how these new ideas are adopted and
implemented. The ideas and practices are communicated to specific customers and to section of
the market through various modes of communication channels, for example social networks,
personal mail and messages, adverts, etc.
3. Factors affecting buyer behaviour: Buyer behaviour is influenced by many identifiable
factors that include cultural, social, personal, economic and psychological (Kuan et al. 2014,
p.170). Cultural factors are important with respect that customers are greatly attached to their
culture and traditions. For example a consumer’s culture may strongly deny him consumption of
meat. Thus the consumer purchases food items that do not contain meat contents. Social factors
also affect buying behaviour and include perception and confirmation sought by individuals from
social groups regarding purchases. For example a child seeks views of parents before making
any purchases. Personal factors determine the personal needs of the buyer and how important is
the need to make purchase based on age, occupation, lifestyle, etc. For example, a consumer can
go with smaller screen TV instead buying a bigger one. Psychological aspects of buyers include
motivation, perception, assumption, learning and attitude based on which they make decision for
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a purchase, such as preferring Mercedes Benz above BMW. Economic condition also influences
buying behaviour that include, personal income, family income, personal savings and
expenditure. A rich and prosperous customer would go for most expensive range of clothings.
4. Relationship between brand loyalty, corporate image and repeat purchasing: Brand
loyalty refers to the customer's commitment in making future purchases from same marketer and
remaining loyal to the brand for longer periods of time. Corporate image determines the
reputation of the company in the specific market and perception made by the customers and
employees towards the company. Brand builds its corporate image based on its own actions.
Repeat purchasing refers to numerous purchases made for similar products from same marketer
over a prolonged time period (Chiu et al. 2014, p.86). It is encouraged and facilitated when
customers are highly satisfied with the product or products overcome customer’s expectations.
All three factors are intertwined on the aspect that good corporate image builds reputation and
high regards creates successful brand image (He and Lai, 2014, p.250). Brand image further
develops customer engagement and high standards of products and services that meets customer
expectations thus facilitating repeat purchasing.
Task 2
2.1 Different types of market research techniques
Market research is an effective tool for organizations to successfully understand their market
share, buyer needs and take essential customer feedback to make sense of the statistical figures
and data. Various market research techniques allow companies to identify customer satisfaction
level and demands for specific products along with assessment of market competitors. It is
important in the respect that companies are able to collect consumer data and make necessary
adjustments in image branding strategies so as increase market capture (Price et al. 2015, p.240).
Market research includes qualitative and quantitative research techniques.
Qualitative techniques accounts for views and opinions of customer regarding business products
and services through practices such as face to face interview or focus groups (Noble and Smith,
2015, p.34). This techniques in integral to see into customers’ mind to realise how they perceive
the product and if it fails to satisfy them. Quantitative techniques employed are based on hard
data and statistical facts instead to feelings and opinions. They are used to represent perceptions
and opinions in terms of statistical data in order to understand the aspects of the business market.
Primary research methods are useful on the pretext that it accounts only relevant questions and
avoid irrelevant issues. It is used to develop products and services. Secondary research methods
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are used to gather information from available sources. It is useful as this method is free and less
time consuming.
2.2 Using secondary data to achieve market objectives
Secondary data refers to information that are not gathered afresh but are already available in the
market (Kanji et al. 2016, p.261). It is available in the form of business journals, company
findings and reports, media reports, and websites and blogs.
In this regard, the research objectives identified with respect of Sainsbury’s include,
1. To find the factors that influence buyer purchase decisions in Sainsbury’s.
2. To find how consumer perceive image branding and marketing strategy of Sainsbury’s.
The sources of data useful in supporting mentioned objectives with respect to Sainsbury’s can be
annual business magazines issued by Sainsbury’s, Trade Associations reports and European
Directory for business marketing and media reports. Through these sources, relevant data can be
found regarding customer responses and business objectives of Sainsbury’s that justifies the
objectives made. The findings suggest that pricing strategy and product quality are factors that
greatly influence buyer behaviour of Sainsbury’s.
2.3 Validity and reliability of market research findings
Market research findings can be affected by several limitations such as non reliability of
secondary sources of data or validity of the data are not measured. In addition to this, repeated
research process increases chances of errors, such as systematic errors due to ineffective
implementation technique or random error arisen unexpectedly during measurement process.
Validity of the research findings and collected data can be assessed by internal and external
validation (Waltinger et al. 2013, p.261). Internal validity are defined through cause and effects
relationship while external validity signifies true nature of the findings for general people.
Reliability of the research data can be assessed by test-retest methods or internal consistency
reliability method.
There are different categories that can be considered within the reliability and validity:
Internal validity: this is the point that defines whether the questions used in the survey are
competent enough to attain the desired outcome.
External validity: This specifies the importance of the target population that has been selected as
a part of the survey or the market research. This also represents the extent up to which the
questions can be generalized to have accurate survey.
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Content validity: this is related to the ability of the surveyer to create the content or the questions
that makes sure that the key matters in the subject are not excluded in the process.
2.4 Market research plan to obtain information in given situation
It is necessary for Sainsbury’s to realise the factors behind its customer purchase behaviour and
their satisfaction level regarding sold products and services. The research plan is carried out in
this regard. But the factors identified may be not very productive in formulating future marketing
plans.
Objectives:
1. To find the factors that influence buyer purchase decisions in Sainsbury’s.
2. To find how satisfied the customers are with food products sold in Sainsbury’s.
Methodology:
Research methodology employs descriptive approach that includes quantitative and qualitative
techniques for collection of data from primary sources.
Data analysis:
for the purpose of data analysis, research questionnaires have been set according to meet the set
objectives. they are then further validated through internal validation and information available
from secondary sources.
Timeframe
Activities First
Week
Second
Week
Third
Week
Fourth
Week
Fifth
Week
Sixth
Week
Seventh
Week
Selection of the topic 
Collection of data
(secondary sources)

Research technique
selection

Collection of primary
data
 
Data analysis and
interpretation

Developing Conclusion 
Submission of final work 
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Task 3
3.1 Market size trends in given market
Sainsbury’s is a global supermarket chain in UK with the market share of 16.9% in UK’s
supermarket sector. It second largest supermarket chain behind Tesco in UK and retails all
consumer goods and services. It serves 16 million customers every week from 455 supermarkets
and more than 300 convenience stores across UK. They have an ever increasing online groceries
and non food store where customers have the feasibility of making orders and picking up non
food orders from nearby stores at convenient times.
Here the market trends have been assessed in the pretext of supermarket industry of Sainsbury’s.
It has received good growth in recent years by gaining second position from third in UK
supermarket and overtaking Asda. Competition is strong in UK supermarket industry as Tesco
covers as much as 30% of the market. But budget retails stores such as Morrisons, Aldi, etc have
been snatching its customers and thus Sainsbury’s has been forced to release new catalogue of
products.
3.2 Competitor analysis for an organization
Competitor analysis entails identification of present and potential competitors. Market research
trends allow identifying competitors and how their current strategies may pose threats to
business propositions of concerned organization (Leroi-Werelds et al. 2014, p.450).
With respect to Sainsbury’s, it’s likely competitors include Tesco, Asda and Morrisons.
The plan for competitor analysis would be to identify most potential competitor and its business
technique that can pose a risk to Sainsbury’s. For this, analysis would be subjected to
Sainsbury’s Tesco and Morrisons.
The planning method includes the identification of market share of the company and the
financial strength of the same. Thereafter, it includes consideration of the brand name brand
image as well as the customer perception of the organization. The plan is carried out to identify
market share, financial strength, productivity, brand image and customer perception.
Market share: Sainsbury’s-17%; Tesco -30%; Morrisons-11%.
Income: Sainsbury’s-£166 million; Tesco- £129 million; Morrisons-£222 million
3.3 Organization’s opportunities and threats for a product or service
SWOT analysis for Sainsbury’s is effective in identifying its strengths and weaknesses.
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Opportunities: Introducing the new products into markets outside UK is greater opportunity for
Sainsbury’s to increase its market share and business operations.
Threats: The situation of Brexit is a threat for Sainsbury’s with respect to expansion of its
business. Therefore, the product is to be very wisely placed in the markert so as to prevent any
undesired condition.
Task 4
4.1 Techniques for assessing customer response
Customer response is important aspect for any kind of business organisation in terms of service
or product. At a glance, it can be defined as market research and there different ways that a
respective organisation can gather information from the end of a customer. These types are
entirely dependent on data and business type. For the selected organisation some efficient market
research techniques are as follow. The are two basic segments of customer survey and those
include primary and secondary research. Primary research includes questionnaires, focus group
and experimental trial. On the other hand secondary research include internal and external
sources of information.
Focus Group: Focus Group is nothing but gathering a group of people at the same place in order
to make some queries regarding a product or service. The respective organisation may gather
some of the potential customer in order to understand quality or price related issues of the
existing products. In most of the terms focus groups are managed while launching or introducing
a new product. Focus groups based customer survey are parts of qualitative research, therefore, a
respective organisations can gather definite customers responses following the same way.
Questionnaire: Questionnaire is a set of queries that a respective organisation can distribute
among potential customers. Following the same way, customer responses can be gathered in a
faster way and there will be lesser engagement of the professionals from the end of organisation.
In most of the terms, this type of customer survey is quantitative, therefore, there is a possibility
to get different responses in terms of the same product.
Internal sources: Internal source works as a secondary database where a respective organisation
can utilise financial database and annual statistics of sale. There are some critical prospects
available in different industry niches as secondary sources especially, internal sources are only
capable to provide restricted database, but at the same time, it is also possible that a respective
organisation can get better scenario of current sales status and economical condition.
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External sources: External sources in secondary sources include business magazine,
government books, journals and articles. It is possible that a business organisation may find some
reviews of customers in a recently published article or business journal. Besides that, a respective
product may be placed in such secondary archives to gather customer responses. Based on all of
these, an organisation can easily plan for replacement or modification of the existing products.
4.2 Design customer satisfaction survey
Questionnaire for customer survey
Q.1 How many years do you using this product?
Less than 5 More than 5 Total respondents
8 12 20
Q.2 Which factor do you consider while making a purchase decision?
Quality Quantity Not known Total respondents
13 3 3 20
Q.3 Is there any factor that you have ever thought to switch?
Quality Quantity Not known Total respondents
5 13 2 20
Q.4 What do you expect that the respective organisation should considering?
Quality Quantity Not known Total respondents
10 5 5 20
Q.5 are you satisfied with the quality and longevity?
Yes No Not known Total respondents
12 3 5 20
Q.6 Is there any issue regarding packaging and product information?
Yes No Not known Total respondents
2 16 2 20
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Q.7 Do you face accessibility issues while buying the products?
Yes No Not known Total respondents
2 15 3 20
Q.8 Do you think that all of the varied products are affordable to your end?
Yes No Not known Total respondents
13 5 2 20
Q.9 Is there any suggestion that you wish to direct the organisation?
Yes No Not known Total respondents
6 3 11 20
Q.10 What is your opinion about customer grievances cell and responses managed by the firm?
Improve Not improved Not known Total respondents
13 4 3 20
4.3 Reviewing success of the survey
Based on the above customer survey, it can be said that set objectives can met according to the
customer’s responses. Regarding the product as well as understanding expectations of customers
will be easier to analyse. However, it cannot be said that all of the responses will be valid
according to current market status, but marketing professionals as well as management will get a
clear direction how future products will be handled. If it is possible to make different segment of
the customer survey, supply chain management will get more information on distribution.
Therefore, inventory management can also be benefited based on the report of customer survey.
Conclusion
Thus, from the above market research and analysis with respect to Sainsbury’s provide a
descriptive view of the market research and factors that influence buyer behaviour. It is
recommended for Sainsbury’s to make necessary arrangements so as to identify market
competitors and in order to do so it needs to employ top down approach thus offering products
that meet the needs and expectations which have been designed based on available data buyer
behaviour and purchase decision making.
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