Digital Marketing Report: Sainsbury's Case Study - Unit 24 Analysis

This report analyzes Sainsbury's digital marketing strategies, providing an overview of the digital landscape, comparing online and offline marketing concepts, and examining key consumer trends that drive digital marketing. It delves into the digital tools and hardware used by brick-and-mortar businesses, the development of e-commerce, and the evolution of omnichannel marketing. The report outlines a digital marketing plan and strategy, explores measurement techniques, and evaluates performance metrics. The report also discusses the opportunities and challenges facing digital marketing managers, providing insights into how Sainsbury's adapts to consumer trends and leverages digital tools to improve customer engagement and drive sales. The report concludes with a comprehensive analysis of how digital marketing is implemented and the actions needed to improve performance.

Digital Marketing
1

.
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Overview of digital landscape and comparison of both online and offline marketing
concepts.......................................................................................................................................3
P2 Key consumer trends and insight that are promoting digital marketing................................5
LO2..................................................................................................................................................6
P3 Key digital tools and hardware that are available to “Bricks and Motor and other physical
channels.......................................................................................................................................6
P4 Development of e- commerce and digital marketing platforms and channels in comparison
to physical stores..........................................................................................................................7
LO3..................................................................................................................................................7
P5 Digital marketing plan and strategy to build multi channel capabilities................................7
P6 The way Omni channel has evolved.......................................................................................9
LO4................................................................................................................................................10
P7 Measurement techniques and performance metrics in digital marketing.............................10
P8 Set of actions to improve performance in digital marketing................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Development, changes and innovation in technology have affected marketing strategies
of firm, as now- a –days, most of the businesses are making use of digital technology to promote
brand image and products and services of company to range of customers. Digital marketing is
form of marketing where products or services are purchased and sold through online like email,
social sites and official website of company. This report is based on Sainsbury that in order to
gain competitive advantages have shift from traditional to digital marketing platform. It is
second largest chain of supermarket or having 16.0% market share and wide varieties of products
or services for satisfaction of customer’s requirements. Report has contented overview of digital
marketing landscape, comparison between online and offline concepts, analysis keys consumer
trends and many more information related to digital marketing.
LO1
P1 Overview of digital landscape and comparison of both online and offline marketing
concepts
Digital marketing landscape contains several tool, techniques or methods that are used to
pursue or influence individuals to be part of firm. Websites, social networks, emails and mobile
devices are some of the tools that are used to promote products and services or brand image of
company to end users so that firm can enjoy higher profitability (Jo and Han, 2016). Traditional
marketing can be termed as promoting products and services of company through sales
promotion, discount, offer or through advertisement in newspaper, billboard to generate
awareness among people. Therefore, Traditional marketing have limited approach or make
promote products and services to local residents only.
Thus, it is most useful for organisation such as Sainsbury as it helps in enhancing
engagement of customers or contributes in developing strong relationship.
Difference between online and offline marketing that are used by enterprise to attract
maximum number of customers are explained below:
BASIS Online marketing Offline marketing
Definition It is a process that includes On the other hand, offline
3

selling goods or product
through online channel like
official websites or social sites
and emails.
marketing is related to
promotion of products or
services through banners,
board or prints ads.
Cost It can be stated that online
marketing save lot of time,
efforts and cost of company
by promoting right product to
right candidate at right time
(McLean and Wilson, 2016).
In offline marketing,
Sainsbury or any other
company have to incur huge
cost to advertise through print
media in order to generate
awareness among customers.
Scope of marketing It can be stated that online
market has wide scope as it
helps in creating awareness
among maximum number of
individuals that are living
across worldwide within
limited time frame.
Whereas, offline channel helps
in targeting or attracting few
number of customers due to
limited approach.
Tools and techniques Electronic devices such as
mobile phone, computer are
required by company to
promote products through
emails, website and social
media.
Personal selling, promotional
offer advertisement in
newspaper, magazines are
used to inform customers
about specific company and its
products.
Key benefits of digital marketing
There are numerous benefits of digital marketing like company is able to reach wide
range of people that are living across worldwide within limited time frame. Sainsbury is able to
maintain and develop strong relationship with customers by understanding their needs, problem
effectively. Thus, plan right action that can influence them to be part of organisation for longer
time frame so that it can enjoy higher profit margin and sales (Chaffey, 2019). Digital marketing
4

also contribute in building strong brand image or reputation in minds and hearts of customers by
meeting their needs beyond their expectancy.
Figure 1: Difference between online and offline marketing
(Source: Online vs Offline Marketing, 2019, 2020)
P2 Key consumer trends and insight that are promoting digital marketing
Consumers are key individuals that make purchase of products and services from
specific firm in order to satisfy their respective wants and preferences. Taste, requirement and
preferences of people changes continuously with increased in disposable income, lifestyles,
recent trends and development, price and availability of alternative options. Sainsbury in order to
get differentiate positioning in retail sector of United Kingdome have planned to adapt to recent
trends and insight of customers (Ziyadin and et.al., 2019). The way recent consumer insight and
trend have forced company to adapt digital marketing can be stated below:
 People are making more and more use of smart phones to check products and services of
several companies in order to take correct decision to purchase in order to fulfil their
specific requirements. Review or feedback of previous experience of customers helps
individuals to know whether company offers products as per their expectancy or not.
5

 Rise in technology: There is tremendously rise in different technologies like artificial
intelligence, chatbox, big data analysis so it have forced company like Sainsbury to adapt
key changes in order to grow and survive in competitive market. So Sainsbury have
planned to invest in new technologies such as use of artificial intelligence, mobile
application so that customers are provided ease and comfort to buy products as per their
requirements.
 Millions of people across world spend their lots of time having fun and enjoyment
through social media sites such as Twitter, Intragram and Facebook or You Tube. They
also used several search engines like Google, Yahoo. Com to find information or data
related to their respective needs. In short recently people have started using more and
more of internet connection and mobile devices to connect with each other, share
information or have fun. Therefore, these key trends have provided opportunities to
Sainsbury to use digital marketing techniques in order to retained customer’s satisfaction
level.
 Customers now – a-days wants more personalised services to satisfied their needs so
digital marketing is one of the best method that contribute in its fulfilment. For example
email marketing helps in target specific group of individuals or content thus influencing
them to select Sainsbury rather than other competitors.
 People while taking decision to make purchase of specific products gathered information
about several organisations that are offering products, there relative its prices and
quantity as well as quality. Thus, they evaluate products that are offered by other
companies at specific rates in order to take right decision (Bizhanova and et.al., 2019).
So, Digital marketing has helped them to easily compare numerous alternatives and take
final decision to purchase and get home delivery.
Therefore, all these trends have contributed in fuelling growth of digital marketing.
Evaluation of opportunities and challenges facing digital marketing
It can be evaluated that digital marketing provides opportunities to Sainsbury marketing
manage to effectively understand key preferences and needs of individuals thus decided
appropriate strategies that can motivate it to become part of organisation. In recent scenario,
most of the customers like to make purchasing through online medium as it provide them ease
and comfort to select particular products for satisfaction of their respective requirements.
6

Another benefits of digital marketing landscape is that company can easily market products and
services to wide range of individuals in limited time frame and cost. Sainsbury official websites
helps maximum number of individual to easily order products as per their ease and convenience
while staying safe and secure at home.
On the other hand key challenges that are faced by marketing manager of Sainsbury is
that driving high traffic to website, targeting right audiences and medium to market and
managing budget and website of firm. Threat to data privacy or loss of customers personal
information is one of the biggest challenges using digital marketing. Negative review of
customers can adversely impact on growth and brand image of enterprise in minds of large
number of individuals. There are several countries that are underdeveloped thus resident of such
country does not have knowledge regarding the way new technology can be used to satisfy their
needs. So, as per my view company needs to avoid all such challenges while marketing products
through digital media.
Figure 2: Consumers trends
(Source: Trends in digital marketing in 2019, 2020)
7

LO2
P3 Key digital tools and hardware that are available to “Bricks and Motor and other physical
channels
Digital marketing is not just useful for online business but it can also used by brick and
mortar location to drive business successfully. There are numbers of purpose for which
consumers uses internet connection rather just than online shopping thus there are large number
of people that are motivated to visit bricks and mortar location website before getting into
particular stores. Thus, company by making digital marketing can enhance their sales volume
and market share in long run. Different tool that can be used by enterprise to promote brick and
motor location business such as websites, social media and email marketing to attain objectives
of firm.
Website: It is one of the effective tools that is used by Motor and brick location to influence or
create first impression of company in minds and hearts of individuals. Official website of
Sainsbury contain all crucial information related to its operation, products and services in which
company deals and the way people are engaged with website. Therefore, Bricks and motors are
making use of websites to attract maximum number of individuals within organisation. On the
other hand, there are numerous physical stores that have put more qualitative information on
websites so that customers can take accurate decision.
SEO: In recent trends, most of the customers use internet, Google chrome or search engine to
collect information related to location of particular stores. Thus, marketing manager needs to
rank terms and phrases that people usually used in order to find particular stores or products for
satisfaction of their needs.
Social media: It is one of the effective and best tools that is used by all types of business to
engage people or maintain relationship with customers. Bricks and motor by using social sites
such as broadcast live and Facebook live can attract individuals within stores. It can use different
medium to share information of company or current promotional offers or previous experienced
of customers.
Email marketing software: It is another powerful tool that can also be used by brick and motor
stores in order to add value and engage wide range of customers within organisation. Email is
most effective method that helps in better interaction and promotion of business to individuals so
that large sales can be generated.
8

Sainsbury by making use of effective hardware and software or digital tools in its
physical stores such as content management software, Website optimisation tool, marketing
automation software etc to increase profitability of firm.
From the above analysis of information it can be understood that digital or online method
of marketing is easiest, convenience and cost effective technique as compared to physical stores.
Company through offering its product on official website or page is able to create awareness not
only to only local residents but across worldwide. Sainsbury can easily promote its brand image
in international and domestic market within limited time frame and cost thus deliver maximum
value to end customers. On the other hand, lot of capital need to be invested by company to
manage and operates physical stores so that individuals can came and make purchase as per their
ease and conveniences.
Figure 3: SEO
(Source: SEARCH ENGINE OPTIMIZATION, 2020)
P4 Development of e- commerce and digital marketing platforms and channels in
comparison to physical stores
E- Commerce is a business in which company sells its products or services through
internet only so that goals of organisation can be achieved. Traditional products and services of
Sainsbury are sold through several stores that are operating in United Kingdom. People physical
come and buy products as per their needs and require thus company have limited approach to
9

earn higher profit margin. But growth in demand of customers and Innovation in technologies
have contributed in development of different marketing platform and channels like social media,
official websites. More use of internet or social media by people has encouraged marketing
manager to make use of digital technologies or e- commerce platform to meet expectancy of
customers (Bayoude and et.al., 2018). Sainsbury initially started its business as physical stores
but in respect with changes in external environment have decided to make use of online or
internet connection to promote brand image and products and services of company to end users.
Therefore, it can be stated that with increase in demand of products, physical stores were
developed to provide delivery of services but as soon digital technology come into existences it
is used by firm to enhance sales volume.
Such as Amazon is one of the biggest company that have effectively make use of e-
commerce platform to attract millions of customers in order to earn maximum profitability and
market share. Covid-19 is one of the pandemic situation that have adversely impacted on growth
and overall sales volume of businesses while Amazon is able to grow and survive in uncertain
situation due to its online presence. Customers can easily order products and services while
staying safe and secure at their homes thus such ease and comfort have contributed in adding
new and new individuals within enterprise.
Another examples is that Airbnb has become one of the strongest hotels or
accommodation provided place to number of people due to making use of ecommerce platform.
While other huge enterprise operating in hospitality and tourism industry such as Hilton have to
suffer from loss due to less use of innovative or digital technology to meet customers
expectancy.
M2 It can be stated that Sainsbury will make use of content, social media and SEO
marketing digital tool as they are cost effective and helps company to add maximum number of
customers in minimum cost and time frame. Social media is eco- friendly technology as it
company by just posting videos, images is able to influence millions of individuals.
LO3
P5 Digital marketing plan and strategy to build multi channel capabilities
SOSTAC model can be used to make digital marketing plan of Sainsbury such as:
Situational analysis, objectives, strategies, tactics, action and control.
10

Figure 4: SOSTAC model
(Source: What is the SOSTAC methodology, 2020)
Digital marketing plan of Sainsbury
Situational analysis: It helps in understanding external and internal factors that impact on
growth and strategy of business. So, SWOT model is used to understand strength, weakness that
is internal factors and Opportunities and threat i.e., external factors of business.
Strength
 Strong brand image
 Wide product portfolio
 Effective management
 Business philosophy
Weakness
 Limited presence in global
market
 Growing cost
Opportunities
 Diversification of business
 Growth in emerging market
Threat
 Increasing competition level
 Impact of Covid -19 and Brexit
11

Objective
 Company wants to increase traffic on official websites or more visitors i.e., 20000 till 21
January 2021.
 To invest 10% of total profit in multiple channels in order to provide seamless
experienced to customers.
 To increase profitability and sales volume by 15% by use of digital marketing tool.
Marketing strategy
Marketing manager has planned to make use of STP for multi channel strategies so that right
channel can be used to influence right individuals (Singh, 2019). Sainsbury have used data and
focused on customers to promote Omni channel strategies for benefit of organisation.
Segmented: Company have used data and information to target people into different segment or
group of individuals like income basis, demographical, psychological and geographical or in
short their taste and preferences.
Targeted: It have target mainly younger generation or people that like to make shopping through
online platforms.
Positioning: Sainsbury by investing in digital technology have developed strong brand image in
minds of customers by providing information through email, content and social media platform.
Digital strategy/ Tactics
Sainsbury has planned to use marketing mix digital strategy to attract and retained maximum
individuals within firm. Such as:
Products: It has planned to post image, detailed of products quality, quantity and prices so that
customers can easily evaluated and make correct decision within limited time frame.
Price: Company has set competitive pricing strategy so that people are motivated to select it
rather than other firm.
Place: Customers can easily select and order products through official websites of company.
Promotion: Several social sites in form of image, photos and videos that helps in generating
more awareness among people or promotion of products (Ashtiani and Davidavičienė, 2019).
Action
It can be stated that manager have planned several action that it would take in order to
12