Sainsbury's: Global Market Analysis and Entry Strategy (MK9709)

This report examines Sainsbury's global expansion strategy, specifically its potential entry into the French market. It begins with an overview of Sainsbury's organizational details, including its strong functions and relationship with consumers, highlighting its multi-brand and multi-channel approach. The report then explores potential market entry strategies for France, such as joint ventures and setting up its own business, analyzing the needs and characteristics of the target market, and differentiating between current and potential consumer needs. Recommendations include the use of merger and acquisition strategies, the application of the Hofstede cultural model, and the implementation of loyalty programs. The report concludes that there are opportunities for Sainsbury's growth in the French market if these strategies are implemented effectively.

GLOBAL CONSUMERS
AND MARKETPLACES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
SECTION 1......................................................................................................................................3
Details of organization................................................................................................................3
Strong functions of Sainsbury.....................................................................................................4
Relation of company with consumers.........................................................................................5
SECTION 2......................................................................................................................................5
Strategies for Sainsbury to enter France.....................................................................................5
Need and characteristics of target market...................................................................................6
Difference between need of current consumer and potential consumer.....................................6
Recommendations.......................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The current marketplace for the companies is global and because of this it is very
essential for the companies that they analyse the market in effective and detailed manner. The
reason pertaining to this fact is that when the company is operating in international market then
they have a wide area for the consumers and this can improve the working efficiency of the
company. the present report is based on Sainsbury which is the second largest supermarket chain
in UK and was founded by John James Sainsbury. The company was founded in year 1869 and is
headquartered in London, UK. The present report the company is planning to expand its business
in France. The present report will outline the fact that why company is strong and what are their
current brand and marketing strategy. In addition to this there will also be some proposal of
different strategies which will be assistive and guiding for entering into the new market that is
France.
SECTION 1
Details of organization
Sainsbury is a company dealing in retail sector and was founded in the year 169 by John
James Sainsbury. The company provides may different services like supermarket, superstore,
convenience shop, forecourt shop and many other different types of the services (Gonzalez,
2020). The purpose of company is to assist their consumers to live well for less of the amount
they pay. This is the main purpose of the company as with help of this the consumer can buy the
product and services in a good manner. In addition to the different types of stores, the company
deals in products like quality clothes, healthy food, use of latest technology, stylish homewares
financial services, general merchandising and many other different types of services.
The company have created a multi- brand and multi- channel business so that they can
provide consumer with all the services at a single time. Also the aim of the company is to
provide all these services to consumer under one roof so that they do not have to go to any other
place to buy some product or any other service. The consumer has choice to select from the
different types of products and services and also there is flexibility to choose from a variety of
options. This will save the time and energy of consumer as under one roof they will get all the
necessary and essential things required for their better living.

The present company operates within the international market and because of this the
company is having a global presence and due to this has a large market share (Hänninen,
Mitronen and Kwan, 2019). The company operates in approximately 70 countries all over the
globe and this makes the company a strong and large retail firm in all over the globe. Currently
the company is planning to expand their business in France as there the retail companies are less
and when Sainsbury will enter than it might be possible that are more chances of company
getting successful.
Strong functions of Sainsbury
The company is operating in good and effective manner and this is the major reason that
the company is working in good and effective manner. In addition to this Sainsbury operates at
global level and this increase the operation level of the company. the major USP that is Unique
Selling Proposition of the company it its large variety of the product which it offers to its
consumers. This is particularly because of the reason that when the company is providing good
and effective product and services then this will attract more of the consumers. Hence, this helps
company in attracting large number of the consumer and this will result in the increase in
popularity of the company.
Along with this marketing is also a major aspect with help of which company has secured
a good and effective position within the market. The reason pertaining to the fact is that when the
company is in position to market the product or the service among the consumer in proper and

effective manner then this will help the company in attracting large number of the consumers.
Hence, for promotion of goods and services of Sainsbury, the company relies more on the digital
and social media marketing. This is pertaining to the fact that in the current modern and advance
world most of the people and consumer are habitual of using the internet and social media. Thus,
it is a good source for the company that they make use of the digital and social media practices
for promotion of the product and services. This will attract a large number of consumer and as a
result of this the sales of company will increase.
Along with this, communication within the company is also very good and effective and
this result in the proper and clear working among the employees of company. this is pertaining to
the fact that when the communication will be clear than everyone within the company will come
to know that what work they have to undertake (Gurina and et.al., 2020). Hence, this will result
in the attainment of the objectives and goals of the business. for proper communication, strategy
of Sainsbury involves the combination of the verbal and non- verbal communication and this
improves the working to a great extent (Gonzalez-Fuentes, 2019). The combination involves
both the communication that in written form and the spoken form as well.
Relation of company with consumers.
For Sainsbury managing good relation with the consumer is very essential and necessary.
This is particularly because of the reason that when the relation with consumer will not be good
then this will affect popularity and goodwill of the company. In addition to this, the strategies of
the business are also very important for the success of Sainsbury. The major focus of Sainsbury
is to build on their strong brand and reputation and heritage. This involves a major focus on the
quality of product and services and offering consistent values to the consumers.
Hence, when the major focus of Sainsbury will be good then this will attract more of the
consumers. The reason underlying this fact is that when quality will be good then consumer will
be attracted towards the company. Thus, this will result in increase in sales of the company and
profitability and goodwill of company will increase.
For managing good relation with customer and identifying correct target the model
selected is IDIC model. This involves identifying the consumer and then the next stage is to
differentiate among the consumer on basis of different segment (4 CRM models that boost

customer loyalty, 2021). After that interaction with consumers and in the end customising the
product as per need of consumer will be done.
This is the customer demographic of existing market of Sainsbury wherein the major
focus is on the adults 15+. Along with this another major focus is on the adult of 35+. But in
France the consumer demographic will change as it is not necessary that all the same trends will
be followed and hence, new market will be explored.
SECTION 2
Strategies for Sainsbury to enter France
From the above evaluation it was clear the Sainsbury is planning to increase their
business in new country. For this purpose, Sainsbury is planning to expand their business in
France. The major reason underlying this fact is that already there are very less retail stores
within the country. Hence, when the Sainsbury will enter within France market then this will be a
good opportunity for company to grow and develop themselves within the new market. Thus,
this will increase the profitability and market share of Sainsbury and will increase operations of
company. hence, the different types of strategies for entering the France are as follows-
 Joint venture- this is a strategy through which Sainsbury can have a venture with any of
the existing company dealing in retail firms. This is pertaining to the fact that under this

the company with whom venture is being undertaken has already established market.
Thus, this will be beneficial for Sainsbury in having a pre- established market.
 Setting up own business- this strategy involves the fact that Sainsbury set up their own
system of business within France (Sandıkcı, 2018). Under this method all the equipment
and stores will be fully set by only Sainsbury and all the funding and management will be
done by the company only.
As the company is establishing the business for the first time in France then they can have joint
venture with some other company as this will guide Sainsbury in analysing the market and
consumer needs and requirements.
Need and characteristics of target market
For entering into the new market the most essential aspect is the analysis of target market.
The major reason underlying this fact is that if the company does not have any target then they
cannot focus on a particular target. At the time of entering in France the major target of
Sainsbury are as follows-
 The major target of Sainsbury within French market will be on females belonging to age
of 20- 55. This is pertaining to the fact that company will bring organic and herbal beauty
products which will attract females of this age group.
 In addition to this another major target of Sainsbury is over young mass of the country
that is between 20- 40. The reason underlying this fact is that Sainsbury has a USP of
organic and health for and this will attract the young mass to a great extent as they are
health conscious.
Difference between need of current consumer and potential consumer
There is a great difference between the target market of other countries and France. The
major reason pertaining to this fact is that company has identified its problems in other countries
and have addressed them at the time of entering in France. Thus, Sainsbury have not undertaken
those mistakes at time of entering in France market.
The major difference between the target market of UK and other countries in comparison
with France is that in UK the major target was household and individual which was very wide
(Mandler, Bartsch and Han, 2020). But at time of entering in France, Sainsbury evaluated their
existing target market and they found that it was very wide. Hence, at time of entering the French

market, Sainsbury avoided this mistake and focused only on females among age group of 20- 55
and young population that is 20- 40.
Recommendations
From the above evaluation it is clear that there are chances of profit and growth if
Sainsbury will enter within the France market (Helsen, 2019). But some of the recommendation
for better expansion for Sainsbury are as follows-
 The first recommended strategy to Sainsbury is to make use of strategy of merger and
acquisition. This is pertaining to the fact that in joint venture as the objective will be
achieved the venture will come to an end. But in merger or acquisition this will not
happen and this will continue till the time company is not liquidated.
 Along with this it is advisable to Sainsbury that they must make use Hofstede culture
model before entering into the French market. This is particularly because of the reason
that when Sainsbury will be having proper knowledge of culture of France then the
product and services will be liked by the consumers in the new country.
 Moreover, it is recommended to Sainsbury that they must provide the loyalty scheme or
program as well in France. This is pertaining to the fact that when the company will be
providing some offers and benefits to consumer then this will grab the attention of the
consumers. Hence, as a result of this sales and profitability of the company will increase
and will also be successful in the French market as well (Beresford and Hirst, 2020).
CONCLUSION
In the end it is concluded that for getting successful the most essential aspect is the
management of global consumer and market place. This is pertaining to the fact that when the
company will analyse trends among the market place and consumer and will adapt to it then this
will increase sales of company. In the present study Sainsbury is planning to expand the in
France and this will be successful as they have a specific target.

REFERENCES
Books and Journals
Beresford, P. & Hirst, C., (2020). How consumers reconcile discordant food retailer brand
images. Journal of Marketing Management, 36(11-12), pp.1104-1124.
Gonzalez, S., (2020). Contested marketplaces: Retail spaces at the global urban margins.
Progress in Human Geography, 44(5), pp.877-897.
Gonzalez-Fuentes, M., (2019). Millennials’ national and global identities as drivers of
materialism and consumer ethnocentrism. The Journal of social psychology, 159(2),
pp.170-189.
Gurina, M.A., & et.al., (2020). Leaders of Change Key Strategic Instruments: Marketplaces as
the Basis of the Uberization Model for Managing Global Companies. International
Transaction Journal of Engineering, Management and Applied Sciences and Technologies,
11(3), pp.1103-1103.
Hänninen, M., Mitronen, L. & Kwan, S.K., (2019). Multi-sided marketplaces and the
transformation of retail: A service systems perspective. Journal of Retailing and Consumer
Services, 49, pp.380-388.
Helsen, K., (2019). Digital marketing in the global marketplace: Latest developments.
Mandler, T., Bartsch, F. & Han, C.M., (2020). Brand credibility and marketplace globalization:
The role of perceived brand globalness and localness. Journal of International Business
Studies, pp.1-32.
Sandıkcı, Ö., (2018). Religion and the marketplace: constructing the ‘new’Muslim consumer.
Religion, 48(3), pp.453-473.
Online
4 CRM models that boost customer loyalty. 2021. [Online]. Available through:
<https://www.lucidchart.com/blog/crm-models>