Sainsbury's: A Global Marketing Strategy for Indian Expansion

This report provides a comprehensive analysis of Sainsbury's global marketing strategy as it plans to expand its business into India. It begins by introducing Sainsbury's, a major UK supermarket chain, and justifying the choice of India as a target market due to its high population and growth potential. The report then employs a PESTLE analysis to evaluate the political, economic, socio-cultural, technological, legal, and environmental factors that could impact Sainsbury's operations in India. Following this, the STP (Segmentation, Targeting, and Positioning) model is applied to define the target customer base and develop a competitive positioning strategy, considering existing competitors like Reliance Mart and D Mart. Finally, the report outlines a brand strategy encompassing product offerings, pricing strategies, distribution channels, and promotional activities, with a focus on leveraging social media for marketing. The report concludes that effective marketing is crucial for attracting customers and achieving successful international expansion.

Global Marketing

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
About the brand ...........................................................................................................................1
Country of Expansion..................................................................................................................1
PESTLE analysis.........................................................................................................................2
STP...............................................................................................................................................3
Brands Strategy............................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing plays an important role for the organisation to expand their business in the
international boundaries (Gillespie and Swan, 2021). For this report, Sainsbury's has been
undertaken into the account. It was founded in the year 1869 and is one of the largest
supermarket chain across the UK. In this report organisation will be expanded into the new
boundaries. In this report, there will be the analysis of the PESTLE analysis. After that STP
model will also be analysed. Along with that brand strategy of the organisation will also be
undertaken which will consists product, price, place and distribution of the products and services
into the new market.
TASK 1
About the brand
Sainsbury's company was founded in the year 1869 by the John James Sainsbury's. It is
one of the most established supermarket chain in the country of the UK. They have supermarket
stores across the UK country. This organisation is also listed on the London Stock Exchange.
Main country from which they operate the operational activities of the business in the United
Kingdom. Sainsbury's has headquarters in the London, England. They offer almost all kinds of
grocery products into the market such as tea, coffee, toothpaste, minerals, etc. One of the main
strength of the company is that they are well established in the eyes of the customers and has a
very strong brand image (De Mooij, 2019). They always focus on to target potential customers
towards their business so that they can increase the brand image of the company in the market.
Along with the supermarkets they are also offering banking services to the customers present in
the UK. They have collaborated with the various brands in order to increase their revenues in the
market. On the other hand, one of the main weaknesses of the organisation is that they fails to
give tough competition in the market to their competitors which creates so much challenges for
them in order to carry out the operational activities smoothly.
Country of Expansion
Managers of the Sainsbury's company is planning to expand their business in the
boundary of the India country. India is one of the most potential place through which new
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organisation can come and set up their business in order to generate more revenues in the market.
This country has been chosen for the organisation because it is most populated country and it
provides much opportunities to the company to offer grocery quality grocery product at
affordable prices. India will be one of the most potential place for the Sainsbury's in order to
expand their business in that boundary.
PESTLE analysis
It is a strategic framework that is used by the organisation in order to analyse the
environment of the business. It facilitates the business to evaluates internal as well external
factors that can affects the operational activities at the workplace. In regards to the Sainsbury's
company they can undertake this analysis while entering into the boundary of the India. Pestle
analysis is described below in relation to the Sainsbury's company through which they can enter
the new boundary effectively:
 Political factors: It can be defined as the actions and policies of the government that can
affect the operational activities of the organisation. It includes corporate taxation, trade
policies etc (Padgett and Donald, 2022) In relation to the Sainsbury's company, they are
planning to enter into the boundary of the India. It can be challenging for the organisation
because government of India regular makes harsh policies for the organisation through
which they have to suffer in order to carry out the activities smoothly.
 Economic factors: These are the factors that are related to the economic aspects of the
country. This include various components with it such as employee rates, inflation,
exchange rates. Etc. In regards to the Sainsbury's company, they can grab more
opportunities in the market of the India as they can increase the employment rate through
which they can increase the production in the marketplace. It can comes out to be the
biggest opportunities for the organisation because it will helps them to generate more
profits through they become able to contribute in the GDP of the country.
 Socio-culture factors: This factors can be defined as fulfilling the needs and wants of he
consumers that are present in the specific place. Sainsbury's is planing to expand their
business in the boundary of the India country (Schwöbel-Patel, 2021). They can critically
analyses the needs of the customers in the new boundary so that they can increase their
profits in the new market. It is very important for the organisation to consider the social
factors because it helps them to enhance their brand image in the eyes of the customers.
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 Technological factors: This factors means to use effective technology at the workplace
so that the organisation can increase their productivity. This factors includes various
elements such as automation, cyber security, updated technologies etc. In regards to the
Sainsbury's company technical department of the company always focus on to use
effective techniques of production so that they can increase the productivity in the
products and the services into the market. They can effectively carry out their operations
in the country of the UK.
 Legal factors: This factors includes legislations, permits, license etc. in order to start the
business (Kasemsap, 2018). In relation to the Sainsbury's company they can easily start
their business in India as there are no such tough laws that can create challenges for them.
 Environmental factors: It means that the organisation should carry out the operational
activities that should not harm the environment. In regards to the Sainsbury's company
they can take effective measures through which they cannot harm the aspects of the
environment in the country of the India. It can be more beneficial for the organisation as
they can increase the band image in the country by carry out the activities in a healthy
manner.
STP
STP models facilitates the organisation to make an effective position in the marketplace.
This model is described below:
 Segmentation: Managers of the Sainsbury's company should first effectively divide the
customers on various bases. It will help them to effectively distribution of customers in
the boundary of India. They can divide the customers on the various bases such as
demographic, geographic, behavioural etc. India is one of the largest country, so this
model will help them to effectively divide the customers.
 Targeting: In this part of the model. Organisation should focus on which group they will
be targeting. They should target that group of customers which can generate much returns
for the company (Agarwal and Wu, 2018). They should offer products and the services to
the target group in the market. Sainsbury's company will target the customers on the basis
of the demographic strategy.
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 Positioning: It is one of the effective stage in the model that means that the organisation
should offer attractive products and services into the market through which they can
effectively position in the marketplace. In relation to the Sainsbury's company they can
offer effective products in the market of the India so that they can stand out from the
competition. One of the main competitors of the Sainsbury's in India is the Reliance mart
and D mart (Pop, 2019). They can give tough competition to them. Sainsbury's will use
effectively positioning strategy as they will offer grocery products as the discounted
prices to the customers.
Brands Strategy
Brand strategy can be defined as the long-term goals of the organisation through which
they can influence the customers to prefer specific brand. In regards to the Sainsbury's company
they can effectively introduce their products into the market of India. Brand strategy is
mentioned below in order to expand the operational activities in the boundary of the India:
 Product: Sainsbury's company has operations in the grocery sector and they are one of
the most established brand in the market of the UK. In order to expand the operations in
India, they will be offering grocery products through which they can fulfil the needs and
wants of the customers. India consists of the people of various backgrounds and they will
critically analyses the wants of the customers and accordingly they will offer products
into the market. They are planning to add more nutritional values in the products as other
brands are not focusing on it. It will help them to attract customers towards their
products.
 Price: Managers of the company will use effective pricing strategy for through which
they can attract large number of customers in the boundary of the India. There are
number of competition present in the market so for that reasons Sainsbury's should have
to offer grocery products at a very reasonable prices (Galli, 2020). They will use
competitive pricing strategy so that they can give tough competition to the companies
that are offering grocery products into the market.
 Place: Sainsbury's will use retailed methods in order to provide the products to the
ultimate consumers. India is a very big country and for that management department of
the company should plan to open supermarket stores across the country
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 Promotion: Marketing department of the company will use mainly social media in order
to attract customers in the boundary of India. Almost each individual in India is using
social media. It will be beneficial for them to promote products of the company to more
number of customers.
CONCLUSION
Form the above report, it has been analysed that marketing is very important part of the
company that help them to attract large number of customers towards their business. In the above
report, an organisation has been undertaken into the account which is planning to expand their
business in the other country. Pestle analysis has been analysed in order to find out the factors
that can affects the operational activities. Along with that STP model has also been evaluated in
relation to the organisation. At the last stage of the report, Brand strategy of the company has
been analysed that consists product, pricing, place and promotion.
REFERENCES
Books and Journals:
Agarwal, J. and Wu, T., 2018. Emerging Issues in Global Marketing. Springer.\Sabou, S.,
Avram-Pop, B., & Zima, LA (2017). The impact of the problems faced by online
customers on ecommerce. Studia Universitatis Babes-Bolyai, 62(2), p.77.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. Sage.
Galli, B.J., 2020. Using marketing to implement a strategic plan: Reflection of practiced
literature. In Start-Ups and SMEs: Concepts, Methodologies, Tools, and Applications
(pp. 1518-1532). IGI Global.
Gillespie, K. and Swan, K.S., 2021. Global marketing. Routledge.
Kasemsap, K., 2018. The roles of social media marketing and brand management in global
marketing. In Social media marketing: Breakthroughs in research and practice (pp. 425-
453). IGI Global.
Padgett, R.C. and Donald, W.E., 2022. Enhancing self-perceived employability via a curriculum
intervention: a case of “The global marketing professional” module. Higher Education,
Skills and Work-Based Learning, (ahead-of-print).
Pop, N.A., 2019, September. Contemporary Directions in the Development of Romanian
Academic Marketing in Favor of Increasing the Performance of the Organization. In
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Griffiths School of Management and IT Annual Conference on Business,
Entrepreneurship and Ethics (pp. 17-35). Springer, Cham.
Schwöbel-Patel, C., 2021. Marketing Global Justice: The Political Economy of International
Criminal Law. Cambridge University Press.
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