Marketing Plan Analysis: Sainsbury's Naked Coconut Water Report

This report outlines a comprehensive marketing plan for Sainsbury's new Naked Coconut Water product. It begins with an introduction to marketing principles and their application, followed by an analysis of the marketing process, including marketing audits, integrated marketing, and SWOT analysis. The report delves into market orientation, evaluating its costs and benefits for Sainsbury's. It examines micro and macro environmental factors, proposes segmentation criteria, and discusses targeting strategies and buyer behavior. Additionally, it covers product development, distribution, pricing, and promotional activities, along with an analysis of the extended marketing mix. Finally, the report plans marketing mixes for consumer segments and illustrates differences in marketing products and services to businesses versus consumers, as well as differences between domestic and international marketing.

Marketing Principles

TABLE OF CONTENTS
introduction......................................................................................................................................3
LO1..................................................................................................................................................4
1.1 Explaining various elements of marketing process ..............................................................4
1.2 Evaluation of cost and benefits of market orientation...........................................................7
LO 2.................................................................................................................................................8
2.1 Depicting various micro and macro environmental factors...................................................8
2.2 Proposing a segmenting criteria for products in different markets......................................10
2.3 Selecting a targeting strategy for selected product-services................................................11
2.4 Demonstrating how buyer behavior affects the marketing activities in different buying
situations....................................................................................................................................12
2.5 proposing new positioning for a selected product/service...................................................14
LO3................................................................................................................................................15
3.1 Explaining how products are developed to sustain competitive advantage.........................15
3.2 Explaining how distribution is arranged to provide customer convenience........................16
3.3 Prices are set to reflect an Sainsbury's objectives and market conditions...........................16
3.4 How promotional activity is integrated to achieve marketing objectives............................18
3.5 Analyse the additional elements of the extended marketing mix........................................19
LO4................................................................................................................................................20
4.1 Plan marketing mixes for two different segments in consumer markets.............................20
4.2 Illustrate differences in marketing products and services to businesses rather than
consumers..................................................................................................................................21
4.3 How and why international marketing differs from domestic marketing............................22
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

INTRODUCTION
Marketing principles include various strategies to penetrate a product of an organization
into the market. It includes various pricing and promotional strategies that a company is required
to execute at the time of launching new product. It is not necessary that the firm should use
marketing principles to promote its new product in the new market. But also these principles can
be used to promote existing products into the same or new markets (Home, 2015). It also
involves of market segmentation in which the firm selects a particular market on the basis of age,
race, caste etc. Sainsbury's is a UK based public retailing organization. That deals in
hypermarket, forecourt stores, and superstores. Convenience/ forecourt stores and supermarkets
are also some of the important products with which Sainsbury's deals in. It is Public Limited
Organization founded in 1869 in Holborn, London, UK which is also its headquarter in present
time.
Revenue generation of the chosen retail firm is around £23.775 billion. Also somewhere
around 161,100 number of employees are being employed and working in the Sainsbury's retail
organization. Also Sainsbury's Bank Plc, Sainsbury's Supermarkets Ltd., Sainsbury’s
Convenience Stores Ltd, Netto UK (50%) etc are subsidiaries of Sainsbury's Public Limited
Company. It also has two home retail groups names as Argos and Habitat retailer. Sainsbury's is
the second largest supermarket chain in UK and is also listed on London Stock Exchanges
(Sainsbury's, 2016). Here with the help of the report the Sainsbury's is looking forward to
prepare a marketing plan for its new product. New product with which the Sainsbury's will be
coming in the market is Naked Coconut Water. It has been categorized as a chilled fruit juices
and smoothies by the Retail Company.
Report will include various elements of marketing process. Along with that report will
also include various cost and benefits of marketing orientation process of the chosen retail
Company. Afterwards, various micro and macro environmental factors will be discussed in the
report that influence the marketing decisions (Ennew, Watkins and Wright, 2014). Explanation
of how the products are developed in order to sustain the competitive advantage will be given in
the report. Furthermore, various additional elements of marketing mixes will analyzed and
mention in report. At last the report will also include a plan of marketing mixes for two different
segments in the consumer markets. Also, it will illustrate difference between various marketing

products and services in business to business as well as business to consumer markets. Moreover,
difference between domestic and international marketing will also be depicted in the report.
LO1
1.1 Explaining various elements of marketing process
Marketing process can be defined as the sequence of steps in which situation has been
analyzed so that opportunities can be identified. Strategies are to be formulated for value
proposition, tactical decisions are created and the plan is implemented and the desired results are
to be monitored. As per the American Marketing Association (AMA), marketing process is all
about the creating, communicating, delivering, and exchanging offerings which are made for
thew customers and society (Urde, and Koch, 2014). Furthermore, marketing process are to be
made to satisfying the Sainsbury's customer needs and wants as well as to emphasis more on
marketing and customer satisfaction. There are various types of marketing concept which should
be considered in the organization and they are marketing evolution, societal issues and emergent
philosophies, customer and competitor orientation, marketing orientation, efficiency and
effectiveness.
In these all concepts, Sainsbury's has targeted the market orientation in which the
company will know about the customers' expectations and accordingly able to meet the
customers' needs and requirements to satisfied them. On the other hand, there are some
limitations of the marketing concept (Singhapakdi and et.al., 2013). Some disadvantages are it
places too much emphasizes on the satisfaction of consumer needs and wants. Second is not gets
desired cooperation from the other departments. It is difficult for Sainsbury's to determine the
needs and preferences of the target market. There are various elements of marketing process
which are required to be considered while applying this process in the Sainsbury's organization.
This process is implemented to prepare marketing plan for the launch of new product of
company. Various elements are as follows: Marketing Audit: The marketing audit helps the firm in analyzing and evaluating the
B2B marketing strategies, activities, goals and results. This can be carried out through
assembling the overview of Sainsbury's, then describing the marketing goals and
objectives, explaining of the present customers, then strategies are made who to target for
which products and services of Sainsbury's (Shabelnyk, 2014). Next step will be about

the past experiences which should be described, afterwards some competitors will be
identified then communication plan will be made. Its significance is focusing on the
communication of a consistent message to the right customers. It helps Sainsbury's in
re4vealing the new, unknown or neglected markets and assists in making effective
strategies to increase the market share. Integrated Marketing: It can be defined as the marketing strategy which stresses the
importance of a consistent, seamless, multi-dimensional brand experience for the
consumer (Peñaloza, Toulouse and Visconti, 2013). The significance of integrated
marketing in Sainsbury's are helping in the branding techniques, customer need and
behavior identification, product development and delivery, making effective
communication strategies.
 SWOT analysis: This aspect is done for the internal audit of the organizational to analyze
the various marketing aspects. The SWOT of Sainsbury's are as follows:
Table 1: SWOT analysis of Sainsbury's Plc
STRENGTH WEAKNESSES
 High opportunities to develop
business
 Wide growth prospects in the
market
 stable financial position
 strong internal environment
 Lack of sales promotional
strategies
 Low sales turnover
 Limited growth in market segment
OPPORTUNITIES THREATS
 Product development techniques
 Online market segment
 Product and market expansion
 Reducing market sustainability
 Tough trading corporate
environment
 Situational Analysis- It can be defined as a collection of methods which is used by
managers to analyze firm's internal and external environment so that able to understand
the organization's capabilities as well as customers an d business environment. In other
words, Sainsbury's is required to understand and analyze two things comprising of its
capabilities as well as an environment in which it is operating (Kotler, 2012). In order to
analyze capabilities of the Sainsbury's, it is required to analyze various external and

internal environmental factors for the company. So for this, company will analyze its
capabilities or resources through internal tools and for this, Sainsbury's will use the BCG
matrix to know what are their required resources. Along with the analysis of capabilities
and environment the situational analysis should also include present, past and future
aspects of the firm. This element of marketing process also helps in revealing the gap of
what are the actual needs of the customers and what they are actually getting. For
example: if the Sainsbury's has the required budget for its products and services then they
have to make their plans and marketing process in that required budget.
 Marketing Strategies- Marketing Strategies can be defined as the strategy which
combined all the organizational goals to make an effective marketing plan. The
strategies related to the marketing of the products and services mainly focuses on the
customer satisfaction by fulfilling their needs and requirements. It will also helps in the
segmenting, targeting, and positioning of the Sainsbury's products to desired customers
(Peñaloza, Toulouse and Visconti, 2013).
 Marketing Mix Decisions- Marketing mix is the set of four decisions which are to be
made in context to the launching of the new products. These four decisions are about the
product, price, promotion and place. This is another important decision that is to be used
by Sainsbury's to make marketing decisions (Palmer, 2012). It involves Sainsbury's
product development, distribution contracts. It also include pricing decision making
policies and promotional campaign which are used by Sainsbury's for the development of
their marketing plan.
 Implementation and Control- After the final plan has been made and also the product
has been launched in the market. Then the results of above marketing efforts are being
monitored. So that if any changes is required to be made it can be made within time.
Changes have to be made because small change in the needs of customer can affect the
market of Sainsbury at large (East, Wright and Vanhuele, 2013). That is why there is
continuous need of monitoring and adaptation of the changes in the needs and wants of
the consumers. When the marketing plan of Sainsbury's will be execute then after
implementation, controlling will be done. This controlling will be done by taking

feedback from their customers and try to rectify the plan. In this, customers' needs and
requirements will be consistently required for the long term.
1.2 Evaluation of cost and benefits of market orientation
Market orientation is a model that is used by the business enterprise for delivering
products designed according to the consumers’ needs and wants. Also involves in product
functionality as well as product efficiency. In other words market orientation is a process through
which Sainsbury's analyze various needs and demands of its customers.
Sainsbury's may find various benefits out of this process such as:
With the help of market orientation the chosen retail sector company will be able to
analyze the actual needs and demands of its existing as well as new customers, This will not only
help in retaining old customers but will also help in adding new customers (Palmer, 2012).
Although, Sainsbury's provides goods on little higher price than its competitors. But provides
fine and finished quality goods to its customers. This is because of the sound marketing
orientation and strong marketing intelligence system. This will helps in identifying the customers
needs and requirements for the further use. Further it will help in increasing the customers’ base
and loyalty (Kabani, 2013). That will further help in the expansion of company in the UK.
Furthermore, marketing orientation also helps in the building the competitive advantage for
Sainsbury's by offering with unique feature. It also assists in benefiting in the customer
satisfaction which in turn provides the chosen company with more customers, retention of
customers and increase in the profitability of the company. Market orientation helps in analysis
of the actual needs and wants of the consumers and helps in grabbing opportunities which further
help the Sainsbury's in sustaining competitive advantage over its rivals in the market. The other
advantages of marketing orientation are to developed and produce products which not only meet
the customer needs but do so in timely manner (Milligan, Winch and Adams, 2012). It also helps
in promoting the culture of experimentation as well as assists in drive constant improvement in
company processes and systems.
Sainsbury's may also carry cost during market orientation:
Market orientation process leads to incur high cost to the firm. Also takes long period of
time while analyzing the demands of customers while going through the process (Babin and

Zikmund, 2015). Sometimes the risk of underestimating the market and customer arise in market
orientation. Also the Sainsbury's has to respond on the quick market changes. For example,
Constant product modifications are to be done in Sainsbury's which also means ongoing
investment in new equipment and product iterations.
LO 2
2.1 Depicting various micro and macro environmental factors
Sainsbury's plc, implementing PESTLE analysis for the audit of its external
environment (macro factors). Porters' Five Forces model are for internal environment (Micro
factors) and they are as follows:
Porters' Five Forces model of Sainsbury's Plc: Threats of substitute products: The threat of substitutes in the grocery retail market is
considerably low for food items and medium to high for non-food items. For example
Clothing in this substitutes can be Tesco. Threat of entry of new competitors: Here, new competitors into the retail industry is low.
Major brands that have already captured the food retail market are Tesco, Asda and
Sainsbury’s and they account for 80% of all shopping in the UK (Durkin, McKenna and
Cummins, 2012). Intensity of competitive rivalry: In the food and grocery retail industry is extremely high.
Sainsbury's faces intense competition from its direct competitors, including Asda, Tesco
and Waitrose, which are competing with each other over price, products and promotions
intermittently. Bargaining power of buyers: in this, negotiation power of purchaser is fairly low. It has
been proposed that customers are attracted towards the low prices, and with the
availability of online retail shopping, the prices of products are easily compared and thus
selected (Cox, 2016). Bargaining power of suppliers: Here, the bargaining power of suppliers is fairly low. It
should be noted that the suppliers are inclined towards major food and grocery retailers
and dread losing their business contracts with large supermarkets.
PESTLE Analysis of Sainsbury's Plc:

 Political- Before launching a product in market the Sainsbury is required to study various
political policies. That can create issues while the launching of new products in market
(Murphy, Laczniak and Prothero, 2012). The taxation policies can also affects the
markets of Sainsbury's through various government policies. Customer may get a
negative impression because of the investigation going on price fixing as Sainsbury's is
listed in the top four retailers in UK. The UK Government is to reduce corporation tax
rates from 30% to 28%, which will help Sainsbury's, to save large amount of money
(Sainsbury's, 2016). Political risk factor is also one of the factor which can affect the
Sainsbury's market domestically and globally where it is operating.
 Economic – Another factor to be considered is economic factor. Economic factors are
related to the changes taking place in the economies. Changes in economic growth
directly impact the demand of product. Before launching the product in market the
Sainsbury's is required to analyze various economic factors. One is recession period in
which the purchasing power of the consumers are low and they try to avoid to buy
expensive things (Cox, 2016). This will affects the profitability of Sainsbury's. Although
the UK economy was declared officially under recession, the government’s substantial
reduction in interest rates helped to minimize further rises in unemployment.
 Social- Social factors are related to the beliefs and values of the customers and society
whereby the business is operating. Changes in the values may affect the demand of new
product of Sainsbury's. Here, the chosen company has to analyze the customers
expectations and try to make the products and services accordingly to their needs and
requirements. So that they gets fully satisfied from the desired product of Sainsbury's.
(Gresham and Fontenot, 2015). For example, in some countries pork and wine are
prohibited so the Sainsbury's has to make the arrangements accordingly to meet their
customers' expectations.
 Technological- Advancement of technologies helps the firm in attaining competitive
advantage over its competitors in the current market. To attain competitive advantage the
company has to retain advance technologies in its operational departments (Maphorisa
and Jain, 2013). This will help it in increase of productivity as well as will lead to
accuracy. For example, Sainsbury's is using self checkout machines which assists in

increasing customer loyalty as they don't have to wait in long queues sometimes for very
few products.
 Environmental – Environmental factors are one of the key issues these days. Every
company has to ensure that they contribute in reducing carbon footprint and to increase
energy efficiency which means big companies like Sainsbury's would have to invest more
money to sort out Green issues (Madsen and et. al., 2015). With the growing ethical
issues such as selling organic foods and treating animals in a good way may have impacts
on the business of Sainsbury's because they would have to retain their customers
 Legal- This is important aspect to be considered by the Sainsbury's while launching its
new product into the market. Legal factors are related to the various acts and imposition
by the local and national authorities such as Health and Safety Act. For example,
Sainsbury's has to follow these rules and regulations so that they able to maintain
safeguard of their employees. which Sainsbury's has to ensure all the time in its premises
(Abishovna, 2014). Moreover, Sainsbury's is required to produce the products (especially
its new products like Naked Coconut Water) while keeping in mid the health factors of
the customers. The company has to apply various law such as Employment Law in
organization so that the business can runs successfully and legally.
2.2 Proposing a segmenting criteria for products in different markets
There can be various segmenting criteria which can be used by the Sainsbury in different
markets. Such as:
 Behavioral Segmentation- In this market segment different buyers have different
behaviors. For entering in new market of for launching new product in the market. The
Sainsbury's will have to study various behaviors of buyers. Some common used behavior
are Occasions in which groups individuals according to the occasions when they
purchase, use or think of buying a product. Second is Benefits Sought in that groups
individuals according to the benefits they seek from the product. (Dincer and Dincer,
2014). This will further help it in promotional strategies as well as will also get to know
about different segments.
 Benefit Segmentation- Benefiting segmentation can be defined as the market are divided
on the basis of value, benefit or advantage of the consumers in receiving the products and

services. So this segmenting criteria helps in knowing that the all buyers are looking for
the products from which they can gets benefited. (Endraswati and Wahyuni, 2015).
 Demographic Segmentation- In this segmentation criteria the Sainsbury firm will have
to set target of market on the basis of age, sex, family size etc. For example- the
Sainsbury retail firm will have to launch its coconut water on the basis of the age through
etc. Sainsbury's has targeted the age group between the 12 to 19 years because they are
more attracted towards this drink which Sainsbury's is offering to its desired customers
(Kotler, 2012).
 Geographical Segmentation- here the chosen retail firm will have to select segment on
the basis of state, region, nationality etc. This helps in achieving knowledge that how the
customers of different nationality will represent its product (Omari and Elkandoussi,
2013). The region which is mostly dry or have less water (that people) are to be
segmented. Psycho-graphic Segmentation- In this the Sainsbury's is required to select its customers
based on their status, lifestyles etc. Here according to the lifestyles customers are
targeted. Such as health conscious people who gets more attracted to this naked Coconut
water (Kengthon, 2011).
Benefits of Segmentation:
The certain benefits of segmentation is that it helps in focusing of the company's
segments, increase in competitiveness, market segmentation, customer retention, have a better
communication and lastly helps in profitability.
2.3 Selecting a targeting strategy for selected product-services
After the selection of appropriate segmenting strategy another step of Sainsbury's plc is to
select a proper targeting strategy. Differentiated marketing strategy is required to be selected by
the Sainsbury pls for the promotion of its Naked Coconut water product. Various targeting
strategies are as follows:
 Undifferentiated Marketing- Undifferentiated marketing is the mass marketing where
the firm does not target a particular segment. Instead of that its goes with one marketing
strategy for as many people possible (Brown, McDonagh and Shultz, 2012). For
Example- The Sainsbury's while opting undifferentiated marketing will have to prepare a

simple marketing strategy for all people instead of going for multiple number of
strategies for different market. It will go on applying single strategy on whole market.
 Differentiated Marketing– It can be defined as a sales growth strategy in which several
market niches or population segments are targeted with different products for each niche
or segment. In this the firm goes with different marketing strategies to promote its single
product. Example can be taken to make it clear cut for instance to promote its new
product that is Naked coconut water (Durkin, McKenna and Cummins, 2012).
Sainsbury's plc will have to go through various marketing strategies. For example, it will
have to prepare different strategy in case of promoting its coconut water among children
etc.
 Concentrate Marketing- In this the firm has main focus on the one particular segment.
But it does not totally ignore other segments of market. For example- for the promotion
of Naked Coconut Water, Sainsbury's will have to focus on single targets that is for
children And may reduce its prices for particular sector or may add a toy with its to
attract small kids (Chua and Banerjee, 2013). On the other hand, Sainsbury will not
totally ignore its other segments of adults, teenagers etc.
2.4 Demonstrating how buyer behavior affects the marketing activities in different buying
situations
The consumer buying process is a complex matter as many internal and external factors
have an impact on the buying decisions of consumers. There are different dimensions of the
consumers buyers which should be kept in mind while buying nay products and services.
Environment influences and personal variables and motivation are important aspect which can
influences the buyer's behavior (Home, 2015). In addition to this, there are some social features
which are to made accordingly to the customers' attitude and lifestyles because then only they
can purchase it.
Different buyers behave differently in different situation. Some of the buying situations are as
follows:
 Straight Re-buy- This buying situation is the easiest situation in which the buyer is
engage in the routine product. Here the buyer is purchasing its regular products without
any modification. Here the buyer is confident on the product and he does not want any