Sainsbury's: Marketing Strategies for Business Expansion in China

This report analyzes Sainsbury's marketing plan for expanding its business into the Chinese market. It begins with an introduction to the company and the need for a strategic marketing approach. The core of the report focuses on the marketing mix (product, price, place, promotion, and people) and how Sainsbury's plans to adapt these elements to the Chinese market. The product section discusses the selection of suitable items, such as skincare products, fresh produce, and seafood, tailored to Chinese consumer preferences. The pricing strategy emphasizes competitive pricing to attract customers. The place strategy involves opening stores in urban locations. Promotion strategies include a mix of BTL and ATL methods, as well as direct selling. The report also addresses the importance of recruiting and training employees with the right skills and cultural awareness. The conclusion emphasizes the need for effective implementation of the marketing mix to achieve successful business expansion and profitability in China, referencing relevant academic resources.

Individuals in Society

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Every business organisation is required to deliver their products and services for
expansion. It requires an appropriate marketing strategy for establishing the business in new
market. Present assignment is based on Sainsbury, which is a renowned retailer of UK and offer
its services worldwide. This report will explain marketing plan and strategies used by Sainsbury
in order to expand their business in Chinese market (Argyris, 2017). In relation with this, it will
discuss about choosing relevant products and services which delivered in China. Further, this
report is going to describe about pricing strategy, various modes of promotion and at last
recruitment of right candidates for executing the plan.
TASK
Marketing plan is considered as the written document or blueprint which is emphasize on
marketing strategies and advertisement for upcoming year. It also elaborates various activities
which are required by business firm to accomplishing in the given time period. In order to
prepare a marketing plan, this is fundamental to conduct proper marketing mix of an
organisation.
Marketing mix is considered combination of marketing tools which are used by
organisation in order to achieve its targeted objectives. Marketing mix is essential for marketing
plan as it helps supports organisation in attaining targeted goals for growth. Here is discussed of
marketing mix of Sainsbury to develop proper marketing strategy which includes various factors
which are evaluated as below:
Product: Sainsbury offers various products and services in its retail stores in many
countries. Its product range includes variety of fruits, vegetable, dairy products, bakery items,
health and personal care, household and kitchen appliances etc. Manager of this organisation is
planning to expand the business in Chinese market with the motive of growth and higher earning
of profit. For this, top management of Sainsbury have finalised that they will introduce skincare
products, fresh vegetable and fruits, seafood, packed organic food, variety of juice and some
natural products in Chinese market. As it will help the organisation in grabbing attention of new
customers of China (Perkins, 2015). According to the Chinese culture, its citizen are mostly
attracted with natural skin care product and seafood which will help the organisation in
establishing their business at new market place. Along with this, Sainsbury can also add trendy
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clothes of different cultures in their retail store of china for attaining popularity in Chinese
market.
(Source: 5 Ps of marketing mix, 2018)
Price: Pricing strategy of Sainsbury emphasize on providing the customer value for
money product. Top management of this organisation believes in providing quality products and
services to customers which support the firm in retaining customers for long term. In relation to
this strategy, products and services are of moderate and affordable price which helps the
customers of every range to fulfil their needs and requirement (Bowen, 2018). Management of
Sainsbury have used penetration pricing strategy in order to enter into Chinese market. This
strategy emphasize on providing products and services at low cost in new market for attracting
maximum number of customers of the China. In relation to this, store manager of Sainsbury have
finalised $3.27/kg for seafood which is considered as the reasonable price for the customers of
China. Along with this, it is considered as the responsibility of store manager to maintain quality
of the products and services for developing its brand name in new market place (Furqani, 2015).
Place: Sainsbury is UK based retailer which offers its products and services in many
countries by opening huge number of stores on different locations. It has around 608
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Illustration 1: 5 Ps of marketing mix

supermarkets and 803 convenience shops. As the organisation owns huge number of stores on
various location which helps the customers in buying products from their nearby stores and
makes their shopping experience convenient to them. In context to Chinese market, it
management have planned to open around 25 stores at initial phase. Further they are planning to
expand its number on the performance based result which will help them to grow business and
profitability of the firm. Manager of the organisation have evaluated urban market places of the
country and planned to locate their stores at crowded places. Sainsbury organise its stock by
collecting and organising products and goods for future so that if demands increases company
can sell out the same as per the needs and wants of consumers. It has both good and bad factor
like: in relation with good factor: it will be helpful in delivering commodities according to
demands and in terms of bad factor: if new and innovative products evolved than old
commodities will be of no use.
Promotion: Sainsbury is using BTL and ATL strategy to promote its products and
services at market place in order to attract massive population. In relation to this, marketing
manager of this organisation is using various modes of advertisement like radio jingles, TV ads,
billboards, newspaper, pamphlet, leaflets etc. to promote their products. In addition to this, many
promotional activities like sponsorship in popular events is opted to build the brand image and
enhance its recognition at customers mind-set. In context to expansion in Chinese market, its top
management is now focussing on using appropriate mode of promotion which attracts targeted
audience by spreading awareness to them about the present offering at stores. Management of
Sainsbury have also opted direct selling strategy to enter into Chinese market. In this, several
distributors are chosen by the firm to sell their products in Chinese Market directly (MARKET
ENTRY STRATEGIES, 2017). These distributors are considered as the face of Sainsbury who
delivers the product to numerous customers in their own manner. It will help this organisation to
increase the number of customers. In order to promote products and services, marketing manager
are using advertisement to spread awareness about their products at marketplace.
People: Sainsbury majorly prioritize to its customers and their satisfaction level. In order
to improve their satisfaction level, store managers are conducting training and development
sessions that will develop skills of the employees. According to expansion plan, top management
have Sainsbury have modified there recruiting strategies for the purpose hiring employees with
specific skills and knowledge which are essential for new stores. Human resource manager of
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Sainsbury will recruit employee on some specific qualities like effective communication skill,
high influential personality and capability to provide customers according to their requirement
(Cooley, 2017). These are essential for every employee of Sainsbury as they have to interact with
the customers and represents firms brand name. Apart from this, employees of production
department are getting several training sessions in order to enhance their skill which help them in
making creative products. In addition to this training session will also improve the basic skills of
the employees that is communication and personality which are beneficial for the employees for
long term.
People of United Kingdom and China are relatively different in terms of their work, both
varies in management style like UK practices democratic and participatory management style
whereas managers in an organisation of China are paternity and authoritative. In addition to this,
people of United Kingdom believes in qualitative work as they are much educated because of
which hiring them for a particular job is difficult whereas people of China prefer to work at low
cost.
From the above above mentioned marketing strategies it has been evaluated that
management of Sainsbury can establish its successful business in Chinese market by using
appropriate marketing mix.
CONCLUSION
From the above mentioned report it has been concluded that expansion is necessary for
every organisation for its growth. This report has elaborated various marketing strategies used by
an organisational to expand their business in Chinese market. It is essential for the manager of
firm to prepare appropriate marketing strategy in order to promote their products and services at
marketplace. Through the assistance of marketing mix i.e. product, price, promotion, place and
people. By using all the P's in effective manner, an organisation can expand its business in China
with huge profitability in future.
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REFERENCES
Books and Journals
Argyris, C., 2017. Integrating the Individual and the Organization. Routledge.
Bowen, H., 2018. Investment in learning: The individual and social value of American higher
education. Routledge.
Bowring, F., 2016. The individual and society in Durkheim: Unpicking the contradictions.
European Journal of Social Theory. 19(1). pp.21-38.
Cooley, C. H., 2017. Human nature and the social order. Routledge.
Furqani, H., 2015. Individual and society in an Islamic ethical framework: Exploring key
terminologies and the micro-foundations of Islamic economics. Humanomics. 31(1).
pp.74-87.
Perkins, M. L., 2015. Jean-Jacques Rousseau: On The Individual and Society. University Press
of Kentucky.
Sanford, N., 2017. Self and society: Social change and individual development. Routledge.
Smith, M. P., and et. al., 2015. ACR Appropriateness Criteria® right lower quadrant pain—
suspected appendicitis. Ultrasound quarterly. 31(2). pp.85-91.
Online
MARKET ENTRY STRATEGIES. 2017. [Online]. Available
through:<http://www.tradestart.ca/market-entry-strategies>.
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