Marketing Intelligence Report: Marketing Strategies for Sainsbury's

This report provides a comprehensive analysis of Sainsbury's marketing intelligence, examining various aspects of consumer behavior, market research, and strategic planning. It begins by exploring the purchase decision-making process, including the stages involved and the application of buyer behavior theories such as cognitive dissonance and diffusion of innovation. The report then delves into the factors influencing buyer behavior, considering cultural, social, personal, and psychological aspects. Furthermore, it examines the significance of brand loyalty, corporate image, and repeat purchasing. The analysis extends to market research objectives, techniques (qualitative and quantitative), and the use of secondary data sources. It also assesses the validity and reliability of market research findings and outlines a market research plan for Sainsbury's. The report concludes with an evaluation of market trends, competitive analysis, SWOT analysis of new products, and techniques for assessing customer responses, including customer satisfaction surveys.

Marketing Intelligence

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(a) Purchase decisions making process and its main stages........................................................1
(b) Buyers behaviour theory........................................................................................................2
(c) Factors effecting buyer's behaviour ......................................................................................3
(d) Brand loyalty, corporate image and repeat purchasing.........................................................3
TASK 2 ...........................................................................................................................................4
(a) Objectives of market research...............................................................................................4
(b) Market research techniques and their effectiveness .............................................................4
(c) Use of secondary data for achieving market objectives ......................................................5
(d) Validity and reliability of market research findings..............................................................6
(e) Market Research Plan............................................................................................................6
TASK 3............................................................................................................................................7
(a) Assessment of market trends and size...................................................................................7
(b) Competitive analysis plan of organization ...........................................................................7
(c) SWOT analysis of new products and services.......................................................................8
TASK 4 ...........................................................................................................................................9
(a) Techniques for assessing customers responses......................................................................9
(b) Customers satisfactions surveys ...........................................................................................9
(c) Survey review .....................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Consumers and it's behaviour have great impacts on firm's performances. With help of
marketing intelligence company is able to conducting its marketing functions in very well. By
understanding buyers behaviours and decisions making process entity is able to understands
different factors which effected customers. Choose company is Sainsbury's which is second
largest retail company in UK (Bose, 2010). This report make analysis of different types of
factors which effects buyers decisions making process. It's also make analyse of market research
and its objectives in context of the retail company and also includes secondary data for achieving
business objectives. At last this report make analyse of techniques for assessing customer's
responses and make review on that market research which is conduct by entity.
TASK 1
(a) Purchase decisions making process and its main stages
Sainsbury's is the second largest chain of supermarket in UK. Company has 16.9% share
in the retail industry. Entity operates its stores under two formants i.e. supermarkets and
Sainsbury’s local. It also operates its services through online platform (Barrett. and Weinstein,
2015). Organization owns 13 distribution centres for distributing its goods and services. The
company is also affected by the purchase decisions process. Following are main stages of
purchase decision making process.
Problem recognized
It is first stage of buyer decision making process in which customer identifies its need. For
satisfying its need, customers give preferences for buying superior quality products. For
identifying customer’s needs, Sainsbury's conducts market research and develop its products as
per buyer’s preferences (Boikanyo, Lotriet. and Buys, 2016.).
Gather information
Once problems are recognized, customers gather information from different sources. Customers
may use internal search and external search mediums . Internal search includes adverting or
branding and external search includes social media, friends, or family.
Evaluating alternatives

In evaluating the alternative's buyer’s shortlists available resources according to cost,
availability and suitability (Dahl, and et.al., 2016). Customers analyze the alternatives which
give them maximum satisfaction along with low prices.
Purchase decision
Buyers will choose only that products or services which give them maximum level of satisfaction
along with the low prices. Buyers also make purchase decisions for buying a specific product or
service that are offered by the organization.
Post purchase decision
At this stage, customers analyses the products. For evaluating its decisions, they make
comparison between expectations and actual level of satisfactions. If actual satisfaction level is
lower than expectations then customers will not become brand loyal (Das. and Das, 2016).
(b) Buyers behaviour theory
Customers buying behaviour have great impact on Sainsbury and its performance. By
evaluating buyers behaviour, entity is able identify all those factors which can influence the
customers decisions. Following are theories which are used by the retail company for
understanding buyer's behaviour.
Cognitive dissonance theory
As per this theory, there are several Psychological factors which affects the buyer’s
decisions According to this theory, there is always memtal stress in buyers mind when they go
for purchasing a product (Devi and Chandramohan, 2016). Consumer’s decisions are also
effected by its own attitudes and discomfort. Sainsbury consider all those factors which affect
buyer’s decisions and try to reduce dissonance. For eliminating dissonance, entity offers wide
range of products along with low prices.
Diffusion of innovative theory
As per this theory, consumers always give preference to that brand which brings is
innovative and have good attributes. Products life cycle passes through many stages such as
intro, growth, maturity and decline (Gao, 2016.)e. By adding innovation and new ideas in its
products, entity can maximize its commodity's life and maintain long term growth. Sainsbury
always provide innovation in its business. For example, company offers its retail services in two
format i.e. supermarket and local Sanisbury physical store.

The retail company is using Diffusion innovative theory for expanding its business.
Effectiveness of this theory is that it brings innovations in entity's services and develops its
market for long term (Gray, 2016).
(c) Factors effecting buyer's behaviour
There are many uncontrollable factors which affects the buyer's decisions. These factors
cause consumers to develop product and brand preferences. Some strategies are discussed
below.
Cultural
Cultural factors include attitudes or beliefs of individuals. Sainsbury' always develop its
products as per culture of its customers. For example, in Asian countries people prefers to buy
only those products that are available at affordable price range (Harrison, and et.al., 2016). In
those countries, entity offers only low cost products with the international taste.
Social
Social factors include social norms, religion and social status of the buyers. It also
includes individual spending power. For example, in western country people like to buy high
priced or branded products. So for that the retail company can charge high prices for its products.
Personal
It includes individual own life styles and their attitudes. Buyer’s lifestyle, attitude,
perception and its social relations have great impact on entity (Majaro, 2013). For example, if
young people like to buy its products through online than Sanisbury can sell the products through
online mode.
Psychological
This includes different factors such as motivation, perceptions and attitudes. As per this
concept, consumer’s needs should be satisfied and for that buyer consumes products or services.
According to psychological needs, entity develops its market strategy for targeting consumers.
(d) Brand loyalty, corporate image and repeat purchasing
Brand means a product or service which is offered by the company under a particular
name. Brand loyalty means when a consumer is loyal towards a particular product. For buyers, it
is positive feelings and provides higher level of satisfaction for buying products of a particular
brand (Malhotra. and Singh, 2016). Corporate image means identity of the company in front of

their customers and in market. It can also be defined as the behaviour of entity towards its
stakeholders. Repeat purchasing is activity consumers buys a similar product or services.
There is interconnection between brand loyalty, corporate image and repeat purchasing.
Brand loyalty refers to dedication and loyalty of customers for purchasing a specific brand. It
shows desire of customers to buy particular brand (McDonald, 2013). For maintaining brand
loyalty, Sainsbury offers low cost products along with quality so customers do not consider any
other brand. This leads to positive image of entity in buyer’s mind which is called as the
corporate image. lit motivates customers towards repeat purchasing.
TASK 2
(a) Objectives of market research
Market research is a process in which the company gather information about target
audience or the target market. Mainly, there are two types of market research technique i.e.
primary and secondary (Meissner, 2012). Primary market research is conducted by the entity
form fresh sources and secondary market research is the one in which the company takes data
from published sources. The main role of market research is to provide in depth knowledge about
the customers and their opinions about entity's products. From this research, entity is able to
compete with other company which belongs to similar industry. It assists the organization for
analyse things such as market size, competition and market needs. Following are the main
objective of market research which is conducted by Sainsbury.
 Gather information about customers and their preference.
 Evaluate own market strategy and estimate the futures needs of customers.
 Identifying new business opportunities which assist the entity for further development in
future (Paliwoda. and Thomas, 2013).
 It provides various types of valuable data such as market size, new competition and
different types of techniques used by other entity. On the basis of this data, Sainsbury
develop its market strategy.
 Estimated cost of new products.
(b) Market research techniques and their effectiveness
Market research technique assist to market research for gathering information about
market and its potential customers. There are various types of market research techniques which

is used by Sainsbury such as primary, secondary, qualitative and quantitative. Some of them are
discussed below.
Qualitative research
It is kind of primary research. It is used to gain an understanding of reasons, opinions
and motivations of customers for buying entity's products (Papadopoulos. and Heslop, 2014). It
gives in depth knowledge buyers behaviour and factors which highly effect them. Effectiveness
of this market research is that entity able to develop their products as per customer's preference
and their requirements.
Quantitative research
Under this market research entity gather information which is based on numerical data.
Its objectives emphasize on statistical, mathematical or numerical analysis of data. Example of
such types of market research is surveys, site filed and questionnaire (Sigala, Christou, and
Gretzel, 2012.). Effectiveness of this type of market research is that it provide reliable data to
entity for developing its market
(c) Use of secondary data for achieving market objectives
Secondary data are those data which is collected by someone other than user. Main
sources of secondary data is Books, journals and internet. The major benefit of using secondary
data is that it is time and cost effective methods. By using secondary market research Sanisbury
fulfil its market objectives (Valos, And et.al., 2016.).
Market research objectives of Sainsbury
 For gartering information about customers and its preferences
 Determining future needs. Estimated cost of new products.
Secondary market research sources
Government
UK government every year conduct many market research. This research is based on
several factors such as economic factors, buyers behaviours, recent trends in market etc. by using
government data Sanisbury identify its potential customers and develop its market strategy on
the basis of these data (Vincze, 2015). Example of government sources is City Council, Scottish
Parliaments and offices of national statistics.
Media

It includes newspapers, magazines, periodicals. Under this source company get
information about recent marketing activities. This sources gives reliable informations about
market trends and economy positions. Example of such sources BBC, Le Monde and marketing
Week.
(d) Validity and reliability of market research findings
Every year many companies conduct different types of market research for gartering
information about its market size, market trends and other player's which are belongs to similar
industry (SCHOPPE, 2012). However, there are some limitations which apply on market research
findings. For instance of market researchers is not well trained then no valuable informations is
gather. Validity and relatability of market research is based on several factors such as sources of
informations, their survey design and entity's objectives.
Validity of market research findings is concluded that its fulfil business objectives. If
main objective of market research is to identify future needs then market research is valid only
when data which are collected give reliable informations and fulfil business objectives.
Relatability of market research is appear it gives similar nature of results every time. It
appeared when it leads to consist results (STRATEGY . 2017). For relatability of data Sainsbury
use authentic source such as government agencies. This types of data are generally collected by
the professional and skilled employees.
(e) Market Research Plan
Market Research Plan of Sanisbury
Background: Sainsbury is second largest retail company in UK. It covers 16.9% market share
of the retail industry. It main headquarters is in Holborn, London. The company is split into
three divisons supermarkets, bank and Argos (Business strategy and objectives. 2017 ).
Rationale: The main reason for conducting market plan is to make effective use of entity's
online platform and expanding its business through virtual network.
Objective of research: The objective of market research is recognize its precise positions in
market and identify new business opportunities.
Methodology: For conducting market research entity can use secondary data or quantitative
methods. For gathering specific information's entity can also use Survey and questionnaire.

Data Analysis : The exploratory analysis shall be utilized for analysing the data so collectd
Budget: £50 millions are allocated
Time frame: 7 months
TASK 3
(a) Assessment of market trends and size
Market size of Sainsbury's is about 16.9% in supermarket sector and it is second largest
supermarket company in UK . Total revenue of entity is £23.775 billion (2015). Entity offers its
services in many other sector such as Bank, Argos, Home retail group (Bose, 2010). It also owns
online websites which assists to entity for developing its market and serving its products through
internet.
The company is offering its services through online plat form so it can gain more
customers for long term purposes. Market of retail company is growing by 7% every year. Major
benefits of its online business is that company have no geographic limit for its services.
Company operates its stores under two formats: supermarket and Local stores (Barrett. and
Weinstein, 2015). Through it online market organization offers wide range of products over 200
stores. It also offers some other products such as Gift cards, gift vouchers and food token which
add value in its services.
For company there is also hidden opportunities such as add more products in its online
platform and make more easily of transactions on online market (Dahl, and et.al., 2016).
However, there are already many entities which are expanding its business through online market
for that organization need to develop more aggressive marketing strategy.
(b) Competitive analysis plan of organization
Competitive analysis is part of strategic marketing plan. This analysis assist to company
for making its products more useful and advance (Devi and Chandramohan, 2016). This is
unique techniques which is used by company for identifying recent market trends and targeting
customers. It's also helps to Sanisbury for identifying its strengths and weakness.
Competitive Analysis Plan
Competitors: TESCO and Marks & Spencer

Objectives: For expanding its business through online platform
Methodology: Conduct market research by using various types of market research techniques.
The Major competitors of company is Tesco and M&S which gives similar types of
services to its customers (Gao, 2016.). Tesco, for expanding business drop prices of its products
by 30% and also offering its services through its websites. Market share of Tesco is 24% and
also offers its services in UK, Europe and some part of Asian countries. On the other hand
Sanisbury market share is limited to only UK. But the company held large numbers of stores in
UK and offering its services in rural area as well.
(c) SWOT analysis of new products and services
SWOT is stands for strengths, weakness, opportunities and threats. This analysis assist to
company to for expanding its market through online platform (Harrison, and et.al., 2016). This
analysis is also assists to entity for review its presents strategy and determining future needs.
SWOT analysis of Sanisbury 's Online services are as follows.
Strengths  Use diversify investments techniques and have the biggest
distribution network.
 The company provides affordable and wide platform of internet.
 It also owns efficient human resources.
Weakness  Slow speed for expanding its business.
 Limited to only UK (Majaro, 2013).
 Lack of experience in new industry
Opportunities  Expanding its businesses in growing economics
 The company can use Nectar database for identifying potential
customers.
Threats  Retail industry is considers as highly competitive industry.
 NO experience in online businesses.

TASK 4
(a) Techniques for assessing customers responses
Assessment of customers response provides valuable informations to entity. By getting
customers responses Sainsbury can improve its services and make its products more advance.
Following are techniques for assessing customers responses (Malhotra. and Singh, 2016).
Questionnaire
Under this methods company is design a set of questions and ask to customers for giving
reviews on these questions. This question are generally based on entity's products, services an
market performances. Through this technique Sansibury can identify its potential customers and
improves its customers services so they can maintain long term growth.
Online surveys
In this method company use various types of online platform such as Facebook, twitter
and you tube. These online survey gives chance to company for making direct interactions with
its customers and also improves its corporate image (McDonald, 2013). On the basis of
customers responses corporation can improves its services and develop as per need of customers.
However, for this technique entity need to invest signifiant amount.
(b) Customers satisfactions surveys
Customers satisfaction survey is techniques which is used by company for measuring
satisfaction level of consumers ( Valos, And et.al., 2016). Through this survey Sainsbury can
identify its weak area and make further improvements in its services.
Name of Customers.....................................................
Age …...........................................................................
Gender
 Male
 Female
Do you buy products of Sainsbury?
 Yes
 No
Do you make online purchasing?

 Yes
 No
 sometimes
Do you purchases goods from Saninbury?
 Yes
 No
 Sometimes
Which factors affects you most during shopping?
 Quality
 prices
 Design
 All the above
Suggestions......................................................................................................................................
Thank you
By conducting above survey it is clear that there are different types of factors which are
effecting performances of company (Vincze, 2015). After, conducting above questionnaire
entity can identify it weak areas and make correct estimations of customers preferences.
(c) Survey review
By conducting above survey it is clear that Sainsbury is offering value bale services to its
customers. Customer of company is satisfy by its services and products. The company is offering
a wide rage of product to its customers so they gain more customers in market. After, conducting
above surveys it is also considerable that many customers which still like direct purchasing as
compare to online purchasing (Sigala, Christou. and Gretzel, 2012). Customers ask to entity for
developing more advance IT infrastructures so they can make their payments in more secure
way. For the survey it is also considerable that for buyers quality is most important factors along
with low prices.
After conducting above survey company is making improvement in its services so they
can develop market strategy and expand activities (Gao, 2016). For gaining more customer's
loyalty company is drop its prices so they can maintain long term growth.