MS4UK41O - Marketing Principles: Sainsbury's Analysis & Strategy

This report provides a comprehensive analysis of Sainsbury's marketing principles, including an environmental analysis using PESTLE and SWOT frameworks. It identifies the company's current market position, key issues, and the impact of factors like Brexit and changing consumer preferences. The report also summarizes Sainsbury's current situation, including sales growth, market share, and sustainability initiatives. Furthermore, the report develops a marketing strategy based on segmentation, targeting, and positioning, and discusses the use of the marketing mix to improve growth and market share. Recommendations are provided to enhance customer service, human resource management, and research and development activities, ultimately aiming to strengthen Sainsbury's competitive edge in the market. The document is available on Desklib, a platform offering various study tools and resources for students.

MS4UK41O PRINCIPLES
OF MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
Assessment 1 ...................................................................................................................................3
INTRODUCTION AND BACKGROUND....................................................................................3
Environmental analysis ...............................................................................................................3
SWOT Analysis and Secondary data sources..............................................................................4
Conclusion and recommendations...............................................................................................6
ASSESSMENT 2 ............................................................................................................................7
EXECUTIVE SUMMARY ............................................................................................................7
INTRODUCTION ..........................................................................................................................7
Summarizing Current situation of the organization ....................................................................8
Developing marketing strategy ...................................................................................................8
Discussion on use of Marketing Mix to improve growth and market share................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Assessment 1
INTRODUCTION AND BACKGROUND
Principles of marketing are marketing ideas a company may use to developing an
effective strategy fo0r product promotion. The report will undertake the environmental analysis
of Sainsbury's with the use of relevant frameworks and models. It will identify the current
position of the organization in relation to their competitors with the key issues impacting the
organization. This report will be based on Sainsbury’s, which is one of the largest supermarket
chains in the United Kingdom with a high market share in the industry. It offers a wide variety of
high quality food products at various stores all over the country. The company was established in
1869 by John James Sainsbury and his wife Mary Ann as a small shop in London. It started as a
retailer of fresh foods and goods and later it expanded into packaged groceries such as sugar and
tea. The company has a mission to provide great value and convenient shopping experience for
the customers. Its vision if to become the most trusted retailer in the world where people love
top shop and work. This includes treating people in the business and supply chain fairly and
giving equal consideration to everyone associated with the brand.
Environmental analysis
Macro analysis
For conducting the macro analysis of Sainsbury’s, PESTLE analysis has been undertaken:
 Political factors- The political scenario is UK is stable, which will positively impact the
chosen organization. However, owing to Brexit, there is unrest and food and consumer
product shortages (Achinas and et.al., 2019). These may negatively impact Sainsbury for
those products whose raw material is imported from EU.
 Economic factors- Owing to Brexit, the national British income has decreased. This will
further reduce the disposable income of the consumers thus impacting their spending
habits. This impact the organization in a negative manner as its sales may be reduced.
The customers will be spending on the essential goods on priority.
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 Social factors- The consumers have become more health conscious post pandemic. This
will imply that the organization will need to develop more healthy products to improve its
sales. They also want to adopt a sustainable lifestyles which would be reflected in the
food choices. This also needs to be considered by Sainsbury.
 Technological factors- Considering the competitors, industry trends and consumer
demands (Vilardi and et.al., 2020). It is important for the food retailers like Sainsbury to
adopt latest technology for their operations as well as customer service. Sainsbury’s has
opened Just Walkout- powered convenience stores which are called as SmartShop Pick &
Go.
 Legal factors – Sainsbury needs to follow employment and consumer laws in UK. As per
the Consumer Rights Act 2015, the organization has to follow appropriate legal
procedures if any of its products are found to be faulty or if it adopts unfair terms during
its operations.
 Environmental factors- Owing to the current awareness about climate change and carbon
footprint, Sainsbury has to take various steps. It has to ensure that the processes used for
sourcing raw materials and making products are environmentally friendly.
Micro analysis
Product issues
Currently, owing to the uncertainty due to brexit and covid pandemic, Sainsbury may
face issues of reduced product choices for the customers.
Marketing issues
Sainsbury undertakes effective marketing strategies to attract the potential and retain the
existing customers. However, the company faces issues due to robust marketing strategies of the
other giant retailers in the market (Syafril and Hadziq, 2021). Further, it also finds the need to
develop its sales and marketing team to be able to study the behavior of consumers and adopt
suitable marketing tactics.
Management issues
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The management of the company is efficient and has a strong structure which supports
the goals and objectives of the organization. The management ensures that the organization has a
culture which supports employees as much as it supports the customers.
SWOT Analysis and Secondary data sources
SWOT analysis
Strengths
The company has a strong and skilled workforce which supports it in achieving its
objectives. The data collected from the website of the company indicates that it further has a an
open and supportive culture which motivates the employees and encourages them to excel in
their work (Bradford and Boyd, 2020). The internal processes of the company related to
management as well as manufacturing are organized and follow ethical principles. The Company
undertakes ethical sourcing of raw materials which indicates that it is aware and is taking steps to
reduce its carbon footprint.
Weaknesses
The customer service of the company is not as robust and prompt as it should be. It also
needs to train its staff to interact with customers appropriately and solve their queries in a timely
manner. Furthermore, human resource management of the company needs improvement
regarding their recruitment and training and development approaches.
Opportunities
Sainsbury has a number of opportunities owing to the changing customer demands. If it
studies the consumer behavior with precision, it may obtain business ideas about the ways in
which its products can be improved to meet the changing demands of the consumers (Withers
and et.al., 2019). Further, the novel technology options available for the retailers also provide an
opportunity to the organization to transform its method of serving the customers.
Threats
The giant retailers in the market pose threats to Sainsbury. The extensive research and
development conducted by the rivals and their strategies pose threat to the company.
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Secondary sources
Secondary sources provide previously collected information on the research topics. In the
present section, data was collected from various secondary data sources. The prime among them
was the organizational website. It provided information about the internal processes and the
structure of the organization. Further, it provided details about the culture of the organization and
the way it supports the employees.
Further, other sources used were journals and books. From journals, information was
obtained about the opportunities that exist for organizations operating in the food retail industry.
These also provided knowledge about the current scenario of food retail industry and future
trends. With this information, the opportunities existing for Sainsbury could be determined
realistically (Do and et.al., 2021). Further, the information about threats of Sainsbury’s was also
obtained through journals. These contained data about other firms in the food retail industry and
their performance. This helped in gauging the level of threat Sainsbury has from its competitors.
Books were also a reliable secondary source of data as theseprovided data about the food retail
industry as well. These also informedabout the current practices of various other food retailers
and the scenario of the food retail industry.
Conclusion and recommendations
From the report it can be concluded that Sainsbury’s needs to manage micro and macro
factors to successfully perform in the market. There are various giant retailers in the industry
which give tough competition to the organization. Customer service and human resource
management are two areas which are weak in the organization, further, it also faces threat from
the robust research and development activities of the competitors. Thus, the following
recommendations can be provided to Sainsbury’s:
Integration of human resource management (HRM) with organizational goals:
Sainsbury is required to align its human resource activities with its short and long term
goals. The HRM of the organization should be reformed and improved to be able to support the
organization (Racz and et.al., 2018). Human resource department is responsible for providing a
strong workforce to the organization. They also have the responsibility to develop the workforce
and provide the required talent to the company. When the HR department works in alignment
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with the organization, it focuses on acquiring talent that could meet the organization’s need and
make it competitive in the marketplace. Therefore, it is important for the organization to
integrate the HR department with the strategic objectives of the business. Improvement in human
resource activities will help in creating a strong base for the company.
Enhance Customer service
Sainsbury is required to enhance the service it provides to the customers. This
recommendation is justified as customers spread positive word of mouth regarding the
organization which leads to increase in customer base and sales. Moreover, this is the area that is
weak and may make Sainsbury’s less competitive in the industry. The recommendation is further
justified as customers are always looking forward to bring fun in their lives by adopting new
ways of shopping.
Invest in research and development
Sainsbury’s should engage in robust research and development activities to bring
constant improvements in products. The organization should invest in product development and
technology as well. This is required to fulfill its aim of providing best quality products to the
customers at affordable prices. Moreover, with the rise in awareness about sustainability, the
customers are looking to the retailers for products that meet environmental, social as well as
economic concerns (Dost and et.al., 2019). Therefore, it is important for retail organizations like
Sainsbury to develop their existing products and introduce new products in the market to remain
update with these trends. R & D activities would enable the organization to adopt sustainable
approach to food manufacturing as well as packaging thus reducing its carbon footprint. Further,
with research, the organization will be able to create more dynamic experiences for the
customers. Both the in- store as well as the online experience can be enhanced with this.
Bringing innovative products will help in increasing the customer base.
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ASSESSMENT 2
EXECUTIVE SUMMARY
The report will include summarizing the current situation of the organization by using
secondary data as research about the company's important details, developing the strategy of the
company which will be based on segmentation, targeting and positioning of the company in the
market and discussing the use of marketing mix in order to help the organization to improve its
growth and market share.
INTRODUCTION
Sainsbury is a food retailer and considers it a priority to build strong brand heritage. It
further aspires to build a remarkable reputation for range, innovation as well as quality. The
organization considers lowering its prices thereby providing consistent value to its customers.
Currently, Sainsbury has made some bold decisions so that they can provide better services to the
customers. Considering the current scenario of the food retail industry, the organization is also
refocusing on the role of its portfolio brands and making changes to enable them to provide their
best contribution (Harini, 2020). The various brands such as Argos, Nector, Habitat, Tu and
Sainsbury’s bank are all committed to the customers as well as the organization. They make
sustainable efforts and drive the profitable growth to provide support to the core food business.
The chosen food retailer provides assistance to customers in choosing healthy as well as
sustainable diets. It is also committed to adopt better processes for conspiring the environment
and reducing its carbon footprint.
Summarizing Current situation of the organization
Sales and market share
Currently, Sainsbury has grown sales by 120 per cent. This has made the company
capable of fulfilling more than 850000 online orders per day. Significant market share has been
gained by the company. It has now become the second largest online grocery retailer in the UK.
Currently, the organization makes 17 per cent of its grocery sale online (Hockenberry, 2019).
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The company is adapted at pace to Covid 19 and has taken appropriate steps for customer as well
as staff safety. It has been rated the best for customer safety.
Net zero
The company has committed to invest an amount of £1 billion over a time period of 20
years to become a Net Zero business across its own operations. It has implemented a change
programme to focus on reducing the carbon emissions, plastic packaging, food wastage,
recycling etc. The pandemic had a substantial impact on the emissions of the business due to the
increased use of fuel because of online shopping and delivery. The organization also
reintroduced plastic bags for the online grocery orders in order to ensure the safety of its
colleagues and customers. Sainsbury's is committed to develop and deliver sustainable and
healthy food products for all types of consumers (Hopkins and et.al.,, 2020). It has adopted
various methods and practices reducing the contamination and adulteration from the foods which
are being served in the supermarket. This has been achieved by consistently developing and
innovation healthier food products to influence the customer behavior positively. The company
aims to reduce the food wastage by 50% across the whole value chain by 2030 in order to
increase its sustainability.
Developing marketing strategy
Sainsbury can adopt the following marketing strategy which will focus on segmentation,
targeting and positioning:
Segmentation
Sainsbury can adopt differentiated segmentation strategy in which it can have multiple
niches. This will require the company to focus its efforts on 2 or more target which are tightly
defined. The segmentation strategy is determined by a number of factors such as company
resources, product variability, product life cycle, market characteristics and competitive activity
(Putsenteilo, Nyanko and Karpenko, 2018). Sainsbury’s has food products which can be
differentiated. Therefore, differentiated segmentation strategy will work for it. it also has
sufficient resources to undertake this strategy.
Demographic and psychographic segmentation
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Sainsbury can adopt both demographic and psychographic segmentation. In
demographic, it can segment the markets on the basis of age as well as gender. Segmentation on
the basis of age will require four segments comprising of kids, young, adult and elderly. Food
products can be provided on the basis of these segments. Similarly, psychographic segmentation
will require segmenting on the basis of lifestyle. It can provide separate products for active club
going customers as well as those who prefer to be at home.
Targeting
Sainsbury can adopt differentiated marketing strategy using which it can target different
segments and provide separate offers for each. Through segmentation, the organization will
understand the different groups in which the consumers fall. Following it, Sainsbury will respond
differently to different segments (Lim, 2021). It can offer different products for different
segments. In this way, it will be able to target each segment specifically. This will assist in
making the offerings more personalized and focused. However, it would require a wide
understanding of the target market.
Positioning
The organization positions its products to a wider audience than its competitors by
providing the products top all types of customers at best prices. It aims at targeting a more
quality centric market and the pricing strategy of the business includes a medium to high end of
the market. Sainsbury uses this positioning strategy in order to highlight how the organization
creates value for the consumers.
Discussion on use of Marketing Mix to improve growth and market share
Sainsbury’s can use marketing mix in order to analyze the important factors which are
related with promoting the products and services of the company. There are different market
strategies which the company can use to ensure the success of the organization.
Product:
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Under the product strategy of Sainsbury's the organization focuses on quality
management and innovation in its products. It also considers developing new and attractive
products and also enhancing the existing product range.
Price:
The pricing strategy of Sainsbury's explains that the company aims at providing the
customers with value for money products with maintaining high quality to give the customers an
overall good experience. The organization practices a competitive pricing policy to gain market
share for a long term period. It makes an effective use of the price discrimination policy due to
the positioning of the products in order to obtain a premium price in the high end market.
Place:
Sainsbury's has many convenience stores and supermarkets all around the world to
promote and sell its products 24*7 in the industry. The company also offer option alike online
shopping and home delivery for the convenience of customers (Othman and et.al., 2019). Its
distribution channel is wide and the company is consistently entering and expanding into new
markets.
Promotion:
The organization makes a goof use of the above the line and below the line strategies to
promote its products and draw customer retention to build its brand name. It has collaborated
with celebrities to emphasize its sponsorship in the London Paralympic games. Under the ATL,
it uses channels like radio, television and newspapers to communicate its business image and
under BTL, it uses promotions like database marketing and packaging,
People:
The organization has a high quality human resource with well-trained experts and
professionals who are aware of the needs of the customers. At the company, customer are given
then utmost preference and the n new employees are highly trained in order to fulfill the
organizational goals (Lopatin and et.al., 2019). Sainsbury's manages its team in effective way to
improve the quality of the products and services offered to the customers.
Process:
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The organization have developed its online shopping site very convenient for the
customer to easy enjoy the shopping experience. The company is coming with new store formats
and thoughtful locations to attract more and more customers daily to the organization.
Physical Evidence:
The organization has excellent strategy to promote its products using physical evidence
with different store layouts and designs addressing to a variety of needs of the customers. The
improved quality of the trolleys and baskets ensures better shopping experience for the
customers.
CONCLUSION
On the basis of the above report it has been concluded that the organization has benefited
by summarizing its current situation to get an idea of the procedures that are going around in the
business environment. It has developed an effective marketing strategy with rte use of the STP
approach to successfully promote its business to the target market to get effective results. By the
using the marketing mix the organization has been able to improve its market share and achieve
growth in the industry.
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REFERENCES
Journals and Books
Achinas, S. and et.al., 2019. A PESTLE analysis of biofuels energy industry in Europe.
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Bradford, T. W. and Boyd, N. W., 2020. Help me help you! Employing the marketing mix to
alleviate experiences of donor sacrifice. Journal of Marketing. 84(3). pp.68-85.
Do Thi and et.al., 2021. Comparison of Desalination Technologies Using Renewable Energy
Sources with Life Cycle, PESTLE, and Multi-Criteria Decision Analyses. Water.
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Dost, F. and et.al., 2019. Seeding as part of the marketing mix: word-of-mouth program
interactions for fast-moving consumer goods. Journal of Marketing. 83(2). pp.62-81.
Harini, C., 2020. Entrepeneurial Marketing for UMKM: a Literatur Review. Jurnal Mantik. 4(3).
pp.2297-2302.
Hockenberry, T., 2019. Marketing isn't just for products and services. The Journal for Quality
and Participation. 41(4). pp.17-19.
Hopkins, C. and et.al.,, 2020. Self-efficacy, locus of control and engagement as determinants of
grades in a principles of marketing class. Marketing Education Review. 30(4). pp.236-
251.
Lim, W. M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing. 29(5). pp.453-469.
Lopatin, V.A. and et.al., 2019. Increasing the level of STP in information
processing. International Journal of Engineering and Technology Innovation. 8(7).
pp.583-588.
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Othman, B. and et.al., 2019. The influences of service marketing mix on customer loyalty
towards Umrah travel agents: Evidence from Malaysia. Management Science Letters.
9(6). pp.865-876.
Putsenteilo, P. R., Nyanko, V. M. and Karpenko, V. L., 2018. Trajectory of marketing function-
from traditions to innovations. European Journal of Management Issues, 26(3-4),
pp.103-113.
Racz, L. and et.al., 2018. Extensive comparison of biodiesel production alternatives with life
cycle, PESTLE and multi-criteria decision analyses. Clean Technologies and
Environmental Policy. 20(9). pp.2013-2024.
Syafril, S. and Hadziq, M. F., 2021. Islamic Principles in Marketing: An Overview of Islamic
Marketing mix in Social-Media Campaign. El-Qish: Journal of Islamic Economics,
1(1), pp.69-82.
Vilardi, G. and et.al., 2020. Exergy and energy analysis of three biogas upgrading processes.
Energy Conversion and Management, 224, p.113323.
Withers, P.J. and et.al., 2019. A global perspective on integrated strategies to manage soil
phosphorus status for eutrophication control without limiting land productivity. Journal
of environmental quality, 48(5), pp.1234-1246.
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