FY028: Inquiry Based Learning - Sainsbury's Organic Food Report

This report provides a comprehensive analysis of Sainsbury's organic food market within the UK, examining current trends, consumer behavior, and the impact of health consciousness on sales. The study incorporates primary research data, including survey results, to evaluate consumer preferences and the increasing demand for organic products. The report explores the influence of online retailers, artificial intelligence, and globalization on Sainsbury's operations. It also addresses challenges faced by the company and offers strategic recommendations, such as partnerships with organic food producers and enhanced online marketing strategies, to improve market share and revenue. The analysis includes a SWOT analysis and concludes with suggestions for Sainsbury to capitalize on the growing demand for organic food in the UK market. This report is a valuable resource for students studying marketing, business development, and retail management.

FY028 INQUIRY BASED
LEARNING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
ANALYSIS OF PRIMARY RESEARCH......................................................................................5
Secondary sources............................................................................................................................8
RECOMMENDATION...................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1
APPENDICES.................................................................................................................................2

INTRODUCTION
Sainsbury Plc is the second largest supermarket in UK market with almost 16% market
share. It is founded by John James Sainsbury in 1869. They are operating in many segments and
updating their operation of working with new trending in market. The currents trend in market
are in retails industry is providing organic food to consumers which are in high demand in
market. This report includes the latest trends that are adopted by Sainsbury, analysing of current
trends and recommendation for better operating in UK market.
MAIN BODY.
Background
Sainsbury is using the latest trends to attract more customers towards company and
increase the market share of company by fulfilling the demand of consumer. These trends are
emerging in market of retail industry and shows major of companies are using these trends for
better consumer experience.
 Healthy consumers: Nowadays, consumers are more focused on their heath and
consume healthy products. The demand for organic products had rise rapidly in market.
As there are many packed products which are preserve for long period of time may affect
the health of consumers. Organic food products are natural products which are sold
freshly in market that maintain human health and fitness (Rana and Paul, 2020).
Sainsbury can sell this organic food to consumers in large market of UK which is highly
demanded and consumers are not looking for lower price product in this segment. It
increases the company revenue and brand image in market that is adopted by Sainsbury
according to the latest trends and emerging demand of consumers in retail market sector
of UK.
 Impact of online retailers: as world is changing and adopting technology, retail industry
is being adopted by online platforms where selling of goods and service are being directly
sold to consumers. Sainsbury should use there online platforms to sell fresh organic food
directly to consumer. It will increase the life of food as they are directly provided to
consumers from the warehouse. The consumers are spending more time internet and void
the physical store visit for shopping (Dangi, Narula, and Gupta, 2020). This will enhance
company sales by providing organic food through online which save time and cost for
both parties I.e. consumers and company.

 Artificial intelligence and Machine learning: It is high advance technology which
work automatically with the program involved in. It helps company to save time on
certain thinks like customer quires a problem which are arisen and solved online through
artificial intelligence without any human asset involved. Sainsbury can adopt this trend
for selling of organic food products to customers which assist consumers to provide
purchase the food online with less consumption and cost effective offers.
 Globalization of products: the world is leading to globalization where products are being
sold internationally. It is also emerging trend which is used by company to sell there
product at international market too. It increases the market growth of company and
increase the brand image at international level (Nguyen, and et.al., 2021). The demand
for organic food products are increased across the world nowadays. Sainsbury can
increase there market through other countries like India and United States where
demanding of organic food products are being increased very rapidly and consumers are
looking for products without considering the price factor for organic food. The price are
not considering the primary factor in this segment where consumers are looking for
healthy products which are fresh and organic produce with high quality of brand
products.
 Customer centric: As there is trend in online retailers where consumers are looking for
there products through online website or apps, half of the customer are still looking for
retail store where consumers want to purchase from store by looking quality and fresh
organic products which are selling by companies. Salisbury can attract customers through
online and offline where same quality of products are being sold to consumers and major
focus is to meet the demand in market.
However, this market trends are being emerging nowadays, which need to be used by
Sainsbury and help company to increase the market share. It also enhances the growth of
company by using the latest technology which increase the efficiency of working. It helps
Sainsbury to attract more customers towards company by offering demanded product and
generate high revenue from it (Sayği, 2020).
Aim: To investigate the impact of increasing health consciousness in people on the sale of
organic food products in retail sector of UK. A study on Sainsbury.

Objectives:
 To evaluate of current market trends in attribute to health conscious people.
 To analyse reason behind increasing sales of organic food product within UK market.
 Understanding the challenges faced by Sainsbury to provide organic food.
 To recommand some strategies to follow the latest trends.
ANALYSIS OF PRIMARY RESEARCH.
The followings are the graphs of different questions that are asked by respondent to know
their valuable sources of consuming food and to know the influence of organic food demand.
Interpretation 1.
The above graph shows that there are total 30 respondents where 28 respondents said yes that
they are fitness freak and 2 respondents said no and not health conscious. It shows that more of
UK people are converting into fitness and health conscious products which are avoiding the junk
food and other type of food and consuming more of healthy organic food which are very much
important for them to consume (Jeswani, Figueroa-Torres, and Azapagic, 2021). This shows that
more of UK people are focusing on their living style by consuming healthy food and avoid junk
food to remain fit. They are more focus of organic food, diet food, exercise and yoga are the
major factors of maintain the healthy lifestyle of people.
Yes no
0
5
10
15
20
25
30 28
2
Series1

Interpretation 2.
The graph clearly shows that there are 24 people are consuming organic products that they
consume nowadays on regular basis, 4 people said they consume mostly packed food which are
mostly consumed by them in order to maintain their diet. Only 2 people said that they consume
preservative products due to unavailable of products in rural areas. This shows the demand of
organic food had increased in UK market and more consume are shifting themselves from
packed food to organic food to maintain their heath and lifestyle. It shows that increase in
demand of organic food is due to increase in healthy consciousness and living standard healthy
lifestyle (Cummins, and et.al., 2020). The prices are being not considering by consumers to
consume these products as more focus is on major healthy living of life and surroundings.
Packed products
0 5 10 15 20 25
Series1

Interpretation 3.
Further, respondents maintaining there health and good lifestyle with 10 respondents mentioned
that eat healthy stay healthy where they consume mostly diet products and limited access to
products which are consumed fresh and organic products. Whereas, 12 respondents are said that
they consume organic food only for living their healthy lifestyle and maintaining it with
consuming only organic fresh products (Galanakis, and et.al., 2021). Other 4 respondents says
avoid junk food to consume and to maintain healthy lifestyle which are essential part of living
healthy and last 4 respondents said that to maintain lifestyle and health yoga and exercise is
important for consumers to maintain and develop.
10
12
4
4
Eat healthy and stay Healthy
Consume only organic Food
products
Avoid Junk Food
Yoga and Exercise

Interpretation 4.
The above graph shows the preference of consumers to purchase food products. Most of
the consumers are willing to purchase organic food products through online retail store only to
save time and cost of consumer and purchase major of their products through online and shows
12 respondents which are using mostly through online stores. While there are 10 respondents
which mention that they purchase food products through store only by checking the quality and
freshness of products. The organic products are useful only if they are fresh and used. Retail
stores are also visited by respondents which are small in size but also provide with same quality
of organic products and on;y 3 respondents shows interest in other stores where they purchase
organic products through their relatives and friend store or producing their own organic food
products in backyard (Baker, and et.al.,2020).
Hence, above overall interpretation shows that most of the consumers are willing to
purchase more organic products which are consumer by UK people. This shows why consumers
are more demanding organic products in UK market. Sainsbury need to adopt certain changes
which can increase the market share and generate revenue from the same.
Secondary sources
Swot analysis
Online retailers Store visit Retail Shops Other
0
2
4
6
8
10
12
12
10
5
3

Strength Weakness
 The Largest supermarket in UK country
 Well establish business
 High advertising and branding in
market
 Rising food prices in market over the
time leads to increase in prices of
products (de Morais Watanabe,
Alfinito, and Barbirato, 2021).
 High competition with other competitor
like Asda.
Opportunities Threat
 Partnership with companies providing
organic food products
 Expanding food market in other
countries Asia and Africa (Ferreira, and
et.al., 2021).
 Technology used in store for
experience unique system to customers.
 High challenges due to globalization
where other companies are also
providing with same.
 Price factor can affect the business in
near future.
RECOMMENDATION
Although company is well establish and gained high value from customers by providing
goods and service with low price and addressing the demand of consumers in market. There are
some recommendation that can increase the customer base of Sainsbury and meet the demand of
products in market.
 Sainsbury should tie up with more producers who are producing organic food for
providing high quality food products in market and directly selling to consumers without
any channels. The farmers that are being used to produce organic food should be hired by
company directly to produce for them. This will increase the income of farmers and
addition to this Sainsbury can purchase this food products in less cost (Borowski, 2021).
 Online marketing should be used by company in order to attract more customers towards
company products and advertise their products through videos tat shows the quality they
maintain and produce the organic products which are consumed by customers. Also, the

location of stores and process of producing organic food is also promoted by company
that gain trust and loyalty toward company.
 New market should be invested by Sainsbury where the emerging of health consciousness
and organic products are demanding by consumers (Carmona, Griffith, and Aguirre,
2020). It will increase the goodwill of company and increase the revenue generation of
company. New market for Sainsbury are Asia and Africa where people are shifting to
organic food products and prices are not being considered as primary factors for these
types of products.
CONCLUSION
The above report conclude that, retail industry is evolving very frequently and retail
industry like Sainsbury had developed there plans accordingly. The technology factor, heath
consciousness people, artificial intelligence are being followed by company in order to maintain
the operation of company. The data analysis from primary and secondary source showed that UK
market is being emerging in healthy lifestyle and to maintain it, organic food products are
demands by consumers more. While recommands shows that Sainsbury should adopt some
effective strategies that enhance the experience of consumers in organic food products.

REFERENCES
Books and journals
Baker, P., and et.al.,2020. Ultra‐processed foods and the nutrition transition: Global, regional
and national trends, food systems transformations and political economy
drivers. Obesity Reviews. 21(12). p.e13126.
Borowski, P.F., 2021. Innovative Processes in Managing an Enterprise from the Energy and
Food Sector in the Era of Industry 4.0. Processes. 9(2). p.381.
Carmona, I., Griffith, D.M. and Aguirre, I., 2020. Understanding the factors limiting organic
consumption: the effect of marketing channel on produce price, availability, and price
fairness. Organic Agriculture, pp.1-15.
Cummins, S., and et.al., 2020. COVID-19: impact on the urban food retail system and dietary
inequalities in the UK. Cities & Health, pp.1-4.
Dangi, N., Narula, S.A. and Gupta, S.K., 2020. Influences on purchase intentions of organic food
consumers in an emerging economy. Journal of Asia Business Studies.
de Morais Watanabe, E.A., Alfinito, S. and Barbirato, L.L., 2021. Certification label and fresh
organic produce category in an emerging country: an experimental study on consumer
trust and purchase intention. British Food Journal.
Ferreira, G., Tucker, J., Rakola, E. and Skorbiansky, S.R., 2021. Fraud in organic foods. In Food
Fraud (pp. 335-350). Academic Press.
Galanakis, C.M., and et.al., 2021. Innovations and technology disruptions in the food sector
within the COVID-19 pandemic and post-lockdown era. Trends in Food Science &
Technology.
Jeswani, H.K., Figueroa-Torres, G. and Azapagic, A., 2021. The extent of food waste generation
in the UK and its environmental impacts. Sustainable Production and Consumption, 26,
pp.532-547.
Nguyen, H.V., and et.al., 2021. Sustainable food consumption: Investigating organic meat
purchase intention by vietnamese consumers. Sustainability. 13(2). p.953.
Rana, J. and Paul, J., 2020. Health motive and the purchase of organic food: A meta‐analytic
review. International Journal of Consumer Studies. 44(2). pp.162-171.
Sayği, H., 2020. The Latest Situation in Turkey and the World of Organic Agriculture.
1

APPENDICES
Questionnaire
1. Are you a fitness freak?
Yes
No
2. What type of product you consume mostly?
Organic products
Packed products
Preservative products
3. What you prefer to maintain good health?
Eat healthy and stay Healthy
Consume only organic Food products
Avoid Junk Food
Yoga and Exercise
4. How you prefer to purchase organic products?
Online retailers
Store visit
Retail Shops
Other
5. What you recommend staying healthy?
2