Marketing & Communications: Sainsbury's Gluten-Free Health Drink

This report provides an analysis of Sainsbury's marketing and communication strategies for introducing a new gluten-free health drink in the UK market. It begins with a product description and market analysis, highlighting the increasing demand for gluten-free products and Sainsbury's existing gluten-free offerings. The report then discusses segmentation, targeting millennial consumers who are health-conscious, and positioning the product across Sainsbury's stores in the UK. The recommended marketing mix includes attractive packaging, penetrative pricing, and digital media promotion using platforms like Instagram, Facebook, Twitter, and Google Ads. The report concludes that launching the gluten-free health drink will help Sainsbury's capitalize on the growing trend of healthy eating habits in the UK, while also noting the competitive landscape and the need for effective marketing strategies. Desklib provides more solved assignments and study resources for students.

MARKETING AND COMMUNICATIONS IN A DIGITAL
WORLD
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Table of Contents
Introduction......................................................................................................................................3
1. Product/Service Description........................................................................................................4
2. Outline Market Analysis..............................................................................................................4
3. Segmentation, Targetting and Positioning...................................................................................5
4. Recommended Marketing Mix (given your analysis above).......................................................5
Conclusion.......................................................................................................................................7
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Introduction
Sainsbury’s is a popular retailer that operates in United Kingdom. They have their headquarters
at London and provide their consumers with all the latest gadgets, groceries and trending
clothing services. The eating habits of UK people are changing at a rapid rate; most of the
citizens are inclined towards healthy food products due to its nutritional values. This assignment
will elaborate the details regarding the gluten free products that are sold by Sainsbury’s. The
benefits of gluten free substances, their impact on the UK market, their popularity, demand and
other such factors will be covered in a detailed manner.
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1. Product/Service Description
People suffering from celiac disease are more inclined towards gluten free food because when
their immune system reacts to gluten it results in damaging the lining of their intestine. Apart
from those individuals, most of the health conscious individual in UK prefers to eat gluten free
products. Some individuals like the taste of gluten free products and thus, are increasing the
consumption of gluten free products. According to survey of Statista.com, (2018), 43% of
individuals stated that gluten is healthy for their health conditions. Sainsbury’s is well aware
about increasing demand of gluten free services and thus provides their consumer with gluten
free pasta, rice, bread, noodle, cheese, four and many more items. Sainsbury’s is well aware
regarding the healthy eating habits increasing in the people of United Kingdom they are
introducing a new gluten free health drink for their consumers with a variety of flavours such as
strawberry chocolate, vanilla and more.
2. Outline Market Analysis
Sainsbury’s will be introducing gluten free drinks in UK, as the consumption of gluten free
substance is very high in the UK market. Citizens desire for healthy food products have assisted
in increasing the sale of gluten free products. Global sales of gluten- free product increased to
4% in the year 2016, generating a revue of around $ 3.5bn. As per the publication of
Thegrocer.co.uk, (2018), UK witnessed a rise of 40% sale in gluten free products that assisted in
generating revenue of around £230m in the year 2017. These figures indicate that in the coming
future, demand for gluten free products are expected to increase in UK. As per the publications
of BBC News, (2018), it was revealed that 5% of the population in UK was required to avoid
gluten and other dairy substance due to medical reasons. However, it was observed that around
54% of household in UK joined the trend of gluten free diet paving the way for increase in sale
of gluten free products. Thus, launching the new gluten free health drink in UK will help
Sainsbury’s in earning maximum revenue. However, Sainsbury’s will be facing significant
competition from rival companies’ such as Tesco, Asda, Marks and Spencer and more. They are
also dedicated towards introducing new gluten free products so that they are able to attract
healthy conscious competitors towards their firm.
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3. Segmentation, Targetting and Positioning
Segmentation: The management of Sainsbury’s will use demographic segmentation in order to
segment their consumers for their new gluten free health drinks. In UK, most of the young
generations are attracted towards gluten free products, as they are more heath conscious. Thus,
arranging their target segment based on their age will allow the management to enhance the sale
of their new drink (Sharma, 2015).
Target: The management of the organization will be targeting most of the millennial generation
consumers. This generation is more into health and fitness and is always searching for methods
that will help them in maintain their physical fitness along with nutritional values. This drink will
be providing them all the health benefits avoiding gluten.
Positioning: Sainsbury’s is a well-known brand in UK, it is introducing new health drink and for
that purpose, they will be positioning their product all across UK in all their stores and
supermarket. This will assist them in reaching out to maximum individuals. People residing in
any part of UK will have access to the drink and will help in increasing the sale of their services.
4. Recommended Marketing Mix (given your analysis above)
Product: The drink will be introduced in attractive tin cans so that it can easily be carried
anywhere. Apart from that carton, packets of the drinks will also be available for small amount
and glass bottles for a large volume. This will provide the consumers with options of selecting as
per their requirements. All the containers will bear the brand symbol of Sainsbury’s so that it will
help in increasing the brand image of the company.
Pricing Strategy: The management of the organization will be using penetrative pricing strategy
and will set the price as per the quantity of the drink. They will ensure that the quality of the
drink is able to provide value for money (Spann et al., 2014). They will also try to offer certain
offers such as buy one get one in order to attract consumers and create awareness.
Promotional Strategy including Digital Media: The Company will advertise about their drink
with the help of digital media using internet and popular platforms such as Instagram, Facebook,
Twitter and Google ads. This will allow them in reaching to maximum consumers (Bleier and
Eisenbeiss, 2015).
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Place: The product will be available at the stores so that people can have access to it. They will
also using shipment method in order to deliver the product to their online consumers.
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Conclusion
This assignment helps in understanding the current trends of gluten free products in UK. Leading
firms such as Sainsbury’s are introducing new products such as the gluten free health drink for
their consumers. The various methods that should be considered by the company before
launching the product have been stated in this project. The company will be utilizing the
demographic segmentation method in order to target millennial generation so that they are able
to enhance their sales. The health drink will be beneficial for people that have medical issues and
are unable to consume gluten or other dairy products. This will also help in improving the health
of people in UK.
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Reference List
BBC News. (2018). More than half buy 'free from' products. [online] Available at:
https://www.bbc.com/news/business-39488047 [Accessed 15 Jun. 2018].
Bleier, A. and Eisenbeiss, M., 2015. The importance of trust for personalized online
advertising. Journal of Retailing, 91(3), pp.390-409.
Sharma, N., 2015. A study on segmentation of online shoppers of Anand and Nadiad: A
behavioural segmentation approach. International Journal of Marketing and Technology, 5(10),
pp.159-171.
Spann, M., Fischer, M. and Tellis, G.J., 2014. Skimming or penetration? Strategic dynamic
pricing for new products. Marketing Science, 34(2), pp.235-249.
Statista.com (2018). Consumer satisfaction with gluten-free 2015 | UK Survey. [online] Statista.
Available at: https://www.statista.com/statistics/664080/consumer-satisfaction-with-gluten-free-
united-kingdom-uk/), [Accessed 15 Jun. 2018].
Thegrocer.co.uk. (2018). Revealed: How free-from sales surged by a whopping £230m. [online]
Available at: https://www.thegrocer.co.uk/reports/digital-features/free-from-report-2017/
revealed-how-free-from-sales-surged-by-a-whopping-230m/556516.article [Accessed 15 Jun.
2018].
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