Strategic Marketing Plan: Global Expansion of Sainsbury's into India

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Added on  2023/07/07

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This report presents a marketing plan for Sainsbury's expansion into the Indian market. It begins with a company overview of J Sainsbury Plc, highlighting its multi-channel retail operations and financial services. The justification for choosing India as the expansion location is based on its favorable investment climate and sizable middle-class population. A SWOT analysis identifies Sainsbury's strengths (e.g., being a listed company, strong customer feedback), weaknesses (e.g., financial instability, expensive products), opportunities (e.g., growth in villages, global expansion), and threats (e.g., economic shifts, competition). The plan emphasizes localization strategies and target marketing to capitalize on the Indian market potential, focusing on quality-conscious consumers and adapting products, advertising, and pricing. The report also acknowledges challenges such as the Covid-19 pandemic, controversies, and regulatory changes.
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Marketing Plan for Expanding the Global Operations of Sainsbury’s
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Executive Summary
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1. Introduction
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2. Company Overview
J Sainsbury Plc (often known as Sainsbury's) is a multi-channel retailer that sells apparel,
household goods, and groceries (Sainsbury’s, 2023). Under the Sainsbury's, Habitat, and Argos
banners, the corporation runs retail establishments of various forms, including supermarkets and
convenience stores. Additionally, it sells merchandise online. Fruits and vegetables, meat and
fish, dairy, eggs, juice, pet food, baby and toddler products, beer, spirits, wine, and chilled and
frozen food are just a few of the items sold in Sainsbury's stores. Additionally, Sainsbury's offers
a range of financial services, such as credit cards, loans, travel money, and insurance (LinkedIn,
2020). Additionally, it is interested in real estate and property development. The corporation
mostly conducts business in Ireland and the UK. Greater London serves as the headquarters for
Sainsbury's in the UK (Birkin et al. 2002). Tesco Plc, Wm Morrison Supermarkets Ltd, Marks
and Spencer Group plc, Associated Independent Stores Ltd are the main competitors of
Sainsbury’s.
3. The justification for choosing the type of business and the location
India was picked as the best place for Sainsbury's subsidiary because to the favourable
investment climate and sizable middle class population. In terms of the investment climate, India
has the best universal health insurance system, in addition to well-built infrastructure, education
popularisation, and other factors. Sainsbury's will be able to capitalise on its excellent image
through its marketing efforts when it conducts business in India. A localization strategy and a
target marketing strategy may be helpful to take advantage of the potential and minimise the risk.
For instance, Sainsbury's reputation for good quality and competitiveness make it to clearly
differentiate itself from rivals if it focuses on quality-conscious Indian clients. For Sainsbury's to
be successful in India, localization of the items, advertising, and pricing are also crucial.
4. SWOT Analysis
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Strengths Weaknesses Opportunities Threats
A listed company Financial instability Economical shifts Rules and regulations
Unique strategies for
promotion
Switching brands Growth in villages Covid19 pandemic
Great customer
feedbacks
Expensive for some
consumers
Global expansion Globalization
Social media and
online presence
Fewer margins 24*7 services Competitors
Provides every
segment products
Increases in prices Latest trends Controversies
Sainsbury's is one of the companies included in the LSE constituents. People can readily
purchase their shares and trade them whenever they wish because the company is publicly traded
and listed on the stock exchange. Because of its high-quality products and customer relationship
management, the company has been able to draw in a lot of clients and keep them from leaving.
These clients leave behind excellent feedback, which leads to high client satisfaction. The
company's tactics are cutting-edge and may be directly compared to those of its rivals.
Sainsbury's often solicits customer feedback and maintains positive relationships with them on
social media platforms. They have acquired numerous brands. Retailer Sainsbury's offers low-
cost items for the lower-class market and branded, pricey items as well as unique items for the
upper-class market.
In addition to fierce rivalry, there is also a danger posed by online merchants, which causes the
majority of retailers to lose customers. Due to cost increases, the business had to raise the
pricing. The sale prices consequently significantly decreased. Retail brands typically run a lot of
risks when customers switch brands. Sainsbury's has suffered significant financial losses for the
previous two years, which has caused a decline in annual revenue and net profit compared to
2020.
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Self-checkouts Given that Sainsbury's must provide customer service around-the-clock,
automated technology should be implemented. In the UK, Sainsbury's has been successful in
building a fairly extensive network. Today, branded goods are considered essentials in even rural
places. The retailers can expand as a result of this. The corporation is experiencing an economic
upswing and consumer dominance.
The Covid19 pandemic and subsequent global lockdown in 2020 caused a large number of
Sainsbury's outlets in the UK to close. Sainsbury's provides a range of goods across several
categories. Sainsbury's has been involved in a number of problems, including the fixing of dairy
prices, VAT avoidance schemes, environmental and ethical concerns, and many others.
Sainsbury's has suffered a significant setback as a result of the legal requirements and the new
laws. The corporation may also have suffered from the shift in regulatory frameworks and the
introduction of regulations to the organisations.
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References
Sainsbury’s (2023) Annual Report and Financial Statements 2023. Available at:
https://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/documents/reports-and-
presentations/2023/annual-report-2023/annual-report-and-financial-statements-2023.pdf
(Accessed at: 5 July 2023).
LinkedIn (2020) Sainsbury's Bank. Available at: https://www.linkedin.com/company/sainsburys-
bank/about/ (Accessed at: 5 July 2023).
Birkin, M., Clarke, G. and Clarke, M. P. (2002) Retail Geography and Intelligent Network
Planning. New Jersey: Wiley.
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