Sainsbury's: Global Marketing Management for Vegan Food in Japan

This report examines Sainsbury's potential entry into the Japanese market with its vegan food products, utilizing various marketing theories and frameworks to assess market conditions. It employs PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors i...Read More

Global Marketing
Management

Table of Contents
Introduction:.....................................................................................................................................3
Explaining about the marketing theories and frameworks in order to gain information about
market conditions of Japan:........................................................................................................3
Processes and relationships that will need to be managed to implement the new
product/service for the new opportunity ....................................................................................6
Describing the marketing metrics in order to track success rate of new product:......................8
CONCLUSION ...............................................................................................................................9
References......................................................................................................................................10

Introduction:
The term International marketing is based on the performance of business functions
which is directed towards offering goods and services in different countries of globe.. For this
report Sainsbury company is taken into consideration who will tap into Japan Market with its
new vegan food products. In addition to this, the report will explain the relevant marketing
theories that can support the company in gaining insight about market conditions of japan.
Moreover, it will also cover the process for implementing vegan food product in Japanese
market. Furthermore, the report will also include marketing metrics that will assist the company
in assessing its market success.
MAIN BODY
Explaining about the marketing theories and frameworks in order to gain information about
market conditions of Japan:
The application of marketing theories before launching new products in different market
will assist the Sainsbury company to study deeply about the external market forces and their
powers which can impact the operations as well as profitability (Gillespie and Swan, 2021). In
order to assess the external market forces in Japan, the PESTLE business framework is taken into
focus:
PESTLE tool:
This strategic tool is refereed as the main instrument which allows the firm in analysing
the external market forces such as political factors, economical factors and many more. These
forces can strongly influence the market growth strategies of the company. In context to
Sainsbury, the application of this tool will support the company to gain insight about the external
market situations and forces. The following points represents the factors that can impact the
firm's strategy of entering into japan market are:

Political factors:
In context to Sainsbury, the company will enjoy a great level of security in Japanese
market as the country have stable government. In addition to this, the positive relations of UK
and japan government is also a favourable point for the company.
Economical factors:
In context to Sainsbury company, the company can enjoy a greater sales in the japan
market as it has the third largest GDP in the world. In addition to this, the lower rate of
unemployment in the country is also a positive sign as the firm can find talented employee in the
most effective manner. As shown above in the above graph it can be seen that market growth of
vegan food products in increasing in japan.(Iacobucci, 2021).
Social factors:
It includes various social forces like standards of living of the people, cultural values,
tastes and preferences of population and many other factors. In context to Sainsbury, the firm can
effectively increase its market share for its new vegan products as the Japanese people are
changing their preference towards eating plant based foods due to the effects of coronavirus. In
relation to this, the higher standard of living of Japanese people can also help the company in
gaining higher profits.
Technological factors:
These factor covers the technological and innovational trends which can influence the
future operations of the company. In context to Sainsbury, the company can take advantage of
Japanese technologies as the country is seen as one of the most technologically advanced nations

of the world. This can allow the company to use new technologies in order to increase its
operational efficiency.
Legal factors:
The legal factors are the one that includes taxes, legal policies related to labour and
corporate laws and many more (Czinkota and et.al., 2020). In context to Sainsbury, the company
may face difficulty in understanding the tax structure of the japan country as it is too complicated
to understand. In relation to this, the stricter labour as well as corporate laws of the country can
also threat the company operations if it is not able to follow them in right manner.
Environmental factors:
These factors are also known as ecological factors which covers the environmental
protection laws and policies. In relation to Sainsbury, the company must adhere with the laws
and policies of japan regarding conducting eco-friendly operations. Apart from this, the firm
should also perform its business function in the most sustainable manner. This can support the
firm in gaining favourable image towards society members and government.
For understanding the power of the external market players and competition, the Porter
Five Forces model is taken into consideration (Agarwal and Wu, 2018).
Porter Five Forces model:
The usage of this business framework will allow the firm to identify and evaluate the
competitive position as well as profitability within the industry. In context to Sainsbury, this
model will support the company in analysing the impact of market players on its current and
future operation plans in japan market. The following point shows the explanation of Porter's
model elements:
Bargaining power of Buyers:
This element makes an assessment about how easy it will be for buyers to influence the
price levels of the companies products and services. In context to Sainsbury, the power of
customers present in japan market is considered as low to moderate in the country as the
availability of vegan food products is less as compared with the meat products. Hence, the
customers cannot bargain its products.
Bargaining power of suppliers:
This helps the firm to analyse the power of suppliers in driving up the prices of necessary
raw materials (De Mooij, 2019). In context to Sainsbury, the power of supplier in the Japanese

retail industry can be higher as there are less number of suppliers in the Japanese retail market as
well as the cost of switching between different suppliers is also high in the japan country.
Threats of new entrants:
This element of porter five forces states how easy is for new business to enter and
establish successful operations in the industry. In context to Sainsbury, the threat of new entrant
is low in this industry as it requires huge amount of capital to launch entirely new product in the
foreign markets.
Threats of substitute products:
The presence of substitute products in the market is also a threat for the organisation as
the customers can easily switch to products that provide same value but with low price structure.
This can put a great pressure on the market share as well as profitable situation of the company.
In context to Sainsbury, the threat of presence of substitute product is low in Japanese retail
industry as there very less business that sells the same vegan food products that the firm will
offer in the market (Deepak and Jeyakumar, 2019).
Rivalry among existing competitors:
This risk factor is related with the high competition level among different companies
within the industry. In context to Sainsbury, the moderate competition level in the Japanese retail
industry can pose a threat in front of the company operations.
In order to assess the internal strength of the Sainsbury company, the SWOT tool is taken
into consideration:
SWOT tool:
Strengths
 The company used social media
platforms which supports the company
in attracting large number of customers. The company receives great feedbacks
from customers as it delivers high
quality products as well as after sales
services.
Weakness
 The decrease in the price margins is
seen as the major drawbacks for the
firm.
 Some of its items are expensive for the
customers.
Opportunities
 The latest trends of technology in retail
Threats
 The stricter rules and regulations by

sector provides the chance to grab it in
order to improve operational efficiency. The rise in the standards of living is
also the positive sign for gaining high
profits.
legal bodies can hamper its growth
strategies.
 The high rise in competition levels can
also put threat on its profitability.
Segmentation:
The Sainsbury company will segment its customers on the basis of their lifestyle as well
as age. The company will mainly target the customers who belongs in the age group of 30-80
years of age as the customers between these age groups are more health oriented which will
directly support the company in gaining large number of customers.
Value chain analysis:
The Value chain analysis supports the company in analysing the value which the
company is creating for its customers as well as different stakeholders. It can also support the
company in gaining competitive advantage in the market. The following points represents the
primary as well as secondary activities covered in the value chain process:
Primary activities
Inbound logistics:
The Sainsbury company will adopt advanced inventory management techniques which
will support the company to ensure fresh as well as hygienic storage of raw materials.
Operations:
The company will practise effective operational techniques in order to manufacture vegan
food products in the most hygienic manner.
Outbound logistics:
The company will adopt sustainable packaging strategy and will also disclose full
information about the ingredients used. In relation to this, the company will also practise
effective distribution channels.
Marketing as well as sales:
The Sainsbury company will adopt the low pricing strategy as well as will take use of
social media platforms for promoting its new range of vegan products in japan.

After- sales services:
The company will provide after sales service by solving customer issues in the most
effective manner.
Secondary activities
Procurement:
The Sainsbury company will procure high quality ingredients such as vegetables and
spices from the renowned supplies in the japan market. In relation to this, the firm will also
purchase good quality utensils.
Technological development:
The firm will invest in research and development activities which will allow the company
to manufacture vegan food products according to the demands of the customers present in japan
in market.
Human resources management:
The company will employ highly talented and experienced Chef as well as also employ
customer oriented staff members. This will support in greater customer attraction.
Prices of Sainsburry products and services: The pricing strategy of company is basically
based on providing the customers with the value for money and maintains the quality of
producyts and services which ensures about ustomer retention. The price range of Sainsburry’s
products and services ranges such a manner that every class of people can afford it into positive
manner.
Products and services of Sainsburry’s: Their focus is majorly on the great value food and
convenient shopping whether it is on the online basis which is supported by their brands which
includes Argos, Habitat, Nectar and Sainsbury’s Bank.
Channel Partners: Sainsburry’s has partnered themselves with Deliveroo and Uber eats in order
to offer rapid delivery from the combined twenty stores in coming weeks.
Processes and relationships that will need to be managed to implement the new product/service
for the new opportunity
The process which can be used in order to implement new product or service for the new
opportunity in Japan country which can be defined into the following manner. The new product
development process can be used for purpose of new opportunity into the new place. It basically
include seven stages of NPD.

 Stage 1( Generating new product ideas): Companies basically uses different kinds of
sources on the internal and external basis in order to identify new product ideas (Efrat
and et.al., 2017).At the organisational level of Sainsbury's it has been observed that there
are various products who are very amazing which is basically the result of doing mistakes
that actually does not meet out the goals but have an unnintenteded and interesting
application as well.
 Stage 2(Screening product ideas): At this stage, it has been observed that the ideas of
product has been screened out through the process of internal rating.
 Stage 3(Concept development and training): The product concept basically reflects
about the product idea description that shows about the core element of product proposed
(Gherasim and Gherasim., 2017). The prototypes of fast development that can be tested
with main buyers with the help of new tools for tehnology. The testing of concept helps
Sainsburry 's in order to avoid into investing into ideas which are not good and in the
similar way it supports into the context of product ideas which are outstanding.
 Stage 4(Business case analysis): When Sainsburry's has decided to invest into product
development they need to ensure about making sufficient return. It basically include
market opportunity for this product, costs by product life cycle stages, place of fit product
into the portfolio of product, product impact on the brand and in which manner product
impact the other corporate objectives
 Stage 5(Marketing and technical development): The technical product growth of
product is basically about the type of product and it is also about the specifications to
create at the lab phase and equal phase to grow the proccess of manufacturing (Lasserre.,
2017).When development of technical level is under process then then department of
marketing has tested the early product with specified customers in order to find proper
marketing mix.
 Stage 6(Validation and test marketing): It is the last parameter before
commercialisation but the main point is to check all the variables in the marketing which
includes elements of the product. In the actual marketing environment the tested product
has the competition with the existing product. It also enhances the probability of success
of product and also gives permission for final adjustment in the mix of marketing before
the product is introduced on the higher scale.

 Stage 7(Launch): This is the stage here product reahes to the launch stage at commercial
level. The mix of marketing basically for the purpose of introducingg product into the
market. This is the stage which basically talks about the initiation of life cycle of product.
The Sainsbury company will launch its products by taking low pricing strategy into
consideration. This will allow the company in gaining attention of targeted customers in
effective manner. Moreover, the organisation will take support of independent vegan
food dealers for selling its vegan food items in japan country. This will help the company
to take advantage of their set goodwill in the market.
 Stage 8( Evaluation): The final launch does not indicate that it is about the last stage of
role of marketing into context of product (Mudambi and et.al., 2017).After the launch, it
has been observed that the marketer has full data about market about in which manner the
product performs in the outside. This data of market basically initiates the new cycle of
idea generation about adjustments and improvements which can be made to all the
elements of the marketing mix.
At the organisational level of Sainsburry's , when vegan food product has been introduced by the
company to its new country i.e. Japan, they have to follow these steps of new product
development so that results can be achieved according to the desired expectations as well
(Tanasiichuk and et.al., 2019).
Describing the marketing metrics in order to track success rate of new product:
The marketing metrics are defined as the quantifiable measurement tool which allow the
company in defining as well as tracking the success of the newly launched products and services.
(Zaveri and Amin, 2019). The following point shows some marketing metrics that can be used
by the Sainsbury firm which are:
Traffic(paid/organic):
This KPI is applicable on the social media channels as well as website of the company.
This will support the firm in evaluating the number of customers that has visited its website and
their social media channels.
Leads generated:
The successful leads generation of its new products can help the company to effectively
evaluate the future success of the new products.
Market share metrics:

This KPI will allow the company in measuring the penetration as well as its impact on the
sales. The firm can effectively measure its market impact by considering various element such as
revenue earned, its market share as well as its competitive win rate.
Return on investment(ROI):
This particular KPI will allow Sainsbury company to effectively manage and control the
success rate in launching new vegan products by tracking the returns in relation to the investment
amounts.
CONCLUSION
The above stated report concludes that global marketing management is a very broad
concept which needs to be tackled into appropriate manner. It has been concluded that when
company has come up with new product into new market then they have to think into that
particular manner. It has been recommended that company has to follow proper strategy for
entering into new market with their product so that they can achieve their targets into successful
manner. For doing business at the global level, it is very important that proper analysis, research
about that particular country needs to be done into effective manner. So its very important for the
company to do marketing into efficient manner so that company can easily enter into its new
market.

References
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