Market Evaluation and Strategic Planning for Sainsbury's: A Report

This report provides a comprehensive analysis of Sainsbury's business strategies, market evaluation, and strategic planning. It begins with an executive summary and introduction, followed by a business situation analysis that introduces the brand's history, mission, vision, products, and services. Customer analysis is conducted, along with an examination of the current business operating structure. The report then applies various analytical frameworks, including SWOT, PESTLE, Ansoff matrix, Porter's five forces, and Porter's generic strategies, to assess the company's internal and external environments and competitive position. The report concludes with recommendations based on the findings and analysis. The research relies on secondary data from company websites, books, and journals to develop skills and knowledge about business strategies.

BUSINESS STRATEGY

Executive summary
This report summarize about the business strategies in Sainsbury that help company for making
their market position in keeping mind about strategies. This report furthermore brief about the
various matrix and macro as well micro environment along with various strategies'. Sainsbury
also knows more about various strategies in which they are working for growth in market.
Table of Contents

INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Business situation analysis...............................................................................................................4
Introducing to the brand history, mission, vision, products and services....................................4
Customer analysis........................................................................................................................5
Current business operating structure ...........................................................................................5
SWOT analysis............................................................................................................................6
PESTLE analysis ........................................................................................................................7
ANSOFF matrix...........................................................................................................................8
Porter's five force model..............................................................................................................9
Porter generic strategies.............................................................................................................10
CONCLUSION..............................................................................................................................11
Recommendations......................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy in organization involves the implementation, formulation of goals and
initiatives while taken by on the behalf of stakeholder, consideration of resources, assessing
internal and external environment in which they basically operate. The main purpose of report
for introducing brand history, customer analysis, current business analysis operating structure,
internal and external environment along with this Ansoff matrix. This report also explain about
the strategies including porters five forces and porter generic models. The research have been
conducted secondary and information being collected from organization websites, books,
journals and many other offline sources. Main objective for conducting this research that could
help in developing skills and knowledge along with this make more understand about various
business strategies that are more important for companies.
MAIN BODY
Business situation analysis
Introducing to the brand history, mission, vision, products and services
Sainsbury company was established as partnership and John's wife has opened the store
in London. Sainsbury has started with retailing with fresh food and later they have expanded
with stores into packaged goods groceries including tea and sugar. Company has divided into
three dimensions such as Sainsbury supermarket, Bank and Argos. Mainly Sainsbury have
various types of products and services such as cloths, groceries, beauty products and other
personal products.
Business life cycle:
As being in 1869 Sainsbury started business with small stores having only fresh foods
only in London and not having enough stores in various other countries (Yuan and et.al., 2020).
As they earned more profits business runs up they have set up the business more and across the
countries and expanded business products including various groceries products.
Mission:
To become consumer first choice for food, delivering products of outstanding quality and
provide services at competitive costs through working faster, simply and together (Yuliansyah,
Gurd and Mohamed, 2017).
Vision:

Delivering with improving quality of goods and services to consumer and making great
experience for customer. To exceed customer expectations for safe, health and tasty food along
with this making their lives easier every day.
Customer analysis
Segmentation for Sainsbury as they developed across the various countries and opened
stores with different products and services that could easily satisfy customer (Holotiuk and
Beimborn, 2017). Demographic segments as they have main aim to satisfied 20-50 group ages,
all levels of religions. Geographic expanded business in various cities, countries and developing
business online through which they can take more customer advantage. Furthermore, their main
aim to satisfied their customer needs and wants. Values and lifestyle caring about their customer
and developed being products according to changing trends in market in which they feel that
company can have more benefits and make them more stable in developing with various
countries. People use many products and services as they rating at third place in market. In
Covid-19 they help more people through providing services online such as food and some other
accessors products which are more essential to their customers. Mainly people get motivated by
their beauty products and fresh foods that make them more motivated in using their products
because peoples think that they are more satisfaction. Apart from this pricing and quality are
being more maintained in online as well on offline stores. They also provide seasonal discounts,
offers and customer loyalty cards in which they are members of stores.
Current business operating structure
Key partners of Sainsbury are Habitat, Argos which are partner through which they can
develop business, and they can easily make market position with having some business
strategies. Key activities in Sainsbury of sharing funds in detailed for their projects and the
Sorwathe Tea Plantation with Sainsbury fairly traded advisory broad. Sainsbury focusing on key
resources such as offering products on reasonable prices along with quality and also convincing
customer for shopping from different stores. Value proposition more important for products
developments therefore being more competitive, and they need to make more strategies through
which they can easily solve the problem while in working area of business. In solving issues and
making brand identity that might be caused to business losses (Harris, 2017). Sainsbury keeps
long term, transactional and co-creation customer relation that could have enough products and
services more well-developed in which they can simply purchase products and gets more

benefits. Distribution channels used by Sainsbury such as offering home delivery and order can
be placed online while by using companies websites and phone calls. Customer segments of
Sainsbury being make main targets to upper class people who love using luxurious products and
basically more having segments in markets according to psycho-graphic variables. Cost structure
in Sainsbury has being more developed along with this they make company products with using
various types of costing with their different pricing strategies along with this they can easily
make products and services more valuable in market. Revenue streams of Sainsbury from
selling products and endorsement in the company.
SWOT analysis
Sainsbury company developed them across various countries and sells different products
and services (Chang and Ho, 2017). The retail stores of the company have wide variety of range
such as fish, groceries, meat, bakery, chilled and many other products. Here are the macro and
micro environment analysis for organization are followed:
Strength:-
The customer in Sainsbury have been increased through conducting business online or
offline. Financial services that must be included in business and has n number of wholesale
banking services as well as retails banking services. Global expansion has made them more
developed as they are working in many others developed countries. Sainsbury are more able to
attract more customer from all income segments who are brand loyal along with that usually
depend on retailing products. Customer are more satisfied with products whether they are
operating business globally or domestic through which they can make teir business online for
providing the best services to consumer. The supermarket chain has become top-level of supply
chain with brand identity in the country.
Weaknesses:-
Retailing sector such as Sainsbury facing many problems of risk from switching one
brands to another (Gürel and Tat, 2017). Globally working company has more increasing
competition and added more risk to online business services. In order to attract more customer
company have cut down pricing strategies in variety of products and services. Technologies have
more supportive in self-services of company as well as sales people, educated, multi level
parking etc.
Opportunities:-

In today time many of people are moving towards brands products and services. This
advantage have been taken by Sainsbury for using various products with using categories as must
be even in villages as well. The have their growth in supplying goods and services to various
stores and started their business in setting up online business for being their more developments
along with this they resulted in growth of supermarket even in the remote of opportunities for
retailing sectors.
Threat:-
Increasing globalization, presents that could be the challenges for Sainsbury as well as
opportunities for them (Teoli and An, 2019). For reducing competition they have to use the best
quality of products and services for loyal customer and making them feel about using more
products at working area through countries they are operating.
PESTLE analysis
PESTLE analysis framework being more imperative for the company such as Sainsbury,
as this helps in understanding market dynamics and try to improve business. Here are external
analysis of Sainsbury:
Political:-
Sainsbury mainly operates in UK as being there are more affected by economic shut
down in the nation. Political factor have affected them more inflation rate that goes high after
UK exists and currency hits all the time further this could be decline in customer expenditure.
Hence, depreciating grocery store sales in U.K. Although it being aspect like the effects will be
brief term in quality.
Economic:-
While inflation rate is getting high and income growth being remaining the same with
low rate. Hence, the demand of purchasing products and services has decreased. In pandemic
many people have become jobless and some do not have money to spend on luxurious products
this could make the Sainsbury being more affected by economic factor in environment (Perera,
2017). Investing in good countries can also lead in freedom for good option in Sainsbury and
also observes in that more revenue growth in freedom economic of countries.
Social:-
Today's customer are more aspires to shop from market such as Sainsbury than shop to
local retail shops because many customers is preferred to take away the best consumer goods and

services. In world 60% of think about their good products so that could also led them for having
their better customer and also have their high level of satisfaction. More and more customer are
trends to buy their products and services what the market trends running, and they basically buy
products as per given discounts and offers.
Technological:-
Sainsbury are more able to use the latest technologies for working and make market
position. Sainsbury has come up with one option and selling products online. Progression in the
technology can decrement the overall value in industry of the product.
Legal:-
The company more needs to modified them with some new taxes and also save money.
Rules for Sainsbury were let down so sales promoting activities in the company have been
reduced along with that customer in stores have been also reduced (Christodoulou and Cullinane,
2019). It is also more important in getting approval from regulatory in business and also for
products in stores.
Environment:-
In present time across the worlds people and government have become more eco-
friendly. As they are preferred for using eco-friendly products such as recycling etc. Sainsbury
actually support to sustainability goals and achieved while working with them in completing
their goals.
ANSOFF matrix
Market penetration:-
Sainsbury decreases pricing to attract newer customer, increasing distribution and
promotion efforts. Company also acquired more competitors in the same marketplace of their
organization.
Products developments:-
Sainsbury has produced new products into existing market and typically involves more
research and development for working with more business strategies (Schawel and Billing,
2018). The products developing strategies is workforce for meeting in understanding their strong
current market situation and provide some innovative solutions to meet with existing marketing.
Market developments:-

Organization new products being developed into existing market which means for
expanding business into new geographic segments along with this making new customer.
Consumer behaviour in market being do no deviate far from different customer in existing
marketing. Sainsbury creating a different segment for its customer moreover entering into new
domestic market.
Diversification:-
Sainsbury developing their new products into new market with having some business
strategies and that could be more risk for both market and products developments are to be
required (Tsatsoula, 2018). Their offers the greatest new revenue streams to organization and
accesses company more to spend in market so that company could not suffer like at previously.
Strategic Positions
Porter's five force model
Competition in the industry:-
The first porter model is competition in the industry which means there are various
number of competitors in the market and largest number of companies are working together for
having equivalents in products and services. Sainsbury has huge amount of suppliers and buyer
for seeking out competitors that could be more able to have better deal or low prices. When they
have competitive low, Sainsbury has greater power to charge its higher prices and set the
targeted for achieving goals.
New entrants into industry:-
Sainsbury has more power for entrant into new market. The less time and money for
competitors to enter in to market and be more in effective manner. Sainsbury might be had
strong barriers in dealing with any competitions in market with higher price and negotiate better
terms.
Power of suppliers:-
It is affected by the number of suppliers of inputs in products and services. They should
be something unique and how much costs to its company for switching to another suppliers
(Stindt and et.al., 2017). Sainsbury more power supply or low cost between supplying company
keeps cost lower and make huge amount of profits.
Power of customer:-

It will be affected by how many buyers and customer are known to company. This might
be more important for Sainsbury to know more about customer importance and markets outputs.
It means that customer has much power for negotiate lower prices and better deals. A company
customer will have an easier time charging higher price for increasing profitability.
Threat of substitutes:-
Substitutes goods and products that could place the company goods for posing heir threat
in industry. Sainsbury produce more goods and services for which there are no closes to
substitutes in locking with increasing power in favourable terms.
Porter generic strategies
Cost leadership:-
Sainsbury company have set up its goals along with their low cost products. The main
sources of cost advantages that could help organization for having more developments and can
easily make them more market position. They can must include technology, raw material and
various other sources of cost advantage. If Sainsbury can achieve and sustain overall cost
leadership that will be average performer in companies, provided that can be command on prices
and near to industry.
Differentiation:-
In this strategies they make its own products with some unique and widely make brand
value by buyers. Sainsbury need to make more strategies so that could make their products and
services different from some other companies products and that have basically loyal customer
cards. It means that they can make profits and huge amount of publicity in brands. They are also
operating business with having more products and developing customer is more important in
kind of meeting with needs to be required.
Differentiation focus strategies:-
This seems to be target segments either they are buying with usual needs and Sainsbury
making products with having some different prices along with that which could make them more
working in products growth (Anastasiu, Gavriş and Maier, 2020). Delivery system of products
and services serves the target segments and must differ from them to some other industry
segments.
Cost focus strategies:-

Sainsbury seeks it is had more advantage in developing goals and objective. Cost can be make in
such kind that it could be with company for having more profits and developing more products
which could keep them maintained with high market place (Islami, Mustafa and Latkovikj,
2020). Target segments should be specific through which they an easily set up its target and cost
in which area they go to make customer satisfaction.
Organization chart moving forwards of how they should operate.
Figure 1 Organization chart moving forwards
Source: Reviving grocery retail: six imperatives
Marketing mix of Sainsbury:
Product:- Sainsbury's has a wide contribution for its clients under its promoting blend item
methodology. As well as zeroing on advancement and quality administration, it likewise takes
care of growing new items and improving the current scope of the items. Sainsbury's has 2
organizations, general stores or Local corner shop offering in excess of 30,000 product offerings
out of which at any rate 20% are from their own image, which other than Basics like food,
toiletries and writing material incorporates.
Price:- It rehearses serious estimating strategy rather than value cutting arrangement as the last
gives an addition in piece of the pie for short run in particular. Sainsbury's utilizes Price
separation strategy according to the situating of the item, consequently normally acquiring a top
notch cost as it positions itself in the top of the line market. Sainsbury's scope of essential and

children items are evaluated low and are of great quality consequently, offering some benefit for
cash. This covers the valuing technique in the advertising blend of Sainsbury's.
Place:- Sainsbury's has 598 grocery stores and 714 corner shops out of which 45 stores work
24*7and most of them are open till mid-night on Fridays. Notwithstanding this it offers home
conveyance and the orders can be set online on its site or by means of call. Sainsbury's at first
taken care of its conveyance all alone yet after the 1970 question with the drivers it contracted
out its circulation to experts like DHL, NFT and so on
Promotion:- Sainsbury's to expand its deals and fabricate client steadfastness dispatched 'Nectar
reward card' which assisted clients with procuring focuses on each buy made at the store. These
focuses can be recovered at their next buy (Bhasin, 2019). These cards additionally assist
Sainsbury with building a client data set, with the assistance of which they send customized
offers to the focused on client fragment. The organization likewise offers an 'Functioning
children's voucher plot where certain games club can recover these vouchers for athletic gear.
Additionally, to advance its picture openly Sainsbury's works local area administration and
natural obligations.
Sainsbury market share and what happen from 10 last years in market:
The focal point of this report depends on Sainsbury's as an association. Sainsbury's at
present has 16% of the piece of the overall industry and detailed an income of GBP 23billion in
2014 (Retail Business Analysis of Sainsbury, 2021). The association, since its initiation has seen
quick advancement in its piece of the pie development. In any case, Sainsbury's preposterous
decade has had a decrease in its general deals, with 2011 being one of the most minimal income
age a very long time for the business. This is plainly an indication of the firm losing footing on
the lookout and hence a sign that the association needs to redo is current advertising system.

CONCLUSION
From the above report it had been concluded that investment strategies in organization
could keep organization more developed through which they can simply make more huge
amount of profits and get more sources of investments in organization. Marketing plan helps
organization for having long term skills and which can keep them on tracking its working power
with customer as well as to their market strategies. Pricing must be in such that each and every
customer can easily take away their products and place could be more important that online
business help them in developing their business in advance technology. The main purposed of
organization is to make customer satisfied and make needs be fulfilled while by using
organization products and services. Organization need to work with globally through which they
can make more customer and gain more trends in the market in which they easily come to know
more about market strategies and earn more profits while developing business globally market.
Recommendations
Sainsbury needs to make individuals business online globally and work with having cost
leadership in products through which they can make more products and services developed.
Business strategies helps them for keeping company as well brand identities high along with that
hiring more employee and customer targeted to be each levels so that everyone have more
benefits in purchasing their high level of products.

REFERENCES
Books and journals
Anastasiu, L., Gavriş, O. and Maier, D., 2020. Is human capital ready for change? A strategic
approach adapting Porter’s five forces to human resources. Sustainability.12(6). p.2300.
Chang, C.I. and Ho, J.C., 2017. A two-layer clustering model for mobile customer analysis. It
Professional. 19(3). pp.38-44.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social
Research. 10(51).
Holotiuk, F. and Beimborn, D., 2017. Critical success factors of digital business strategy.
Islami, X., Mustafa, N. and Latkovikj, M.T., 2020. Linking Porter’s generic strategies to firm
performance. Future Business Journal. 6(1). pp.1-15.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Schawel, C. and Billing, F., 2018. Ansoff-Matrix. In Top 100 management tools (pp. 31-33).
Springer Gabler, Wiesbaden.
Stindt, D. and et.al., 2017. On the attractiveness of product recovery: The forces that shape
reverse markets. Journal of Industrial Ecology. 21(4). pp.980-994.
Teoli, D. and An, J., 2019. SWOT analysis.
Tsatsoula, E., 2018. Application of Ansoff's Matrix-Methodology: Marketing Growth Strategies
For Products.
Yuan, Y. and et.al., 2020. Business strategy and corporate social responsibility. Journal of
Business Ethics. 162(2). pp.359-377.
Yuliansyah, Y., Gurd, B. and Mohamed, N., 2017. The significant of business strategy in
improving organizational performance. Humanomics.
Online
Bhasin, H., 2019. Marketing mix of Sainsbury’s [Online]. Available through:
<https://www.marketing91.com/marketing-mix-of-sainsburys/>
Harris., E. 2017. Types of Sales Distribution Models & Capitalizing on Missed Opportunities
[Online]. Available through: <https://www.resultist.com/blog/types-of-sales-
distribution-models-capitalizing-on-missed-opportunities>
Retail Business Analysis of Sainsbury, 2021 [Online]. Available through:
<https://circlebizz.com/marketing/retail-business-analysis-of-sainsbury/>
Simmons, V., 2018. Reviving grocery retail: six imperatives [Online]. Available through: <
https://www.mckinsey.com/industries/retail/our-insights/reviving-grocery-retail-six-
imperatives#>
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