Sainsbury's Marketing Report: Environmental Analysis & SWOT Review

This report provides an analysis of Sainsbury's marketing principles, focusing on environmental factors and SWOT analysis. It begins with an introduction to marketing and Sainsbury's background, highlighting its mission to provide high-quality food. The report delves into both macro and micro environmental factors affecting Sainsbury's business, including product, marketing, and management issues, as well as political, economic, social, technological, competitive, and environmental considerations. A SWOT analysis identifies Sainsbury's strengths, weaknesses, opportunities, and threats, offering insights into its market position and potential strategies. The conclusion summarizes the key findings, emphasizing the impact of internal and external forces on the company's operations. Recommendations are provided to enhance management efficiency, forecast market needs, and optimize resource utilization, aiming to improve Sainsbury's sales, profitability, and overall competitive advantage. The report emphasizes the importance of adapting to market changes and leveraging opportunities for growth and expansion.

PRINCIPLES OF
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
BACKGROUND.............................................................................................................................3
MAIN BODY..................................................................................................................................4
Environmental analysis................................................................................................................4
SWOT ANALYSIS.....................................................................................................................5
CONCLUSION................................................................................................................................7
RECOMMENDATION...................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing refers to the activities which a company undertakes for promoting their buying
and selling of products and services. This process also includes the advertising selling and
delivering of products to the consumer. In this project the chosen organization is Sainsbury's
food retail company which is a retailer for different food items. The mission of this organization
is to provide the customers with the high quality of food which the best taste and endurance. The
purpose of this report is to understand how the environmental factors both macro and micro will
impact the business of this organization. Swot analysis has been done for this organization to
recognize the strengths, weaknesses, opportunities and threats. From analysation of these factors
this project will be able to provide recommendations to how the business can be improved.
BACKGROUND
Sainsbury was founded in 1896, by john James and wife Mary Ann Sainsbury. They
opened their first store as by offering retail fresh foods products and expanded product ranges for
serving various grocery products to large number of consumers with a broad range of great
value, high quality products, strong availability and excellent customers service which is
delivered to consumer in global markets (J Sainsbury plc - Company Profile, Information,
Business Description, History, Background Information on J Sainsbury plc, 2022). The company
is focusing for expanding its brand products into various range of portfolio as for driving strong
image and profitable growth for the company by ensuring sustainable support to business at large
level. The annual revenue of company is around $38.005 billion in 2021, with having retail sales
of non-food and food products of supermarket stores. It is recognised as second largest
supermarket as by fostering its sales for earning profits around 720 million pounds. Furthermore,
remuneration committee of company paying colleagues and employees by being transparent
according with the performance. As for executive directors’ company is paying 80 % on basis of
EPS, Savings, ROCE. Also, the CEO of company remains account for around 250 % of salary
with accounting to current shareholder remuneration policy . also, with introducing two thank

you payment by company to all employees and managers with amounting around 140000 hourly
paying to employees and 12000 managers supported with these additional benefits. Moreover
paying 800 to full tm working colleagues working and serving to achieving higher growth and
increasing performance of company.
MAIN BODY
Environmental analysis
The macro and micro factors which affect the performance of Sainsbury food retail
company are known being able to analyse the internal and external factors for the organization.
MICRO/INTERNAL ENVIRONMENTAL ANALYSIS
The internal factors which impact the food retail practice of Sainsbury are,
Product Issues :
The products of this organization is considered to be affecting the growth of the business
which impacts the organization operations (Zhu, Goraya and Cai, 2018). The quality of the
product for this organization is very important however, being a retailer the business does not
manufacture their own food products. Thus, for a Sainsbury's selecting the right suppliers is very
important.
As in future for solving the product issues , Sainsbury is introducing new food items with
niche prices. Also launching new product as of mushroom providing B12 and vitamin D . also,
with the unpresented growing trend of the health concerns outing and providing more plant-
based products and vegan products in online and offline store help in concerning and taking care
of the vegetarian societies market. Further with growing technology producing future food
products with friendly endless trend and possibilities for producing key nutrient to all consumers
also nutrition patches and various other drips.
Marketing Issues :
The marketing of this organization needs to be at its optimum in order to make sure that
the business is able to make sure how affective the organization can be in performing. In order to
make sure that the products of the company reach its target customers the business needs to
understand the key concept of marketing which provides the business with competitive
advantages.
Management Issues :

Management of the resources is very important for Sainsbury as it helps them to increase
the effectiveness of the organization. Management is important for the right delegation of the
resources which is helpful for the business in managing the performance.
MACRO/EXTERNAL ENVIRONMENT ANALYSIS
Following external factors can be used for analysing the impact on the macro
environment,
Political :
The rules and regulations regarding the quality, hygiene and prices of the product can be
determined due to the influences of government (Farley and et.al., 2019). This is the reason why
political environment of the organization is very important to be understood and managed.
Economical :
The economical factors such as the employment rate, income level and economic stability
all play an important role in portraying the image of the organization. This is the factor which is
responsible for the business to bring economic growth.
Social :
The social trends and factors are the ones which are the factors that can create easy
changes in the organizational operations which allows the organization in providing the growth
which they require.
Technological :
Development of the technology can be the factor that influence the operations of the
company which can have direct impact to its cost-effectiveness (Kong and et.al., 2021).
Competitive information :
The major competition this business has to face are from companies like Tesco, ASOS,
Morrisons and ASDA. These business has similar operations to that of Sainsbury in UK.
Environmental :
It is very important for the company to make sure that the operations of the organization
is not affecting the business negatively. This is due to the factor which affects the growth of the
business.

SWOT ANALYSIS
By doing swot analysis of the company helps in identifying companies strength,
weakness, opportunity and threats. This helps in distinguishing the issues and forming various
strategies for the business to succeed in future as operating retail supermarkets.
Strengths:
Sainsbury company is recognized by large number of consumer. As by using excellent
promotional and branding stages helps in succeeding companies revenues earning and sales of
various products. As the company is listed into the company stock exchange, also building
effective relations with the consumers and management system helps in attracting the largest
target market which increased share of the company (Extensive SWOT Analysis Of Sainsbury’s –
UK’s Top Supermarket, 2022). Also, by using effective social media strategy helps the company
for gaining more online consumers. Furthermore, by adopting right expansion move by the
company helps in expanding its market and stores in global markets.
Weakness:
with the growing cost for manufacturing and providing various services with adopting
new technologies aids in adding more expenses and reduces the companies profit earning
capacity. With increasing in the competition level decreases profit margins. As all the other
competitors is selling food and non-food products to large consumers as similar to Sainsbury.
The niche food competitors are reducing the market share of the company (Yokoyama, Azuma
and Kim, 2022). Also, rise in prices due to uncertainty into the market as covid pandemic
reduces consumer and induce in shifting to other brand offering low price products to consumers.
Opportunity:
Sainsbury have various opportunity as entering into emerging markets provide various
opportunity to the company as for expanding its market and target consumers. This can be done
by joint venturing and partnering for entering into new global market as for increasing profits
and sales of company. Also, expanding into global markets with collaborating with online and
diversify the Sainsbury banking services. Also, the company must grasp opportunity as for
Selling more health conscious products to large consumers for promoting healthy lifestyle by
providing nutrition food products. Furthermore, the company should use the self checkout
automated services systems as for increasing the sales of various products as by delivering and

making available products services with 24*7 efficiently. The company also grasp opportunity as
by expanding into growing economic market as for increasing sale and profit margins.
Threats:
Due to increase into the competition level, various new entrants and emerging retail
stores are major competitors for the Sainsbury are ASDA, Tesco . the intense competition
impacts companies profits and sales capacity. Also due to globalisation with the latest
technological developments as of many MNC are expanding and the laws and regulation of the
country is impacting the expansion terms and business growth. Also due to pandemic it has
impacted the companies internal as well as external operations as due to restrictions of closing
down of Sainsbury retail stores the annual revenue of the company reduces with the great impact
which has also reduces buying power of buyers. Company is unable to provide various
personalized services goods to large number of consumers. With this shifting from store
purchasing from other brands increases (Guo and Wang, 2019). Furthermore Brexit and rules
regulation also various controversies impacted Sainsbury internal operations as it changes
various ways of operating business and create thereat for producing various services.
CONCLUSION
From the above report it can be concluded that Sainsbury is recognized as the
multinational retailer by selling various food and non-food products to large number of
consumers. Marketing is the process combining various activities which a company undertakes
for promoting and advertising their products and services as for increasing sales and profit. The
company is offering broad range of products with high quality and strong availability to
consumers for serving efficient for grasping large target market. It also provides excellent
customer services as by analysing the companies external and internal environment, various
forces impacted companies internal operations as reduces revenue and profit earning capacity.
With the swot analysis helps in defining companies strength, weakness and various opportunities
which helps in expanding companies operations. Also, with this analysis it helps Sainsbury in
forming various strategies for reducing and minimizing impact of various factors affecting
companies operations.

RECOMMENDATION
 The company must Forecast needs and wants and external environmental affecting
company as it helps in analysing and adopting various measures for reducing the impact
of various internal and external changes in company easily.
 Sainsbury use Management efficiency must increase which helps in minimize the
wastage of resources and aid in utilizing resources on optimum way which helps in
increasing sales and profits of company.
 Company must Hire efficient employees for adopting changes and helps in minimizing
factors impacting company as by increasing productivity and efficiency.

REFERENCES
Books and Journals
Farley, S. M., and et.al., 2019. The influence of tobacco retailer density and poverty on tobacco
use in a densely populated urban environment. Public Health Reports. 134(2). pp.164-
171.
Guo, L. and Wang, Z., 2019. Ratio analysis of J Sainsbury plc financial performance between
2015 and 2018 in comparison with Tesco and Morrisons. American Journal of
Industrial and Business Management. 9(2). pp.325-341.
Kong, A. Y., and et.al., 2021. Associations of tobacco retailer availability with chronic
obstructive pulmonary disease related hospital outcomes, United States, 2014. Health &
place. 67. p.102464.
Yokoyama, N., Azuma, N. and Kim, W., 2022. Moderating effect of customer's retail format
perception on customer satisfaction formation: An empirical study of mini-supermarkets
in an urban retail market setting. Journal of Retailing and Consumer Services. p.102935.
Zhu, J., Goraya, M. A. S. and Cai, Y., 2018. Retailer–consumer sustainable business
environment: how consumers’ perceived benefits are translated by the addition of new
retail channels. Sustainability. 10(9). p.2959.
Online
Extensive SWOT Analysis Of Sainsbury’s – UK’s Top Supermarket. 2022. [Online] Available
through:<https://iide.co/case-studies/swot-analysis-of-sainsburys/>
J Sainsbury plc - Company Profile, Information, Business Description, History, Background
Information on J Sainsbury plc. 2022. [Online] Available
through:<https://www.referenceforbusiness.com/history2/88/J-Sainsbury-plc.html>