Marketing Challenges for Sainsbury's: A SWOT Analysis & Solutions

This report provides a comprehensive analysis of Sainsbury's marketing principles, employing a SWOT analysis to evaluate the organization's internal strengths and weaknesses, as well as external opportunities and threats. It identifies key marketing challenges faced by Sainsbury's, including the impact of COVID-19, Brexit-related issues, and intense industry competition. The report further offers strategic recommendations to address these challenges, such as enhancing online sales, implementing effective in-store safety measures, leveraging marketing principles like the 7Ps and Porter's Five Forces, and expanding into new markets. The conclusion emphasizes the importance of strategic marketing management for sustainable growth and profitability in the retail industry, highlighting how these recommendations can transform challenges into opportunities for Sainsbury's.

Principles of
Marketing

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
SWOT..............................................................................................................................................4
Marketing challenges.......................................................................................................................5
Recommendations............................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In retail sector marketing is consider important part as this helps in promoting there product and
services to the society and the customer base of the stores. As in these kinds of sectors they
mainly focus on the motivation of there customer base and this is important in this sector as they
serves many competitive products and many other brands indulged in it as in this effective
marketing strategy is important for the better customer experience and for attracting them toward
the store and this should also be unique as many people always do on time purchase from the
retail stores. This report is about Sainsbury and this is known as second largest supermarket of
UK and this was founded in 1869 and its headquarter is located in UK. This report is about the
SWOT analysis of this organisation and various marketing challenges which this organisation
can face in next 3 years and this report also involves recommendations which can be used to
overcome challenges for attaining opportunity in the market.

TASK
SWOT
This is a strategic tool and also known as the framework which is used to evaluate the external
and internal factors of the organisation effectively and this also indicates the future and the
current potential of the organisation effectively and in an précised manner which can further help
in the decision making process and making effective strategies. This is basically a fact based and
realistic tool which can help the organisation in better functioning. Sainsbury also uses this tool
to analyse all the essential and required factors for the better functioning as the SWOT analysis
of Sainsbury is described below(Ortikov, 2021).
Strength
This is factor which usually describes all the factors which makes the organisation separate from
other competitive organisation which can be in any form as it can a strong balance sheet, a strong
brand and a loyal and huge customer base(PHILIP, and KOTLER, 2020). As Sainsbury is known as
the second largest supermarket chain and is also known as the listed organisation in stock
exchange and this organisation also has a positive customer feedback as they has a huge and
positive customer base with a good customer experience as because of Sainsbury’s customer
relationship management and the high quality products. They are also active on social media for
marinating the customer relationship for building the engagement.
Weakness
This is a factor which stops the business for performing there best and optimum level in the
industry as they are required to improve that areas for the better response and for remaining
sustainable in the market at the long-term basis and for gaining an competitive
advantage(Ptashchenko, and Vovk, 2021). As Sainsbury has increased there pricing due to Covid
and the due to economic uncertainties which has resulted in the shortage of raw material and the
supplies and due to the increasing shipping cost, they had to increase the pricing of the
products(Vatandost, Namamian, and Ghobadilemoki, 2021). As Sainsbury switches the brand
frequently which makes challenging in retaining the customer base. As in the past 2 years
Sainsbury is also facing financial instability which is impacting in their profit and growth of the
organisation.
Opportunities

These are the factors which is favourable to the external environment of the organisation and can
also give an competitive advantage to the business for increasing their sales and market growth
effectively. As there are many opportunities which Sainsbury can grab for gaining the external
advantage of the organisation as Sainsbury has the huge customer base and they can follow new
and latest trends which can attract the customer base and this can result beneficial to the
organisation. As in Sainsbury a 24*7 checkouts technology should be updated which become
more efficient and can also help in increasing the sales of the business(Swanson, 2019). As now a
days villagers also uses brand products so they can also introduce stores in the rural areas which
can give the business a great exposure and expansion in the market.
Threats
These are the factors which have potential to harm the business in many such ways as through
the cost rising, increasing competition and the tight labour supply. As Covid become a huge
threat to all organisations as well as Sainsbury as due to closing of the stores has resulted in the
decreased revenue due to which purchasing power get declines and competitors is also the fact of
the threat as there are many organisations which are in the equal competition with Sainsbury by
using the innovative and new technologies for targeting the customer base of
Sainsbury(Samoilova, 2021). As due to many controversies in which Sainsbury is connected is
becoming threat to the organisation price fixing, ethical and environmental issues which is
impacting the organisation.
Figure 1Principles of marketing,22

Marketing challenges
There are various marketing challenges which is faced by the retailing sector and it is important
to be consider effectively for the better sustainable growth and profit for the organisation. The
challenges which is faced by Sainsbury is described below.
Covid and new normal protocol
As Covid has impacted in the organisation at a huge level and this can still continue with further
three years and more and when thinking’s get normal it become difficult and challenging to
Sainsbury to maintain the previous customer base and along this to make the store save for the
customers visiting by following all the important measures and the protocols as this is also
applied with the employees of the business(Jobber, and Ellis-Chadwick, 2019). At the time of
lockdown there was a complete shit of stores to online and this has decreased the revenue of the
organisation and for there safety customer base has also decreased and this has led In decreasing
of the market growth in the market.
Brexit
As Brexit has impacted the business in huge loss as by stopping the trade in EU countries as this
had made challenging to the organisation and their customer base and they are facing issues
towards that as due to this the transportation and shipping charges has also increased which has
impacted in the overall pricing of the product and people are facing the pricing issues(Woodham,
2018). As in Christmas there is a huge sale and purchasing power in Sainsbury but due to Brexit
this company has suffered loss in the Christmas events as goods cannot be transferred to EU and
with the increasing pricing customers are also willing to switch as this challenge can more
further to three years.
Industry pressure
As Sainsbury is also facing industry pressure which is somehow making the less profit in the
industry the challenge that this organisation is facing in the industry is tough competition in the
market as it is important and difficult to survive in the competitive market effectively and to
maintain the same position as before as this can decrease the level of profitability, growth and
sustainability in the business as Tesco is the biggest competitor of Sainsbury as this has
improved there performance with various effective strategies and expanding there market base in
Germany and this has become challenging and can remain challenging for three years util
Sainsbury can expand their business(Swanson, and LaLuzerne, 2018).

Recommendations
1. As for the Covid challenges which is faced by Sainsbury organisation can increasing the
selling of the products online and after getting it to new normal they can follow effective
measures in the store and can open them in the market for increasing the sale and profit
of the organisation and this can be done by limiting the customers in store, maintaining
hygiene, cash less payments and making everyone follow the protocols of Covid(Kotler,
and Armstrong, 2018).
2. For the Brexit challenges Sainsbury can use marketing principles like 7Ps of marketing
which can help in analysing the effective customer base and can also help in increasing
the producing level of the organisation as this challenge can be resolves by the expansion
of the organisation in various countries and expanding there customer base which can
help in the increasing cost of shipping and non-trade in EU as this strategic tool helps in
analysing the factors which can result beneficial in the expansion of the
organisation(Kupec, 2018).
3. For the industry pressure and the highly competitive market of Sainsbury can be solved
by the marketing principle porter’s five force as this is the strategic tool which helps the
organisation in analysing all the competitive and new entrants in the market which can
help the business In the effective marketing strategies and this can also help the
organisation for there growth and remains in the same position in industry and also
remaining sustainable(Shah, Azhar, and Bhutto, 2019).

CONCLUSION
This report has concluded that there are various strategic tool to analyse the organisational
external and internal environment but SWOT is considered as the most effective strategic tool
which analyses internal In the organisation and the external risk deeply. This report has also
concluded that there are various challenges which an impact in the marketing strategies and the
retail industry in an negative way which can further also lead in decreasing the rate of profit in
the organisation and can also impact in the growth of the business. This report has also
concluded various recommendation which can turn helpful to overcome the challenges of
marketing and can positively turn it into opportunities and strength of the organisation
effectively. This report has also concluded that marketing is important to be managed effectively
and it is also important to make effective strategies for promoting the business effectively.

REFERENCES
Books and Journals
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Swanson, S.R., 2019. The defining dozen: undergraduate students preconceived views of
marketing. Marketing Education Review, 29(1), pp.3-16.
PHILIP, T. and KOTLER, A., 2020. PRINCIPLES OF MARKETING, GLOBAL EDTION. PEARSON
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Samoilova, V.O., 2021. ETHICS AND NEUROPSYCHOLOGY AS A FOUNDATION OF MARKETING
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Jobber, D. and Ellis-Chadwick, F., 2019. EBOOK: Principles and Practice of Marketing, 9e. McGraw Hill.
Woodham, O.P., 2018. Testing the effectiveness of a marketing simulation to improve course
performance. Marketing Education Review, 28(3), pp.203-216.
Swanson, S.R. and LaLuzerne, M., 2018. Perceptions of Marketing: An Analysis of Differences and
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Shah, S.A., Azhar, S.M. and Bhutto, N.A., 2019. Halal marketing: a marketing strategy
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Ptashchenko, O.V. and Vovk, V.А., 2021. Tourist enterprise marketing complex: international and national
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