Principles and Practices of Marketing: Sainsbury's Strategy Report

This report examines Sainsbury's marketing strategies, focusing on the SOSTAC model. It begins with an introduction to marketing principles and the context of Sainsbury's as a leading UK supermarket. The report delves into the application of the SOSTAC model, including situational analysis (SWOT and PESTLE), objectives, strategy, tactics (marketing mix), actions, and control. It analyzes the effectiveness of the SOSTAC strategy, particularly in the context of digital marketing and international expansion into the Indian market. The report also explores the implementation of marketing strategies, including internet marketing, affiliate marketing, email marketing, and SEO. The analysis considers various factors such as product, price, place, and promotion. The report concludes with an assessment of the overall marketing approach and its potential for business growth.

Principles and Practice of
Marketing- Final

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUND OF ORGANIZATION .......................................................................................1
TASK 1............................................................................................................................................1
SOSTAC model to marketing strategy used by organization ....................................................1
TASK 2 ...........................................................................................................................................7
Effectiveness of SOSTAC strategy used by company ...............................................................7
TASK 3 ...........................................................................................................................................8
Implementation of marketing strategies in international market ...............................................8
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Marketing is the study of management and exchange the relationship with consumer
through providing the goods and services. For that, there are many principles and practices of
marketing such as consumer retention, research and development, promotional mix and
marketing mix and so on (Truong, 2014). Therefore, marketing is more beneficial for increasing
sales and profits of the business. This report is based on Sainsbury which is the leading
supermarket in the United Kingdom. This study will explain SOSTAC model to marketing
strategy and evaluate the effectiveness of current strategy needs for expand their business outside
UK. It will extent current marketing strategy utilised by supermarket in the UK.
BACKGROUND OF ORGANIZATION
Sainsbury is the second largest supermarket in the UK. It was established as a partnership
in 1869 in London. Company is beginning as retailer of fresh food and expanded into packaged
groceries like tea and sugar. There are 608 shops and 806 convenience shops in the worldwide.
Also, Sainsbury run an internet shopping services branded as “Sainsbury Online”. They also
provide Gift Card. Gift vouchers and food tokens with credit and value which can be spent at the
shops of Sainsbury. In order to that, the supply chain of company operates from 13 regional
distribution centres with two national distribution centres for slower moving products and two
frozen food services. Sainsbury's Bank, Sainsbury's Energy, Argos, Habitat, Nectar etc. are
subsidiaries companies of Sainsbury. In relation to that, there are large stock approximately
30000 lines of which 20% are own label products. There are 186900 people are employed in the
Sainsbury supermarket. Now the company have decided to expand their business outside UK that
is India.
TASK 1
SOSTAC model to marketing strategy used by organization
SOSTAC MODEL:
It is the marketing model stands for situational analysis, objectives, strategy, tactics,
action and control. This model can be used by Sainsbury for applying the commercial situation
and expanding their business outside UK that is India. It is the expansion of SWOT analysis that
aids businesses get ready for marketing campaign (S.O.S.T.A.C- Situational Analysis, Objectives,
Strategy, Tactics, Actions, Control.2018). SOSTAC Model concentrated more on
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implementation steps of procedure and marketing communication. The structure of this model
builds on deeply situational analysis that informs resulting decisions made about strategy and
tactics. Therefore, marketing consultant give suggestion to marketing team for adopting the
model to number of particular situations involving direct marketing and electronic marketing.
The stages in the procedure have also been followed to development of internet security systems
as well as plans of Sainsbury.
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Illustration 1: S.O.S.T.A.C Model
Source: (S.O.S.T.A.C- Situational Analysis, Objectives, Strategy, Tactics,
Actions, Control.2018)

SITUATIONAL ANALYSIS:
In the situational analysis, company use the SWOT analysis for determining internal
factor and PESTLE analysis for external factors of business.
SWOT analysis (Internal Factor):
Strength  The largest supermarket in UK and employee
strengths which are main strengths of Sainsbury.
 Company has extremely experienced leadership
team and excellent branding as well as ads across
the UK.
Weakness  Company is selling foods products at high prices
due to increase foods prices.
 There are high level of competition within each
segments of retail business (Tuten and Solomon,
2017).
Opportunity  Sainsbury enter into emerging market through
joint venture and partnership for exploring their
new business. In this context, company expand
their business in India.
 Firm try to check out devices on their hand which
help to increase sales of business.
Threats  The recent challenge is the increasing the
globalization in the Sainsbury.
 The source of the best quality and financially
feasible goods from overall world as compared to
competitors.
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PESTLE Analysis (External Factor):
Political Factors  The relationship between UK political and Qatar
which impact on Sainsbury.
 The 26% stake in Sainsbury of Qatar which high
effect on operation of company(Ashley and Tuten,
2015).
Economic Factors  High interest rate which impact on spending
power of consumers on luxury products to
Sainsbury.
Social Factors  There are high demand of organic food products
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Illustration 2: SWOT ANALYSIS
Source : (SWOT ANALYSIS. 2018)

of consumers.
 The population of India is highly effected on
expansion of business of Sainsbury.
Technological Factors  Company use the advance technology like data
driven analytical for retail consumer insight.
 Technological impact on offering product of
Sainsbury.
Legal Factors  Company needs to follow legislation according to
Indian laws such as health and safety, anti-
discrimination etc. which highly impact on
business operations (Felix, Rauschnabel and
Hinsch, 2017).
 The delay of follow regulations which is also
effected on Sainsbury.
Environmental Factors  Sainsbury tries to reduce the operational waste and
recycling of products.
 There are highly carbon emission which in highly
impact on operations of Sainsbury.
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OBJECTIVES:
The company is setting the SMART objectives which stands for specific, measurable,
achievable, relevant and time related. In this context, Sainsbury needs to set the specific, easily
measuring, achievable, relevant and achieve at particular time duration by company. The
objective of Sainsbury is to increase sales of 30% as well as profits of business. Also, they make
efforts to target more audience as compared to their competitors like ASDA, Tesco etc. These
SMART objectives lead generation, acquisition, engagement and retention. After addressing
internal and external factors by company, they can utilise and setting the smart objectives of the
organization. This objectives help to company for expanding their business from outside UK that
is India.
STRATEGY:
After setting the objectives, company needs to identify the strategies for marketing of
products and services of Sainsbury. Therefore, marketing consultant give advice to team for
planning and implementing the strategies for achieving marketing objectives of business.
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Illustration 3: SOSTAC Marketing Model
Source: (SOSTAC Marketing Model. 2013)

Strategy planning and implementation help to determine segments of the market and aim is to
target with their plan (Nilsson, 2013). With the help of it, marketing team make efforts to
identify consumer base and to meet them. After that, they are setting strategy for achieving the
objectives of business. Strategies involves targeting and positioning, tactical tool, integration and
engagement. In this context, company is highly focus on segmentation, targeting and positioning
through internet marketing strategy for providing products and services to consumer in the
marketplace. In this strategy, marketers identify the different segments like demographic,
behavioural through internet than they target particular consumers group within the market. This
help to create chance for taking the top position of Sainsbury as compared to their competitors
within the Indian marketplace. Internet marketing strategies refers to strategies which are utilised
to market of product and services through online such as online promotion, website design, email
marketing, social media, digital advertising etc.
TACTICS:
It covers specific tool which company plan to utilise to realize the objectives of
marketing plan. The strategy section can also determine segments of market and aim to target
with their plan (Sajid, 2016). In this context, Sainsbury use the marketing mix strategy as tactics
of marketing of business. There are another marketing tactics which involves affiliate marketing,
email marketing, pay per click, search engine optimization etc.
Marketing mix : The marketing mix of Sainsbury is stated brand as well as organization
that cover 4 P's like product, price, place and promotion. With the help of it, company explains
their marketing tactics.
Product  Sainsbury is offering high range products by focusing on
innovation and quality management.
 Firm has 2 formats such as supermarkets and localized
convenience store.
 They are offering more than 30000 product lines.
Price  The pricing strategy is based upon providing the
consumer value for money.
 They follow competitive pricing policy rather than
pricing cutting policy for ensuring the consumer
retention (Godey and et.al., 2016).
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 As per the positioning of product, company effective
utilise price discrimination policy.
Place  Organization has 598 supermarkets and 714 convenience
stores.
 Firm is also offering the home delivery and order placed
on their websites and phone call.
 It has 13 regional distribution centres and 2 national
distribution centres. These are for slow moving goods.
 Two store houses devoted to frozen food category and
few depots.
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ACTION:
In this section, company takes actions through detail of tactics like affiliate marketing,
email marketing, pay per click, search engine optimization etc.
Affiliate marketing:
It is the central component to ensure that increasing the chances in generating
incremental revenue flow through network. These are active within programs either through lead
generation, display, search or voucher codes. It is the cost effective object in driving brand
visibility for Sainsbury (Chang, Yu and Lu, 2015).
Email Marketing:
It is the strategy needs to be implemented in relation to ensure existing consumer base is
receiving regular newsletter by Sainsbury. Tactics to be engaged involve variables within content
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Illustration 4: MARKETING MIX
Source: (MARKETING MIX. 2018)