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)

of new letters to ensure that retaining good click through rate, open rate and conversion sale.
This tactic will be use existing consumer database and incentivize them to recruit colleagues to
join mailing list by weekly movement.
Search Engine Optimization (SEO):
One of the key weakness of Sainsbury over their competitors was lack of financial
contractor from the competitor analysis. Still, SEO provides Sainsbury with the platforms to
compete head on (Wang and Kim, 2017). The positive impact search engine optimization will
offer in relation to brand visibility for this target market by understanding of Sainsbury.
CONTROL:
It is the final stage which is layout plan to monitor and measure performance based on
setting of objectives. It is the essential to also communicate concern with broad team to ensure
that there is purchased into plan of Sainsbury. Therefore, it is necessary to monitor strategies and
tactics on daily basis by marketing consultant which help to accomplish the marketing
objectives. There are different ways to control of tactics and strategies such as consumer
satisfaction surveys, determine the 5S's which refers to sell, speak, serve, save and sizzle.
Therefore, marketing consultant and team needs to define objectives relating to 5S's to create it
measurable. It is essential to turn each objectives into SMART objectives.
TASK 2
Effectiveness of SOSTAC strategy used by company
SOSTAC strategy is the very effective and useful for company for improving digital
efforts in the marketplace. Therefore, Sainsbury must have utilised SOSTAC strategy for digital
marketing of products and services in the Indian market. In order to that, marketing consultant is
focusing on segmentation, targeting and positioning through adopting internet marketing strategy
in the SOSTAC model (Ngai, Tao and Moon, 2015). This strategy is very helpful and effective
for increasing sales and profits of business.
 Internet marketing strategy allows tracking progress and predict to accomplish the
objectives and goals.
 The each of step in the cycle comes large number of critical inquiries which give the best
potential opportunities at the accomplishing the objectives with powerful digital
marketing plan knowledge of marketing team.
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 With the internet marketing strategy, Sainsbury find the many questions that plan asks
they were already asking themselves.
 Through this strategy, marketing consultant make effort to improve digital marketing
which is useful for building consumer relationship and professional communication.
 Internet marketing strategy is effective for business model planning as it is aiding to
present required assets for efficient reputation of management and crisis communication
in the organization (Killian and McManus, 2015).
 This model delivers complex message with easy way to consumer. This help to solve any
kind of issues of consumers and they feel satisfaction with the company.
 Internet marketing strategy focused on digital marketplace which offers valuable methods
relating to brand and engage with key influences and people.
 With the help of it, Sainsbury refine unique selling position and information within the
digital marketplace.
 Internet marketing strategy is the essential for Sainsbury to develop their communication
with understanding of their strengths and weakness.
 With the help of it, marketing team easily identified different segments such as
demographic, behavioural and so on for targeting the specific consumers group in the
Indian marketplace (Jara, Parra and Skarmeta, 2014).
 After, targeting of more consumers by Sainsbury as compared to their competitors, so
that it is the opportunity to create high position in the supermarket sector.
 As per strategy, company easily targeting consumers, identify their needs and wants,
demand for product and services in the Indian marketplace.
In this context, marketing consultant use internet marketing strategy for increasing their
presences on digitally which is useful for increasing consumer relations, increasing sales and
profits of Sainsbury by expanding their business in the Indian market. Thus, many of people
buying different product and services such as clothing, food product and home appliances as per
their requirement. In this context, marketing consultant use internet market strategy for
segmenting, targeting and positioning in SOSTAC model which is highly effective and useful for
Sainsbury. Also, marketing consultant is giving advice to team for taking more efforts for
effectively and clearly determining of segment and targeting audience through internet as
compared to their challengers (Truong, 2014). This help to marketers for effectively know
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everything about consumers, their needs and wants, taste and preferences and demand of their
product and services to the company.
TASK 3
Implementation of marketing strategies in international market
Sainsbury is the leading supermarket in the UK. Still, they want to expand their business
in international market outside UK that is India. Therefore, company hire marketing consultant
for helping in business expansion. Thus, marketing consultant give advice to utilise the internet
marketing strategy and SOSTAC model which can implement in business expansion in the
international market. However, internet marketing strategy is very helpful and effective for
identifying the segment, selected target consumer group and create position in front of the
consumer within the market. This marketing strategy is also very essential and useful in different
ways, so that marketing team can easily implement to it.
 Internet marketing strategy is the method by which marketing team promoting products
and services through online such as social media, digital advertising and websites design
etc. In this context, this strategy help to market and promote goods and services in the
market (Lee and Kotler, 2015).
 Through implementing internet marketing, Sainsbury easily attract more consumers and
their attention towards their products and services as well as their business.
 Implementation of internet marketing help to determine consumer needs and wants,
demand, taste and preferences towards product and services of Sainsbury (Ngai, Tao and
Moon, 2015).
 Marketing employees are highly making efforts to increase presences of their company
on internet as compared to their competitors in the Indian marketplace.
 Marketing team utilise the different ways to implement internet marketing for business
such as content, social media, mobile, email and marketing automation. These kinds of
ways help to company for expanding their business in the international market (Tuten and
Solomon, 2017).
 Company needs to target more consumers and create position in the new market through
internet marketing strategies for their product and services.
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 Marketing consultant also suggest that adopt email marketing which can implement in the
international market for promoting goods and services in front of consumers.
 Email marketing in which company is giving emails in different ways to people about
company, product and services etc. that can improve both click thought and conversion
rate.
Social media marketing:
It is also beneficial of Sainsbury for promoting product and services in international
market. Therefore, marketing team utilise social media for advertising and promoting the product
and services in front of their potential consumers which help to expand their business in new
market. Through social media marketing, company easily identify the consumers needs and
wants, demand in relation to products and services of their firm (Ashley and Tuten, 2015).
Hence, marketing consultant also giving advice to team for following individual strategy that is
social media marketing. For social media marketing implementation, marketing consultant
suggested different ways such as:
Creating social media plan: First of all, it is necessary to create social media plan by
Sainsbury for entering into new international market. In this plan, marketing team set the goals
of social media, research their competitors, conduct social media audit, find the inspiration,
create social media calendar (Felix, Rauschnabel and Hinsch, 2017). Therefore, it is needed to
create plan for achieving social media posts by marketing team of Sainsbury.
Deciding the right platform: After creating plan, it is needed to decide platforms are
right for company, because there are many platforms such as Facebook, Instagram etc. In this
context, marketing consultant suggest that Instagram is the best and most effective social media
network which is used by large number of people.
Know Audience: After selecting platforms, marketing team needs to know about
consumers and target them. With the Instagram, marketing team make effort to know about
customers, needs and wants, taste and preferences towards product and services of the
Sainsbury.
Build Relationship: After knowing consumers, marketing team try to build relationship
with them by chatting, live communication etc (Sajid, 2016). With the help of it, they are
interacting people personally and giving the information about product and services of
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Sainsbury. Through this, consumers are easily communicated with marketing team and build
relationship with them.
Expand Audience: Marketing consultant needs to expand their new audience through
social media for promoting the product and services in the international market. This help to
increase sales and profits of Sainsbury. Utilization of Instagram for targeting new potential
consumers for advertising the goods and services of organization.
Share compelling visuals: If the marketing consultant use Instagram as social media
marketing, so that they have to share videos, images, GIF etc. because people are expected
unique videos and images in social posts (Godey and et.al., 2016). With the help of it, consumers
are easily attracted with product and services of Sainsbury. This help to build relationship with
consumers, increasing sales and profits of organization. This help to expand their business in the
international market.
CONCLUSION
This report has summarised that Sainsbury use the internet marketing strategies and
SOSTAC model for expanding their business in Indian market. This model involves situational
analysis by addressing the internal and external factors, SMART objectives, strategies, tactics,
actions and control which is beneficial for company in relation to business expansion. It can be
concluded that internet marketing strategies is more effective and useful for business in terms of
raising sales and profits. It can be discussed that implementing this marketing strategy which
help to business growth and success in the select international market. Furthermore, this strategy
aid to create high position in the international market.
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REFERENCES
Books and Journals
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message diffusion in social media marketing. Journal of Business Research. 68(4).
pp.777-782.
Felix, R., Rauschnabel, P. A. and Hinsch, C., 2017. Elements of strategic social media
marketing: A holistic framework. Journal of Business Research. 70. pp.118-126.
Godey, B. and et.al., 2016. Social media marketing efforts of luxury brands: Influence on brand
equity and consumer behavior. Journal of business research. 69(12). pp.5833-5841.
Jara, A. J., Parra, M. C. and Skarmeta, A. F., 2014. Participative marketing: extending social
media marketing through the identification and interaction capabilities from the Internet
of things. Personal and Ubiquitous Computing. 18(4). pp.997-1011.
Killian, G. and McManus, K., 2015. A marketing communications approach for the digital era:
Managerial guidelines for social media integration. Business Horizons, 58(5), pp.539-
549.
Lee, N. R. and Kotler, P., 2015. Social marketing: Changing behaviors for good. Sage
Publications.
Ngai, E. W., Tao, S. S. and Moon, K. K., 2015. Social media research: Theories, constructs, and
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Sajid, S. I., 2016. Social media and its role in marketing.
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Tuten, T. L. and Solomon, M. R., 2017. Social media marketing. Sage.
Wang, Z. and Kim, H. G., 2017. Can social media marketing improve customer relationship
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Interactive Marketing. 39. pp.15-26.
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