Principle of Marketing Management: Sainsbury's Market Analysis Report

This report provides a detailed analysis of Sainsbury's marketing strategies within the UK market. It begins with an introduction to the principles of marketing and an overview of Sainsbury's as the second-largest supermarket in the UK. The report then delves into a macro-environmental analysis using ...Read More

Principle of marketing
management

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Macro analysis.............................................................................................................................3
Micro analysis..............................................................................................................................6
Competitive analysis....................................................................................................................7
SWOT analysis............................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Principle of marketing is defined as the marketing idea and concepts that is used by the
organisation for the developing effective marketing strategies. Marketing managers identify the
changing needs and demands of customers in order to sustain in competitive market. There are
various principles are included in marketing management such as principle of planning,
organisation, control, direction, and motivation. In this report the chosen organisation is
Sainsbury which is second largest supermarket in United Kingdom. The organisation is founded
in the year of 1869 by the John James Sainsbury. The headquarter of organisation is situated in
London, England, UK. It is the private limited organisation that have 1428 shops in different
location. The organisation focuses in the market of United Kingdom. In this report macro and
micro environment factors that includes pestle analysis is discussed. Apart from that swot
analysis and competitive analysis is covered in this project report.
TASK
Macro analysis
Macro environment is defined as the conditions that exist in whole economy than a specific
segment or region. The analysis focus on the broader issue of organisation such as laws and
legislations, socio-cultural environment, political and technological factors. It includes all those
factors on which business has no control but they affect the business functioning and
performance (Askegaard and Torp, 2020). Sainsbury conduct proper market research and
formulate effective strategies and planning to overcome the impacts and gain competitive
advantages. For the analysation Pestle analysis is used by the respective organisation to conduct
business in the market of UK.
PESTLE analysis: The Pestle analysis is stand for the various factors that are exist in the
exist in external business environment such as political, environmental, social, technological,
legal and environmental factors that affect Sainsbury in positive as well as negative manner
(Najib, 2021). As the organisation is auditing in the market of UK and analyse all factors
accordingly. Factors of pestle analysis are discussed below:

Political factor: Political factor of United Kingdom affect the performance and
profitability of Sainsbury. As in political environment of UK debts of government and consumer
is very high. Political factors include taxation policies, trade restrictions and fiscal policies that
are passed by the government that affect the economy and certain industry as well. Sainsbury is
the retailing organisation that operates its business in various countries that enhance the
requirement to identify the political situation of each country in order to run business functions
properly. Respective organisation analyses all factors closely of UK market than develop
effective strategy and planning. Brexit uncertainties in the UK market affect the Sainsbury to
import products from other countries.
Economic factor: Economic environment consist various factors that affect the
performance level of Sainsbury such as inflation rate, foreign exchange rate, saving and interest
rate as well as economic cycle that determines the demand and investment in economy. In UK
economy the fuel prices are raised that enhance the prices of transferring products and services
as well as reduce the profitability level (Barney, 2018). On the other hand, raising salary
expectation is the economic factor that affect the Sainsbury through enhancing cost of
organisation. As UK has various supermarket brand such as Tesco, Morisons and Aldi that
enhance overall competition for Sainsbury. The organisation continuously bring innovation in
order to take competitive advantages.
Social factor: As the customer of tend to shop from supermarkets such as Sainsbury than local
retailing shops because these organisations provide all products and services under one roof.
There are various factors are included in social factors like cultural trends, population analytics

and demographics that affect the business in positive as well as negative manner. As the
Sainsbury provides healthier food to their customers that enhance great opportunity for
organisation because customers of UK are turned towards habit of healthy eating. Sainsbury
provide training to their staff members to treat customers in friendly manner to attract them and
retain with organisation for long period of time (Capriello, 2018). respective organisation
involves in various charities and raise funding for social causes that enhance brand value in the
current UK market place.
Technological factor: In current competitive business environment various innovations
are happened in technologies that have impact on performance and Sainsbury to operate business
functions in the market of UK favourably and unfavourably. Automation, innovation,
technological awareness and research and development are the factors that are consist in
technological factors. Sainsbury adopts various technologies that facilitates the organisation to
conduct all functions efficiently like for managing inventory and checkout system. Apart from
that computerised controlling of stock and checkout scanning is used by the organisation in UK
market that reduces human mistakes and paperwork as well. Now these days online shopping is
adopted by the Sainsbury that provides various competitive advantages and enhance customer
base.
Legal factor: Legal factors consist various rules and legislations that are passed by the
government are consumer law, employment law, safety standard and legislations related to
labour that affect the organisation. As Sainsbury is bound by various legal rules like
discrimination as well as fair employee treatment and minimum wages policies regulations that
enhance the brand value of organisation in market. In the market of UK if organisation is found
not to obey these laws in business activities than government charge penalties on organisation.
Sainsbury follow all rules in order to ensure smooth working of business activities in competitive
environment.
Environmental factor: There are various environment environmental factors that affect the
performance level of Sainsbury retailing organisation that includes changes in climate, weather
and climate conditions and environment offsets. There are various steps are taken or various
rules are formulated by the Sainsbury to reduce the carbon footprints. The organisation emphasis
recycling of products and there are several ethical issues are connected with retailing
organisation like Sainsbury starts selling organic food as well as adopting eco-friendly process in

order to sustain in environment (Dresler and Fuchs, 2021). Respective organisation provides
quality products to customers at fair prices and the organisation implement the corporate social
responsibility. As the customers of UK are particular about environment so, all these efforts
enhance organisational brand image effectively.
Micro analysis
Micro environment analysis is defined as the environment that is directly related with Sainsbury
and affect its performance and routine activities or functions. It is in the control of organisation
as the business change these factors according to requirement. Sainsbury conducts proper
analysis of micro factors before taking decisions (Fischer and Albers, 2018). There are various
factors are included in the micro environment such as customers, suppliers, shareholders,
competitors and employees. These factors are discussed below:
Customer: Customers are the important part of an organisation as various activities are
performed by the Sainsbury to provide better quality products and services to customers to
satisfy their needs and demands. Respective organisation provides various offers to customers in
order to attract as well as retain customer for the purpose of generating higher profitability and
revenue. There are various marketing strategies are formulated by the Sainsbury to attract
customers and retaining the existing customer for long period of time through fulfilling all needs
and demands. In UK market customers are focus on the quality and services so, Sainsbury offers
various after sale and value-added services to customers.
Competitors: Competitors are most effective factor that impacts on organisational
strategies of Sainsbury. Respective organisation analyses all competitors and their strategies to
gain different competitive advantages Pasirayi, 2020). As there are various leading supermarkets
in UK like Tesco, Asda, Aldi and Morrisons that enhance competition of Sainsbury. The
respective organisation analyses marketing mix of competitive organisation as well as conduct
pestle and swot analysis than formulated policies and strategies to provide better quality products
to customers than competitors.
Employees: Employees are related to internal business environment that affect the
functionality as well as performance of Sainsbury. If organisation possess skilled and capable
employees who help the organisation to attain organisational goals and objectives efficiently. As
Sainsbury provides various training and development programmes to employees to enhancing
their skills that enhance their working performance and ensure business success (Gordon, 2018).

Organisation maintains better employee relation and working environment in order to motivate
employees for performing business functions effectively.
Supplier: Supplies play important role in success of Sainsbury as they provide raw
material to organisation for production process. Suppliers affect the business strategies in
positive as well as negative manner. If suppliers do not provide quality material on time that
affect the process and quality of production and cause delay as well. There are various activities
are done by the suppliers such as they provide the material on higher process affect the
marketing strategies of Sainsbury that ultimately enhance the price of finished products. The
respective organisation maintains effective and better relation with suppliers in order to gain
competitive advantages over other competitors (Herzog, 2020).
Marketing intermediaries and public: There are various marketing intermediaries and
public are important factor affect business performance of Sainsbury. Good response of public
help organisation to attain all goals and objectives efficiently. Sainsbury has responsibility to
satisfy all needs od public. The public have power to help the organisation to reach defined goals
effectively.
Competitive analysis
Competitive analysis is defined as the process of marketing and strategic management in order to
identify the strengths and weakness of current as well as potential competitors (Spanjaard, Hall,
and Stegemann, 2018). The analysis facilitates the organisation to identifies both offensive as
well as defensive strategic ways to evaluate different opportunities and threats.
Strategic groups: Strategic groups are defined as the concept that is used in the process of
strategic management in which all organisations are grouped in single unit that have similar
business concepts, strategies and models. The strategic group analysis identify the positioning of
competitors in competitive business environment as well as evaluate the factors that affect the
performance and profitability of Sainsbury and various competitive dynamics are identifies. It
facilitates the Sainsbury to analyse the strategies of competitors in different competitive
dimensions (Keegan, Rowley and Tonge, 2017). There are various factors that are used in
strategic groups such as structure, profitability and project issues. Apart from that specialisation,
brand identification, technological position and pricing policies helps Sainsbury to determine
groups in effective manner.

Perpetual mapping: Perpetual mapping is defined as the visual representation of different
prospective and potential employees towards specific organisation, brand, product or concept.
The perpetual mapping products and other factors are represented on the axis. The map
represents the customer’s perspectives for competing products in specific market segment.
Sainsbury develops effective mapping in order to identify customers view point regarding
competitors and the brand as well (Lu, and Miller, 2019). it facilitates the organisation to find
market gaps in potential market and analyse their products to determine success in potential
market place. The perpetual mapping of Sainsbury is defined below:
Strengths and weakness of Sainsbury and other two competitors
Companies Strengths Weakness
Sainsbury  Diversify business with having
strong market share.
 Having strong financial
position with regular
profitability.
 Skilled and capable employees
and effective organisational
cultural.
 Deals in single operating
market that limits the
market share.
 The organisation offers
low margin food
products to customers.
Tesco  Largest grocery retailing
organisation in UK.
 Among all supermarkets Tesco
 Inefficient financial
system.
 In effective performance

has the large market share.
 Diversify products, market and
stores.
 Implement technologies in
organisational operations and
having effective supply chain
network (Kennedy and Santos,
2019).
in specific market
segment.
 Low-cost strategy
reduced the profit
margin.
 Failed to operate
business efficiently in
the markets of US and
Japan.
Asda  Wide range of products and
extensive distribution.
 Conduct effective marketing
campaigns and having
effective connection with
customers.
 Asda acquisition various brand
that enhance its strengths.
 The organisation has
limited global presence.
 Ineffective
advertisements that
enables to attract
customers.
SWOT analysis
SWOT analysis is defined as the strategic planning which is used by the Sainsbury to
analyse and measure all strengths, weaknesses, opportunities and threats in order to face
competition and formulate effective policies. These factors are discussed below:

Strengths: Strengths are the internal factors that provides various advantages to the
organisations then their competitors. Sainsbury is the leading supermarket chain that has
diversify business with having higher market share as the organisation is operating in 1200
supermarkets and stores and providing online and general retailing services which is the key
strengths of organisation. As Sainsbury is the leading supermarket chain of UK that contains
employees over 1,50,000 who are able to perform organisational functions efficiently. The
respective organisation has experiences team that lead employees towards attaining defined
goals. The organisation conducts effective branding and advertising than enhance brand
awareness that stands as a strength of Sainsbury (Kogan, Herbon and Venturi, 2020). The
organisation is listed in the London Stock Exchange as well as FTSE index that enhance and
Sainsbury has 600 supermarkets and 800 stores across the UK. All these factors help Sainsbury
to gain various competitive advantages over other competitors.
Weakness: Weakness are the internal insufficiencies or business areas that needs
improvements. There are various factors such as rising prices of food products across the world
that impact on Sainsbury to selling organisational products on higher prices. As there are high
competition in the retailing industry that affect the performance as well as market share of
organisation. The Sainsbury has single operating market and low margin food business that
affect the profitability ratio of organisation.
Opportunities: Opportunities are external factors that facilitates the organisation to take
various competitive advantages than other competitors. Sainsbury can expand business through
enter in new markets of emerging companies by enhancing the activities of joint venturing as
well as partnership in order to expose new markets and ensure organisation growth and
development. There are various self-checkout machines are implemented by the Sainsbury that
facilitates to open stores for 24 hours and help to enhance organisational sales as well (Latan,
Noonan and Matthews, 2017). The organisation expands their business by opening stores in
growing economies like Asia and Africa. Online business develops various opportunities for the
Sainsbury to enhance market share.
Threats: There are various challenges and threats are faced by the Sainsbury that affect
the performance. In current competitive business environment globalisation presents various
threats to the Sainsbury. There are high competition is faced by the organisation such as their are

various supermarkets like Tesco, Aldi and Asda that also provides quality products and services
to their customers. The Brexit impacts on pricing policies of Sainsbury.
CONCLUSION
From above report, it can be concluded that marketing management principle plays
important role in organisational growth and development. Organisation focus on target market
segment to expand business in other market areas. There are various tool are used by the
organisation to analyse internal as well as external market. PESTLE analysis is used by the
organisation to analyse external environment. There are various micro factors that business to
formulate business decisions and strategy. Competitive analysis enhances understanding of
organisation related to competitive business environment and facilitates to gain various
competitive advantages.

REFERENCES
Books and Journals
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research agenda. European Journal of Marketing.
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Najib, M., and et. al.,2021. Application of SWOT-AHP to develop organic food marketing
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Spanjaard, D., Hall, T. and Stegemann, N., 2018. Experiential learning: Helping students to
become ‘career-ready’. Australasian Marketing Journal (AMJ). 26(2). pp.163-171.