Marketing Research Report: Sainsbury's Market Analysis

This report provides a detailed analysis of marketing research and its application to Sainsbury's, a major supermarket chain. It begins by examining the customer purchase decision-making process, exploring various stages from need recognition to post-purchase behavior, and then delves into relevant theories of buying behavior. The report then investigates factors influencing buyer behavior, including psychological, legal, ethical, social, cultural, and personal factors, and discusses the significance of brand loyalty, corporate image, and repeat purchasing. Furthermore, the report explores diverse market research techniques applicable to Sainsbury's, such as surveys, focus groups, and personal interviews, and outlines the objectives and the validity and reliability considerations of the market research. The report also includes a market research plan for collecting information and conducts a market and competitor analysis, identifying opportunities and threats for Sainsbury's. Finally, it assesses techniques for gauging customer response and includes a customer satisfaction survey, concluding with the success of the survey.

Marketing
Intelligence

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Purchase decision making process in reference to Sainsbury...............................................1
1.2 Theories of buying behaviour in Sainsbury...........................................................................3
1.4 Brand loyalty, corporate image, repeat purchase at Sainsbury..............................................5
TASK 2............................................................................................................................................6
2.1 Various market research techniques could be applied at Sainsbury......................................6
2.2 Marketing research objective of Sainsbury...........................................................................7
2.3 Validity and reliability of market research finding at Sainsbury...........................................8
2.4 Market research plan for collecting information...................................................................9
TASK 3..........................................................................................................................................10
3.1 Market size and trends.........................................................................................................10
3.2 Competitor analysis.............................................................................................................10
3.3 Opportunities and threat of the Sainsbury...........................................................................12
TASK 4..........................................................................................................................................13
4.1 Techniques of assessing customer response........................................................................13
4.2 customer satisfaction survey................................................................................................13
4.3 Success of doing the survey.................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and journals....................................................................................................................17

INTRODUCTION
The entire report will provide the learning about the marketing research and how it is been done.
It will explain about the buyer behaviour and his decision making process making the purchase.
This report will provide the practical understanding regarding market and its importance in the
modern era. Also it will detail about the various sources through where the data is being
collected. This will focus on the entire market analysis and how prevailing trends of the market
are determined. It will help to know the various methods about how the research could be done
and also about the reliability of the market.
TASK 1
1.1 Purchase decision making process in reference to Sainsbury
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The customer buying process is a journey of the customer and the description of the process
through which he goes while buying any product. Understanding the customer’s buying
process is not only important for the salespeople but also very important for making the sales
strategy.
Various steps involve in the process are described below.
1. Problem/ need recognition- The first and the foremost step is to identify the need of the
product need could be related to the thirst or the hunger of the product or must be
influenced by the advertising or word of mouth. For e.g. - Need to buy sugar for your
basic need or green tea as per your desire and preference.
2. Information search- Secondly the customer focuses upon searching the relevant
information regarding the product which may be through print, visual, online or word
from mouth etc. For e.g.- If you want to buy a cosmetic cream you will see the visuals
and advertisements which is the most popular and trending or might compare the quality
with all the other shown in the advertisements.
3. Evaluation of alternatives – Thirdly, the consumer will make a insight about the various
alternatives and options he could get like the brand, companies etc, depends totally upon
his attitude. For e.g.- You will compare the contents and price of all the cosmetic cream
available in the market and choose the best option for you.
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Need
recognisatio
n
Information
search
Evaluate
alternatives
Purchase
decision
Post
purchase
behaviour

4. Purchase decision- This is the second last stage of the process where the customer
finally makes his decision about the product which depends on positive or negative
feedback from other customers. For e.g. - After comparing and choosing the best from
the alternatives you will confirm it from your references or take feedback for the
particular product.
5. Post purchase behaviour- This is the last stage where the customers takes the sole and
whole decision regarding the product where he decides by c comparing his expectations
and satisfaction level with the past product and then make the decision. For e.g. -Now
you have already purchased the product and compare it with your past purchased
cosmetic cream.
1.2 Theories of buying behaviour in Sainsbury
On the basis of individual and market
 Rational actor theory – This theory explains that the consumer make decisions on
rational bases that is depending upon their self interest in the situation. It can be
predicted through what course of action would benefit the most to the consumer and
accordingly the consumer makes the decision of buying. (Braun 2016)
 New institutional economics- under this the rationality of buying behaviour is
unknown and is uncertain. For instance if the customer buys the ticket of the football
match the he has no idea about whether it will benefit him or not as there are chances
of uncertainty as it can also rain or may not.
 Theories of perception- We all see differently if talk in respect of the individual
perspective if we talk about buying a shoe then some of the customers prefer trending
shoes and it doesn’t matter to him that for how long does it sustain on the other hand
there are customers who don’t bother about the trend but look for long lasting and
superior quality of shoes that is called theories of perception.
 Theories of exposure – Social scientists have examined that this theory is based on
the exposures which the customer o get to her before coming to buy the product
which could be through radio, visuals, advertisements, prints , hoardings etc. and
accordingly make their decision. (Trad and 2015).
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1.3 factors affecting buyer’s behaviour
 Psychological factors strategies - the buying behaviour of consumer is influenced by
various psychological factors which includes-
1.Motivation- the need becomes the motive of the consumer to buy the product such
needs can be related to either hunger ,thirst ,tension or could be related with the
customer’s esteem or recognition which motivates him to buy the respective product.
For E.g. Your friend buys a new cell phone with very good features with just 7000 bucks
but and you were also in need of the cell phone then your friend would become your
motivator which will encourage you to buy the cell phone as well.
2.Perception – Human beings have considerably more than five senses .They do not
make the decisions by considering the single factor but they collect information thorough
radio, advertising, visuals, prints, and hoardings and from their family, friends and
relatives who give them their feedback which could be positive or negative.
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BUYSER'S
BEHAVIOUR
PSYCHO-
LOGICAL
FACTORS
SOCIAL
FACTORS
CULTURAL
FACTORS
ECONOMIC
FACTORS
PERSONAL
FACTORS

 Legal factors strategy – Legal factors also plays a vital role in affecting the behaviour of
the consumer as it includes various taxes that we call as inclusive taxes exclusives taxes,
govt. Trade policies, politics, economic policies.
For e.g. You were about to buy the cell phone but you see that the government has
increases the tax prices due to which earlier you were getting the phone in 7000 bucks but
now it will charge around 7500 bucks so that affects on your buying decision.
 Ethical factors strategy- a customer do focuses upon this factor the most under which
they see to it that the company is engaged in the right work or not. Or is doing the
business activity legally or not. For e.g. if I will buy a cell phone I will check upon the
reviews if there are no frauds and cheating then only I will make the purchase.
 Social factors strategies – As we all know that human is social animal and who lives in
the society of humans where he takes the feedback, confirmation from his family, friends,
references groups, roles and status.
 Cultural factors strategies - it depends upon from which caste a person belongs to and
what values or ethics he posses are also factors which influence him in making the
purchase. For e.g. If I am Muslim by caste I will prefer buying salwar suit instead of sari
which is wore by Hindus usually so my preferences and priority will be different.
 Personal factors strategies - These are some of the important factor which influences
the buyer’s behaviour in buying any product or while making any decision it includes the
age, occupation, income, life style etc. for e.g. if I am top level business women I would
mostly go for the formal products then with the childish or casual one’s.
1.4 Brand loyalty, corporate image, repeat purchase at Sainsbury
 Brand loyalty – It is a kind of positive feeling of consumer towards the brand and
dedication in purchasing the same product or services again and again and recite to the
same brand even in the future despite with the competitors in the market or the change in
the environment. It can also be demonstatrated through the behaviours of others or the
past customers of that product or brand or word of mouth. (Mobach,2013).
For e.g. I always prefer the brand Nike as I feel satisfied with the quality and
designs this brand provides me so I have a kind of trust and loyalty for this Brand.
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 Corporate image -Mental picture which comes first into the mind when anyone
mentions the firm’s name. It is a psychological process which continuously changes with
the various situations and with the change in the environment also with the media
coverage, reputation, goodwill, public’s perception. Also the views could be change from
positive to negative overnight depending upon the individual perspective. Various large
firms use corporate advertising technique and method to enhance their image in the
market. Where the corporate focuses upon the individual dress up and image so that it can
build an effective image of the firm on the whole.
For e.g. Earlier people use to prefer buying computers but due to the change in
environment, trend and techniques people prefer to buy laptops more than that of
computers. This is called change in the perception and choice.
 Repeat purchasing – The buying of product of the same brand which he purchased
previously and buying is again and again is usually termed as repeat purchasing an such
type of pattern of purchasing is also termed as measure of loyalty, that is when the
customer stick and recite to the same product and feel satisfied about is.
TASK 2
2.1 Various market research techniques could be applied at Sainsbury
Market research helps in finding various information related with the customer needs,
preferences, taste, prevailing trends etc. there are various ways to do market research but usually
these techniques are adopted which are explained below.
(Kim Kim, 2014)
 Surveys – Using concise and straight forward method by preparing questionnaire, we can
analysis the preferences of the consumers and about their taste. Surveys are of different
types which include telephone surveys which are usually expensive and also require good
communication skills, another one is in-person surveys which are one-on-one interviews
where the people are provided with sample products and look after for the immediate
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feedback, then there are also mail surveys which are relatively expensive way to reach
the broader audience and the last one is online survey which usually takes surveys on the
bees of rating or ranking to know the customer preferences and liking of that product or
service. (Parikh and Joshi, 2005).
 Focus groups – In this method the moderator uses a discussion guideline among the
group by using video tapping or recordings where he records the feedback or the
responses of the customers being preset their and this goes for some two hours.
 Personal interviews -Personal interviews usually include close ended questions. It
usually last for an hour. It is more specific then surveys as it provides more subjective
description regarding the customer attitude and his behaviour. This is one of the excellent
techniques of analysing the market.
2.2 Marketing research objective of Sainsbury
 The first and the foremost step of marketing research should be collecting the
background information about the market and the prevailing environment.
 The second step must me the various research questions which includes why the
research is required? For what the research is required? These are some of the
important research questions which are must to answer before moving forward.
 The next step is to determine the objective which must be measurable in terms of
understanding and must be practical in nature.
 After determining the objectives the next important step is to prepare the
hypothesis that is creating various alternatives from the collected information and
the most correct possibilities.
 After that collect the maximum information you can which is relevant to your
subject and may let you fulfil your objective.
 After collecting the data it is required to analyse the data closely so that the best
could be find out for the same.
 The next step is to find out the results.
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 Keeping the results in focus you are suppose to do the discussions for the already
received outcome.
 Make out the conclusion out of this which is the most correct and appropriate.
 The second last step is to recommend what all you researched in the above
process and off course the result.
 And the last step is to do the evaluation for the same.
2.3 Validity and reliability of market research finding at Sainsbury
 Research validity
This is the problem which comes to researcher while gathering the data through various
methods and sources in easy terms it becomes very difficult for the researcher and also
very complex. Bu the validity tells the researcher that what he measured was the only
thing he was required to measure till now.
For e.g.- If the marketing company asks the researcher to collect the information
regarding the market and about the necessary information regarding the preferences of
the consumers so the research validity helps to know whether the information you
collected is the only information the company was looking for. While research validity is
measure through different methods so while making the evaluation of final results one
must ask the same question that is the research measuring what was supposed to be
measured? And if the marketer have Doubts and have no answer to the question then
definitely the results must also have the same problems this is known as research validity.
(Curth, Uhrich and Benkenstein 2014)
 Research reliability
 It says that whether the results can be applied on wider groups than to only those who
took part in the study. Similarly knowing whether the research will provide the same
results to those who will apply the same method or some different sets of data will be
used.
For e.g. If the insurance policy company may do the research on the corporate company
of around 2000 people but apply the research on some 40 people only about what they
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think regarding the policies and evaluating whether the results will be same if this would
be experiment on the rest of the people in the corporate is termed as the research
reliability.
Cron Bach’s alpha – It is classical test theory which is used for estimating the reliability.
It is considered as the scale of reliability. It measures the internal consistency of how
closely related a set of items are as groups or individuals. It is the co-efficient of the
reliability.
2.4 Market research plan for collecting information
 Set your goals- I think the first and the foremost important thing I to set your goals and
objectives of doing the research so that it becomes easy for you to find the information
which you are actually looking for in the market. Also it will become flexible to analysis
even the feedbacks of future and may also help in knowing your goals and in what type
of product or devices you are going to deal into.
 Lay out your collection channel – you must have heard about the distribution channel
here it is regarding the collection channel that is one should be very specific about
through where he will collect the information or feedback from and may select his target
groups to do the same. There could be various channels like social medial, mobile
devices, surveys and others.
(Leingpibul Broyles and Kohli ,2013)
 Brainstorm a list of questions – Now you can start the brain storming questions which
will help you to make the correct decisions regarding the subject or information you are
in search of also it will give a insight about what you want to know and what is not
required to be collected.
 Assign the collected questions - Now you will need to assign the collected questions that
with the collection channels so that it will become clear to you that which channel or
source would be the best to find the answer of the respective question this will help you
to make a rough idea about which channel would be the best for the particular question or
the information. And then start the online surveys. (Curth, Uhrich and Benkenstein
2014)
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TASK 3
3.1 Market size and trends
This section defines about the size of the market or under what slice of market your business will
target to achieve the success and growth of the business. Also the term trend is used to know the
recent trends and the current market growth and potential. After one defines the size of the
market then the market trends are being identified and the target market for your business by
using the geography, company size, business organisation, lifestyle of the people, sex, age ,
occupation and other characteristics of the consumer to know their preferences according to
these factors. It is very important for every organisation to define the size an trend of the market
for buying the products according to such factors only as every individual makes purchase with
his own preferences and choices. In which his geographical condition, lifestyles matter a lot, also
if we talk about his personal factors then his income, family income, expected income are also
plays an vital role. It is important to indentify the trends so that it may become easy for the seller
to keep those products only as we all know that customers are the king of the market according
to which trends and present market is an important factor to be determined. (Meyer‐Waarden,
2008)
 E.g. of market size - Market size of garments is very large as compare to the zinc
industries.
 E.g. of market trend – If we talk about earlier there was no trend of the smart
phones but now android is in the trend.
3.2 Competitor analysis
Competitor analysis is one of the best techniques to be adopted to find out the present
competitors and the sources of competitors in the market. They help you to have a complete
access over the market by doing a prior analysis of all the competitors who can affect the
organisation like Sainsbury. Most of the researcher does not conduct this analysis and lacks
behind in finding their flaws and gaps and are even not able to cop up with them.
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