Sainsbury's Marketing Strategy: Environmental and SWOT Analysis

This report provides a detailed analysis of Sainsbury's marketing principles, focusing on environmental factors and SWOT analysis. It examines both internal factors, such as product, marketing, and management issues, and external factors, including political, economic, social, technological, environmental, and legal considerations. The SWOT analysis identifies Sainsbury's strengths, weaknesses, opportunities, and threats, including the impact of the pandemic and competition. The report concludes with recommendations for improving internal management and pricing strategies. Desklib offers students access to similar solved assignments and study resources.

Principles of Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Environmental Analysis...............................................................................................................3
Swot Analysis..............................................................................................................................5
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Food retail industry is the largest segment in the entire world as it fulfils the daily routine
needs of people. In day to day life food and beverages are the important source for a human being
to survive their life. The organization named Sainsbury is grocery retail industry and second
largest supermarket chain in the United Kingdom. For the better growth and development of the
organization the company is required to understand the principles of marketing in detailed
manner so that the company can be able to become more successful.
The report will illustrate the concept of marketing which includes the environmental
analysis which helps the company to understand the external and internal issues definitely and
can be performed with the utilization of pestle and swot analysis tool (Rathore, and Malawalia,
2021). Also, will mention some recommendation to identify the new opportunities and threats
which can be solved within a time and can be able to obtain higher success.
MAIN BODY
Environmental Analysis
The environmental analysis is important part of an organization or business which is
essentially required to understand. Implementing the environmental analysis will help the
Sainsbury to understand its internal and external factors which impacts the growth and
development of the organization definitely. Performing this analysis will make the management
of the organization to know about the positive and negative areas of the organization and can
keep them alert and informed and can enable the growth and development of the organization. It
also helps the management to know about the company’s transformation and particular areas. The
internal factor of a company includes the issues such as product issues, marketing and
management issues which us required to be solved accurately (Febrian, and Ahmad, 2021). On
another hand, external factor includes the political, economic, technology, social, environmental
and legal areas where the Sainsbury company needs to focus on. Let’s understand the both factor
in detailed manner below:
Internal factor
Product: Every organization is required to keep the focus on their products and services and
required to solve the issues of them internally so that they can be able to sell the services and
products accurately. The Sainsbury company is also required to internal analysis if their
organization from which they can be able to understand the negative areas of the product from

which the sell is not able to increase at higher level. Before selling any product the company is
required to check the product and provide the best quality products to the consumer from which
the sale of the product can be increase.
Marketing: There are many organizations which are facing the problem of marketing in their
organization widely. Similarly, the Sainsbury organization can also face the marketing problem
which can impact the company to reduce their sale (Masih, Rajkumar, Matharu, and et.al., 2019).
Marketing is a kind of strategy and method which is required to be implemented and understand
them in definite way so that the product and service of the company can deliver to the consumer
effectively. For example, the Sainsbury company is required to do marketing of their products
effectively through various sources so that the product can reach to a thousand of people and can
create a large amount of demand in market.
Management: The management issues is the basic issue nowadays. Many organizations do not
able to focus on their management areas from which they cannot be able to obtain the effective
outcome. Likewise, the Sainsbury company is also required identify their management issues and
enhance them properly so that the company can be able to increase their growth and productivity.
External factor
Political: Political factor includes the government interference related to organization activities
and working areas from which the company get impacted. Every organization is required to
follow the rules and regulations which the government has announced and stated to be
implemented necessarily. The company named Sainsbury also can get impacted by the political
factor as the government has implemented any rules regarding the food service industry and the
transportation areas then the company is required to follow them accordingly.
Economic: This factor refers the involvements of the economy areas where the economy
performance of the country affects the organization widely. This factor includes a rise of inflation
rate, foreign exchange rates and such more (Schlegelmilch, 2022). The company Sainsbury also
can get impacted by this factor if the inflation rates changes then the company goods and services
also get impacted and may result the company according to the changes.
Social: The social factor includes the age, population, gender health and safety and such more.
The organization Sainsbury also can get impacted through this factor as the company can
implement all the health and safety measures of the consumers by delivering the fresh food and

can provide the effective result and outcome to the company. For food industry, the health and
safety areas are required to be focus on and can obtain the higher productivity.
Technology: Technology is nowadays, the most utilized tool and technique can impact the
organization in fruitful manner. Technology has made the lot of working easy for the
organization. The Sainsbury is supermarket industry which delivery the food items to the
consumer where the consumer also can order their requirements from using the technology like
their own website and application which helps the company to increase their productivity and
consumer scale. Online food delivery is the trending and very beneficial way of making the
company more successful and productive.
Legal: The legal factor includes the legal structure and authority to create a valid and appropriate
rules for the betterment of the society. The Sainsbury company is also can get impacted by the
legal areas if not following their rules and regulation appropriately. For example, for the
betterment of the company Sainsbury stopped the sale of high fat, salt or sugar food for children
below 16 of age (Atherton, 2019).
Environmental: Nowadays, the company follows and encourages the eco-friendly environment
which help them to promote their business more accurately and can be able to obtain effective
result. the Sainsbury company started to reduce the waste in the supply chain and also working to
reduce the carbon emission in the operations (Fiore, Stašys and et.al., 2018).
Swot Analysis
Strength: The Sainsbury company has power of taking the feedbacks from the consumers and
work them accordingly. A good feedback system makes the company to resolve the issues of the
consumers which creates good image of them in the market field and able to increase their sales
and relationship with the customers. Even, the company also has a unique promotional or
advertising strategy from where they are able to compete with their competition in the market and
can earn profitable result.
Weakness: Sainsbury have weakness or weak areas because of its pricing structure which is
quite higher. The increase in prices makes the shortages in the consumer scale and not able to
earn the profit. Also, the company has to put the online delivery prices lower and obtain lower
margin which is a quite weak point of the company.
Opportunity: The company has implementing or giving the 24*7 services to the consumers
which is a great opportunity for them to increase and attract the maximum consumers at night

hours. eve, the company has delivered their products and services in villages too from which the
people are able to feel satisfied and comfortable which is providing the great opportunity to the
organization to expand the company more.
Threat: The company has get impacted recently die to the pandemic which has putted a great
change in the company stability. The company has dropped down by 3.2% of their productivity
which is quite a threat for them (Adeli, Zadsafar and et.al., 2020). A natural disaster has become
the great threat for the company. Also, the company also has threat of competitors as in today life
there is so many competitions in the marketing even at food delivery system such as zomato and
uber eats.
Recommendation
 The company has required to keep focus on their internal management areas as due to lot
of working the management has forgotten to focus on the internal areas of the company
which includes the production area where the management is required to keep an eye on
this are so that the health and safety measures could be delivered by the company.
 Sainsbury also required to focus on the delivery systems and pricing structure as due to
increases pricing structure they are not able to attract the lower or middle class people to
become their regular consumers.
CONCLUSION
The report has concluded the importance of environmental analysis in an organization which
can increase the productivity of the company. It has concluded the food industry company which
is required to do an environmental analysis which helps them to identify and their internal and
external factors which can impact their productivity. Even, at last performed some
recommendation which will guide them to obtain higher result and outcome.

REFERENCES
Books and Journals
Adeli, A., Zadsafar, S., and et.al., 2020. A SWOT analysis of Iranian fishmeal industry. Iranian
Journal of Fisheries Sciences. 19(6), pp.2909-2924.
Atherton, J., 2019. Social media strategy: A practical guide to social media marketing and
customer engagement. Kogan Page Publishers.
Febrian, F. and Ahmad, N.F., 2021. Internal and External Factors Affecting the Sales of Hype
Drinks in Online Platform. Jurnal Minds: Manajemen Ide dan Inspirasi. 8(1), pp.89-106.
Fiore, M., Stašys, R. and et.al., 2018. Agri-Food supply chain optimization through the SWOT
analysis. Management Theory and Studies for Rural Business and Infrastructure
Development.40(1), pp.28-36.
Masih, J., Rajkumar, R., Matharu, and et.al., 2019. Market Capturing and Business Expansion
Strategy for Gluten-Free Foods in India and USA Using PESTEL Model. Agricultural
Sciences. 10(02), p.202.
Rathore, A.S. and Malawalia, P., 2021. Deploying artificial intelligence for circular economy and
its link with sustainable development goals. International Journal.1(4).
Schlegelmilch, B.B., 2022. The Global Marketing Environment. In Global Marketing
Strategy. (pp. 19-49). Springer, Cham.