Marketing Plan for Sainsbury's Supermarket: A Comprehensive Evaluation

Desklib provides past papers and solved assignments for students. This report analyzes Sainsbury's and Tesco's marketing strategies.

[MARKETING ESSENTIAL- PART B]

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TASK 2
P3 COMPARE WAYS IN WHICH DIFFERENT ORGANIZATION APPLY
MARKETING MIX TO THE PLANNING PROCESS SO AS TO ACHIEVE BUSINESS
OBJECTIVES
Marketing Mix refers to the process of analyzing market conditions that can effectively help to
achieve business objectives. The application of marketing mix uses different methods of
planning procedure so as to achieve organizational goals. It is based upon several demographic
factors such as Market Size, Market capital associated with the product or services.
Marketing Mix is an important tool that is used by every organization to generate a marketing
plan. It consists of elements as Product, Price, place and promotion; commonly known as 4 Ps
of Marketing. Later on, this approach was extended to 7 Ps of marketing that considers
Product, Price, Place, Promotion, People, Process and Physical evidence (Kotler et al., 2015).
Figure: 7 P’s of Marketing Mix
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[Source: Armstrong et al., 2015]
7 P’s of Marketing Mix as follows:
Product
This tool depicts the goods and services offered by the company in the target market. It consists
of a product that is tangible and intangible in nature. Thereby, the product of the company is
further classified as Core product, Actual Product and augmented Product.
Price
Price is termed as the amount charged from the customer for selling the product in the target
market. It is required by every firm to achieve competitive prices for every product so as to earn
respective profit margins (Armstrong et al., 2015).
Place
It consists of all the activities so as to make the product marketable. This requires effective
distribution strategies that involve all the location for the availability of the company's product
(Talpau, 2014).
Promotion
This element of the marketing mix deals with the activities of advertising and promotion of
goods and services. The use of effective promotional tactics can create awareness of the
product in the market (Baker, 2016).
People
This element is concerned with the proper management of human factor that is directly
involved in the manufacturing process of the product. Thus, it is an important tool to marketing
Mix for the smooth flow of all the activities from inception to end.
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Process
This element requires managing the effective flow of process activities that are involved in the
marketing of a particular product. It is thereby required to concentrate on these activities so as
to derive the best results.
Physical evidence
Physical evidence represents a material part of the product in existence. It consists of all the
activities that are related to the logo, Sign, attractive Packaging, design and others so as to
ensure the reliability of the product (Baker, 2016).
Comparison of marketing Mix of Sainsbury and Tesco
Tools of Marketing
Mix
Sainsbury Tesco
Product Sainsbury offers a wide variety of
products to its customer. Thereby
supermarket uses an innovative
approach and quality
management technique so as to
improve the quality of the
product. Also, the company
develop positioning and Product
segmentation strategy in order to
effectively compete in the market.
TESCO being the largest
supermarket in the UK offers a
wide range of product that
includes Fresh food, groceries,
home items, Leisure, gifts and
Jewellery and other similar items.
The product line of TESCO caters
every possible need of the
customer
.
Price The company pricing strategy is The company tries to offer a
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based on value for money paid in
order to ensure customer
retention by offering quality
products. Thus, the company
adopts price discrimination policy
in order to effectively compete
with rival brands (Christopher and
Pack, 2012).
product at a low price without
compromising with the quality of
the product. Tesco adopts cost
leadership strategy so as to
become the market leader and
keep the customer happy and
satisfies. This will further enable
the company to achieve
economies of scale.
Place Sainsbury is known to be the
largest grocery store across the
UK. The company owns more than
1400 stores and 13 regional
distribution centres across the
globe. Further, the place strategy
of the company makes it
convenient for people to buy the
products.
TESCO has more than 6900 stores
in order to sell its products or
services in 11 countries. It owns
the stores in the name of Tesco
Express, Tesco Extra, Tesco Metro
and other supermarket stores.
Also, the company uses its official
websites to sell its product.
Promotion Sainsbury adopted BTL and ATL
strategies in order to promote the
product in the consumer market.
They also put efforts to launch the
advertising campaign and
database marketing so as to build
the brand image in the eyes of the
customer.
TESCO make use of Promotional
tactics in the form of a television
advertisement, promotional
discounts and other attractive
offerings. Besides this, the
company also sponsors various
charitable events and use point of
sale strategies. Thereby, the
company studies the demand
pattern of the consumer and
accordingly formulates the
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promotional strategies (Chritopher
and Pack, 2012).
People The People at the Sainsbury's
stores are competent enough to
resolve the customer grievances
and address the various problems
faced by them. Thereby, the
company values its human
resource so as to achieve the
business goal.
TESCO provides excellent training
to its sales assistant so as to make
them responsible. Also, the
company introduces various
programs such as Save as you earn
so as to gain customer loyalty.
Thereby, the employees and
compensated for their efforts.
Process The process activities in order to
make the product available are
simple and sophisticated. Thus, a
company follows a systematic
approach in all the system
(Butscher, 2017).
This tool of Marketing Mix
requires maintained services at
various TESCO stores. It is required
to maintain the speed of billing
services by employing competent
staff as well as ensure the easy
availability of the product offline
and online (Rowley, 2016).
Physical evidence Sainsbury stores are more
lucrative and attractive that
influences a large variety of
customers in the UK. It also
involves the logo of the company.
TESCO stores are not much
attractive as compared to
Sainsbury's. As the company do
not spend unnecessary money but
ensures the clean and tidy
environment at the work stores.
Also, it is easy to navigate the
product on Tesco’s website.
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TASK 3
P4 PRODUCE AND EVALUATE A BASIC MARKETING PLAN WITH RESPECT TO
SAINSBURY
EXECUTIVE SUMMARY
The effective strategies are designed in order to produce a marketing plan with respect to
Sainsbury's. Also, SWOT analysis is conducted for the purpose of identifying strength and
weakness so as to explore the opportunities in the market. The situational analysis consists of
internal and external analysis for the purpose of analyzing the present condition of the
company.
COMPANY’S OVERVIEW
Sainsbury is a chain of supermarket in the United Kingdom. It offers a wide range of services
and serves over 21 million customers every week. The company has spread its convenient
stores all over the cities of the UK and employs over 150000 people. The company can strongly
compete in the market on account of price and Quality of goods. The aim of the company is to
offer outstanding services at competitive costs (Wothington, 2014).
SITUATIONAL ANALYSIS
The situational analysis will be conducted to understand the state of the economy and address
the various issues in the context of Internal and External analysis.
INTERNAL ANALYSIS
It can be conducted with the help of SWOT analysis.
STRENGTHS WEAKNESSES
 Strong brand image and reputation of
the company (Pantelidis and Stogias,
2015).
 Faces risk of Brand switching.
 Face challenges to retain potential
customers.
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 Dominant market share in the industry.
 It offers a quality product at affordable
costs.
 The company strength lies in retaining
the customer with the help of loyalty.
 Sainsbury has a low margin that can
affect the profitability of the company.
 Additional expenses on account of
incorporating technological
advancements.
OPPORTUNITIES THREATS
 The increasing popularity of the
company provides an opportunity to
attract new customers.
 Explore the global market in order to
enhance the brand image of the company.
 To enhance the customer base through
private labelling of the product.
 Increase in the unemployment rate can
affect the buying pattern of the
customer.
 Faces heavy and intense competition
from a rising player in the market such
as ASDA, Resco, TESCO and others.
EXTERNAL ANALYSIS
It can be conducted with the help of PESTEL analysis.
POLITICAL FACTORS ECONOMIC FACTORS
 Political factors in the UK can influence
the position of Sainsbury.
 The effect of consumer and
government debt is very high.
 Business conditions can induce great
pressure (Pantelidis and Stogias, 2015).
 The unfavourable political condition
might affect the steady growth of the
company.
 The economic slowdown might affect
the demand, costs, price and
Profitability.
 Changes in inflation rate and exchange
rate (Molthan, 2017).
 The company has to address the
various risk associated with respect to
the changing scenario.
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SOCIAL FACTORS TECHNOLOGICAL FACTORS
 Changing customer needs and
preferences.
 Societal behaviour and attitude can
affect the business of Sainsbury's.
 The use of online technology can lead
to the expansion of the business.
 Technological advancement can lead to
continuous improvement in business
operations.
LEGAL FACTORS ENVIRONMENTAL FACTORS
 Government legislation and policies
can directly affect the performance of
Sainsbury’s.
 Modification of the tax structure can
ultimately affect the revenue of the
company (Molthan, 2017).
 Sainsbury has taken the initiative to
maintain the sustainability of the
environment.
 The approach of reducing, reuse and
recycle is effectively used.
 The company is also taking the
initiative to reduce carbon footprints.
OBJECTIVES AND GOALS
The objectives and goals of the Sainsbury to attain long-term and short-term goals are as
follows:
 To improve the quality of goods and customer services.
 To reduce customer complaint by 5 %.
 To create a common vision for achieving business objectives.
 To set aspiring vision so as to become the consumer first choice for food.
 To create a program with respect to the renewal program (Akter, 2012).
SEGMENTATION, TARGETING AND POSITIONING
Segmentation refers to the division of the whole market into different segments based on
demographic, behavioural and other factors. Thereby, Sainsbury has segmented its market
according to Psychographic variables that resulted in competitive activities (Palmer, 2012).
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Targeting focuses on choosing a few of the segments that led to generate higher profitability
for the company. Sainsbury target the family unit such as mother to sell their products or
services.
Positioning is the technique of incorporating traits of the product and portraying the brand
image of the company differentiated with that of competitors. Thereby, Sainsbury ensures the
higher quality of the product using the top manufacturing skills (Eagle et al., 2014).
MARKETING STRATEGY
Sainsbury’s is using a market penetration strategy in order to attract customers and thereby
increasing the sales volume. This strategy will really work out in the UK market so as to achieve
a competitive edge in the industry. Thus, the probability of the outcome of this strategy can be
measured in terms of good market share (Christopher and Peck, 2012).
Besides this, a market development strategy will be really helpful for the company to expand
the number of stores across the globe. Also, the desired results would be achieved in terms of
increasing sales value and customer service.
MARKETING BUDGET
The budget plan has been prepared with respect to market research and investigation. It set
out the expenditure required for producing a market plan with respect to Sainsbury's (Branch,
2014).
Social media & Promotions £2500
Advertising campaigns £2000
Administration charges £1850
Other expenditures £1780
Other overheads £1520
TOTAL £9650
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TACTICS AND ACTION
Tactical planning involves setting short term decisions that are to be followed by Departmental
managers and store managers. Tactical planning and action aim to improve customer service
and satisfaction by ensuring the deliveries on time (Branch, 2014).
EVALUATION STRATEGY
It is important to control and evaluate the marketing plan for the smooth conduct of business
activities. Controlling and evaluation will be helpful in analyzing the market of Sainsbury’s as
well as finding out the deviations so as to achieve the target goals. Thus, it is an important
measure to drive the success of the organization (Westwood, 2013).
CONCLUSION
The business environment of Sainsbury has been analyzed with respect to SWOT and PESTEL
analysis. The above plan reflects the marketing strategies adopted by Sainsbury’s in order to
drive the sale of the company. Thus, it is required by the company to overcome its weakness so
as to compete in the industry. This plan will be really helpful in attaining business goals and
objectives.
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