Comprehensive Marketing Plan: Sainsbury's TU Apparel Brand Analysis

This report presents a comprehensive marketing plan for Sainsbury's "TU" apparel brand, focusing on party wear for women. It begins with an executive summary and delves into macro and micro environmental factors affecting the brand, followed by an analysis of the product, including its positioning using Ansoff's Matrix. The report details segmentation criteria based on age and income, identifies the target customer profile (women aged 20-40 with incomes between £9,000 and £18,000), and outlines the unique selling proposition (quality, price, and design). It further examines pricing and positioning strategies, distribution channels, offers, marketing materials, promotional strategies, online marketing tactics, conversion strategies, joint ventures, referral programs, strategies for increasing transaction prices, and retention strategies. The report concludes with financial projections, anticipating a 10% sales increase in the first year and 12-13% in subsequent years, and references various marketing principles and concepts. The report highlights competitive analysis and the importance of adapting to changing customer needs, emphasizing the use of online marketing and promotional activities.

Marketing Principles

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
1) Macro and Micro Environmental Factors...............................................................................1
2) Product of Sainsbury...............................................................................................................4
3) Segmentation Criteria..............................................................................................................5
4) Target Customers....................................................................................................................5
5) Unique Selling Proposition.....................................................................................................5
6) Pricing and Positioning Strategy.............................................................................................5
7) Distribution channel................................................................................................................6
8) Offers.......................................................................................................................................6
9) Marketing Materials................................................................................................................6
10 Promotions Strategy................................................................................................................7
11) Online Marketing Strategy....................................................................................................7
12) Conversion Strategy..............................................................................................................7
13) Joint Venture and Partnership...............................................................................................7
14) Referral Strategy....................................................................................................................7
15) Strategy for Increasing Transaction Prices............................................................................8
16) Retention Strategy.................................................................................................................8
17) Financial Projections.............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
Marketing principle can be defined as a practice of sharing ideas and conducting
promotion activity that can reach to end users. It helps the company in enhancing its sales
volume by attracting large set of customers towards it. Considering this, present report has been
prepared as a business plan for Sainsbury so that its market performance can be enhanced. In
this, discussion is involved on segmentation, targeting and positioning of “TU” Brand of
Sainsbury which is an apparel brand. In the later part of report, discussion is made on marketing
mix and extended element of marketing mix so that appropriate plan can be developed.
1) Macro and Micro Environmental Factors
Macro Factors are enumerated below:
 Political and Legal: Political changes in the country affect the operation and strategy of
Sainsbury. In addition to it, cited company need to change marketing activity due to
change in Competition Act and Enterprise Act.
 Economic and Environmental: Economic downturn and churn affects the profitability of
the company. Also, customer’s paying capacity is affected.
 Social: Significant change in needs and wants of customers affect the marketing activity
and product design of Sainsbury.
 Technological: Sainsbury adheres to technology and implement the same in operations in
order to offer quality services to customers.
Micro Factors that influences marketing activities are detailed below:
1. Customers: Sainsbury need to develop products as per the needs and wants of the
customers. This requires significant changes in product sometime.
2. Suppliers: Cited Company has sound relations with the suppliers that aids in attaining
consignment on time.
3. Competitors: There is high extent of rivalry that affects the marketing efficiency of the
company.
4. Employees: The organization offer sound working environment and motivation support
that aids in gaining support from them
Sainsbury Marks and Spencer Tesco Plc
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Overview &
profile
Second largest chain of
supermarkets in UK
Market share of
company is increasing.
Globally established
retail brand which
specialists in clothing
segment
It possesses high brand
dominance within the
context of apparels.
Third largest retailer in
the world
It has booked loss in
recent years that
affected its operation in
the marketplace
Competitive
advantage
Well-developed brand
image in the UK
market in retail
industry
Effective use of
technology for driving
sales.
It offers quality
products at affordable
prices.
Quality of products and
high market
capitalization.
Sound base of suppliers
that aids in offering
variety of products to
target customers
High customer loyalty
Price leadership
Large number of stores
and outlets across
country.
Tesco loyalty card helps
in gaining benefits of
repeat purchase.
Target
market
UK and European
market
Asian market India and China
Market share 16.00% 9.00% 29.00%
Marketing
strategies
Effective distribution
High presence of
internet that aids in
reaching to wide range
of customers.
Quality products to
build brand image
It focuses on integrated
marketing tactics that
includes promotion
through print media,
internet and digital
media.
Cost leadership
It attracts customers
through social media
marketing and email
marketing majorly.
Product & Retail products clothing, home products Grocery and general
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services and food products merchandise.
Pricing &
costs
Moderate High street Low
Distribution
channels
Retail outlet and online
stores
Retail outlet, online
store, Distribution
agreement
Intensive, selective and
exclusive
Strengths Brand image
Rise in profit margin
Competitive advantage
Product quality
Fashionable products
and design
Sound relations with
suppliers at global level.
Market share
Huge network of
physical stores that
helps in serving large
number of customers.
Weaknesses Market share
Increase in price of
food material affected
the pricing strategy of
Sainsbury
Cost of production
Clothing section lacks
effective segmentation
Poor stock control
Outdated stock increases
operational cost of the
company
Internal business
operations
Some of the outlets of
the company are not
functioning well.
Majority of business
comes from UK and
Europe only.
Opportunitie
s
Product development
Click and collect
business approach
Emerging market
Expansion into
growing economies
International expansion
More use of technology
Increase brand portfolio
Diversification
More focus on strategic
alliance with prominent
company
Marketing intelligence
3

Threats Fierce market
competition
Greater stakeholder
pressure with respect to
CSR and environment
Challenge in importing
quality products from
different source
Changing demands
Shift in the customer
needs and wants
Customer demands low
cost product due to
decline in disposable
income.
Falling sales
Economic downturn and
credit crunch
high extent of rivalry
rise in labour wage rate
affects its profitability
2) Product of Sainsbury
To develop the market plan, TU brand of Sainsbury is taken into account. In order to
decide the product, Ansoff’s matrix is taken into account that offers 4 options that are shown in
below figure:
Figure 1: Ansoff’s Matrix
(Source: Hanlon, 2013)
Considering this, product development is been considered as an option for present
marketing plan. In this context, new product range will be launching comprising party wear for
female under the brand name. Since, individuals in present era are more concern about their
apparels and to fulfil their needs, Sainsbury will be launching party wear clothes specifically for
female at competitive prices (Alon, Jaffe and Vianelli, 2012).
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3) Segmentation Criteria
It is required to conduct the segmentation so that actual customer can be identified. In this
regard, segmentation is done based on demographic factor in which age and income levels have
been considered as a base for dividing markets (Chen, and Lai, 2010). Following are the segment
under the two head of segment:
Segmentation based on Age Segmentation based on Income Level
Below 20 years Up to £9000
20 to 40 years £9000 to £18000
40 to 60 years Above £1800
Above 60 years
4) Target Customers
Since, it is a party wear product and therefore it will be prominent for female customers
that lie in the age range of 20 to 40 years. By focusing on this, company will able to boost its
sales volume and can able to attain an edge over the rivals. From the age group of 20 to 40 years,
company can gain attention from the internet marketing as well as these are the customers that
access internet on daily basis. Hence, considering these factors, mentioned age groups customers
are focused primarily. Further, buyers that have income that ranges from £9000 to £18000 will
be focused. As per the market trends, customers in this range only buys majority of products of
party wear nature. Also, they will buy such products on daily basis.
5) Unique Selling Proposition
For the above stated category of customers, quality, price and latest design will be the
USP of the product and same will be involved in the party wear product so that more of
customers can be attracted towards it. Here, customer will be offered with products that has good
quality fabrics (Czinkota and Ronkainen, 2012). Also, latest design will be bring in the product
so that repeat purchase will be attained.
6) Pricing and Positioning Strategy
The pricing strategies of TU apparels will be developed on the basis of competitive
pricing measures. The company will research and evaluate the competitor's pricing measures for
product range and will set relatively low price to attract new consumers (Gretzky, 2010).
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Moreover to make the products attractive psychological pricing measures will be adopted by the
business unit.
7) Distribution channel
In order to distribute the aforesaid product, retailers will be used. In this regard, product
will be procure from producers and same will be make available at retail store i.e. physical and
online store of Sainsbury so that it can be reached to the convenience of customers.
Figure 2: Distribution Channel
(Source: Placing a Product. N.d.)
8) Offers
Company will offer new product range i.e. party wear for female under the brand name.
Since, individuals in present era are more concern about their apparels and to fulfil their needs,
Sainsbury will be launching party wear clothes specifically for female at competitive prices.
9) Marketing Materials
Sainsbury has developed an effective brand image within the market by adopting
competitive pricing measures which helped the company in enhancing market sales developing
favourable perception from consumers. The company has developed its online infrastructure to
enhance consumer preference for the organizational products and services (Graham, 2008). The
campaign for product development helped the organization in creating valuable support from
consumer for enhancing product quality which helped the company in developing consumer
satisfaction within the market. The shift of pricing strategies from premium to mid low range has
helped the company in enhancing market sales.
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10 Promotions Strategy
The target consumers for Sainsbury will be Females consumers falling under middle
income group who are seeking the party wear apparels. The target customers for the the products
will be females who are of the age of above 20 years and below 40 years. This involves young
adult and adult segment for the company. The income range of target consumers will be from
9000 GPB to 18000 GBP annually (Hellenes, 2015). The products of latest trends and seasonal
choices will be widely promoted to create market demand. However the products with low
demand and low life will be replaced with the latest and updated product range. For example
winter wear in spring season will be replaced with summer wear to avid dead sock.
11) Online Marketing Strategy
The online marketing strategies that Sainsbury will adopt will be sales promotion to
enhancing push strategy for new products. Online promotional measures through search engine
optimization and social media marketing will help the company in targeting the digital
consumers. Advertisement strategy will also be adopted by the company to pull sales.
12) Conversion Strategy
For converting more of prospective customers into existing customers, company can sent
messages on mobile along with description of offers. This will help in gaining attention from the
individuals. In addition to it, social media platform will also be used for sending information
regarding apparels and offers.
13) Joint Venture and Partnership
Company can enter into Joint Venture or partnership with local boutique and apparel
showroom so that they can publicize and sell their products from it. Through this, Sainsbury can
able to boost their competency by enhancing its reach to general customers.
14) Referral Strategy
Company can run referral program in which they can issue card where point will add if
anyone makes purchase with the referral code. This code can be sent through messages on
messaging app and social media so that more of customers are able to attract towards it. Through
this, company can able to boost its sales volume.
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15) Strategy for Increasing Transaction Prices
For the new product range Sainsbury will develop intensive and selective distribution
strategy in order to decline transaction cost. The company will develop effective online
infrastructure for enhancing sales within the market. Hence both online and store selling
measures will be adopted by the company (Akaka, Vargo and Lusch, 2013).
16) Retention Strategy
Following measures will be used for retaining consumer:
 Regular offers and gift vouchers will be availed for boosting repeat purchase.
 Conducting advertisement through online portal
 Delivering loyalty card so that next purchase can be made by customers.
17) Financial Projections
Considering the market trend, it can be projected that sales of the party wear clothes will
be increased by 10% in first year and 12 to 13% in coming years. However, company need to
incur cost of £10,000 initially so that they can able to reach to large set of customers and can
attract the same. In this regard, promotion will be done through website, social media marketing,
Pay per click advertising, print media and research and surveys. It is expected that 55% will be
the response rate that will help in enhancing the sales of the company. Through this, Sainsbury
will be able to make considerable amount of profit in long run.
Customer Purchase Cycle
It is evident that customers are buying products from Sainsbury on regular basis and
therefore it is required to offer better services to customers. The purchasing cycle of the
consumer will include following steps:
 Need recognition for the product and service
 Searching suppliers who sell the products (Craig and Campbell, 2012)
 Investigating information through advertisement and online portal
 Inventory analysis for the company
 Product selection through online or physical display mode
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Sales and Budget
Particulars Amount (in £)
Estimates Sales 2000
Additional revenue 460
Expenses on Advertisement 250
Expenses on Production 250
Expenses on Promotional elements 80
Estimated Profit 3040
Measure the Plan
It is essential to measure the marketing plan so that its effectiveness can be assessed. In
this context, company can focus on gaining customer feedback for the purpose of assessing the
effectiveness of product. Here, idea will be attained whether above mentioned product is meeting
with the needs of customers or not. Through this, information of customer satisfaction will be
attained that aids in assessing whether customer will retain with the company or not (Czinkota
and Ronkainen, 2012).
CONCLUSION
From the above study it can be concluded that preparation of a marketing plan requires
great amount of concentration and focus. The plan is to be implemented within the prescribed
budget of marketing. Further the success is decided on the basis of adoption of an effective
marketing strategy. Apart from that STP is the most crucial section of marketing plan which
makes sure that business is placed in the right direction.
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