Sainsbury's Women's Wear Launch Report

This report details a comprehensive analysis of Sainsbury's current market position and proposes a new product launch strategy to address declining sales. The report utilizes secondary research to identify market trends and consumer preferences, focusing on the London market for a new women's wear line. A PESTEL analysis assesses potential external factors, while Porter's Five Forces framework analyzes competitive dynamics. Market segmentation based on age is proposed to target specific customer needs. The report includes business proposals for both the board of directors and venture capitalists, outlining the objectives, market research findings, alternative options, and financial requirements. A critical evaluation of the proposed strategy's feasibility and suitability concludes the report, highlighting the potential for brand image enhancement and revenue generation.

Business Skills

Table of Contents
INTRODUCTION................................................................................................................................4
TASK 1.................................................................................................................................................4
1.1 Market research of Sainsbury...................................................................................................4
1.2 Evaluation of market and current trends...................................................................................4
1.3 Product's strengths and weaknesses...........................................................................................5
TASK 2.................................................................................................................................................6
2.1 PESTEL
analysis of the product....................................................................................................................6
2.2 Selection of target market through Segmentation......................................................................7
2.3 Porter’s five forces
analysis............................................................................................................................................8
2.4 Justification of suitability and feasibility of the strategy...........................................................9
TASK 3.................................................................................................................................................9
3.1 Business idea and agenda of the meeting..................................................................................9
3.2 Business Proposal (For Boards of Directors)..........................................................................10
3.3 Minutes from the meetings......................................................................................................10
3.4 Personal reflection from the meeting.......................................................................................11
TASK 4...............................................................................................................................................11
(A) Business Proposal (For Venture Capitalist).............................................................................11
(B) Critical evaluation...................................................................................................................12
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................14

Illustration Index
Illustration 1: London, UK Consumption Expenditure........................................................................5
Illustration 2: PESTEL Analysis...........................................................................................................7
Illustration 3: Porter's Five Forces Analysis.........................................................................................8

INTRODUCTION
The report studies the sale and financial crisis of Sainsbury in UK as company has said to
have lost its grip on sales. This is due to low price strategy of competitors. In order to fight thus
issue of Sainsbury the board of directors have held a meeting. In meeting it was decided to launch a
new product line for the company. Secondary research was done for the launch of the company.
From the research it was found that London is the best suitable market for launch of women's wear
line (Liu and Schiraldi, 2012). The report also studies Porters and Pestle factors that may affect the
business of the company. Segmentation is done on the basis ODF age to analyse the target market
source.
TASK 1
1.1 Market research of Sainsbury
A secondary research is performed on the company as Sainsbury is recently facing financial
crisis due to low sales in UK. The research is done with the help of website, social media, books,
journal, etc. As per the reports of tabloids and Sainsbury of 2015, it was detected that the company
is facing low sale due to change in taste and preference of customers (Supermarkets' sales crisis,
2015). Sainsbury failed to cope up with market uncertainty that led to extreme sale crisis. Sainsbury
also tried to cut back its products price in order to get back in the market, but the step did not serve
its purpose.
Raising competitiveness also a reason for the failed sale service of Sainsbury (Sainsbury's
profit slump, 2015). In order to fight with this situation a market and industry research is done with
the help of various tools. As directors of company we have decided to launch a new product of
apparel line, which will help Sainsbury to rise up in sales. In order to launch the new apparel line
market evaluation and segmentation is done to identify the right market needs. In the meeting all the
above points will be discussed in order to generate the effectiveness and success factor of the
apparel launch.
1.2 Evaluation of market and current trends.
Evaluation of Market
All the latest fashion supplies are first started off from London, Thus it is termed to be the
fashion city of UK. London's expenditure for clothing is of 59.0 Billion as the customers are highly
fashion frenzy in the city. More then 27 Billion euros are the sale amount spent by women's on
women wears (Luo and et.al., 2009). More then 50 billion of sale is forecasted for both women and
men's wear by the end of 2016. These statistics show that London is the best market to launch new
men's and women's wear line. Sainsbury will be benefited from sales in London, specifically.

Source: (London Fashion Week, 2015)
Current Trends
After evaluating London for the product launch it was found that there are various trends in
the market. They are-
 Customer are admiring the Print blocks and netted style of dresses for women.
 Choker and traditional British style is back into fashion with pink to be preferred colour of
the season in women clothes (Papanastasiou, Bakshi and Savva, 2013).
 The consumers are also preferring fit and tied up dresses for women.
 Tracksuit, Tartans, Mix and match and Polo necks are highly in demand by Men.
 As winter is on edge Winter coats are highly preferred by both men and women.
1.3 Product's strengths and weaknesses.
In London's market it was found that women wear is highly in demand. Thus women
clothing line is suitable product for the new launch. Strengths and weakness analysed are as
followed-
Strengths
 Sainsbury's biggest strength is in its brand image in the home market i.e. UK. The company
is widely known by customers.
 Company has chosen right time for the product launch, latest fashion shows and demands is
beneficial for the sale of Sainsbury (Lenfle and Midler, 2009).
 Sainsbury has a competitive advantage over the quality of raw material it chooses for the
product.
 Good sense of market and research is critical for the success of the company in launching
women wear in London.
Weaknesses
Illustration 1: London, UK Consumption Expenditure.

 The process of new product launch is expensive and the company already lacks in strengths
of finances as it is already hit by sale crisis (Hernández-Espallardo and Delgado-Ballester,
2009).
 Cost of labour and designers is high in the fashion industry., this might be point of concern
for Sainsbury.
 Shift in trends in fashion and taste of customers is leading weakness for the company.
 Selection of right type of fibre that may impress all type of customer will be a problem for
the company (Hernández-Espallardo and Delgado-Ballester, 2009).
Strengths Weaknesses
Brand image
Right time of launch
Quality of raw material
Good sense of market (Kahn,
2010)
Expensive Process
Cost of labour and designers
Shift in trends in fashion
(Yüksel, 2012)
Selection of fibre
TASK 2
2.1 PESTEL
analysis of the product.
For the launch of women wear in London, analysis of micro environment of Sainsbury is
done by Pestle analysis. It is presented as-
1. Political Factors- Shift in government policies of trade unions, international trade may
affect the Sainsbury's products launch (Friesner, 2011). Certain regulations and legislations
may impact on the business of the company.
2. Economic Factors- Interest rates, demand and supply, wage rates and rate of inflation in the
economy of UK may directly impact on the pricing policy of Sainsbury while launching new
product line.
3. Social Factors- Lifestyle of citizens if London, religious sentiments and wealth directly;y
will affect the Sainsbury's product launch (Su and et.al., 2009). As the shift in taste and
preference of women may hamper the sale of the product.

Source: (Friesner, 2011)
4. Technological factors- Use of technology for research and developing products design is
influential in the success of the company. The cost may rise as the use of of technological
support taken by company rises (Ma, and et.al., 2010).
5. Legal Factors- UK government laws like employment law, consumer protection law etc. are
the areas that are responsible for any change in the companies policies. The company has to
abide by all the laws to generate successful launch.
6. Environmental factors- Use of animal fur in the product is strictly prohibited by the
government of UK. The company has to generate organic sources of fibre that does not
deploy the fertility of land and water (Yetis, Gou, Jafar and Kayran, 2010).
2.2 Selection of target market through Segmentation.
Segmentation is a process of dividing the market of customers into subsets. As London is a
huge market for the product launch it is important for the company to subdivide the market.
Demographic Segmentation is used for Sainsbury's product launch in London. Age variable
is best suited for the segmentation under demographics. As there are various range if age in
women's wear. Age can be segregated in the range of 8-14, 14-20, 20-27, and so on. Sainsbury will
be able to ficus more on each age range needs and wants. As if the company pays attention to fulfil
customers wants and desires customers are bound to be loyal towards the company. This will help
company to design and customize product according to each age range (Ma, and et.al., 2010). The
Illustration 2: PESTEL Analysis

major advantage of this segmentation is that the company will be able to serve a large market which
will help in raising sales objectives of the company. The company will be to able to advertise and
promote its products to various range. Age cycle of customers will let Sainsbury to focus on design
and detail of the product (Mamanova and et.al., 2010). This will attract fashion crazy customer's.
Thus this will prove fruitful for the success of Sainsbury's new product.
2.3 Porter’s five forces
analysis
To analyse Sainsbury position in the industry, Porters five force analysis is been done.
Source: (Lee and et.al., 2011) Power of Supplier- Sainsbury's supplier have a dominating power on the company. The
company has to maintain cordial relationship with then supplier in order to get quality
products for the launch (Ma, and et.al., 2010). The company has to choose right supplier for
the supply of product in order to generate best quality product. Power of Buyer- Consumer have the highest dominating power on the company. As the
company is dependent on customer for sale. this the company has to pay attention in order to
attain maximum customer satisfaction and loyalty. Competitive Rivalry- Sainsbury have high number of competitors like Asda, Aldi, Marks &
Spencer etc. they impact companies strategies and policies Sainsbury has to analyse the
power of competitors on the market in order to attain maximum marker share (Kahn, 2010). Substitution Threat- Launching a product that is part of fashion industry brings along with it
great threats of substitute products. Sainsbury has to analyse the market in order to find out
suitable substitute that may affect the product launch.
 Threat of new entry- Fashion industry has low barrier to entry, any brand or company can
Illustration 3: Porter's Five Forces Analysis

operate in the market. The company has to pay attention on innovation bin design in order to
eliminate new entry threats for the product.
2.4 Justification of suitability and feasibility of the strategy.
Suitability
As per the research done on the market and industry, it was found that the strategy is suitable
for the launch of Sainsbury's product. All the key issue that the launch could face were analysed in
the research. The launch makes economic sense to the company needs revenue for successful
operation (Magretta, 2013). As fashion industry has a high scope of sale margin. Sainsbury is in a
position to earn back its lost image and sale in the market by the launch of new women's wear line.
Pestle analysis helped to find the factors that may affect the market and product whereas porters led
to analysis of competition in the fashion industry. Thus the proposed strategy is suitable for
Sainsbury.
Feasibility
As forecasted by the data provided in the research it is forecasted that the launch has a great
scope for sale in London. The launch is feasible to the company as Sainsbury have resources that
can be helpful towards the product (Cui, Zhao and Ravichandran, 2011). Lowering sale and
revenue of the company makes the launch more feasible in terms of cash flow for the company. The
launch of women's wear in London will prove to be a profitable decision for Sainsbury. The
company will be able to build new brand image in London.
TASK 3
3.1 Business idea and agenda of the meeting
Sainsbury's business idea is to design new women's wear line for raising sales of the
company. The main idea is to successfully launch women's wear line in order to save Sainsbury
from the financial crisis. In order to this, secondary was done for the launch. It was analysed from
the research that London is the most suitable market for the product. To make the product a hit in
the market segmentation based on age range is used. There are various Pestle factors that may affect
the business of the company. Sainsbury would gave to initiate the implementation of idea in order
that it can successfully raise sales (Friesner, 2011). Fluctuating fashion trends and competitive
scenario in the fashion industry is a weakness to the launch.
Pre meeting Agenda Post Meeting Agenda
 Performing research
 Making Reports and documents
 Drafting the reports and documents
 Preparing minutes from the meeting
 Selection of resources for the business
idea
 To work on implementation of the idea

Meetings agendas is to reflect on the business idea and to find whether the idea is suitable
for the company or not. It is the objective of the meeting to discuss on factors that may hamper the
success of the product in London. The meeting is hold in order to identify the market and industry
effectiveness for the product. The directors have to decide whether the idea will meet the objective
of the business or not (Helms and Nixon, 2010). After assessment of the business idea the director
will have to further decide about the feasibility of the selected idea as per the companies financial
requirements.
3.2 Business Proposal (For Boards of Directors)
Sainsbury's business proposal is as followed-
Issue
As per the business scenario of Sainsbury it was found that company is facing sales crisis
due to high competition and low price strategy. The sale crisis is hampering the revenue and growth
if the company (Marshall, S.J., 2013).
Objectives
The objective is to raise sale and revenue for the company. As Sainsbury is facing financial
loss due to sale crisis, the directors have thought to launch a new product line. The launch will
facilitate companies financial structure.
Market research
A secondary research is done through websites, books, social media etc. Analysis of market
and industry forces are done in research to find out the feasibility of the launch.
Alternative options
The company can expand its business through international market, can launch a new
product, lower the price of existing product or increase in marketing and advertising of the product
(Lee and et.al., 2011).
Selection of appropriate action
In order to boost up sale the directors have decided to launch a new product in London. The
product will a women's wear line from Sainsbury. The segmentation will be based on age basis to
concurre a large market base.
Implementation
In order to implement the plan the directors will have to design new product development
line for women wear (Magretta, 2013). Various tools of marketing will to be used in order to
generate awareness about the product.

3.3 Minutes from the meetings.
Time and date of meeting-
On 21st December 2015 at 10:00 AM.
Venue of the meeting-
Sainsbury, London.
Attendees of the meeting-
Boards of directors
Key Notes-
 To raise sales and revenue on order to fight the sale crisis
 Secondary research done on the problem and to find the alternative of the problem (Gattal
and Chibani, 2012).
 A new product launch
 Market- London, UK
 Product- Women's wear Line
 To serve all age group of females ion order to make the product launch effective.
 To analyse the market forces that may affect the business.
 PESTEL factors will affect the product success in the market (Helms and Nixon, 2010).
 Supplier and buyer power may generate backlog for the company.
 Competitors may interrupt in the business of the company.
 Marketing tools have to used to advertise the product.
 The directors decided to rely with the product launch to save the company from the sale
crisis.
3.4 Personal reflection from the meeting
As a director of Sainsbury I found out that there are various potential for the company from
product launch. The company will be able to meet it sale requirements from launch. I realised the
effectiveness and importance research from the meeting. Research proved to be a great tool in
identifying the needs of the product. I analysed that various Pestle forces play a great role in the
success of any company or product (Marshall, S.J., 2013). It was beneficial for my learning that
how wants and desires of small groups of market are affecting the business decision of my
company. In future I will pay attention on the operating of the new product, if the product served it
purpose in London, I can propose that the company can expand the same line in new market as well.
I found out that competitors also can use these factors against us. In order to save from this, the
company will have to work fast to be able to quickly launch the product in the designated time
period.

TASK 4
(A) Business Proposal (For Venture Capitalist)
A business proposal is presented for the venture capitalist to persuade them to invest in the
company.
Appropriate Action
Sainsbury is facing sale crisis due to low pricing strategies of the competitors and the
company as well. Due to this the company is also facing financial problems (Yüksel, 2012).
Product Launch
To fight with thee sale crisis the board of directors have decided to launch a new women
wear line in London. The idea has been generated by conducting secondary research on the market
and industry of UK. Segmentation strategy was used to find out the target market for the product.
From the strategy it was analysed that the company will be benefited from segmenting age group of
London market (Gattal and Chibani, 2012). Porter and Pestle analysis was done to evaluate factors
that may affect the success of the company. From the analysis it was found that factors may affect
the enduringness of the product in the market.
Marketing Strategy
In order to market the product the directors have decide to use heavy advertising and
promotion for the product. Social media, TV, print media advertising will have to be done in order
to market the Product.
Financial Requirements
In order to successfully carry out promotion. Designers will have to recruited to successfully
generate design in the company (Mamanova and et.al., 2010). For this and for the product launch
the company requires 5 million euros. As per the course of time and the operation requirement for
financial may increase.
(B) Critical evaluation
By formulating research and business proposal it was found that Sainsbury will be able to
get back on its track by the launch of new product. New product launch of women wear will require
huge finances for effective running. But this will be beneficial for the success of the launch. Launch
will reshape the companies brand image in the market. As London is a huge market source
Sainsbury is expecting large amount of sale (Gattal and Chibani, 2012). Finance may fall less as
per the high demand of Sainsbury product in the future. Thus the launch will be affective for the
successful business operation of Sainsbury.
CONCLUSION
From the research it can be concluded that various market and industry factors may affect
the successful launch of the business. While conducting the study it as found that the company will

require huge finance to build and develop the plan of new product launch. Venture capitalist were
approached to meet the requirements of dwelling finance. It can also be concluded that Sainsbury
will be benefited form the launch of product in London market especially. The company will be able
to meet its sale requirements to get back on track. Feasibility and suitability study is also done to
identify the effectiveness of launch.

REFERENCES
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