Table of Contents
2.0 Overview of Sainsbury’s.
3.0 Marketing Audit
4.1 PESTLE Analysis of Sainsbury’s.
4.2 Porter’s Five Forces analysis of Sainsbury’s.
4.3 SWOT Analysis of Sainsbury.
4.0 Marketing plan.
5.1 Segmentation, Targeting, and Positioning (STP)
5.2 Marketing mix.
5.3 Ansoff’s growth strategies for Sainsbury.
The assignment covers the marketing analysis of the UK retail shops. The concept of supermarkets is developed and the recommendations are provided to grow up the supermarkets of the UK. The variable strategic methods of marketing analysis and the factors of the environment are also mentioned and well described. The supermarkets’ marketing audit system also is focused on. In the primary section; the assignment contains an overview of the supermarket of the UK like Sainsbury. After it; the marketing audit system of Sainsbury is also presented. The PESTLE, SWOT, and Porter’s factors are monitored and analyzed due to understanding the internal as well as the external position of Sainsbury. Finally; the marketing process, segmentation, and other strategies are developed and mentioned for the wellbeing of Sainsbury in the international and domestic areas of the market.
2.0 Overview of Sainsbury’s
In 1869, Sainsbury had first launched the business in London as a supermarket. Firstly; it was covered only a small area of London, but after some years it has covered a large area of the UK and at present, it is one of the largest retailers. Especially all over the UK, this shop has 1500 stores and huge customers’ acceptance of effective services and a well-established brand image. In the most recent year; the numbers of the supermarket are increasing that creates challenges to compete and exist in the market. At this current position, Sainsbury holds a 16% market share of the total and GBP 26 billion in 2018 (Sainsbury Annual Report, 2018). At the outset of the company could bring a high rate of growth but in the recent few years, this firm has faced with decreasing trend in sales and revenue as well as growth in market share. Due to the lack of good planning of marketing channels, this adverse situation is created. This paper focuses on the lacking of marketing strategies and possible systems of improving the marketing policies of Sainsbury.
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3.0 Marketing Audit
4.1 PESTLE Analysis of Sainsbury’s
PESTLE includes several macro factors that are given in the following figure:
Figure: PESTLE Tool Source: Bush (2019)
Political factors: Political violation and stability both are opposite effects on the activities of the Sainsbury. The political violation affects adversely and stability affects positively. In the case of the UK; the Brexit factors are very vital that regarded as a strong political matter at this moment (Bush, 2019). After the implementation of Brexit; the price of raw materials and finished products may increase due o various rules and regulations imposed by the government of the EU. Other related factors also show adverse outcomes on the respective business of Sainsbury.
Economic Factors: Davies (2013) mentioned that Stable and unstable economic condition also affects the business functions positively and negatively in respectively. A stable economy has a positive influence and an unstable economic situation has a negative influence on the business functions (Doyle and Stern, 2016). Sainsbury delivers its products by using various transports. Therefore, if the cost of petrol and diesel rises, the products cost also rise with the price of products. The customers also lose their purchasing power due to inflation. The wage or income level of the customers also influences the purchasing power. The interest rate of the UK and London also creates a positive and negative impact on the financial performance of Sainsbury’s.
Social Factors: Banerjee and Dholakia (2012) said that society people are the ultimate purchaser of the supermarket’s products and services. The selling capability of the supermarket depends on the satisfaction of the society. The people’s taste, choice, fashions, religions, cultures, and health consciousness are the main objects that bring influence on the performance of Sainsbury (Kotler and Keller 2012). For example; the UK people are very much concerned about health factors. For this reason; they avoid fast-food products that bring a negative effect on health. Due to this reason; the selling amount of the fast-food market is reduced. As a result; Sainsbury has given importance to healthy foods in the supermarket including grains, vegetables, and others. At this moment; Sainsbury should consider the taste, choice, fashions, religions, cultures, and health consciousness of the UK people to generate ultimate goods and products in the supermarket.
Technological Factors: Bush (2019) also said that technological advancement is acted as a global weapon for the business to run business globally through eCommerce. The area of the market can be increased through technological weapons. The production capability, distribution capability, and customers’ service quality are ensured through suing effective tools of technology. The customers’ data can be managed by using tools of technology. Sainsbury has faced problems due to competition because the competitors have imposed several tools of technology for improving production capability, distribution capability, and customers’ service quality. For this reason; it is real-time for Sainsbury to take advantage of digital technology to increase the market area and market share in the UK market.
Legal Factors: In the business world; legal factors also exist in the market. Due to unfavorable legal policy; the company can be negatively affected; but favorable legal policy affects the business firms positively (Bush, 2019). Sainsbury has produced goods in a good and very effective way and delivers the goods to the consumers with a fair price within the due delivery time. But sometimes; this company faces several problems due to a lack of favorable legal policy.
4.2 Porter’s Five Forces analysis of Sainsbury’s
Michael Porter also helps the business firms to find the business position in the overall market. Basically; this analysis is comprised of 5 issues that shown in the below figure……………………..