Executive summary
The report has been made to address the marketing plan of accompany and the company that has
been chosen here is Sainsbury of UK.
STAGE 1
This consists of the situational analysis in which the pestle analysis, SWOT analysis and the
porter’s five forces has been identified. The company Sainsbury is considered as the second
largest company based on the chain of super market within the country of United Kingdom. With
the tough space of being the largest supermarket chain of the country the company Sainsbury has
to deal with various factors which are determined in this pestle analysis. In the SWOT analysis it
has been represented that Being the leading firm in the country of UK, the company Sainsbury is
determined to maintain position in the market and for this reason the company needs to conduct a
SWOT analysis which will help the company to deal with the weakness, and the threats of the
company and also it will help the company to find out the opportunities they are having and
which they can use it in the future with the help of their strength.
STAGE 2
The stage 2 discusses about the two objectives that has been identified with the help of
situational analysis.
STAGE 3
This stage discusses about the strategies that will be implemented in order to fulfill the objectives
and here the implementation of the objectives will be done with the help of 7ps of marketing
mix.
STAGE 4
This stage is consisting of the action plan along with the time frame which exactly discusses that
how much time will be taken by the company to implement its objectives.
STAGE 5
This is the lasts stage in this report which describes how the company is going to monitor the
performance based on the implementation of the objectives.
Table of Contents
Introduction.................................................................................................................................................3
Stage 1.........................................................................................................................................................3
Situational analysis..................................................................................................................................3
Pestle analysis......................................................................................................................................3
SWOT analysis....................................................................................................................................5
Porter’s five forces...............................................................................................................................7
STP and Target audience of the company............................................................................................8
Stage 2.........................................................................................................................................................8
Objectives................................................................................................................................................8
Stage 3.........................................................................................................................................................9
Strategy and implementation...............................................................................................................9
Implementation based on the 7ps of marketing mix............................................................................9
Stage 4.......................................................................................................................................................11
Action plan............................................................................................................................................11
1.............................................................................................................................................................11
2.............................................................................................................................................................11
3.............................................................................................................................................................11
4.............................................................................................................................................................11
Stage 5.......................................................................................................................................................11
Monitoring of the performance..............................................................................................................11
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14
Introduction
The purpose of this report is addressing the marketing plan of a company based on the objective
that was identified from the situational analysis (SWOT, PESTEL and PORTER’S FIVE
FORCES). The company that has been chosen for addressing this report is Sainsbury. This
company is the second largest leading company of the super market chain situated in UK. This
company was formed in the year 1869 and became the largest retailer of groceries in the year
1922[ CITATION sai20 \l 1033 ]. Here the marketing plan of the company has been developed for
implementing the objectives and the strategies of marketing which included the 7ps of
marketing. The seven PS of marketing consists of product, price, promotion, place, people,
process and physical evidence.
Stage 1
Situational analysis
Pestle analysis
Political factors:
In the year 2016, the country United Kingdom was found to be voting in order to leave the union
of the Europeans. Leaving the union based on the Europeans could actually affects the entire
operations of the company Sainsbury because in that case the company will find it difficult to get
import materials from the suppliers of the entire Europe. This is because either the price of the
raw material will increase or else the company will have to buy the imported products from other
countries. In this case the costs of the foreign goods which the company will serve to their
customer will increase and it will become impossible for the company to make their customers
understand about their spending more than previously in their offered goods and services.
Economic factors:
Increasing cost of the fuel: it has been seen that over the past few years the cost of fuel is
rising in the country of UK. the diminished supply of the fossil fuel as well as the
taxation policy based on the environmental friendly uses of fuel will incr4ease the costs
of fuel more rapidly in that case the company has to supply their goods at lower costs
with lower cost of production according to the import failure due to the leaving of the
European union will make their cost of operation at high prices.
Competitive forces: being the second largest company of the chain of super market the
company has to face this intention competition that is rising in the revenue of the
competitor company means that the company will lose its competitive advantage from the
market of UK.
Social factors:
The consumers nowadays are very much conscious about where their food is actually coming
from and this social initiative has involved the company to pay extra taxes to the farmers in order
to get the good supply of the raw materials.
Technological factor:
The technological analytics that has been found in the other companies using the big data as well
as the artificial intelligence is one of the technological factors affecting the operations of the
company. This is because the generation today is strongly reliable on the technology therefore
the customer’s would prefers to visit the companies having technological advancements and if
this advancement is not don by the company then there business operation is going to get
affected for this.
Environmental factor:
Creation of the large carbon foot print is what the supermarket chain based company the
Sainsbury is dealing with because this company actually contributes to the crisis of the plastic
waste. In this regard this is evident that the company Sainsbury needs to stop provides the plastic
bags in order to maintain a sustainable and safe practice toward the environment. The company y
can provide promotions and discount to those customers who does not uses the plastic bag and
instead and in the same way the company can also start using the paper bags.
Legal factors: The legal factors are the law here which are abandoned by the government based
on the safe environment practices and the law based on the food health and safety act can affect
the operational process of the company Sainsbury[ CITATION Tho19 \l 1033 ].
SWOT analysis
Strengths
The automation process which being followed by the company has helped them to
develop the quality of the products which they serve to their customers, this factor has
enabled the company to put the scale of their operation up and down according to the
demand placed by the customers.
The company has found to be providing the high level of customers satisfaction to the
existing customers as because the company is very much dedicated to their customers and
the customer relationship management within the company helps the customer to find out
the necessary thigs which they and in this way the demand of the customer are being
fulfilled by the company.
Weakness
Investment which is done by the company in the sector of research and development is
helping them out with the market scenario but still the company is not being able to cope
up with the innovation process which are carried out within the competitor companies
and this is one of the weakness of the company which has been addressed at the time of
analysis.
The company needs to invest more in the technologies in order to bring the technological
development within the company there are this competitor companies which are using big
data and artificial intelligence an compared to them the company sins bury is still
backdated with the technology and this is what the major weakness of the company
Sainsbury is dealing with.
Opportunities
The changing taste and the preferences of the customers can open up a new market for
the company Sainsbury as the company can invest more in the diversified products and
serve that to the customers in order to provide the best customer satisfaction.
The taxation policy which recently got introduced by the government can impact the
business operations by fetching up the opportunity of increasing the revenue and the sales
of the company over international market.
Threats
The demands of the products which are highly profitable is seasonable in nature therefore
it can impact the revenue of the company when the company will fail to meet the
demands of the customers.
If the strengths of the local distributors increased then it can threats for some of the
markets in which the company operates because in that case the competitors from
different markets will take the supplies from the local distributor at higher
margin[ CITATION fer203 \l 1033 ].
Porter’s five forces
The porter’s five forces are being used by the companies in order to determine the nature of
completion in the market or in the industry within which the company is operating so that they
can mitigate the potential challenge which they can face from their competitor at the time of
operating in the markets.
Threats from the new entrants:
The entry of the new companies within the market where the company Sainsbury is operation
can bring innovation and diversified products along with it, but eventually the company
Sainsbury will pressure when they will find that the potential customers are getting attracted
towards that company and not towards Sainsbury anymore. The factors that will pressurize the
company are the low pricing strategy and the strategy of lower pricing.
Bargaining powers of the suppliers:
The suppliers that are present within the dominant position can decrease the profit margin of the
company. this is because the suppliers who ae powerful nature use their power of negotiating for
the purpose of extracting the higher prices from the companies belonging to the retail sector ad
the company Sainsbury among which is the one who can get affected by this.
Bargaining power of the buyers
It has been found that the buyers meaning the customers are very much demanding as they
demands the higher and best quality of the supplies with low cost of the expenditure and due to
this reason the company Sainsbury is feeling the burden of profitability. The smaller the
customer’s base of the company Sainsbury will be the bargaining power of the customer will be
is demanding for discounts and promotions from the company.
Threats of the substitute
The similar product that is meeting the needs of the customers in different was can be considered
as the potential threat. Therefore the same thing can happen for the company Sainsbury if the
substitute products enter the market where the company is operating.
Rivalry with the competitors
If the rivalry among the competitors increases then automatically the brand value and the
competitive advantage of the company will decrease. This has been found about the company
Sainsbury that it operates in a competitive retail industry[ CITATION fer204 \l 1033 ].
STP and Target audience of the company
The main marketing strategies which has been found about by the company Sainsbury is the
market segmentation which is referred to the division of the market into specific group of buyers
who requires differentiated products. A research was conducted on the company Sainsbury from
which it was found that the company Sainsbury operates in almost every city in the United
Kingdom. The company in the market UK follows the strategy based on the demographic
factors. The demographic factor generally involves age, family, gender, income, family size and
their life style. Occupation religion etc. not only with the demographic factors the company also
works with the psychographic factors from the research it was understood that the marketing
segmentation which the company follows has helped them to gin the success in their business
because with the help of this market segmentation the company has easily improved the
satisfaction level which they provide to their customers[ CITATION uke163 \l 1033 ].
Stage 2
Objectives
Situational analysis has been conducted on the company from which two smart objectives of the
company has been identified, one is the expansion of the company in the international countries
due to the flexible taxation policy of the government and the second one which has been
identified from the pestle analysis is the technological development.
The company with the help of expansion in the international countries can offer their
services to the diversified customers in order to increase the brand value of the company
and this expansion will be done by the company with based on the e commerce facility.
The changing demands of the customers are influencing the company to bring up
innovation within the company by selling the diversified range of products to the
customers.
Stage 3
Strategy and implementation
As the objectives of the company have been identified it is necessary to use best the strategies for
implementing the project of expansion and selling of diversified products.
Strategies
The following strategies have been developed which will help the company to meet the
objectives that was identified with the help of situational analysis above.
The company needs to conduct an analysis on the market segmentation in order to
determine whether the products and the services offered by the company are suitable for
the local market of the international countries or not.
The company here needs to create short strategy or reasonable goals which will help the
company to determine the progress and the cost/ benefits made by the company.
The company needs to review the regulations of the government made on the trade in
order to get awareness of the compliance or the certification needed for the online
expansion.
The company here needs to make a competitor analysis on the potential customers which
can affect the expansion of the company into the international markets[ CITATION Mic15 \l
1033 ].
Implementation based on the 7ps of marketing mix
The 7ps of marketing mix is generally used by the marketing professionals for the purpose of
attracting and retaining the customers.
Product: this is the first p of marketing mix which states that the product that will be offered by
the company Sainsbury in the international market should provide value to the international
customers and at the same time it should not be tangible because in this case the company is
going to provide diversified range of products to their international customers.
Price: the company in order to have the brand value as well as the competitive advantage should
set the price of the product accordingly which will differentiated in terms of cost from the
competitors.
Promotions: the promotions should be done in an efficient way the company should actually
introduce promotional event or distribute pamphlets after the expansion is done in the
international market. The company can choose the promotional strategy using the social media
platform because the generation today is very much dependent on the social media.
People: here in this case the people is referred to the employees of the company, management
and the stakeholders of the company but in some cases the customers are also referred as the
people in the marketing mix.
Process: the process is refereed as the method that will be used by the company for offering their
services to the customers. The methods include right delivery of order to the right customer and
at the right time.
Physical: this is known as the evidence which is used for understanding the success rate of the
operations therefore the company with the help of customer feedback as the physical evidence
can understand that whether they gave successfully achieved the loyalty of the customer by
providing the service and the products or not[ CITATION NIR20 \l 1033 ].
Stage 4
Action plan
Serial Strategies Time frame
no
The company needs to conduct an analysis on the 30 days
1
market segmentation in order to determine whether the
products and the services offered by the company are
suitable for the local market of the international
countries or not.
The company here needs to create short strategy or 2 days
2
reasonable goals which will help the company to determine
the progress and the cost/ benefits made by the company
The company needs to review the regulations of the 7 days
3
government made on the trade in order to get awareness of
the compliance or the certification needed for the online
expansion
The company here needs to make a competitor analysis on 7 days
4
the potential customers which can affect the expansion of
the company into the international markets
Stage 5
Monitoring of the performance
The company with the help of the measuring tool can actually monitor and measure the
performance of the objectives that has been mentioned above.
In order to understand the success rate of the objectives mentioned above the company
should adjust the goals or verify the performance to see that it is meeting with the criteria
of the objective or not.
The company should set regular intervals for monitoring in order to choose that the
employees is working with the motivating towards thee success rate of the implementing
the objective.
The key performance indicator is one of the measuring tools which is helped to identify
and monitor the productivity of the employees, it helps in measuring the performance of
the employees on the basis of their quality[ CITATION She18 \l 1033 ].
Conclusion
Situational analysis was conducted on the company Sainsbury which further contains the pestle,
SWOT and the porter’s five forces of the company. The target audience was determined and
from that it has been concluded that the company follows the demographic segment target as
well as the psychographic segment strategy. Two objectives was identified from the situational
analysis conducted on the company one is expansion in the international countries and the
second on is offering diversified products to their customers.
References
Bush, T., 2019. PESTLE Analysis of Sainsbury’s. [Online]
Available at: https://pestleanalysis.com/pestle-analysis-of-sainsburys/
Evans, M., 2015. 10 Key Steps To Expanding Your Business Globally. [Online]
Available at: https://www.forbes.com/sites/allbusiness/2015/03/04/10-key-steps-to-expanding-your-
business-globally/#50f789df3803
fernfortuniversity, 2020. Sainsbury (J) Plc Porter Five Forces Analysis. [Online]
Available at: http://fernfortuniversity.com/term-papers/porter5/lse/477-sainsbury--j--plc.php
fernfortuniversity, 2020. Sainsbury's SWOT Analysis / Matrix. [Online]
Available at: http://fernfortuniversity.com/term-papers/swot/1433/1237-sainsbury-s.php
Fros, S., 2018. How to Monitor Project Progress. [Online]
Available at: https://work.chron.com/monitor-project-progress-3352.html
NIRWANA, 2020. THE 7PS OF MARKETING MIX. [Online]
Available at: http://oxfordgregorianchantsociety.blogspot.com/2012/02/7ps-of-marketing-mix.html
sainsburys., 2020. Find what you’re looking for. [Online]
Available at: https://www.sainsburys.co.uk/
ukessays., 2016. Market analysis and business overview of Sainsburys. [Online]
Available at: https://www.ukessays.com/essays/marketing/market-analysis-and-business-overview-of-
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