本文主要讲述了J Sainsbury Plc是桑斯博里超市有限公司的母公司,通常被称为塞恩斯伯里。此外，还提及了该公司中出现的战略营销管理知识。这篇assignment不论是在格式上还是在内容上都是非常优秀的，希望有不会营销管理方面assignment的同学们可以好好借鉴一下。
J Sainsbury Plc is parent company of Sainsbury’s Supermarket Ltd, commonly khown as Sainsbury, the third largest chain of supermarket in United Kingdom with the share of UK supermarket sector of 16.3%. The group also interested in property and banking. They particular focus on fresh food and strive to innovate continuously and improve product as per customer need.
Sainsbury was found in 1869 by john James Sainsbury and his wife Mary Ann in London, England and grew rapidly during the Victorian era. It grew to become the largest grocery retailer in 1922, in uk. Tesco become the market leader in 1995, and Asda became second largest in 2003, demoting Sainsbury into third place.
A quick look at Sainsbury’s Profile:
?1882 – It started to sell own brand products.
?1898 – Sainsbury longest established supplier – Lloyd Maunder started supplying them with meat and poultry.
?1914 – Sainsbury started to recruit women to help with colleague shortages during the First World War.
?1944 – Sainsbury had labels on their cans to save paper and help the war effort.
?1946 – Sainsbury’s first issue of colleague magazine, the Journal, arrived in store.
?1950 – Sainsbury’s self service stores opened years before its competitors.
?1970 – Sainsbury introduced first bakeries, fresh fish counter, petrol stations and coffee shops into the stores.
?1975 – Its first Sava centres opened expanding the range to include non-food products.
?1989 – It introduced the first ever carrier bags made from recycled material.
?1991 – It encouraged the customers to reuse carrier bags. They also launched Penny Back scheme for charity.
?2005 – They launched Try something new today.
Sainsbury strives to deliver an ever improving quality shopping experience for the customer with the great products at reasonable prices. It aims to exceed customer expectations for healthy, safe fresh and tasty food, making their lives easier every day.
Five principles are at the core of Sainsbury’s business:
?The best for food and health
?Sourcing with integrity
?Respect for our environment
?Making a positive difference to our community
?A great place to work.
These principles provided differentiations from their major competitors and define and direct all the activities.
A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well written marketing plan. While a marketing plan contains a list of action, a marketing plan without a sound strategic foundation of little use. A marketing plan is a written document that detail the necessary action to achieve one or more marketing objective.
Conducting a situation analysis for the above organisation
Such is the complexity of operating in rapidly changing market condition that it makes good sense to carry out a throughout situation analysis at least once a year at beginning of the planning cycle. A useful framework for performing a situation analysis is the 5 c analysis. Company, collaborators, customer, competitors and climate is a simple way to get a leg up on sainsbury’s competitors. Marketing plan success can help Sainsbury develop a successful situation analysis which is foundation of strategic planning process. Sainsbury can also look to SWOT analysis.
J Sainsbury has announced strong full year result, and set out plans for future growth. With Sainsbury now well on the full recovery, CEO Justin king has laid out of the company’s future plans for growth. Sainsbury’s strength are sell better quality product than most other food stores.
Priced are higher than some of the competition. Some questions to help you to get started are what do your customer complain about? Sainsbury also located in city centre and out of town growth.
Consumer are fickle and trends continuously change (vegetarian, low/ fat/salt/ sugar/ organic , good treatment of animal, health scares etc.) so there’s always the opportunities to act on a next trend.
As with opportunities, threats in a traditional SWOT analysis are considered an external forced. By looking both inside and outside of your company for things that could damage your business, however, you may be better able to see the big picture. Sainsbury’s threats will be competing lower price stores and shops. Another threats would like be a strong and militant union of workers perhaps who damage higher wages.
Sainsbury’s sells ￡6bn of British food every year, an obvious strength in a SWOT analysis. The company works closely with smaller-scale suppliers to expand local sourcing wherever possible, and has a network of over 3,500 local suppliers. In May 2006, Sainsbury’s launched Supply Something New, an innovative scheme to make it easier for small and medium-sized suppliers to gain access to Sainsbury’s and make locally produced food available to more customers (Annual Report 2007). This could be argued to be an important element in a PESTEL analysis.
Increasing globalization, present a challenges as well as an opportunities to Sainsbury. The challenges will be to complete against unknown forces and to source the best quality/financially viable product from world over. Sainsbury’s can enter the market of emerging companies through joint venture or partnerships to explore these new market, although it does not have any plan on the horizon to do so.
?In the UK, the Government is to decrease the rate of corporation tax from 30% to 28%, which will save big companies like Sainsbury’s significant sums of money (HM Treasury 2008).
PESTEL analysis – Economic factors
?The credit crunch can have a two way impact on Sainsbury’s as it also runs a financial services company with HBOS (Annual Report 2007). The credit crunch might decrease the purchasing power of consumers and though they will still buy the essentials they may be more cautious. They may also spend less on luxury items, something that has a greater profit margin for Sainsbury’s. As far the Sainsbury bank is concerned, the credit crunch directly affects its ability to provide credit especially as it is not an established name in the financial services industry.
?The on going investigation of price fixing amongst the big four retailers within the uk can have some negative impact to the industry in general and Sainsbury in particular, as it is at the forefront of this allegation(Rig by 2008). Although sainsbury’s is very well established among consumer, these allegations can lead to a negative public image as the consumer might feel cheated.
?The rapidly increasing global food crisis has increased food prices all over the World, which will result in rising purchasing cost for Sainsbury’s(economist.com 2008 online). This will have an impact on the margins of the organisation and might lead to passing over the cost to will have implications right throughout the supply chain of Sainsbury’s leading to an overall situation of increasing prices.
?Nowadays there seems to be more emphasis on fresh, easy style cooking. This serves an opportunities for sainsbury’s to encourage new recipes and unfussy Eating.
?Stiff competition within every segment of the retail sector has lead to retailers Giving a lot of incentives to the consumer(Annual Report 2007). This will affect Sainsbury as prices have to be driven dowm most of time. PESTEL analysis – Social factors
?There has been a huge emphasis by the government to promote healthy eating (eatwell.gov.uk 2008 online) primarily due to the increasing level of obesity within the UK (department of health 2008online) This has lead to many consumer to shift toward healthier food. This present an opportunity to sainsbury’s to stock up with more healthy food at a cheaper price than other manufacturers so as to benefit from this new trend.
Marketing Strategy determines the choice of target market segments, positioning, marketing mix and allocation of resource. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customer, prospect, and competitors in the market arena. As the consumer constitutes the source of a company’s revenue. Marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company’s overarching mission statement.
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sale and achieve a sustainable competitive advantages. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal.
Marketing Strategy Option:
Most business people want to see improvements in sale and profits. But how do they get there ? what choice do they have? To built the business there are four strategic option that must be considered:
?sell existing product to existing customers.
?Develop new products to sell existing customer groups.
?Expand existing product into new market segements.
?Develop new products for new market segements.
Each of these choice carries with it inherent risk and certain marketing implications. Which one is right? This is one of most important decisions to be made. In fact, the best strategy may combine more than one of these option to suit different products or different area of the business.
Sometimes this is more easier said than done, especially if already there is a dominant market share or the industry occupies a relatively small market.
The option with more risk is number 4, going into new markets with a new product. This classic ‘diversification’ move may appear to offer great potential, but can be a recipe for disaster if industry does not have an adequate understanding of market condition or the competitive landscape.
The above marketing strategy will help Sainsbury in the following way:
?Adding value for customers (i.e. providing real benefits).
?Staff issues(training needs, operational style, presentation).
?Business processes (meeting distribution demands, customer, production).
?Measuring results and reviewing progress.
?Knowing which marketing activities to implement, and the best time to do it.
Although most companies today claim that customer service and satisfaction are their first priority, a recent survey indicates otherwise. Nearly 75% of the respondents said that “the only way to survive is on price competition“ sainsbury’s weakness is that it’s a little expensive than the other store.
To accomplish this strategy, it must POSITION goods or service in a unique or different way. Sainsbury can differentiate its products than its competitors product. It can provide best guarantee in the field, add features that the competitors don’t offer, offering a valuable but unique service not found elsewhere, always over-delivering to exceed customer expectation.
Likewise, if Sainsbury adopts the above marketing strategies then it would excel more in what it is already now. Also it will become more popular in exceeding customer expectations. Sainsbury will be recognized globally as a brand name by adopting the above strategies. Not only now but will be a brand name in long-term as well. Strategic risk needs to be properly understood and managed to deliver long-term growth for the benefit of all stakeholders.
The market environment is a marketing term and refers to all the forces outside of marketing that affect marketing management’s ability to build and maintain successful relationship with target customers. The market environment consists of both the macro environment and the micro environment.
Sainsbury’s marketing environment:
Sainsbury’s performance over the past 12 months has been underpinned by the enormous changes made during the ‘Making Sainsbury’s Great Again’ (MSGA) recovery programme. Sainsbury’s is now a stronger business having delivered four consecutive years of sales growth and continue to build on this strong foundation. Its focus on listening to customers and constantly working to improve their shopping experience has enabled them to successfully anticipate and respond to changing economic conditions during the past 12 months. The brand has been proven to be both resilient and flexible and are competing effectively and growing sales in a particularly challenging economic environment.
The ‘Company’s Recovery to Growth’ plan has five areas of focus:
?Great food at fair prices
?Accelerating the growth of complementary non-food ranges and services
?Reaching more customers through additional channels
?Growing supermarket space
?Active property management
These areas are underpinned by Sainsbury’s strong heritage and brand which consistently sets it apart from major competitors.
The marketing mix is generally accepted as the use and specification of the ‘four Ps’ describing the strategy position of a product in the marketplace.
?Product: A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products, are often services based liked the tourism industry and the hotel industry or codes-based product like cell phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but mass produced service is a computer operating system.
?Price: The price is the amount a customer pay for the product. It is determine by a number of factors including market share, competition, material costs, product identity and the customers perceived value of the product. The business may increase or decrease the price of product if other store have same product.
?Place: It represent the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the internet.
?Promotion: Promotion represent all of communication that a marketer may use in the marketplace. Promoion has four distinct element- advertising, public relation word of mouth and point of sale. A certain amount of crossover occurs when promotion use the four principle element together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercial, radio and internet advertise through print media and billboards. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relation.
A marketing mix is the set of marketing tools a firm utilizes to pursue its marketing objective in the target market. When a store markets its product, its need to create a successful marketing mix for the product, sold at the right place, and using the suitable promotion.
Product Strategy: At the Sainsbury’s store, the physical appearance of the product, packaging, and labeling information can influence whether or not the consumers notice the product in store, examine it and then purchase it. Sainsbury should with these elements of marketing mix be able to differentiate their products from those of its competitors. The ability of a product to perform its functions includes products overall durability, reliability, and other valued attributes. Sainsbury should display their products in such a way that when the consumers are examining their product, consumer’s queries are all answered. It should bring out all the qualities of the product on the packaging itself. This will enhance consumers to buy the product on the spot itself. Even if there are some queries the Sainsbury’s store should be well equipped to answer consumer’s queries. Sainsbury by using this element of marketing mix should bring out a unique product which none of the competitors’ have ever thought about. Then be it in packaging, displaying or discounts and offers.
Pricing Strategy: The price of the product often influences whether consumers will purchase them or not. Sainsbury should first determine its competitors’ prices and then should see if it can lower its prices if the prices are high compared to its competitors. This is because if the competitor is offering the same product at a lower price then a potential consumer is lost here. The strategy which can be used is to associate a higher price with a premium quality and there can be circumstances where consumers might purchase a higher priced product as an indicator and assurance of higher quality. Sainsbury can give significant attention to consumer perceptions about the price and quality of the product. Sainsbury can also offer discounts, allowances, payment term and credit terms. If at all some of the Sainsbury’s products are high priced than its competitors then Sainsbury staff should explain to its customers that its products are of high quality and are more prestigious. Promotion Strategy: Advertising, sales promotions, personal selling, and publicity can influence what consumers think about the products. Sainsbury should offer consistent messages about their products and it should also place its products in media that consumers in the target market are likely to use. Since consumers receive so much information from marketers, it is important a right promotional strategy is used. Sainsbury should use a promotional strategy in its target market as here is the place where potential consumers are more likely to be there. Since Sainsbury caters to a huge market segment it becomes all the more important for it to use the right promotional strategy. Through this promotional strategy it should deliver maximum information to its customers. Sainsbury can give information about discounts, buy one get one free, offers to its potential consumers and this promotional strategy will help in doing so. Sainsbury should use effective promotional tools to encourage consumers to buy more and more.
Place Strategy: Place strategy calls for effective distribution of products through wholesalers and retailers. Sainsbury should use this element of marketing mix to enhance the purchase of the products. Sainsbury can position or reposition its product by locating that product within a store. Sainsbury should use this strategy by placing high traffic volumes near the payment counters and low traffic volume products at distant locations. Sainsbury should place its products which are convenient and readily available. It should involve extensive search as Sainsbury might lose out on its potential consumer. Sainsbury should have its own prestigious outlets as consumers perceive it of high quality. Sainsbury should use this element effectively as it determines the sale of the product or no.
All these above elements of marketing mix will deliver an ever improving quality shopping experience for the customers with great products at fair prices. It will exceed customer expectations for healthy, safe, fresh and tasty food which is the ultimate goal for Sainsbury.
Sainsbury’s as one top of retailers in the UK makes the most use of a marketing mix to improve its performance. Sainsbury’s set new mission to regain market share back from Tesco since 1995 and to be the first choice of be the consumer’s first choice for food, delivering products of outstanding quality and great service at a competitive cost through working faster, simpler and together. This is just a few of the tips which Sainsbury can use to enhance its goals and values through these elements of marketing mix.