Adnan ul Haque

Marketing

1
Adnan –U-l Haque
Word count: 2719

Index

Page

1. Introduction………………………………………………………………… 3
1.1 Marketing strategies in organization…………………………………..... 3
2. Overview of Sainsbury’s Market…………………………………………… 6
2.1 Areas of Strategic Implications…………………………………………. 6
a. Customers
b. Competencies
c. Competition
2.2. Visual Merchandising………………………………………………… 8

1. Nature and Purpose of Marketing strategy………………………………… 9

1.1 Types of marketing strategy…………………………………………… 9
a. Undifferentiated
b. Differentiated
c. Concentrated
1. Levels of marketing mix involved in Sainsbury’s market………………… 12
4.1 Marketing Mix Model………………………………………………….. 12

a. Place
b. Price
c. Promotion
d. Product
e. Process
f. Physical Evidence
g. Personnel
1. Conclusion…………………………………………………………………. 16
2. Recommendation for marketing mix strategies ………….……………….. 16
References………………………………………………………………….. 17

2
Adnan –U-l Haque
 1. Introduction

Marketing is regarded as creating value of a product or services in the eye of potential

consumers (Philip Kotler). Marketing is regarded as an approach to brief customers
about the product or services offered by the company. It is done through a detailed
procedure following each of the steps as a part of marketing strategy.

Marketing strategy is a deliberate approach for a longer period of time, in order to

achieve an organizational objective. Strategies are basically well thought plans for a
longer version of business usually made by the top level management. (According to
Wilson & et-al), There is no specific definition of Strategic planning but it can be
divided into three categories.

1.1 Marketing strategies in the organization:

Hierarchy of Strategies in organization

1. Corporate Strategy (Planning at all divisions of organization for allocation

all available resources)
2. Business Strategy (Planning at individual business unit)
3. Functional level Strategy (Planning for specific function at particular level)

3
Adnan –U-l Haque
 4
Adnan –U-l Haque
One of the most competitive sectors in this world is Retail industry. Due to highly
competitive environment, every retail organization is trying to market its product at
best to obtain and retain the market share. To capture a solid market share strategies
are used and implemented at different levels to have the best possible outcomes in
terms of profitability. Due to global market, every organization face various
challenges, therefore it should have dynamic and flexible strategies to survive
different stages. The business level strategies provide the sustainability to stay in
highly dynamic and competitive market. Retail industry also uses various strategies
and even uses the combination of different strategies and techniques to promote their
brand in most appropriate manner to achieve their set targets. In addition, a firm
should have contingent approach to opt any strategy which promises the optimization
of market share.

Today Sainsbury’s is regarded as one of the global retail industries currently operating
in the United Kingdom. In first part of this report, the strategic implication of
Sainsbury’s are discussed briefly. Followed by critically evaluation of marketing mix
and appropriate recommendation and then analyse the issue relating to buying
logistics and performance measurement and recommended appropriate solutions in
that part.

1. Overview of Sainsbury’s Market

5
Adnan –U-l Haque
According to Kotler Philip (2003), Sainsbury’s has to fulfil the needs of its potential
customers in order to compete in the global market when it decides to expand its
business geographically.

1.1 Areas of Strategic implications at Sainsbury’s business:

Sainsbury’s has strategic implications from the top to bottom of the organization
but here I have discussed the major three areas it has recently concentrated.

Customers

Competencies Competition

a. Customers
b. Competencies
c. Competition

a. Customers:

6
Adnan –U-l Haque
According to the Sir Peter Davis (the chief executive of Sainsbury’s) customers is the
one area we are always trying to make strategies in order to satisfy customers and
formulate and implement such policies which attracts public in a positive way. When
strategies are made, the firm has always taken a serious consideration about its
customers because satisfied customer always brings profitability which results in
organizational growth and overall success. The Sainsbury’s strategies for customers
are based on prices, deals offered to customers, availability of wide range of brands to
select from, products free delivery and online shopping, discount schemes, healthy
and friendly environment inside the shops, seasonal products, and convenience of
parking are some of the area major focus for implication of its strategies for
customers. Their sole objective is to satisfy customers by providing them their
demanded products at high ease on precise time. Sainsbury’s has shown a great
respect towards customers by adopting green system and spending of eco friendly
environment.
b. Competencies:
The Sainsbury’s retail industry reflects that it has the physical capability to stay in
market for a longer version of time. They have core values and are promoting those
core values in a very significant manner. To compete in dynamic environment it is
offering a good salary package and training modes to make their employees more
efficient and effective to compete in market. The Sainsbury is day by day improving
its business scale and sales as compare to its main competitors. It uses new
technologies for running its business in a smooth and elegant way.
c. Competition:
Sainsbury’s implication on its strategies in terms of competition is providing products
of high quality at cheaper rates as compare to its competitors. Sainsbury is applying
its strategies in the marketing mix that are products, price, place or location,
promotion, service, physical evidence and personnel for improving its business and
responding to challenges from the constantly changing environment.

2.2 Visual Merchandising:

7
Adnan –U-l Haque
Visual merchandising, it is a science as well art of promoting commodity for sell in
the most appropriate, logical, delicate and attractive manner. The Visual
merchandising of the Sainsbury’s is with one common agenda of making customer
feet that the product will be most suitable thing at their home by creating its impact in
more inspiring manner and their techniques are attractive ones too. Sainsbury’s
arranges its product in rows according to categorization of similar products but
different brands. Visual merchandising is helping it to maintain a favourable corporate
image, which is equally essential on competitive retail sectors. Sainsbury’s inner
environment through visual merchandising has created its strong image and it is
obvious that the physical appearances of the store are making the Sainsbury a brand.
The customers are attracted by these visual merchandising and this helps the firm to
built its corporate image stronger one. Visual Merchandising role also provides
administrative expertise to support and contribute to the efficient running of the
Visual Merchandising team in line with corporate values and team goals by building a
strong image of the firm.

(According to Varley. 2003), Visual merchandising can be used as a vital and more
effective tool in the changing era to enter and explore new markets. Today the
companies has learn that it’s not about just offering products, it’s about making your
products distinct and visible to the consumer and visual merchandising has been one
of the most significant tool to have impact on the consumers. Visual merchandising
has made more visible the existence of the products to the customers. In the upcoming
future it can be used as a vital tool not only for promoting the existing markets but
creating new markets.

(According to Babu, 2007), visual merchandising helps in establishing a creative

medium to present in environment with lasting impact, combining the creative,
technical and operational aspects of the product, informing customers about the
product in innovative manner, and drawing the attention of the customer to enable
him to purchase.

(According to Bhalla and Anuraag, 2006), visual merchandising has linked the
customers to the products by directly making them interested in buying it, which has
been one of the significant way of promoting and marketing the new markets. It can
easily help the organization to enter into new markets and make its mark as it can

8
Adnan –U-l Haque
clearly attract the customers and increase the awareness about the new market in a
very prominent and impressive way, which will have an ever-lasting impact on the
customers.
1. Nature and Purpose of marketing strategy:
Strategy is made to determine how long it will take to achieve one’s objectives, for
instance if a firm wants to have an average sales of £100,000 per tenure then
marketing strategy will determine how this objective can be accomplished.

Segmentation – Are the efforts of marketing concentrates on one or many

Regions and which one particularly concentrated?
Targeting – How do we target our market? Who will be wholesales, agents and etc?
Positioning – How the brands stands in the market? Is it recognised as British brand?
Which type of customer it attracts?
The purpose of marketing strategy is that it gives a clear guide line to marketers in
targeting its audience and positioning its brand along with creating the value of its
product in the eyes of positional consumers.

3.1 Types of Marketing Strategy

Fundamental step is to decide which type of marketing strategy a company adopts to

run its business.
There are three basic marketing strategies which any company can follow:
• Undifferentiated marketing
• Differentiated marketing
• Concentrated marketing

9
Adnan –U-l Haque
3.1a Undifferentiated Marketing
It is a marketing strategy to target a large market without differentiating them on
different grounds. It is like producing on large scale irrespective of consumer’s
classification. The product will be aimed at a large sector of the market. This strategy
can reduce costs – for example, China produces bulk quantity of products to all types
of consumers.

3.1b Differentiated Marketing

It is a strategy to make segments by dividing type of consumers in different category
and produce for them. The marketing mix elements will also be modified to suit the
requirements of the chosen segments. It increases costs, but the profit margin is also
high. It is putting efforts on type of targeted market to generate profit by making
product for them.

3.1c Concentrated Marketing

It is also known as "niche marketing" because of company’s strategy to exploit one
type of market and produce in a very confine and solidities manner. It is usually for
high trend for a limited market area which brings specialization in company’s
product.

10
Adnan –U-l Haque
The Marketing mix of Sainsbury’s:
There is several marketing mix of Sainsbury’s. in actual there are seven P’s but
mainly four P’s are major marketing mix for most of the companies alike Sainsbury’s.

• Product or Merchandise
• Price
• Place or Location
• Promotion or Communication
• Process or Service
• Physical evidence
• Personnel

MARKETING MIX MODEL

PLA
U CT CE
D
O
PR
11
Adnan –U-l Haque
 CE
PRI
PHYSICAL EVIDENCE
Target Market

N
IO
OT
OM
PR
PR
O
C
ES
S
L
ONNE
PERS

A. Places:
The Marketing mix of the Sainsbury’s on the category of location can be views as one
of the important aspects. It is essential to consider the fact that in which areas
Sainsbury’s is considering to promote itself as a product. It often has located its stores
in areas where customers can easily access. It opens its store by considering the fact
of customer’s feasibility. In selection of places it also strategies that what the trading
areas, the population in that particular locality, size and quality of competitors and
customer’s feasibility.
B. Price:
Price determines the profitability of the business and it also shows the quality of
products and services. As there is a huge competition in the retail industry,
Sainsbury’s has a very sound and effective strategy of pricing its product. The
analysts have complete information about the competitor’s profile. They try to
provide a finest of quality in a reasonable price. It gives offers to customers of buy
one get another for half price. Sainsbury’s main policies of pricing include the variety
of exported products, competition inside the retail industry, value that a customer
would likely to be giving to a chosen product, and the cost of production must be
covered. The pricing is done in keeping all classes of customers and their needs. At
Sainsbury’s one of the important marketing mix is a pricing factors. They have three
different pricing strategies; one is high level pricing products, which are of the best
quality for the consumers, who has the potential to buy for it. There are also products

12
Adnan –U-l Haque
of medium range and low pricing products for those customers who want the products
at low prices. The price varies based on the quality of the products. In Sainsbury’s a
sales promotion at its premises with bundled offers, the management’s expert advices
are under taken, products are demonstrated and on many products the special
discounts are offered such as buy one get one free, or buy one and get other on half
prices in order to maintain its in-store promotion. Sainsbury’s also has a promotion by
distributing samples and inducing new products on the half rates in order o increase
its sales revenue.

C. Promotion:
Promotion has remained of one of the most vital strategy for the economic survival of
the organizations. It is basically creating an image or product and communicating it to
the consumers. (According to Kotler & Armstrong, 2004), the promotion is also
known as, satisfying the needs and wants of consumer in the public.
In Sainsbury’s merchandise and Category management is very organize and well
planned. All the high prices brands and products are on the top of the racks where as
low price products are in the lower shelves. It also has a very disciplined and pattern
way of arranging the house hold appliances at one side, the marine products and
meats on different sides, clothing has a different segment and groceries and bakery
products are all arranged according to ready products or the other type.

The figure representing promotion strategies

PROMOTION STRATEGIES

MANUFACTURER

13
Adnan –U-l Haque WHOLESALER
 RETAILER

CONSUMERS

D. Product:
Product is regarded as the commodity or merchandise which a company deals
in. the strategy for the product are based on the differentiation. It is a symbol
that represents the wide range of items. Sainsbury’s has a proper strategy of
selecting the product which improves its profit margin. It can be either quality
oriented or quantity oriented. A firm deals in all items which are needed by
consumers. Sainsbury’s strategy is to provide all range of products for all types
of customers. It has all three types of strategies such as differentiated,
undifferentiated and concentrated strategies.
E. Physical Evidence:
Sainsbury’s has a very good strategy for market its product with physical
evidence. Usually green products remind people about Sainsbury’s. the
arrangement of products and selection of colours are the part of physical
evidence which reminds customers about the company’s image.
F. Process:
Process is generally regarded as the services of providing different types of
product for different types of customers. It is based on the buying, logistics and
performance measurement. If the feedback from the market is appreciating,
Sainsbury’s keep the process integrated by providing the products at a steady
rate so that customer’s need can be met.
G. Personnel:
Sainsbury’s has experts and professionals who are well trained and knows the
sensitivity of consumer behaviour. The strategy is based on one motto that

14
Adnan –U-l Haque
 customers are always be given first preference. Personnel are therefore trained
properly to satisfy the needs of customers which will help in achieving the
organizational goals.

Recommendations for Sainsbury are marketing mix:

Sainsbury’s has the potential to expand its market in other regions as well. It is on the
‘maturity’ stage and it has firmly footed itself on that place with good increase in their
sales revenue from last five years. Sainsbury’s has to take few things in account in
order to achieve the top position in the retail world.

Most of its business is inside United Kingdom and it has a potential to expand its
retail business in the other parts of the world too. They have to consolidate and work
in introducing more products apart from their bakery products. It has its speciality in
the bakery items but it needs to diversify in other segments also and enhance retail
services by producing different items for their customers. Due to its recent takeover
bids, the British locals who are more implemented for the British own companies
might lose their interest in Sainsbury’s so the firm has to introduce new system of
including more British staff to keep the loyalty of customers tied towards them. It has
pricing strategy but its cost is most on green effects with no quick returns so it needs
to adjust its prices while keeping in consideration the competitor’s strategies. The
promotions have to be done through more unique ways like dress people in
Sainsbury’s color promoting organic items. It should also revise its strategies at
business level by including reward on sales in departments which will increase its
worker’s efficiency. Sainsbury’s has to develop software to keep a strict check on the
stocks so that when it is short, the automatic message comes to the stock inventory
department. Sainsbury’s should have more innovation in their logistics and
performance measurement system. The time factor is important ingredient so it should
also think to invest in small jets so that across the border products come by in quick.

15
Adnan –U-l Haque
Conclusion:

Sainsbury’s has a very efficient and effective team working to improve its image and
its marketing strategies has indeed brought some significant changes to its overall
image especially visual merchandising which has affect the corporate image in a
positive manner, pricing and promotion has attracted customers remarkably. The
strategy of places and product are based on competitor’s approach and market worth.

References:

1. Babu, T, (2007), Consumer Buying Behavior, p. 130-145

2. Bhalla, S., & Anuraag, S. (2006), Visualise Merchandising, P. 24-45.
3. Kotler, P. (2003), Marketing Management, millennium edition.
4. Kotler, P. & Armstrong, G. (2007), Principles of Marketing, 10th edition.
5. Kotler, P. Ang, S. H. & Armstrong, G. (2007), Principles of Marketing-
Global perspective.
6. Varley, R. (2005), Retail Product Management, 2nd edition, P. 165-169
7. Wilson, H. & Mcdonald, M. (2005) Marketing Plans- how to prepare them-
how to use them, 7th edition.
8. Competition Commission Inquiry Overview of Sainsbury’s position, Available
at: http://www.j-sainsbury.co.uk/files/pdf/SummaryCCSubmission_1006.pdf.
Viewed on 06 May 2011.
9. Marketing Teacher.Com [Marketing Mix] Available at:
http://www.marketingteacher.com/Lessons/lesson_marketing_mix.htm.
Viewed on 06 May 2011.
10. Small Business Pro [Marketing Mix] [Marketing Bloc] Available at:
http://www.smallbusinesspro.co.uk/marketing/marketing-mix.html. Viewed
on 07 May 2011.
11. An Overview of Strategic Retailing, [Chapter 1] Available at:
http://www.ablongman.com/samplechapter/0131204017.pdf. Viewed on 07
May 2011.
12. B.C. Bhatia [Retail Management], available at:
http://books.google.co.uk/books?

16
Adnan –U-l Haque
 id=5tnIDdWLQI0C&pg=PR11&dq=Introduction+to+strategic+retail+manage
ment&hl=en&ei=gqR2TbrsOM-
xhAfZ0pH9Bg&sa=X&oi=book_result&ct=book-
thumbnail&resnum=2&ved=0CEgQ6wEwAQ#v=onepage&q=Introduction
%20to%20strategic%20retail%20management&f=false. Viewed on 07 May
2011.

17
Adnan –U-l Haque