The paper 'Sainsbury Marketing Programmes' is a great example of a business report. Globalization, Baines, Fill & Page 2008 can be either a threat or an opportunity. This firm can enter the market and sell its products through partnership, increasing its market share, or can fail to venture into the market as well. There has been high tax fixation and fuel inflation 2011/12. This is a critical issue towards the firm's prosperity because of the increase in value cost for products. This is likely to shun customers away, reducing market share and growth for the industry. Economic 2011/2012 climate effect in the UK led to inflation in food and non-food product.
This is a threat to the business Desmond & Stone 2007 because the low supplies of food products are likely to come with price increment. This will lead to a reduction of customers and profit returns. Customers are looking for discounts and good deals. This is an opportunity to offer good deals and promotion of non-food-products discounting the food products. The firm will increase food and nonfood merchandise hence increasing returns. The wages of the consumers remain unchanging with tightening economic levels.
This is a threat to the business, and customers are likely to change their loyalty to Sainsbury firm reducing the market share and market growth. The company needs to understand the squeezed wage needs for the customers and be careful as they increase the prices of products. They need to explore other modes of sourcing their food product cheaply to sell at a reduced price than their competitors. Sociological Consumers in the UK are celebrations, e.g. , royal wedding, Christmas, and Halloween.
In this function, there is a lot of foodstuff consumption. This is a company’ s opportunity to make substantial sales. During this time, Brassington & Pettitt, 2006 the firm will be better placed to relatively raise the foodstuff prices and accompany both food and non-food products with promotion depending on the occasion. This will increase market growth for the firm. Sainsbury's participation in Sports Relief Donation is a fundamental opportunity to continue promoting its name and products. This will increase its market growth. Technological, The presence of Sainsbury’ s Nectar Loyalty Scheme is an added advantage to this firm.
This will ensure it has a great opportunity to fresh food products conveyed to customers in time. The training infrastructures in place for the firm ensure the supermarket has only qualified and approved workers. This is an opportunity to intermingle all business technicalities to offer their customer the best. This will ensure the firm withholds its market share and continues to grow tremendously despite the hard economic times. Legal, The company packs Jersey Royal potatoes. It has to obey packaging and labeling legislation. Sainsbury will remain to be focused on the interests and financial strength, and shares.
Therefore, Kotler & Keller 2008 need to abide by the risk measures and legal compliance strictly. Excellent compliance with these laws will create more opportunities to increase sales without interference by law. On the other hand, lack of compliance will result in the tint of the company’ s name and is likely to lose customers leading to reduced market share. Environmental Geographically, this supermarket is the largest retailer of British apples and pears and seller of fresh foodstuff. It has to use this opportunity to make more sales (Brassington & Pettitt, 2006). The firm plans to build closer links with farmers Providing both animal and plant food production in the market from Scotland and Northern England.
This is an opportunity for the company to make more sales since consumers love fresh, quality farm products. Weather challenges experienced 2011/12 leading to low food production is a threat to the business. The reduction in farm produce is likely to increase the buying price of farm produce, straining the farmers and hence reducing market growth and share of the business.
Boston Matrix: Market Growth and Market Share Kotler & Keller 2008 Dogs/Shrinkers (Low Market Growth or Share)Taxation and fuel inflation with stagnating salaries for consumersClimate change affecting the production of food productsBankers/Cash Cows (Low Market Growth/High Market Share)A social gathering like a royal wedding, Christmas, and Halloween. Only a UK based chain storeGrowers/Stars (High Market Share/High Market Growth)The largest retailer of British fresh productThe presence of Sainsbury’ s Nectar Loyalty SchemeSpread stores of over 1000 stores with over 400 accessible to the majorityCity and Guild accredited college where it sources its employeesProblem Children/Maybes/Question Marks (High Market Growth/Low Market Share)Sell of shares to achieve 6.6% dividend per shareSWOT AnalysisStrength: Good infrastructures: Sainsbury runs more than 1000 stores.
Of these, 440 stores are accessible with ease. This is a strength for the business because of its strong and spread coverage within the UK. High market share: Sainsbury has achieved 29 quarters growth for like-like sales. It is also the strongest and successful seller of non-food and core food retailing. It has room for growth. Sainsbury made like-for-like sales growth of 2.1%.
It has had the biggest market share for more than 10 years, giving it more potential to make significant sales. Well placed regarding environmental issues and fresh product supply, e.g. , supply of apples and pears freshly from the farm, Jersey royal potatoes, and fresh British vegetables. Also, Desmond & Stone 2007 can buy products from the farmers and relay them still fresh to their consumers, excluding intermediaries, ensuring low selling prices. Sainsbury has qualified staff from their accredited college by City and Guild. A leading certifying body in the UK. Therefore, the staff can review the products frequently only to have the best brands on sale. Weaknesses: This firm is only in the UK.
This is likely to be a problem if market growth is expected or if there is some problem arising from food retailing in this nation. Opportunity: The fact that the UK population likes social events and tends to consume many foodstuffs and use other alternative products during these times offers an opportunity for future growth of the supermarket. This firm needs to continue with its charitable organizations and donations to capture more customers than sports relief donations.
Sainsbury’ s Nectar Loyalty Scheme helps the firm understand the feeling and interests of its customer. The industry should, therefore, use this opportunity to invest in the willingness of its consumers. Live Well Campaign showed that actual customers are not after low prices as such market forces thought but need to get excellent products for their money. This is an opportunity the business can invest in to hold the taste of its consumers. The strong board of directors has reviewed the shares and commits to increasing the shares dividend by 6.6.%.
This is a fantastic opportunity for the firm to increase the number of its shareholders. Threats: The operation of Sainsbury is affected by environmental issues like bad weather, Baines, Fill & Page 2008 and taxation, fuel inflation effects, and employment. The unchanging consumer's wages with increasing food prices can alter consumer preferences in shopping from this industry. Being a Public Limited Company, large companies holding shares with the firm can tap the firm in case of reduced market share. Tesco needs a lot of investment in the market share to remain the leading supermarket, sometimes with unforeseen and experienced returns being noticed. Sainsbury’ s Fundamentals Brassington & Pettitt, 2006The market shareThe market growthThe customer’ s satisfactionCorporate Objectives i.
investigate how the company can move overboard UK market within one year and the infrastructures that need to be in place. ii. To find out in more detail whether the largest group of consumers is interested only in the quality of products rather than the quantity regarding a monetary value within three months. iii. To investigate the benefits accrued from the sale of non-food products and whether they profit accrued can cover the low gains gotten from food items without pressing the business within three months. iv.
To find out whether the hard economic times are putting pressure on the firm's market share within three months. Marketing strategies: Online sales and promotionsDiscountsOnline sales and promotions are highly recommendable (Doyle 2002). This is because other like products sold online will only differ with a low margin of prices while offering maximum profit compared to over-the-counter sales. Also, the firm can capture customers who may not really visit the stores. This is also another form of promoting the quality and services of the firm.
Bidding of products is also possible online. Sainsbury Marketing Programmesi. Product protection is a key factor (Baines, Fill & Page 2008). Good and appealing packaging is encouraged. This will capture the desire of the customer and promote the business name. ii. The buying price (Baines, Fill & Page 2008) needs to be considered to ensure the customers get the product at the lowest price possible without compromising the product quality and business profit. iii. The type and quality of the product (Brassington & Pettitt, 2006) should always be the firm’ s driving force to offer the best. iv.
The company (Doyle 2002) should not get weary of reaching their offers and sales to customers through advertisements and promotions. v. The stores (Kotler & Keller 2008) should strategically hold the commodities that the customer at a niche is highly interested in. The customer’ s interest should be the overall gear for what the firm offers in every store.
Baines, P., Fill, C. & Page, K. (2008). Marketing:essentials of marketing. Oxford: Oxford University Press.
Brassington, F. & Pettitt, S. (2006). Principles of marketing 4th ed. Prentice Hall
Desmond J.& Stone M.A. (2007). Fundamentals of marketing. Routledge
Doyle P.(2002). Marketing management and strategy. 3rd ed. Pearson Education
Kotler P. & Keller P. (2008). Marketing Management.13th ed. Harlow: Prentice Hall
Lynch R. (2003). Corporate strategy. 3rd ed. Harlow: Prentice hall