Introduction to Marketing Management
Marketing management is an approach of effective production and distribution of resources to gain high level profit with customer satisfaction. It is useful technique to face competition and sustain product value in market for long term stability. The present report is based on marketing management concept of Sainsbury. It is one of the largest supermarket chain of UK provides grocery items and food products to million consumers. The present study is able to understand different aspects of organization’s description related to techniques involved in marketing strategies of entity. Moreover, recognition of entity’s 5cs’ are to be identified. Regarding this, market research, marketing intelligence and target marketing strategies are to be expressed. Thus, several tools and techniques related to retail company’s market position.
Background:- Sainsbury is wide spread retail industry provides groceries and food products at large scale. It has around 1300 branches in country and other nation’s which present expansion of entity. Further, it provides satisfied services to customers to maintain effective reputation in market. It influences productivity and profitability of company effectively. Moreover, its net income is near about 160 million impacts on earning capacity of firm organization as strength to face competitive strategies.
Purpose and mission of Sainsbrry:- As per the above mentioned slogan, it is considered that organization aims to achieve better quality of services. Including this, it sets target to increase service efficiency to gain maximum profit. Therefore, some of the main purposes of supermarket can express as:-
- To provide better quality of groceries and food items.
- To maintain attraction of customer towards entity’s product services
- To sustain effective reputation in market.
Marketing oriented strategy of Sainsburry:- Retail sector industry focuses to implement marketing strategies including product quality, effectiveness of marketing essentials, promotion and analyses of goods value in market. Thus, it is determined that Sainsburry is marketing oriented entity which influences effective environment of industry in market. Moreover, it represents action oriented strategy which represents implementation of action plans at workplace.
Products products by Sainsbury:- Organization produces grocery items and food products.
Role of brand in organization’s marketing:- Products of Sainsburry are popular with its name terms as brand. Therefore, organization focuses to sustain its brand reputation in market for long time period. Therefore, brand plays effective role in market which impacts goodwill of industry effectively.
5Cs of Sainsbury
Company’s profile:- Entire strength, weakness, opportunities to grab and threats occurs in organization as understand here:-
- Largest supermarket chain
- Around 150,00o people working for organization
- Good leadership to gain effectiveness
- Large number of stores and branches across Uk
- High price of products
- Imbalanced production and distribution of resources
- Adopt technologies to produce better quality services
- Use effective advertisement techniques to develop product value in market
- Expanding business as operating new benches in other countries
- Increasing in export rather than import
- Facing cut throat competition
- Sustainability of product value in market
- Attraction of buyers towards Sainsbury’s items
Market Structure of Sainsbury
Collection of Data:- Research of organization collects information related to product value and public views regarding Sainsbury’s services. It includes primary and secondary data collection in which conducting survey and interview, information from social networking sites and past business activities. In accordance to this, data are gathered effectively to present market position of organization. Thus, on behalf of this collected information, manager of Sainsbury makes plan for further business activities.
Analyses of Customer Demand:- Data collection is useful technique to recognize customer demand and requirements to implement changes in business activities. Where, primary data collection includes survey methodology and conducting face to face interview to analyze Sainsbury’s products’ value in market at initial stage. While, on the other side, secondary data collection involves gathered information through ready materials like newspaper, magazines, articles and recognizing past business activities of retail industry. Thus, these gathered data are able to create balance between production and distribution of resources systematically. It generates idea for effective transaction of resources including supplement. Including this, attitude and perception of buyers towards product value is determined which effects market position. It leads to provide satisfaction to customers with services. In addition to this, proper management of entire business activities are implemented effectively.
Competitors:- As per market research, competitors of Sainsbury are presented as Tesco, Marks and Spencer, Iceland. Therefore, society’s views regarding grocery and food items are analyzed. In this regard, it is also recognized that which quality tools attracts customers in different forms. For instance, in particular grocery items which quality type of material attracts consumers at most. Hence, this ideas are able to increase efficiency of resources. Hence, accurate market position is determined through comparing business activities of Sainsbury with other retail entities. Moreover, unique ideas are generated to increase working performance of organization to manage entire business activities.
Business Changes:- According to critical evaluation, manager of Sainsbury implements and evaluates action plans to achieve organization’s effectiveness. It creates entity’s structural framework effectively also generates ideas for proper management of business activities. Thus, changes in business and its environment occurs. It is able to set targets and increases competitive strategies to sustain good reputation in market. Moreover, weaknesses of retail industry considers to be reduced as price determination of grocery and food items remains effective. However, company maintains good reputation in market also remains able to sustain its market position at high level.
Role of collaborates in Process:- Key components of Sainsbury such as customers including agents, wholesalers, suppliers and creditors plays great role in sustainability of organization in market. Therefore, in production and distribution system these elements are crucial to create positive atmosphere of entity. Thus, suppliers and creditors are valuable to create effectiveness of organization and influences positive environment of firm. Hence, effective coordination of all collaborates increases efficiency of entity remains able to sustain its good reputation in market.
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Developing Marketing Strategy
Market strategy is that which is combining all the market goal of firm for making a appropriate plan. Further marketing strategy is base of marketing plan which is formulated by Sainsbury company. It can be formed by a intensive market research for achieving the high profit. In this marketing analysis is carried out by company by using proper tool and methodologies.
Analysis market: In this company analysis the size of market for this it is necessary for Sainsbury company to identify its target market. At the time of assessing market it is necessary to look upon two factor that are potential customer, and value of market. After determine the size of market it is necessary that company need to used framework. The framework is known as porters five force model in which Sainsbury can easily identified factor which can influence the market profitability.
Buyer power: In it Siansbury company identified which products. It help in identified the bargaining power of customer toward the product and services sold by organization. customer demand become high if price of product is low.
Bargaining power of supplier: If supplier are less in market then bargaining power is in their hand. On the other hand if supplier are more then bargaining power is in company hand. They decide the price of raw material which they purchase from supplier.
Threat of substitutes: It can be affected by a ability of customer for finding a different way for buying product. For example, if Sainsbury company supply unique product and services then customer have no choice instead of buying that product at higher price.
Threat of new entry: Power of Sainsbury company can be affected by ability of new firm which enter into new market. Company can enter into market by selling new product and services to new customer at lower price which help in increasing customer base in new market. Further it is necessary for company.
Further company need to identify behavior of its customer before formulating marketing strategy.
Then company also need to choose target market for selling its product and services. After analyzing market it is necessary for company to identify the taste and preference of consumer. c with the changes of time need and want of consumer are changes, so Sainsbury company need to modified its product and services according to the customer taste and preferences. So that it customer base not decrease. On the other hand firm need to choose demographic segmentation of targeting it customer. In this company can target people by its age and income, company can also make sure that people who’s standard of living is high and earn high income firm can offer them product which have unique attribute by charging from them premium price. Apart from this company can position it product in market by focusing its unique features. Company can also used differentiated marketing strategy by seeing on promotional message in different market. It help company in expanding business in new geographical area.
- It can be recommended that company can make product and services which are different from its competitor so that sale of company can increase.
- Further company can set premium price of its product if it make product which have unique attributes and different from its competitor.
Developing marketing tactics
It is recommended that company can use marketing mix element for increasing sale of its new product and services. The marketing mix element are as follows;
Product: In this Sainsbury company can launch product which are different from its competitor. Further company can also make high quality product and services for its customer so that it can easily grab the attention of customer.
Price: Pricing is very important for firm so that it can easily target large market. This pricing strategy is related with product positioning. Company can use various pricing method for its new product and services. Some of pricing strategy is skimming pricing and penetration pricing method. So Sainsbury can set high price of its product because it make unique product and services which demand in market is high and it have less competitors. If company set high price of its product then it can only target people who have high income .Apart from this company can set lower price of its product and services for so that sale can be increase and market share of company. after some time it can increase the price of product and services so that it can survive in competitive market.
Place: After setting price of product company need to find place where it can launch the product and services. Sainsbury need to choose place for launching its product where transportation facility is available. Further company also need to launch it product and services where demand is high and less competitor.
Promotion: Company can used different promotional technique for increasing the awareness of product among customer. Now a days lots of people are using social networking sites, so company can advertise it product on Facebook and twitter. Further, company can used to advertise it product and services on television.
Process: In this company can used systematic process for selling its product and services. In this company can provide its employee home delivery facility which help in grabbing attention of people more. Along with this Sainsbury company also provide online payment facility with secure payment option for people comfortable. Company can use systematic process for selling its product and services so that it increase sale and overall profitability of firm.
Physical Evidence: Company can make it physical store preference very strong so that sale of company can increase. It can make it retail shop near the area where population is high this help company for attracting more customer. Further company can launch it product at that place where transportation facility is available so that customer can easily reach to its products and services.
People: Company can hire highly skilled employee for its company so that it can make innovative product for increasing sale of its products. Further company can trained its employee so that it can easily provide systematic services to customer.
This all are marketing mix element which company can used for increasing sale and overall profitability of its company.
From the above report it can be concluded that company can use marketing strategy for selling its product and service. For this company need to analysis the market and then it need to focus modifying its product and services on basis of taste and preference of customer. Further , company need to target the demographic market in which it can target people on basis of their income and age. Further it can be conclude that company can make product and services according to taste and preference of consumer. marketing mix element are useful for organization for launching new product and for setting new price. Company can advertise its product and services on social networking site for creating awareness among people. There are different way through which company can expand its business and increase sale of its product and services. Further marketing mix elements help firm in launching new product in a market and for grabbing attention of customer.