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UNIT 17
ASSIGNMENT 1
MARKETING CONSULTANT
ST 2797
MARKETING STRATEGY
J SAINSBURY PLC.
TASK 1
J Sainsbury plc consists of a chain of 509 supermarkets and 276 convenience stores –
and Sainsbury's Bank
Business priorities
In May 2007 five areas of focus were identified to take Sainsbury's from recovery
to growth:
• Great food at fair prices: To build on and stretch the lead in food. By sharing
customers' passion for healthy, safe, fresh and tasty food, Sainsbury's will
continue to innovate and provide leadership in delivering quality products at
fair prices, sourced with integrity.
STRENGTHS
WEAKNESSES
• The company's share price stood at nearly 450p per share in 1999 but
yesterday closed at 289p - a sign of just how far the company has fallen.
• Declining Reputation
• Sales fell in the 12 weeks to the 1st January 2005 by 1.2% compared to a year
ago, the fall in sales slowed in the three weeks to Christmas, falling by only
0.4%.
OPPORTUNITY
• Staff on the shop floor are one thing, but all the staff behind the scenes are
essential - buyers, administrators, systems designers, finance workers and so
on all are part of the whole team that must work together to make things
operate smoothly and efficiently
• Further scope for the Internet to be used as a home shopping tool within the
next decade, whilst also the addition of interactive television could be
explored
THREATS
• The general perception that Sainsbury's is more expensive than its major rivals
Tesco and Asda.
• Tesco manage to seemingly continue to push sales and profits ever higher,
year upon year gaining market share.
6 M for MANAGEMENT
Marketing audits, 6M includes Men, Material, Money, Market, Mack-up, and
Machinery. This technique I had used to make strategic marketing plan of Sainsbury.
Man
Money
Market
Machine
• Man: Sainsbury’s has fully trained and skilled workers to provide better
customer satisfaction. Sainsbury’s workers are work with the fully dress code
and with good cultural environment
BCG Matrix was developed in the early 70’s by the Boston Consulting
Group. The BCG matrix can be used by J Sainsbury to determine what priorities
should be given in the product portfolio of their business unit. To ensure long-term
value creation, Sainsbury should have a portfolio of products that contain both high
growth products in need of cash inputs and low growth products that can generate a
lot of cash. There are two dimensions of the BCG, market share and market growth.
The BCG Matrix graphically portrays differences among divisions (stars, cash cow,
question marks and dogs) in terms of relative market share position and industry
growth rate.
The well known tool of Ansoff matrix was published first in the Harvard Business
Review (Ansoff, 1957). It was consequently published in Ansoff’s book on
‘Corporate Strategy’ in 1965 (Kippenberger, 1988).
Ansoff (1968) argued that marketing objectives can only ever be about products and
markets and that products and markets are either existing or new. This means that,
according to Ansoff, marketing objectives should always be expressed in terms of
existing or new products or markets, or a combination of all four factors. Ansoff’s
matrix offers strategic choices to achieve the objectives. . According to Macmillan et
al (2000), “choice and strategic choice refer to the process of selecting one option for
implementation.” The four main categories for selection is usually expressed
diagrammatically as follows:
PRODUCT OR SERVICE
Existing New
Market Penetration: In this section J Sainsbury can further market their existing
products to their existing customers. This will mean an increase in their revenue for
example, by promoting the product through promotional incentives, buy one get one
free offers, PR, advertising and repositioning the brand. In this phase the products are
not altered and they do not seek any new customers.
Market Development: Here they can market their existing product range in a new
market. This means that the product remains the same, but it is marketed to a new
audience. Exporting or marketing in an entirely new region can also be done.
Product Development: this will involve a new product or service marketed to their
existing customers. The goal is to develop and innovate new products offerings to
replace existing ones. For example by changing the packaging and introducing newer
flavours or taste. The updated products are then marketed to their existing customers.
Ansoff’s matrix is one of the frameworks which J Sainsbury can use for deciding
upon its strategies for growth.
TASK 3
• POLITICAL
• ECONOMICAL
• SOCIAL
• TECNOLOGICAL
• LEGAL
• ENVIRONMENTAL
PESTLE Analysis
Conclusion
Prentice Hall,2004
Websites
http://www.jsainsburys.co.uk
http://www.j-sainsbury.co.uk
http://www.igd.com
http://www.12manage.com
http://www.quichmba.com
http://www.marketingteacher.com