MARKETING AUDIT

Marketing Audit



Marketing Audit

Introduction

The main purpose of this research report is to make a marketing audit for a J.Sainsbury Plc. J Sainsbury plc (LSE: SBRY) is the parent company of Sainsbury's Supermarkets Ltd, commonly known as Sainsbury's (also Sainsbury and JS), the third largest chain of supermarkets in the United Kingdom with a share of the UK supermarket sector of 16.3%. The group also has interests in property and banking (Bream, 2008).

Discussion

A Marketing Audit (MA) is a systematic examination of an organization's marketing objectives, strategies, organization and performance.

Internal Analysis (SWOT)

SWOT - Strengths

Sainsbury's has had thirteen straight quarters of growth showing real turnaround in its business (Rigby and Braithwaite 2008). Even for 2007 it has shown an increase of 7% in turnover and a huge 450% increase in profit after tax (Annual Report 2007).

Sainsbury's seems to be very well placed on green and environmental issues due to its various recent initiatives, like buying fair-trade bananas (economist.com 2008 [online]).

Furthermore its help in closing down gangmaster (Taylor 2008) has had a positive effect on the public in general. It has a positive consumer brand and it's liked by both green activists and consumers (Directions magazines, 2007).

SWOT - Weakness

The takeover bid by the Qataris Private equity firm last year (Arnold and Politi 2008) can have some implications as people are gravitating towards British companies and the prospect of Sainsbury's being governed by a foreign firm can lead to consumers switching loyalties.

Unlike Tesco's expansion plan (economist.com [online] 2008), Sainsbury's is not present in markets other than the UK. This can lead to trouble especially if there is some problem within food retailing in the UK or if there needs to be a source of extra growth (Doyle, 2002).

SWOT - Opportunities

Sainsbury's alternative business presents a great opportunity for future growth. Its investments in property (Killgren 2008b) and a goal of £40 million profit through its bank seem like a good strategy to pursue

Online sales are a great opportunity as well, since online margins are higher and investments are not huge.

SWOT - Threats

There needs to be continuous heavy investment in environmental and green issues without immediate benefits. The problem lies in maintaining a balance e.g. Bio-fuel is an important tool to curb global emissions and its use affects Sainsbury's supply chain directly, so Sainsbury's should support it. However, a spurt in bio-fuels has made corn dearer (independent.co.uk [online] 2008) affecting its prices within the UK and making Sainsbury's consumers bear the brunt (Economist, 2008).

Sainsbury's operations are subject to a broad spectrum of regulatory requirements particularly in relation to planning, competition and environmental issues, employment, pensions and tax laws and in terms of regulations over the group's products and services.

PESTEL analysis

PESTEL analysis - Political Factors

Increasing globalization, presents a challenge as well as an opportunity to Sainsbury's. The challenge will be to compete against unknown forces and to source the best quality/financially viable products from world over. Sainsbury's can enter the markets of emerging companies through joint ventures or partnerships to explore these new markets, although it does not ...