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Sainsbury's Internal Expansion Essay

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Section A
A1
a)
A retailer may be seen as a business that focuses its marketing efforts on the final consumers with the intention of selling goods or services to them. This means that any business that sells a product or service to a final consumer, whether it is to a customer in a shop, by mail, over the telephone, door to door or by means of a vending machine, is a retailing business. Retailers usually buy in bulk and sell these items in smaller quantities to consumers for personal, family or household use.
b)
Internal Expansion
Sainsbury’s expansion refers to raising the market share, sales revenue and profit of the present product or services. The business can be expanded through product development, market development, expanding the line …show more content…

Sainsbury Plc established in 1869 is a leading retail organisation with a chain of Sainsbury's 502 supermarkets and 290 convenient stores (Annual report 2009) across United Kingdom. It also has a financial interest venture in the form of Sainsbury's bank.
The company workforce consists of over 148,000 employees across United Kingdom. The company caters to 18 million customers per week.
External environment of the company - Major competitors
The company's chain of Sainsbury was the UK's biggest food retailer until 1995 when competitors like Tesco Plc and ASDA Group Limited took over the market. Other competitors include Hannaford Bros. Co., Safeway Plc and The Stop and Shop Companies, Inc.
Social factors
In today's market, the customers tend to prefer one-stop shopping. This means that they prefer to have all the products available under one roof. Sainsbury by introducing non-food products have largely benefited from this strategy.
In addition other social factors such as increasing female workforce, longevity in the population, etc. has resulted in a decline domestic meal making. Therefore there is a growing demand pattern of a certain types of products. One of the marketing themes of Sainsbury being ‘Cook and Save' promotes easy to cook products thereby allowing the customers to make their household budgets stretch

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