“Old Marketing is Dead; New Marketing Wins “
This statement is based on Chapter 3 of Nigel Piercy’s
book “Market-Led Strategic Change” – the course
text.
Sainsbury’s is a company that has just reported a 5.3%
increase in under-lying pre-tax profit to March 2014,
(The Financial Times, May 2014). This is contrary to
key competitors such as Tesco and Morrisons’ who
are both reporting falls in profitability and market share.
You are required to produce a report by conducting a
marketing audit of Sainsbury’s current position and then
outline the key reasons for its success based largely on
the content that we covered in Chapter 4:
• The concept and importance of value-
based marketing
Your answer should reflect the practical considerations
that an organization faces in the real-world which is a
central tenet of Piercy’s approach. For this reason you
may want to introduce concepts from other parts of the
course.
To achieve the above requires looking at the marketing
strategy implemented over the last ten years by the
outgoing Chief Executive of Sainsbury’s Justin King.
The company has successfully resolved a number of
key marketing issues during this time and is, according
to market analyst Bernstein offering “quality food for
the masses”. Its positioning as thus is different to Tesco.
Your report should contain incisive insight into the
status of the current grocery retail market, the key
dynamics driving it and where it is heading strategically
and how Sainsbury’s has successfully adapted its
marketing in relation to those changes. In addition, how
the issues put forward and discussed during the course
have impacted upon Sainsbury’s current position in the
UK and how Justin King has arrived at a successful
marketing/value proposition in today highly competitive
UK Grocery market.
Your report should conclude with firm and clear
statements on what the key factors are that have
contributed towards Sainsbury’s UK marketing
strategy and how they have – and are -creating value
for customers.
Remember: critical appraisal is essential. I am looking
for demonstration of genuine marketing insight and
understanding in relation to the real-life issues faced by
a leading organisation and how marketing can create
value going forward. Use of core marketing concepts
to facilitate explanation would greatly assist with this.