Take a company of your choice... Describe how you would launch a new Essay

Take a company of your choice... Describe how you would launch a new product or service with that company using t - Essay Example ....................................................................... 4.0 The Sainsbury Style Service Model......................................................................... 5.0 Entry Strategy, Targeting Strategies and Critical Dimensions of Marketing Mix. 6.0 Marketing Objectives............................................................................................... 7.0 Conclusion References EXECUTIVE SUMMARY Sainsbury, a renowned UK grocery retailer, is currently seeking diversification strategies to sustain its revenue growth in a highly competitive environment where competitive rivalry often dictates business strategy direction. Sainsbury will be expanding into personal grooming services targeted primarily at young male adult consumers between the ages of 18 and 34. This service model will be positioning under premiumisation strategies justified by years of brand loyalty achieved by the business through consistent and socially responsible marketing efforts. To ach ieve objectives of improving revenue by 18 percent, the new service, Sainsbury Style, must align the most critical dimension of business strategy, the promotion function in the marketing mix, with key lifestyle and attitudinal factors for this target segment. Sainsbury Style 1.0 Introduction Sainsbury’s is one of the largest grocery retailers in the United Kingdom, maintaining approximately a 16 percent market share over such competitors as Morrison’s and Tesco. In recent years, in this oligopolistic market structure, major competition to Sainsbury has begun diversification strategies in order to gain a market share and improve its revenue position through new market engagement. An oligopoly is a market environment with very few large competitors and where competitive rivalry is important external threats (Boyes and Melvin, 2005). In order to compete successfully, Sainsbury must begin providing supplementary services unrelated to grocery procurement with a private labe l brand focus. Tesco, its largest competitor, witnessed a 100 percent growth in private label brands from 1982 to 2004 (Coriolis Research, 2004). To effectively diversify, Sainsbury will be launching the Sainsbury Style service, a hair styling, sculpting and consultation service targeted primarily at young male consumers, a private brand benchmarking existing promotional success for private label food promotions. 2.0 Methodology Examination of trade-related publications, corporate annual reports, and research literature on psychographic segmentation and targeting was conducted to gain a richer perspective on the opportunities of diversification for Sainsbury. In order to successfully launch this new service concept at the organisation, trends in consumer purchasing of personal beauty products and services were necessary to predict revenue growth and demand in the desired male target market group. 3.0 Situation and Market Analyses Sainsbury has had difficulty in gaining a market shar e over major competition such as Tesco as it is becoming commonplace for these major grocery competitors to select diversification strategies to maximise revenue growth in a rapidly maturing industry. Sainsbury has managed, through years of effective integrated marketing strategies, to establish a well-recognised and favoured brand in diverse market segments. The business must capitalise on its brand personality to realise an effective launch of Sainsbury Style. 3.1 PEST and SWOT Analyses Research did not uncover any imperative political factors