Sainburys Essay Example | Topics and Well Written Essays - 1500 words

Sainburys - Essay Example 92). Sainsbury’s was founded in 1869. Today it has over 1,000 stores, including 440 convenience stores, and employs around 150,000 employees. Sainsbury plc had revenues for the full year 2012 of 22.29bn. This was 5.65% above the prior years results. Sainsbury is one of the top food retailers in the UK. From the data above it can be easily understood that the company is growing leaps and bounds. However in the last couple of years just like most of the companies, Sainsbury also had to combat the economic downturn. A part from the financial aspect, Sainsbury also needs to adapt to the changing consumer behaviour. The study looks to deliver a probable marketing plan for the company keeping economic volatility in mind. PEST stands for political, economic, social and technological. All these factors are treated as the external of macro environmental factors. Such factors cannot be controlled by the company. However, these factors tend to have a direct on the business strategy of the companies (Kotler, 2001, p. 25). The political factors of UK are likely to have significant effect on the performance of Sainsbury. Presently the government’s debts and the consumer debts are quite high. This has affected the buying behaviour of the consumers. Therefore the company not only has to operate in such tricky market conditions, but also has to develop business gradually. Economic factors affect the businesses highly as these factors influence the cost, demand, profitability and price. During the present economic slowdown the unemployment rate and inflation in food prices are two factors to look out for. Due to the dual affect of inflation and high unemployment rate, the demand for Sainsbury products may decrease. This may slow down the production of food products creating a viscous circle. Therefore the company should look to focus on expansion into new growing markets to manage the risks related to the slowdown of the economy. Today the