BU7030 Managing Innovation Assignment sample

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BU7030 Managing Innovation Assignment sample

Introduction Of Managing Innovation 

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Marketing environment is the combination of internal and external factors which influence organization to be able to operate effectively. Owners must understand environment in which business is operating so that they would be able to make right working and get competitive advantage. Sainsbury is operating in market since 1869 and has more than 1,428 stores (Oursainsburys, 2021). The company is belonging from retailing industry and the firm is having its headquarters in London, United Kingdom. The report would discuss the analyses of cultural differences between the country’s, marketing entry, and organisational marketing mix in order to expand successfully in China.


Analyse both cultural and marketing related issues

Business makes a lot of changes in their strategies and products and services when they expand into a different country because of values, beliefs and traditions that are being followed. It is important for organization to make sure that they are taking right actions to be able to gain right attention and working so that there would be better reputation. China is having a good number of retailers which is approximately 102,469 as of 2019. First impression of organization must be effective by making sure that they are getting in their products that are new in market (Number of retail companies in China from 2009 to 2019, 2020). Pricing of products has to be done according to clients for being able to match their expectations. This makes business be able to make sure that there is good foreign trading. Chinese’s are very dedicated to the work which they are involved in and have the right knowledge to be able to make the company have the right passion of working in the market as well. Sainsbury would have a difficult time in expanding into China since Alibaba has made a large place for them in market that would be difficult for company to compete with (Lee & Falahat, 2019). UK population is not going to have the right working and they have a very balanced life which is why getting the productivity be higher the organization can adapt to this method.

The GDP and lifestyle of population would change but it is very important to make sure that there is good impact on them overall as well. Chinese follow traditional way of market itself therefore Sainsbury will make sure that they have easily accessible stores in country, so that there are good sales (Katsikeas, Leonidou & Zeriti, 2019). Getting intellectual property rights is also a challenge that must be understood well so that there is going to be good obtainment of Sainsbury must have for the going on working. Fake and copied products are having higher sales in country that will stop if country has a good GDP (Eneizan & et.al. 2019). Experience is present in the staffs which are present in China so that there would be right working and processing that is present. Clients will want to invest more if there is going to be a service of quality products in market.

Cultural model

  • Task

The employees who the company is going to have in China are very hard working which is going to make sure that the organization is having the right productivity and operations. There would be higher functioning which the company can have and make the profitability be better.

  • Person

There is a lot of experience as well which can be found in China in the staff so that there is a better working that is going to be there. Culture can be maintained when the employees are going to be at the right place in the market and make the working be better as well.

  • Power

The power cannot be misused that is going to make the stability be higher and make the working be better as well.

  • Role

The roles and responsibilities are fixed and well planned in the organization to make sure that there is going to be better working.


  • Strengths

Sainsbury is having a good command on workforce and knowledge expanding themselves in different markets and countries which is a great factor. Business is having a good name for them in market and gained customer base as well. The problem is in China that organization will have to get in trained employees who also understand local language for the marketing department to make the right place and culture of China making development and improvements take place (Tien, Phu & Chi, 2019).

  • Weaknesses

Business needs to be more focused on the new entrants before expanding themselves in new markets which is a great drawback (Watson IV & et.al. 2018). Investment is limited as of now in Sainsbury in research and development department which must be main aim. Marketing department has to be strong and experienced to make sure that there would be effective working and processing that is going to be there (Pegan, Vianelli, & Luca, 2020).

  • Opportunities

Alibaba is only business that must be doing well in China but unique products and features of Sainsbury will make sure that there are a good number of customers which are getting attracted. Respect and standards that are set for customer satisfaction is high in Sainsbury, therefore there it is essential to have higher profit margins if expanded in China (Eriksson, Bigi & Bonera, 2020). Opportunities has to be higher to make sure that there is going to be better placing in the market which is going to make sure that there is good working.

  • Threats

To be able to compete, organization will have to invest in technological aspect since Alibaba is having a strong base. Errors can be reduced when there is good involvement of technology in the organization which makes higher market base. Customer demands and expectations must be matched on time according to the cultural aspect so that there is good working and strong base for company in China quickly. Customers which are not technological friendly have to be given a good involvement of their interaction with the business so that there is going to be more sales.


  • Political Factors

Drawback of expanding into China for Sainsbury is that it is having communist form of government that means they can change policies overnight. Sainsbury can have advantage as well since this is going to make a good customer base in country as well. There are a lot of policies and regulations which can change according to the government of the country which would make the organization be at loss. There is a good trading and exports which take place and that makes the country have a good employment that is going to be a great factor.

  • Economic Factors

The current GDP of China will surpass US economy soon because labour costing is low and more companies are ready to expand in this country. Experienced and effective workers can be found by Sainsbury in China making productivity and process is higher (China’s Year-Over-Year GDP Growth Rate Declines To 7.9% In The Second Quarter Of 2021, 2021).

  • Social Factors

Population of country is high but literacy rate is 90% that is a great factor for Sainsbury because they would be able to communicate well and make sure those products and services are doing well in country (Vinerean, 2017). Improvement in products according to values, beliefs and culture would also be included by Sainsbury to make sure that there is having right working in country. Cultural aspect has to be stronger to make the right positioning and working which has to be done accordingly which would make sure that there is a stable working. Religious believers of China are getting the right working and make the balance be present in order to have the right stability.

  • Technological Factors

China is hub of technology combining therefore Sainsbury will not find it difficult to make sure that they are able to find right investment in this aspect. Internet in future aspect can be an additional advantage for Sainsbury as well. Access to internet is also high which is going to make sure that working is effective. Technology has to be done effectively to make sure that there is going to be right working and processing which is present. Thinking of the effective operations Sainsbury will have to use the right technologies which are going to make the working be higher.

  • Legal Factors

E-commerce is still developing in China and also labour laws developed in 2019 which was for benefit of people of country (Temjanovski, 2019). Marketing processing of the company has to be well established and worked according to the legal aspect so that there is better working that is going to be there. Promotions of Sainsbury will have to make sure that they are making actions legal and right according to culture of working hard in China population of country as well.

  • Environmental Factors

Awareness of wastage will have to increase in country so that there is going to be a good control and make sure that population is having a better lifestyle as well. It is because of so many competitors being established in country that pollution level is high (Sultan & Suhail, 2019). Despite of pollution the company need to maintain their portfolio for getting loyal employees and customers in market.

Market entry

To be able to enter a new market there are a lot of methods that can be used by organization to be able to get right working. It is because of new location there must be good analyzes and understanding of new market. This way company will be able to make right decisions accordingly so that there would be higher functioning and profit margins.

  • Retailing

Producers find it difficult to sell products directly to consumers therefore retailers can be used in middle. Retailers buy their products and services from wholesalers and make further distribution (Kaleka, & Morgan, 2019). Advantages of this method are that initial capital and space would be limited that would make sure that company is having a good working (Temjanovski, 2019). Disadvantage of retailing method is that company will not find right recognition in new market and also constant supervision and control would be missing.

  • Direct exporting

This method makes sure that producer is selling products directly to customers and works according to their interest. Advantage of direct exporting is that there is good profit margins and control. There is going to be good feedbacks and transactions to be monitored effectively as well. Disadvantages of this method are that there is no buffer zone which means problems come together if any mistakes are made. This method is going to require higher time, energy and money as well (Pegan, Vianelli & Luca, 2020).

  • Licensing

Licensing is a method when another person is included and is given copyrights of selling products and services of another firm. Advantages are, rise in income level and new business opportunities as well. The company will be able to have a good costing and more advantages in the market for the long run (Eneizan & et.al., 2019). Disadvantages would be IP theft would increase and also dependency would be higher as well.

  • Franchising

To have multiple locations and expand successfully in market, this method is used so that there would be higher productivity and trademarks are also invented so that this process would take place effectively (Sultan & Suhail, 2019). There is a good investment capital that can be created by this method for firm which is a very important advantage and disadvantage for company is that control on Sainsbury would be limited that has to be monitored and controlled from time to time.

Sainsbury's would prefer direct exporting because the company has a strong brand image and reputation in the market. Because the organisation has a better level of experience and knowledge of many markets, it is critical that they promote their own brand identity. Sainsbury's will need to ensure that they have a good long-term plan in place, and this will be a very effective approach for ensuring that they work efficiently.

Segmentation, targeting and positioning

  • Segmentation

 Sainsbury is focused on daily groceries and also on online customers which is a great segment for it to have in China as well. The population of China is shifting to online shopping that must be making work of organization be higher as well (Temjanovski, 2019). Segmentation makes company be able to make their decisions and working accordingly so that they would be able to make sure that there is effective working that exists.

  • Targeting

The targeted audience for Sainsbury would be household working class and individuals. Groceries and other basic requirements like daily products that customers demand for are being provided by the organization at a very affordable price. The price of the products differs from country to country so that there is good working as well (Stoši?-Mihajlovi? & Trajkovi?,2020). Target will make sure that company will be able to have right working and expand accordingly.

  • Positioning

The company is providing their products and services at a very affordable price that would make sure that there is effective working and functioning. Clients want good quality at low price that is a great factor for company to have for a long run in market. Promotions and placing of products and services in China of Sainsbury would take place according to this aspect so that there will not have to take risks and make sure that there is smooth working (Goncharova, Solosichenko & Merzlyakova, 2019). Key points for Sainsbury are to make sure that they are being able to get in the right cultural value by following the beliefs and values of all the customers and the employees working in the organization.

Sainsbury is having a long term observation in China therefore they are thinking of expanding in country so that they would be able to have higher productivity, sales and profit margins (Hua, 2020). The company will be able to gain attention of clients also easily because of quality of products and services and portfolio that is being held in market.

Marketing mix decisions and recommendation

Marketing mix is a method for company to analyse bazaar effectively and make objectives related to them. Management would be able to make sure that they understand market and aims and goals would be set accordingly so that company gains higher placing in new market. Branding must be done effectively and tactics also must be implemented differently from place to place (Sapouna and et.al., 2018). Since, Sainsbury is planning to expand in China they must know marketing mix of their products and services in order to be able to gain right stability in new market.

  • Price

Sainsbury has a good knowledge of pricing factor which is influencing customer’s majorly in China but it is very important to make sure that they are being able to adapt to them effectively. To be able to have higher based of customers organization will have to adapt to penetration pricing strategy so that they will get help in pricing their products accordingly and make sure that they are having right profitability (Temjanovski, 2019). For a long run as well this is a very effective method that Sainsbury’s can use to be able to make a place for them.

  • Promotions

To be able to make a place for Sainsbury in China there must be a use of right methods to promote products and services. The company must know that people of China do not get influenced by advertisement easily but they do from peer therefore word of mouth is going to be a lot more helpful (Sanaei & Sobhani, 2018). Campaigns will have to be invested into so that organization would be certain that customers are aware of products and services that are present in market and new brand which has come in country as well.

  • People

Sainsbury will have to hire locals when expanding into China since they would find labours at low price. This is a great factor because company will be able to manage more employees and make sure that productivity is higher than expected. The company has to have good futuristic goals and this is a very practice method for them to have (Spivakovskyy & et.al., 2018). Since, there is a lot of trading which has been practiced before by them, they can make sure that economic factor is stable in company as well. Customer’s value in the market also has to be understood to make sure that there would be right working and processing which is going to be a great factor for the overall working which is going to be a great factor.

  • Product

While expanding in China, company will have to make sure that they are having a good plan in hand for improvement in products and services. Innovation according to culture values and beliefs will have to be adapted so that organization would be able to find stability (Kaleka & Morgan, 2019). Quality of products is high but there must be a good description of products in Chinese on packages so that company will be able to communicate effectively and products will make a place for themselves effectively.

  • Place

China's literacy rate and internet users are strong; Sainsbury's has already set a target for online clients. This is a really effective approach that they can use, but they will need numerous stores at first (Chan & Raharja, 2018). There are multiple channels that can be sued by them but Sainsbury would focus on direct exporting products and services so that impact on clients is higher and communication is stronger in this process as well.

  • Process

Offering would have uniformity as well so that services are delivered effectively that would make satisfaction of customers be higher as well. Services of consumption would be same as it is in UK that is a great factor for company to have for a long run (Ahmadzadeh, Eidi, & Kagopour, 2017). It is because of quality of products that organization would be able to make a place in market and create a great competition for Alibaba in market as well.

  • Physical Evidence

Services are many in company and products as well that they are manufacturing for many customers so that they can have more varieties to select best for product for themselves. Infrastructure and designing of stores and websites is going to be done with experience so that experience of clients is higher and attraction of new customers is also present in company (Setiadi, Batu & Soesanto, 2017).

Sainsbury would be able to have higher profit margins and sales if they expand themselves in China. The labour costing is lesser and company will be able to match demands of raised clients as well. It is very important for organization to have futuristic methods for a long run so that there are better planning, operations and working that is present for them to be able to get right working (Pegan, Vianelli & de Luca, 2020).


From report is can be concluded that there has to be good working and planning which is required by company to be able to have right working. Risks and control over expansion has to exist so that there are right standards and reputation that the organization would be able to have for a long run. Problems that might rise in firm are also would be well balanced in order to be able to gain right competitive edge. In an international market strategies and methods that the business had been using from a long run must change so that there would be better functioning.


Books and Journals

Ahmadzadeh, M., Eidi, F., & Kagopour, M. (2017). Studying the Effects of Environmental Commitments on Green Marketing Strategies. International Journal of Economic Perspectives. 11(1).

Chan, A., & Raharja, S. U. J. (2018). Marketing strategy of a creative industry company in Bandung City. Review of Integrative Business and Economics Research. 7. 232-240.

Eneizan, B. M and et.al. (2019). Effects of green marketing strategy on firm financial performance. The moderating role of government policy. Business and Economic Horizons (BEH). 15(1232-2020-350). 304-324.

Eriksson, T., Bigi, A., & Bonera, M. (2020). Think with me, or think for me? On the future role of artificial intelligence in marketing strategy formulation. The TQM Journal.

Goncharova, N. A., Solosichenko, T. Z., & Merzlyakova, N. V. (2019). Brand platform as an element of a company marketing strategy. International Journal of Supply Chain Management. 8(4). 815.

Hua, H. (2020, February). Improvement Strategy of Sports Product Network Marketing Strategy Based on Big Data Analysis. In 2020 12th International Conference on Measuring Technology and Mechatronics Automation (ICMTMA) (pp. 885-889). IEEE.

Kaleka, A., & Morgan, N. A. (2019). How marketing capabilities and current performance drive strategic intentions in international markets. Industrial Marketing Management. 78. 108-121.

Katsikeas, C., Leonidou, L., & Zeriti, A. (2019). Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review.

Lee, Y. Y., & Falahat, M. (2019). The impact of digitalization and resources on gaining competitive advantage in international markets: Mediating role of marketing, innovation and learning capabilities. Technology Innovation Management Review. 9(11).

Pegan, G., Vianelli, D., & de Luca, P. (2020). Conclusion to the Country of Origin Effect on Decision-Making in Practice. In International Marketing Strategy (pp. 181-188). Springer, Cham.

Pegan, G., Vianelli, D., & Luca, P. D. (2020). International Marketing Strategy. Springer.

Sanaei, M. R., & Sobhani, F. M. (2018). Information technology and e-business marketing strategy. Information Technology and Management. 19(3). 185-196.

Sapouna, P and et.al. (2018). Market withdrawal, international orientation and international marketing: Effects on SME performance in foreign markets. In Advances in Global Marketing (pp. 281-303). Springer, Cham.

Setiadi, R., Batu, K. L., & Soesanto, H. (2017). Does an environmental marketing strategy influence marketing and financial performance? A study of Indonesian exporting firms. Market-Tržište. 29(2). 177-192.

Spivakovskyy, S., Spivakovska, T., Kanishchenko, O., & Elalfy, S. (2018). Marketing strategies of companies in internationalization process. Journal of Advanced Research in Law and Economics. 9(6 (36)). 2155-2162.

Stoši?-Mihajlovi?, L., & Trajkovi?, S. (2020). The importance of marketing instruments for market approach and operation of export companies. Journal of Process Management. New Technologies. 8(1). 18-23.

Sultan, Y. H., & Suhail, K. S. (2019). The impact of significant factors of digital leadership on gamification marketing strategy. International Journal for Advance Research and Development. 4(5). 29-33.

Temjanovski, R. (2019). The social marketing strategy and transport policy to improving the quality of life in urban area.

Tien, N. H., Phu, P. P., & Chi, D. T. P. (2019). The Role of International Marketing in International Business Strategy.“. International Journal of Research in Marketing Management and Sales. 1(2). 134-138.

Vinerean, S. (2017). Content marketing strategy. Definition, objectives and tactics. Expert Journal of Marketing. 5(2).

Watson IV, G. F and et.al. (2018). International market entry strategies: Relational, digital, and hybrid approaches. Journal of International Marketing. 26(1). 30-60.


Oursainsburys, (2021). [Online]. Available Through: <https://oursainsburys.org/about-sainsburys/>.

Top 8 Challenges Facing Foreign Businesses in China today, (2021). [Online]. Available Through: < https://marketingtochina.com/top-challenges-facing-businesses-and-marketers-in-china/>.

Number of retail companies in China from 2009 to 2019, (2020). [Online]. Available Through: < https://www.statista.com/statistics/277807/number-of-retail-companies-in-china/>.

China’s Year-Over-Year GDP Growth Rate Declines To 7.9% In The Second Quarter Of 2021, (2021). [Online]. Available Through: <https://in.news.yahoo.com/china-over-gdp-growth-rate-075502384.html>.

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