Sainsbury has grown greatly and has increased its market, also the increase in customers has given Sainsbury a large amount of profit. A supermarket that offers a wide choice of leading brands at significantly low prices, cheaper than it's competitors in the in the United Kingdom, and globally, with quality reduced prices, and full customer satisfaction guarantied. Sainsbury is a very large British company, that is well known is the United Kingdom, and overseas, has a different way of approach to there customers, they makes there own products which leads to very low prices, cheaper then the market leading supermarkets such as M&S, Asda and Sainsbury's. However, this means that even people that are on lower incomes or from low class back-grounds, can afford to go shopping at Tesco were they can spend the same amount that they would in the other.
- Market position
There has not being any recent changes in the market position for Sainsbury. Despite sales growth of 6.6%, see Figure 2.
Sainsbury remains in third position, as Sainsbury went through a terrible time recently mainly with stock and many customers simply not getting what they want in the store (empty shelves). This was mainly down to outdated software and delivery system which I now believe has been improved. I think they are now showing signs of recovery but will take a long time to catch Tesco. (Jorn Madslien 2006)
Another reason might be that the image of Sainsbury's is very much still as a posh shop i.e. very expensive. Although I have to say if you want something that Tesco’s does not stock Sainsbury would probably have it.
- Market development (recent changes)
Market development” would consist of the activities undertaken by a firm to develop a market presence, in order to sell goods and services. It would not include the cost of selling those goods and services. Therefore the market development is one of the main pillars of Sainsbury strategy. (Sainsbury, 2006)
One of the market development for Sainsbury was the recent changes in Business functions for Sainsbury's. The business functions of Sainsbury's are as follows: marketimg and sales. The company has a separate Marketing and Sales department and market research is used in the forms of market research staff - using survey questionnaire - in streets and in store, customer focus mornings where feed back can be gained, and questionnaires regarding current promotions e.g. Reward Card. The company hopes to appeal to adults and younger people. The company advertises mainly through T.V and radio and through adverts in magazines and newspapers. The major influences on the price of the product are costs by the producer, competitors prices, regional pricing and select prices. The main costs of distribution are transport and other related fixed costs - depot vehicles and labour, fuel, consumables. The company is establishing closer links with suppliers by sharing vehicles. This helps the company to meet its objectives because it allows them to know what the customers want so they can provide a good. (Investment and Business News, 2006)
Sainsbury have emerged dominant in the UK grocery market and are showing signs that they may leverage their retail expertise into other market sectors. Retailers have learnt, particularly in the UK, that their own brand identity has become more important than the products they sell and greater wealth can now be created by the communication of an overall retail brand identity. This will become even more important in the future. (BBC news 2006)
Since 2000, Jamie Oliver has been the public face of the supermarket chain in the , appearing on television and radio advertisements and in-store promotional material. The deal earns him an estimated £1.2 million every year. The Jamie Oliver effect was continuing to have a big impact as the super chef’s 'Try Something New” (Sainsbury 2005) Recipe tips were encouraging people to buy a wider range of foods from the store. A major Christmas marketing push with Oliver will launch shortly (BBC news 2003).
In 2006, Oliver fronted Sainsbury's new advertising slogan urging customers to try something different by suggesting recipe ideas. In October the company claimed sales of some featured products had more than doubled. Sainsburys' competitors also noticed a substantial increase in these products (Julia Finch, 2005)
- Conclusion
- Appendices
Figure 1:
Figure 2:
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