$pagename = “communications-sainsbury-retailer”;
= “Marketing Communications Campaign by Sainsbury’s | Business Essay”;
$description =”Business Essay – Report to Advertising Agency to Carry Out an Integrated Marketing Communications Campaign on behalf of Sainsburys”;
$subject = “Business”;
Introduction
Sainsbury’s has had a difficult time over the last few years. It have lost market share to competitors. Sainsbury’s is the number three UK supermarket, after Tesco and Asda. Sainsbury’s has a market share of 16.73%, compared to Tesco and Asda at 26.56% and 16.73% respectively (TNSofres Superpanel).
Analysis
Competitive Analysis
The food retailer industry has been characterised by fierce competition in recent years. Both Tesco and Asda have improved their non-food offerings and have seen overall market share increase as a result.
The increasing usage of the internet and increasing acceptance of e marketing presents opportunities for new marketing tools to be utilised. Another socio-cultural trend is that of an increasing awareness of social responsibility. Social responsibility is an organisation’s obligation to maximise its positive impact and minimise its negative impact on society (Kotler & Lee, 2005).
Evaluation of Marcomms
McCarthy (1964, cited in Mohammed & Pervaiz, 1995) offered the four Ps (product, price, place and promotion) as the combination of factors that satisfies the target consumer. This approach is now used to evaluate Sainsbury’s current marketing marcomms.
Product
Sainsbury’s high end positioning can be seen in the packaging of its products that try to convey high quality by associating the products with a geographic location. Their advert tag line, ‘Making life taste better’ further conveys this.
Price
By originally positioning itself at the high end of the market, Sainsbury’s tried to leverage a price premium. Sainsbury’s did not receive the predicted customer response. Sainsbury’s subsequent lowering of prices seems to oppose the high quality positioning of its products.
Place
Sainsbury’s has not advertised its website extensively. There is no in-store advertising, and since the online store is at a different web address than Sainsbury’s corporate website, awareness of this method of purchase is very low. Sainsbury’s has failed to integrate its website with the rest of its marketing strategy.
Promotion
Promotion is defined as communication to build and maintain relationships by informing and persuading (Pride & Ferrell, 2003). Sainsbury’s current promotion, ‘Active Kids’, promises to donate sporting equipment and coaching to primary and secondary schools in exchange for vouchers collected by customers. This promotion is trying to take advantage of the current consciousness surrounding childhood obesity and positioning Sainsbury’s as a socially responsible retailer.
Relationship marketing is best defined as the maximization of long-term gain for both the consumer and the producer (Rossiter and Percy, 1998). Information about Sainsbury’s customers is gathered through analysis of Nectar reward card purchases. This information is used to tailor what Sainsbury’s offers in terms of goods and services to the appropriate market segment. The Nectar card scheme uses cross company collaboration. The card is positioned as delivering extra value for money as points are exchanged for gifts or products.
Sainsbury’s uses Jamie Oliver’s celebrity endorsement in its current television adverts. Of Jamie Oliver, a Sainsbury’s representative stated, “He takes the mystery out of cooking, fires people up with enthusiasm and confidence in the kitchen and appeals to everyone regardless of age or ability. He really is the ideal partner for Sainsbury’s” (Guardian Unlimited).
Recommendations
Marcomms Enhancement Opportunities
Sainsbury’s is not offering consistency across its marketing mix. It has attempted to reposition itself as a lower price food retailer. However, this is in direct contrast with its previous pricing and the message given out by its product and place and the Jamie Oliver association. The message given by its ‘Active Kids’ promotion is that of a socially responsible retailer, by it is unclear how this fits in with the rest of its marketing mix. This lack of consistency in the message could potentially confuse the consumer and has produced an unclear brand identity for consumers.
Sainsbury’s should thus decide whether it wants to promote quality, price or both (i.e. good value for money) and gear all its marcomms towards communicating this message.
Sainsbury’s also needs to integrate all aspects of its business; customers should be able to move seamlessly from the brick and mortar venue to the online shop without noticing any difference in the marketing message given. Sainsbury’s should also try to coordinate its positioning with that of its partners in the Nectar Card scheme.
Suggested Marketing Communications Strategy
The author recommends that Sainsbury’s take advantage of the increasing awareness of social responsibility. Sainsbury’s could create is own method of clearly labelling all food with fat and sugar content. Sainsbury’s could extend its local produce, GM free and organic ranges.
Sainsbury’s could extend its relationship with Jamie Oliver to support his campaign for an improvement in school dinners. It could also support or initiate other similar campaigns for improvements in nutrition.
Sainsbury’s internet site is an opportunity to communicate with customers that is currently under utilised. Customers that would be interested in purchasing from a social responsible grocery retailer would initially be very sceptical. The website could be used to communicate Sainsbury’s commitment to the issues that matter to its customers.
Conclusion
The analysis in this report and resultant proposals will be used as the basis of an integrated marketing communications plan for Sainsbury’s.
Marketing Communications Research Material
- ‘Grocers Share Of Trade 2nd Jan 2005’ TNSofres Superpanel. http://superpanel.tns-global.com/ (24th March 2005)
- Mohammed R. & Pervaiz K. A. (1995) ‘Using the 7Ps as a generic marketing mix an exploratory survey of UK and European marketing academics’, Marketing Intelligence & Planning, 13(9), pp.4-15.
- Kotler, P and Lee, N. (2005) Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause, 1st ed., London, John Wiley & Sons Inc.
- Pride, W.M and Ferrell, O.C. (2003) Marketing, 1st ed., USA, Houghton Mifflin Company.
- Rossiter, J. R. and Percy, L. (1998) Advertising Communications and Promotion Management, 2nd ed., Boston, McGraw-Hill.
- ‘Sainsbury’s has high hopes for schools promotion’ Guardian Unlimited. http://www.guardian.co.uk/supermarkets/story/0,12784,1411465,00.html (26th March 2005)
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