Introduction
This case study takes up the matter of J.Sainsbury, a long-established Fortune 500 Company. It is a widely respected chain store that has a 140-year old history in customer servicing and providing quality food and non-food products at affordable prices.
Its maxim of âgood quality at lower priceâ has been at the core of its success story for many years of its history and has underpinned its supremacy for nearly 3 half centuries of trade in UK food sector, besides diversifying into banking, insurance and core financial areas. However, J.Sanisbury (JS) also needs to tap its vast experience in retail trade and knowledge of market conditions. These competitive benefits need to be reflected and mirrored in its current marketing operations. It is seen that there have been paradigm shifts in the shopping patterns and buyersâ psychology, especially among the younger generation shoppers who wish to strike bargains during their purchases.
âShoppers are now well versed with money saving strategies, making the most of price cuts and promotions with many also opting for retailer own labels, where growth is almost 6 percent,â said Mike Watkins, Senior Manager, Retailer Services at Nielsen. (British shoppers follow bargains, 2009, Discuss, para.2).
Percent share of grocery market spend by retailer
It is precisely for gaining a larger market share and serving more customers, that JS has launched its money-saving and discount voucher schemes, off the counter to add value to client purchases and offer a wider gamut of products and services to valued customers. Again, internet business needs to be strengthened with a wide array of products at competitive prices and accommodating terms of selling.
What is the general context of the Press Release (PR)?
It deals with the discount coupons offered by JS as part of its customers’ promotional schemes. “Sainsbury’s today announces a major financial investment in a coupon scheme designed to benefit the 18.5 million customers the retailer serves every week. Customers will be rewarded at the till with money-off coupons for hundreds of branded and Sainsbury’s own-brand products.” (Company news, 2009, Sainsbury’s announces biggest investment in customer loyalty since launching of Nectar, para.1).
The second press release offered test campaigns for customers to test JS own brands with other branded goods, in order to feel and understand the high-value JS places on its own brand quality and pricing, which is definitely “20 percent cheaper than the branded versions.” (Company news, 2009, para.3).
Other aspects that have been covered in these press releases are the passion and commitment JS has towards its loyal clientele over the eventful years of its service in the United Kingdom and elsewhere. JS wishes to develop strong bonds with its clientele and also provide them value for money not only for its food products but also for its other insurance and banking business lines.
“We now serve over 18 million customers a week and have a market share of around 16 percent. Our large stores offer around 30,000 products and we offer complementary non-food products and services in many of our stores. An internet-based home delivery shopping service is also available to 88 percent of UK households.” (Company overview, 2009, para.3). Some of the major thrust areas that JS needs to consider includes product positioning and the need for greater visibility for its products and services, own brands vs. marketed brands (Own brands have higher margins than marketed brands), how competition has affected JS, and finally the critical area of use of Information technology and closer links with customers in enhancing market reputation and goodwill of JS. It should also think in terms of how it could attain the Number 1 or Number 2 slot in retail marketing in the United Kingdom, the spots now being occupied by rivals like Asda or Tesco.
What was accomplished in the communication? Consider more than just the obvious message
The main idea that was being driven home by this communication is that it is wiser to shop and buy JS’s own products, with its marked passion for quality, pricing and excellent servicing. Both from the quality and economy point of view, JS is miles ahead of its competitors and offers customers a complete shopping experience, unparalleled in the annals of selling history.
Were the press releases related in any way to each other or to major news or industry trends occurring at that time?
Yes, the press releases were related to each other. It underlined the importance JS attached to serving and satisfying customer preferences and needs, especially under the present economic situation, where people have to think twice about the pricing and quality of products they put in their trolleys. Another aspect is that under the present economic conditions, people need to get more value for money and conserve buying habits through gifts and savings vouchers and better brand products. The main aspects of the savings schemes were that there were added inducements, even for non Nectar scheme participants and were intended to add value to their purchase. Besides, one of the main focus areas of the company has been in terms of having “to build on and stretch the lead in food. By sharing our customers’ passion for healthy, safe, fresh and tasty food, Sainsbury’s will continue to innovate and provide leadership in delivering quality products at fair prices, sourced with integrity.” (Company overview, 2009, Our business priorities, para.2).
Moreover, JS needs to consolidate its market standing as the largest supermarket in the UK and also its third position after Asda and Tesco.
Did the company send a consistent and coherent message?
Yes, through these press communiqués, the company did send positive and coherent messages to its clients and potential customers. This could also offer customers presently shopping with other shops to migrate to JS, keeping in view its commitments and loyalty to its18 million-strong weekly customers, who are increasing with each passing day. It is also seen that brand loyalty and added features promoted by JS are strong points that are savored by customers, young and old. Besides, the excellent servicing and promotional schemes launched by JS from time to time are popular and liked by its customers. It would not be long before JS is able to capitalize on its assets and resources to reach the coveted Number One spot in UK retail marketing business.
Reference
British shoppers follow bargains: Discuss. (2009). Nielsen Wire. Web.
Company news: Sainsburyâs announces biggest investment in customer loyalty since launch of Nectar. (2009). Web.
Company news. (2009). J Sainsbury plc: Corporate Website. Web.
Company overview: Our business priorities: Great food at fair prices. (2009). J Sainsbury plc. Web.
Retail sales start to bloom in UK: Percent share of grocery market spent by retailer. (2009). Nielsen Wire. Web.