This sample essay on Sainsbury Supermarket provides important aspects of the issue and arguments for and against as well as the needed facts. Read on this essay’s introduction, body paragraphs, and conclusion.
The business that I have decided to report on is J Sainsbury’s. As we all know this is a very well known and well-established organisation and this is why I decided to make a report which focus great deal on the UK Sainsbury Grocery. Sainsbury’s store that has over 1 million branches across UK. I am going to identify the different objectives of my chosen business and I am going to write this by focusing on the following points and explaining
2. Market position and estimated market share.
Market position is simply, positioning is how your target market defines you in relation to your competitors, according to (Wikipedia, 2006)
Market share refers to a Sainsbury’s share of the total sales of all theirs products within the category in which the brand competes. Market share is determined by dividing a brand’s sales volume by the total category sales volume defined by Worthington, Britton and Rees (2005).
According to market research group TNS Worldpanel, the UK’s big four. Tesco, Asda, Sainsbury’s and Morrison’s – now hold almost three-quarters (74.4%) of the grocery market. Sainsbury’s Supermarkets is the number three UK supermarket with a market 15.9% share of UK supermarket sales in the 12 weeks, trailing just behind Tesco and Asda. (See: Figure1) shows the market share of Sainsbury and its competitors (TNS 2006)
2.1 Number and Types of competitors
Competition is the act of striving against another force for the purpose of achieving dominance or attaining a reward or goal, or out of a biological imperative such as survival.
The grocery industry sector in the UK is controlled and directed by supermarket giants most of which are household names. Between the high-end niche market players like Waitrose and Marks & Spencer and the cheap bulk discounters like Iceland, but the top competitors’ players operating in the largest market segment for Sainsbury remain are Tesco,, Asda, and Morrison’s. Striving to capture consumer attention and in the effort to retain it, the strategies of the supermarkets swing between loyalty schemes and price wars. Alongside continuous attempt to retain a hold over the home market, many of the organizations view overseas opportunities as another lucrative way to inflate profits and expand the brand name. On the other side of the coin, invasions from foreign companies like Wal-Mart/Asda and the slightly over-efficient supply mechanism of the
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.
3. Market position
There has not being any recent changes in the market position for Sainsbury. Despite Sainsbury’s 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.
3.1 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 Sainsbury’s supermarket chain in the UK, appearing on television and radio advertisements and in-store promotional material. The deal earns him an estimated ï¿½1.2 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)