AIM: Great food at fair prices
Sainsbury’s main objectives are to provide food at a fair price for the customer so that they are satisfied and happy with what they bought from Sainsbury’s. Pleasing the customer is the main objective because, without any customers, Sainsbury’s will not sell there stock and go bankrupt as they won’t be making enough revenue to cover costs. In 2010 Sainsbury’s had a million more customer’s average a week then in 2009, 19 million customers’ altogether on a weekly basis. This shows that Sainsbury’s have been setting the right prices for the food to be sold, as there have been more. Sainsbury’s have been delivering the best supermarket food for years now, and this is shown be the awards they have received. They have won more awards than any other supermarket in 2010 and have won 7 awards out of 15 in different categories for value products.
AIM: Growing supermarket space
Sainsbury’s wants to meet up with the growing demand from the customer, by doing this they have opened more stores, also they have extended more stores, so that more products could be provided at once. Sainsbury’s has extended 13 stores and still wants to extend more, as a result they have added 1.1 million gross sq ft of new space in total, 6.6% of increase, this shows that Sainsbury’s are not just building more and more stores, their innovating the ones they have got; making them better for the customer. Their aim is to grow to 15% by March 2011.
AIM: Maximising profit
Last year in 2010 Sainsbury’s made a total profit of £585 million form all its stores in the UK. Profit is important for a business because it can be used to reinvested so that no loans are made, innovating ideas to provide an improved product for the customer. If enough profit is not being made then this can’t happen for a business. Sainsbury’s as stated made £585 million but, but compared that to a rival like Tesco is nothing as Tesco made £3 billion and over. So it is important for Sainsbury’s to make more profit for their own benefit as they will have the finds to do more ideas such as expanding more and innovating.
OBJECTIVES: Reaching more customers through additional channels
Secondly Sainsbury’s wants to make their branches and shopping available for most people in the UK, by ding this they will create more branches and improve their online operations. In 2009/10 Sainsbury’s had 51 convenience stores openand343 stores altogether, in total 890 is the number of stores Sainsbury’s operates in the UK and they plan to make a further 75 – 100 stores from 2011 and onwards. By doing this, it will drive up more sale as more people are shopping due to increase number of stores in the UK. Innovating Sainsbury’s website will allow people to shop online at ease then before, so that the customer gets a friendly feeling, when using the website, id this don’t happen then the customer is likely to leave and fins another replacement to the supermarket such as Tesco or Morrison’s. Shopping online will be a huge boost if Sainsbury’s gets it right because, Britain spent £5 billion in 2010, as online shopping grew by 18%, this shows that there is a huge profit incentive for businesses in online shopping.
OBJECTIVES: Accelerating the growth of complementary non-food ranges and services
Sainsbury’s wants to grow their non-food ranges of goods and services because this will attract more customers, which will the lead to an increase amount of profit. Also Sainsbury’s wants to provide a better quality customer experience from this because, if the customer do not like this then they won’t shop at Sainsbury’s anymore, causing them the store to lose out on revenue. Sainsbury’s non-food sections grew 3 times faster than the food section in 2010, due to this growth; their warehouse capacity is to be increased to meet with the high level of demand from the customer.
PESTEL Analysis for Sainsbury’s...