Sainsbury's Marketing Communications Plan 2008-209

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In order to provide a structure upon which a comprehensive marketing plan can be build, Sainsbury's should adopt a SOSTAC model in order to help the development of a logical structure combined with the key elements of a plan.

The current situation puts Sainsbury's in the UK's third-largest supermarket chain, with a market share of around 16% .with 823 stores, unveiled profits of £488m, up 28% on last year's levels, with 15 consecutive quarters of sales growth,

Given the current environment shows how the strength and broad appeal of the Sainsbury's brand has improved substantially during the past four years. Like-for-like sales growth, excluding fuel, of 4.3 per cent over the summer quarter and 3.9 per cent for the first half, 

Sainsbury’s is the most trusted ‘own-brand’ among supermarkets. Almost half of all shoppers placed ‘high’ trust in Sainsbury’s own products (47%) compared to 27% for Tesco, 17% for Asda and 15% for Morrison’s. Research carried out with 1,000 consumers in August 2008.

After the advertising campaign - featuring Jamie Oliver offering family meals for less than £5 - Sainsbury's became more popular with consumers than any other adverts the supermarket had ever done.

Within the present financial crisis , Sainsbury's was "stealing very successfully" from its upmarket rivals.

About 30% of shoppers' baskets were now items on promotion, compared with around 20-22% a year ago.

Shoppers were becoming increasingly "savvy" and changing the way they cook and eat in response to the credit crunch. All the supermarkets have seen sales of organic and premium ranges slowing or grinding to a halt, while lower-priced and own-brand goods have proved more popular.

Sales of heat-and-eat ready meals had gone into decline. Shoppers "are trading away from ready meals to buying fresh food to save money". The exception was sales of heat-and-eat Chinese and Indian meals, which are "growing strongly, replacing takeaways".

Sainsbury's managed to segment the market efficently using Nectar card database, coupled with purchase records which provides users with the power to understand customer buying patterns broken down by a multitude of geodemographic criteria. This helped Sainsbury's to divide their customers in quality orientated 55%, famili orientated 20% and traditional orientated 25%. Also if we look at the market share by region ,Sainsbury's has 25% market share in london, 14% in east uk 10% in wales and west and only 6% in scotland.

The objectives for 2008-2009 are ranging from delivering an ever-improving quality shopping experience for customers with great products at fair prices, to improving profit margin as for example Morrison's , even though they relatively smaller in size of business, but they have much better profit margin and revenue per sq ft, with less number of stores.

Other objectives are to help people to eat healthy and to have a balanced diet, to be explicit about the products and how they are produced, , to increase the range of organic food , to offer free cooking courses and reaching more customers through additional channels by opening new convenience stores and developing the online home delivery operation.

The most important market strategy is to be the market leader. The leader has the largest market share and usually leads the other firms in terms of price changes.
The best way of doing this is to continue their successful marketing platform expressed by the strap line “good food cost less at stansbury”.
The first task is to define what the Sainsbury's brand should stand for and make sure that as many staff as possible within Stainsbury understood this and what it mean for them and their job roles.. So the employees would reflect the company's image.This will be done through a programme of workshops

The second task is to increase the range and awereness of Sainsbury's own-label brands. They also need to take into account...
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