Sainsbury Marketing Mix

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INTRODUCTION OF COMPANY
 J Sainsbury’s is the third largest grocery retailer in the UK. The company was leading grocery retailer in UK from the late 1980 to 1995. The company opened their first store in 1869. Sainsbury’s has 504 supermarkets and 319 convenience stores in UK. Company’s turnover is over £17.4 billion and profit of £289 million. Asda and Tesco has overtaken Sainsbury’s recently. Sainsbury’s market share gradually decreased to just over 16%. Sainsbury’s growth has suddenly fallen down. In terms of local sourcing, Sainsbury’s is higher than other competitors. Sainsbury’s provides products like milk, pre-packed cheese, fresh lamb etc to the customer. Sainsbury’s is only food retailer to enter in global 100 index. Sainsbury’s sell over 4000 products. Company has been positioned under FTSE4 and Dow Jones Index. Sainsbury’s main responsibility is to provide best food and health, make relationship with community, to provide good place of work and save environment. The main objective of Sainsbury’s is to make growth in both sales and customers. Sainsbury’s continuously growing like-for-like sales by 3.9%, increase the product range, improving services and operational saving. Sainsbury’s brand represents quality and value for money and customer service. Company’s brand name is ‘so organic’ related to food. The company objective is to provide high product in low fair price and provide good service to people like give information to choose product. The subsidiaries of Sainsbury’s are Sainsbury’s Bank Ltd; Sainsbury’s Supermarket Ltd and Sainsbury’s Convenience Stores Ltd. (Source: www.sainsburys.co.uk)

The supermarket chain operates three main store formats; regular Sainsbury's stores ('Main Mission'), Sainsbury's Local and Sainsbury's Central (convenience stores and smaller supermarkets in urban locations - 'Mixed Mission') and Sainsbury's 'Main Plus' (hypermarket) stores. Unlike Tesco (Tesco Extra) and Asda (Asda Wal-Mart Supercentre), Sainsbury's does not employ a separate brand for its hypermarkets, having phased out the 'Savacentre' fascia several years ago.

At the end of its 2008/09 financial year Sainsbury's store portfolio was as follows. |Format |Number |Area (ft²) |Area (m²) |Percentage of space | |Supermarkets |502 |15,974,000 |1,484,000 |95.6% | |Convenience stores |290 |729,000 |67,700 |4.4% | |Total |792 |16,703,000 |1,551,700 |100.0% |

TOTAL MARKET SHARE: The total market share of Sainsbury’s is 16.5%. Their market share has grown over last year and in current period they are serving over 18.5 million customers each week.

TRENDS AND ISSUES PREVALENT IN RETAIL INDUSTRY:

The recent trends that are prevalent in Retail industry are as under: i. Fashion of creating one’s own brand: These days it has become a fashion to use own brand name by retail companies on packing of products. The companies are doing so because on order to increase consumer loyalty. Major retail giants Tesco, Sainsbury’s use their brand name on the products in order to promote their brand name and gain consumer loyalty as well. Eg: Sainsbury’s is selling organic food under the name of ‘Sainsbury’s So Fresh’. The trends of own brand name is increasing. ii. Availability of all continental and regional type of food at any period of time: Earlier the foods of winter were not available in summer. But now due to improved storage systems and new trends of eating off seasonal foods as well, the consumers can have grapes in winter as well. Now any body can eat off seasonal food at any point of time. iii. Demand for convenience food: The increased competitive world has made both males and females to work in order to earn their livings. Nobody has any time to cook food. As both partners are busy in their jobs,...
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