Essay MK5001 Sainsbury Group Report on Sainsbury’s Management
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MK5001 Sainsbury Group Report on Sainsbury’s Management
Executive summary
This report is based on Sainsbury’s management and various stages of their IMC plan and data such as primary and secondary data, budgets, and meeting minutes. Sainsbury’s deal with the business by giving quality services to their customers, so that they can be an incredible company in order to hold clients and long haul associations with providers and wholesalers. In such manner Sainsbury’s appears to have prevailing as it’s last year’s business figures have gone up by an extensive rate and it drives the market regarding deals, showing improvement over Tesco.
The administration structure including corporate administration and the qualities, shortcomings, openings and dangers of the organization have been given indications on how Sainsbury’s could utilize their business methodologies to be the biggest retailer within the UK and better than Tesco and different organizations for a bigger and more steady buyer base. The monetary report of Sainsbury’s and the administration procedure all have been examined and further proposals are made for future reviews on showcasing methodologies of Sainsbury’s and headings that the organization ought to take later on.
A SWOT examination has been performed to demonstrate the qualities, shortcomings, openings and dangers of the organization. Considering the organization’s mission and targets, suggestions for better deals and to also concentrate on expanding benefits.
Introduction
This report will be based upon the marketing objectives of Sainsbury’s, and the IMC plan of the company we created for them. The issues discussed will focus on the positioning of the company, swot analysis, mission statement, budgeting of the company and the IMC strategy. As a group we have made great emphasis on creating the IMC plan and focused campaign for our chosen supermarket (Sainsbury’s). The SWOT analysis consist of strengths, weaknesses, opportunities and threats to evaluate the position of the company within its respectively market sector and to compare Sainsbury’s with their competitors. This will helped us to select and used the appropriate marketing tools and alternative strategies to produce a detailed market evaluation.
Situation Analysis
Key Market information & Data: Founded in 1869, one of the three largest major food retailing chains in the UK, currently has over 500 stores in the UK, consisting of supermarkets and convenient stores. Having built the Sainsbury’s brand on the basis of not only providing customers with healthy, fresh and tasty food but fair prices and a responsible approach to business, the company has a team of over 150,000 employees providing efficient service to over 19 million customers, weekly. With a market share of 16%, in 2014, Sainsbury saw itself taking 2nd place in the UKs food retailing sector followed by Tesco in 1st place with a share of 26%.
The main company is split into 2 main divisions, Sainsbury’s Supermarkets Ltd which consists of the various convenience stores and Sainsbury’s Bank which runs in-store banks in the UK that offer financial services with things such as mortgages or personal loans.
PESTLE analysis of Sainsbury’s Political:
Globalisation today is increasing and for Sainsbury’s this has pros and cons which effect and influences both opportunities and challenges for the business. Challenges Sainsbury’s faced was ‘having to compete against unknown forces and to find the sources of the products with economical and quality values’ this means that prices raised and the quality of their products lost value due to international factors and influences. In 2015 ‘the corporation tax was set at 28% compared to a few years before that when it was at 30%’, this shows that taxes have dropped by 2% and Sainsbury’s have since gained more profit because of the low rate drop in corporation tax.
Economical:
Prices raising in the economy today have an effect on supermarkets like Sainsbury’s because it affects the supply chains causing prices of products to increase. Big cases like credit crunch have massive effects on a big supermarkets like Sainsbury’s because customers become more mindful when shopping and purchasing products because they want to buy products that are more essential rather than luxury products that they want. This results in Sainsbury’s having dramatic proficient loss within their company which could lead to employees losing their jobs.
On the other hand economic factors that have a positive impact on Sainsbury’s is the high volume of unemployment. Unemployment allows Sainsbury’s to employ more people to work for them which leads to more stores being opened, more vacancies and more customers which equals more profit.
Social:
Today healthy eating is a massive topic encouraging people to live a healthier lifestyle which means eating healthier foods. This is a great opportunity for Sainsbury’s as this social trend increases, this is because Sainsbury’s will be able to keep up with customers’ demands by introducing healthy products, snacks and meals that have less calories in order to keep their customers satisfied and to also gain new ones.
As Sainsbury’s have other supermarket competitors, they train their staff to deliver good customer service, including being friendly and helpful to increase sales. Sainsbury’s also keep up with society and give back by being a part of different charities and fund raising, this shows they are socially active.
Technological:
Sainsbury’s needs to keep up with new technology that is being developed and introduced frequently. Sainsbury’s is ensuring all their stores are being updated with new technology, for example in 2011 when self-service checkouts were introduced Sainsbury’s quickly adapted to the new means and introduced self-checkouts in their stores. Other technological equipment that have been introduced that Sainsbury’s have adapted to is efficient scanners, computerised stock checking, online shopping and home deliveries. This shows that Sainsbury’s is keeping up with new trends and making improvements to their stores by having everything computerised which means less paper work and less staff mistakes as their systems will be designed to do the job automatically.
Environmental:
Sainsbury’s ‘aim to be the UK’s greenest grocer, not only by reducing their impact on the environment but by engaging their suppliers and others to do the same’. This shows that Sainsbury’s is taking environmental impacts serious and encouraging other company’s they are linked to, to participate in making greener choices. Sainsbury’s have an organic range which they have available and sell to their customers, by Sainsbury’s having these products available they attract customers and sell them at reasonable prices.
Legal:
Sainsbury’s needs to keep up to date with law polices in order to run their supermarket smoothly, they also need to follow regulations concerning consumer laws, employee laws and health and safety, etc. If Sainsbury’s fail to keep up to date with these laws, it could lead to many consequences such as being taken to court and being fined.
SWOT Analysis Strengths
Sainsbury’s is one of the four biggest chains in the supermarket industry and has over 150,000 employees working in their supermarkets, also Sainsbury’s leadership team is trained to be experienced in every aspect, so their customers get the best customers service when they come and shop at one of their stores. Sainsbury’s has over 550 supermarkets and it has over 350 convenience stores across the U.K which are opened every day. Not forgetting to mention, each store typically stocks around 30,000 lines of which around 20% are Sainsbury’s “own-label” goods.
Sainsbury’s has a really excellent advertising and branding method that works for them and their brand. Sainsbury is well known for their strong brand name as they have a good reputation in the supermarket industry. Sainsbury’s mainly operate in the UK therefore they focus on competing with other branded stores such as Tesco, as they have stores in other countries. Whist this limits the market to which Sainsbury’s can appeal to it allows them to put all their focus on the UK market.
Sainsbury’s have also been successful by persuading customers to shop at their stores rather than at their competitors stores. They have been successful in this with their brand scheme, whereby if products were cheaper at one of their competitor stores, Sainsbury’s would offer customers a discount coupon to get the same product at the same price, this intrigues customers to stay loyal and continue to shop with their brand.
Weaknesses
Sainsbury’s weaknesses is selling at higher prices compared to its competitors, this is due to the rising amount of food prices over the world which has an impact on Sainsbury’s and their prices.
Sainsbury’s weakness is that they do not have any extension plans, their market only based within the UK. In June 2008, Sainsbury’s online shopping service was suspended for 2 days due to technical problems, this affected more than 10,000 online shoppers.
Sainsbury are one of the establish supermarkets within the UK grocery market. The supermarket chain has started its operations ahead of their competitors, but they didn’t capitalise on the opportunities to increase and maintain their market share in the grocery market. Also, Sainsbury has problems with inventory management and supply chain management that affected its products in 2004. Sainsbury eventually scrap the inventory system after suffering loss in the same year.
Opportunities
Product line extension can beneficial opportunity to Sainsbury as it allow them to expand their product portfolio by introducing new products on established product lines. This method can assist the company with growing their market share. Also, by launching a new product line, Sainsbury can use their strong brand presence to spread awareness and promote its new products.
For example, Sainsbury did a collaboration with Vodafone to introduce a variety of mobile products and services. The “Mobile by Sainsbury” was created to “reward customer loyalty, offer great quality value-for-money mobile products, and Nectar points”. (“J Sainsbury’s Launches Mobile By Sainsbury’s”)
Licensing: Sainsbury should license their patency and product line. Essentially, to make it difficult for new competitors to enter the market. Licensing can restrict competitors (ASDA, Tesco and Morrison) from the grocery market from manufacturing, duplication and selling identical version of Sainsbury’s products.
Threats
Competition from leading Retailers in the UK grocery market such as ASDA, Morrison and Tesco are changing their prices levels as food prices has increased due to grocery inflation. Grocery inflation has risen by 0.2% in the market, which could affect the market share of Sainsbury.
The UK market has been recessions in the past. This would have an impact on their consumers as they would be more careful about their spending which would make a difference on their sales. This would lead to Sainsbury’s having a reduced profit and they would have to reduce their prices or introduce products which are more suitable for the current economic situation.
Another threat are Sainsbury’s competitors such as Aldi and Lidl are also cheaper retailers which have multiple stores. Sainsbury’s would have to be really careful to keep up their service and maintain their reputation. Increasing competition from other retailers means that it could affect Sainsbury’s margins and market shares.
Mission statement
Sainsbury’s vision and values always remain the same and have not been changed. Sainsbury’s initial goal is to reflect their current commitment to meeting their customer’s needs. Their aim is to facilitate their customers’ lives by offering good quality products at affordable prices and by serving their customers effectively with good customer service.
Sainsbury’s aspire to be the consumer’s first choice for good food, delivering products of outstanding quality and great service at a competitive cost through working ‘faster, simpler and together.’
Sainsbury’s has already found ways to improve their daily activities with their services, this includes recreating universal customer appeal through giving their customers an ever improving shopping experience. This indicates that Sainsbury’s are willing to find different ways of improving their business brand and making it much better for their customers. They hope to get better every single day by having great service, driving their sales, individual team responsibility and keeping their vision simple.
Sainsbury’s have taken the extra mile by looking into their stores to understand what the best way to satisfy their customers, and they have begun this by fixing the basics and will accelerate through getting better every day as they strive to achieve their goal.
USP
Sainsbury’s unique selling proposition
This USP place great importance on the well-being of individuals, who can physically, emotionally and economically make a difference to their lifestyles. The socioeconomic status of families and communities can affect the physical and mental state of kids and adults. The lack of recreational activities, playground facilities and healthier food options can cause “higher likelihood of being sedentary” among individuals.
Therefore, Sainsbury will collaborate with the Active kids’ scheme to spread awareness of the Healthy Living range products and offer promotional incentives such as discounted tickets. The benefits of the “Healthy Living” campaign are advertised to parents and potential participants’ instore and through schools and educational institutions. We also encourage the participating organisations to advertise the scheme to kids and parents, by providing them with banners, posters, leaflets and other advertising material. This helps to ensure that as many people are aware of the campaign as possible.
Essentially, the main objective of the “Healthy Living” campaign is to strengthen the links with local communities, encourage consumers to purchase the products of the healthy living range and incorporate physical activities and healthy eating into their daily routines.
Competitor analysis
This section of the situation analysis is going to focus on the competitor analysis of Sainsbury and their competitors in the Food Retail Industry. The purpose of competitor analysis is to identify the strength and weaknesses of current and potential competitors within the same market.
Sainsbury Plc is the parent corporation which is split into two subsidiaries branches: Sainsbury supermarket and Sainsbury’s Bank. Sainsbury is one the largest organisation in the United Kingdom, which have a market share of 16.9% across the UK grocery market. The main competitors of our chosen organisation consist of the current market leader Tesco, ASDA and Morrisons. Sainsbury have a large store portfolio which consist of 500 super markets and 700 convenience stores and they have a workforce of around 160,000 employees within the organisation. In 200 Sainsbury extended it entry into the convenience market by securing the purchase of Jackson which comprise of 114 stores and have a establish workforce of 2000 employees, as well as this help to
Also, Sainsbury establish a joint venture with the bank of Scotland in 1997 to operate in the banking sector, Sainsbury’s bank provide the same financial services as commercial banks such as loans, insurance, checking and savings accounts. In 2014, Sainsbury PLC were able take complete ownership of their subsidiary branch. This happen because “many companies avoid having joint venture due to the complexity involved in-coordinating policies, decisions and execution with a different company (Foley, CF & Hines, JR 2004)”. Also, this allow the organisation to enter into different market without the complexion or interference of their previous partners.
Positioning
evaluating Sainsbury’s position in the supermarket industry, they hold a good position and by maintaining this, they take into consideration how their brand targets their target audience and how their target audience perceive the brand individually. A way in which Sainsbury’s therefore meet consumer expectations, demands and targets to obtain their marketing positioning, is by introducing a ‘new pricing strategy of regular low prices’. Sainsbury’s puts low prices on everyday household items such as bread, milk and washing-up liquid, to evaluate their positioning and differentiating the brand to their competitors.
This keeps customers happy knowing they will regularly get good prices at Sainsbury’s. This then stimulates customers to be a continuous loyal customer as there is consistent incentives to keep them coming back which gained Sainsbury’s their title to be ‘the second largest supermarket chain in the UK after Tesco’, (FATRICIA, 2017). In 2015 Sainsbury’s was able to overtake stores such as Asda with sales taken over at around Christmas time, ‘when the London-based chain benefits from shoppers seeking out the quality fresh food it is known for’, (Butler, 2017). Sainsbury’s have earned their position to be second best in the supermarket chain in the UK by managing to keeping sales on top ‘at 16.8 per cent, while other supermarkets struggled in the 12 weeks to the end of February’, (This is Money, 2017)
Target Audience Profile
For Sainsbury’s target audience, the focus will be on their kids market (active kid’s scheme). Sainsbury’s active kid’s scheme has been running for 12 years, ‘investing £200 million in activities for kids of all abilities’.
The active kid’s scheme is vouchers given to institutes where kids spend 5days a week. The vouchers can be redeemed for sports and cooking equipment etc. The purpose of targeting this audience is to encourage all kids around the UK, from a young age, to lead an active lifestyle, despite having any abilities or impairments. The scheme has become so successful, Sainsbury’s have made more of an effort to incorporate their scheme into schools introducing a nutrition curriculum, on the focus of eating healthy and being active.
| How we are measuring our progress | Status at 2015/16 year end | Target for 2016/17year end | Our 2020 target |
| Total investment in our Active Kids
scheme |
£160m | £170m | £200m |
Most of the children who participate in the scheme is primary and secondary school kids. This is because they are at an age where they enjoy being active and trying out new things. Targeting ‘kids’ of this range means there is a better chance of encouraging them as they are not too young to understand and not too old to make the changes. Most primary school children are intrigued to try something new, therefore, this is a good target audience as the kids will be able to tell their parents what activities they enjoy participating in and what new healthy foods they like to eat.
Demographics
Age: 5-11 in primary school and 11-16 in secondary school. Gender: the scheme is targeted at both males and females
Class: the scheme is aimed at young school kids to have a healthier and active lifestyle.
Race: the scheme does not have any race discriminations, everyone can participate and is aimed at all races
Geographical location: the scheme is aimed for the whole of the UK.
Psychographics
There are no restrictions when it comes to age limit, as all kids are welcomed to take part and join in. The voucher scheme is handed out to schools, communities and parents to motivate kids in their care to be more active in a way that is enjoyable rather than intimidating. For example Sainsbury’s aim for schools are ‘to improve the knowledge, skills and confidence of PE teachers, to ensure all kids are challenged and able to progress’, (Activekids.sainsburys.co.uk, 2017).
Researching the Sainsbury’s active kid’s scheme, there has been clear impression that kids prefer when active activities are fun and entertaining, this shows by giving P.E teachers the chance to broaden their knowledge, and they are able to inspire kids to be more active and live a healthier life. Each voucher is free and when signed up, theirs a free active pack and toolkit which can be downloaded from the Sainsbury’s active kids scheme web-page. Having a range of equipment available for free ensures there is many ways kids are able to be active without being restricted to one idea.
Communications Objectives
| Campaign | “Healthy Living” campaign | ||||
| Goal | Promote healthy living range to represent 42% of total sales. | ||||
| Reason for this goal | Encourage consumers to adopt healthy lifestyles and purchase healthy food. | ||||
| Step | Concept | Description | |||
| 1 | Specific | Sainsbury’s aims to establish a healthier line of products by reducing the salt, sugar and fat content and ensure that 42% of total sales volume consists of healthy products. | |||
| 2 | Measurable | Sainsbury will be introducing an innovative product line of healthy ready-made meals. This process will measure the number of health-based products purchased by customers. The quantity of healthy products sold will be determined through the system of colour-coded nutrition labels. | |||
| 3 | Achievable | The objective is achievable as Sainsbury’s is going to incorporate promotional offers such as the “BOGOF” and “Buy 3 for the price of 2”. These promotional offers are going to be exclusively used for the purchase of products from the Healthy Living range. | |||
| 4 | Realistic | The purpose is to create awareness of the Sainsbury’s Healthy Living range through appropriate advertising methods to persuade consumers to purchase products from the Healthy Living range. Also, it aims to encourage consumers to incorporate them in a | |||
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| balanced diet. | ||
| 5 | Time-Bound | 3 month campaign ending by August 31st, 2017. Sainsbury’s is expected to achieve their objective of “healthy products sold as a proportion of total sales volume” (J Sainsbury plc, 2016, p.32). |
IMC Strategy
Using previous research on the current positioning of Sainsbury’s, we conducted further research to think about the proposed positioning we wanted for the range. To do this we researched supermarkets and companies that promoted a “healthy living/lifestyle” image. From this research, we found that the 3 top supermarkets in the market that pushed healthy living were Tesco, Asda, and the Co-op. We designed a perceptual map (below) to demonstrate where and how we wanted Sainsbury’s to be aligned with its competitors.
Figure: Perceptual map of proposed Sainsbury’s positioning vs competitors
The core of our IMC message for the campaign will be to showcase and promote a healthier alternative for customers in an “own brand” line of products with reduced salt, sugar and saturated fats. Also, the aim is to achieve a product sales increase to 42% from the line, within the 3 months that the campaign will run. To outline the campaign in more detail, we chose the DRIP model using the aspects Differentiate, Reinforce, Inform and Persuade.
The “Healthy living” campaign explained – DRIP
Firstly we will start with how we will differentiate the campaign from others – what exactly will make our own campaign different? For this stage we used the 4 P’s to explain our product: a Healthy Living range for both kids and adults including readymade meals for the family and colour coded labels depicting which products were low in what (Blue for low in salt, Purple for low in sugar, and Brown for low in saturated fats).
For pricing we decided on a promotion on all Healthy Living products for the whole 3 months of the campaign. We also suggested “BOGOF” and “Buy 3 for the price of 2” offers on only products from the Healthy Living range. For place, products from the range could be bought online and in store, but the promotions and “BOGOF/Buy 3 for the price of 2” offers could only be used when in a local Sainsbury’s store.
Reinforce
With Reinforce, we understood we had to somehow emphasize the healthy living aspect. The main aim of the campaign was to inform customers of healthier options for their everyday foods and treats, from a “store branded” range offering an exciting, wide range of delicious foods and meals that are just as affordable and healthy as Sainsbury’s competitors. We chose to not only target one demographic, but kids and adults, making the product range attractive to families looking for a store that cares about their health, lifestyle and pockets.
Inform
For Inform, we chose to send emails to current customers about an outdoor family event, a week before the official launch, showcasing the campaign message “Live well for less”, in which those interested were invited to a park for a day of fun and games with delicious food snacks (from the line). We also thought about using indoor promotion for the family day such as banners and staff word of mouth at tills and information on printed receipts. As well as this we would hold focus groups with adults and children to taste and rate selected products from the Healthy Living range.
Persuade
And finally, for Persuade, we decided to do two separate initiatives for adults and kids. To persuade the adults we said we would email current customers about the launch of the campaign and give them discounts in store on the range. To persuade kids, we decided to ask schools and institutions to hand out leaflets with brief information on the Healthy Living range snacks and discounted tickets to go to theme park attractions (LEGOLAND, Alton Towers, Thorpe Park, London Zoo), that require parents to come and shop in store to gain admission.
Key IMC tools
For the key IMC tools, we chose to use PR activities, direct marketing and sales promotion. The PR activity will be the event we planned to take place before the official launch of the line. This one day event will be during the summer holidays (when more people will have more free time to enjoy) and a week before the event as a “taster” day for families. Direct marketing will consist of the emails we will send to customers before the event, to offer information on the up and coming “Healthy Living” campaign and during the campaign to offer promotions and in store discounts.
Lastly, Sales Promotion will range from our in-store promotion before the PR event, informing customers of the new Healthy Living campaign coming to the stores near them, the discounts we will send customers via email during the campaign and the incentives, which will be the discounted theme park tickets for children if their parents buy the healthy range in store, where they will also be able to get the in store BOGOF and Buy 3 for the price of 2 deals (which will also run during the campaign).
Scheduling and Implementing of campaign strategies
Healthy Living campaign – 3 months, June to August (when everyone goes on summer break, more people are more interested in taking their health seriously, with less commitment to jobs, education and with more time for themselves and family). In store promotion will start a month in advance in May. The outdoor family day will be scheduled during summer, for one day only and lastly in-school promotion and direct marketing will last for three summer months – June, July and August.
Rational or Emotional based Approach
Considering that one of the main aims for our campaign was to persuade customers to adopt a healthier lifestyle by choosing our healthy alternative products, we can say the campaign will adopt a rational strategy, very logical and information based with facts and statistics, focused on stating the benefits of changing to a healthier lifestyle and the benefits of buying our products.
Key stakeholders
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Finally, the key stakeholders will be the suppliers as they will be responsible for supplying local Sainsbury’s store nationwide with the correct products for the duration of the 3 month campaign. The community/customer is another stakeholder, because they are the ones that will not only engage in the campaign but purchase the products from the campaign line. Employees will be not only providing excellent customer service in store, but informing customers about the campaign and recommending its products before its arrival and during its launch until it comes to an end. Audience engagement will be created by teaming up with the theme parks mentioned previously, to promote a “fun active summer” by shopping at Sainsbury’s for the Healthy Living range. We will also use direct marketing via email to contact customers on the in-store promotion.
| Sainsbury’s IMC Budgeting Plan | ||||
|
Area of investment |
June |
July |
August |
Total |
Research
| Research fees | £2,300.00 | £2,300.00 | £2,300.00 | £5,290,000.00 |
| Web research | £1,100.00 | £1,100.00 | £1,100.00 | £1,210,000.00 |
| Independent research | £300.00 | £300.00 | £300.00 | £90,000.00 |
| Other research | £250.00 | £250.00 | £250.00 | £62,500.00 |
| Research Costs Total | £6,652,500.00 |
Communications
| Promotional brochures | £899.99 | £899.99 | £899.99 £809,982.00 |
| Communications Costs Total | £809,982.00 |
Networking
| Memberships £3.00 £50.00 £50.00
Affiliations £250.00 £20.00 £20.00 Subscriptions £2.00 £32.00 £32.00 |
£150.00
£5,000.00 £64.00 |
| Networking Costs Total £5,214.00 | |
Event
Number of attendees £50.00 Meal (breakfast, lunch, or dinner)
| Healthy | £23.00 | £23.00 | £1,150.00 |
| Tax (10%) | £2.30 | £2.30 | £115.00 |
| Food and beverage (20%)
Meal Costs Subtotal |
£5.06 | £5.06 | £253.00
£1,518.00 |
Incentives
| Services charge | £120.00 | £120.00 | £120.00 | £14,400.00 |
| Entertainment #1 | £400.00 | £400.00 | £400.00 | £160,000.00 |
| Entertainment #2 | £600.00 | £600.00 | £600.00 | £360,000.00 |
| Other services | £25.00 | £25.00 | £25.00 | £625.00 |
| List Service Costs Subtotal | £535,025.00 | |||
Additional Costs
Invitation
(printing and postage costs)
£834.00 £834.00
|
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| Time & Expense (T&E) £600.00 £600.00
Company staff T&E £200.00 £200.00 Customer testimonial T&E £100.00 £100.00 |
£600.00
£200.00 £100.00 |
| Additional Costs Subtotal | £1,734.00 |
| Discounts
Theme Park tickets (50,000) £25.00 £25.00 £25.00 |
£1,250,000.00 |
| Discount Subtotal | £1,250,000.00 |
| Event Costs Total | £1,788,277.00 | |||
| Event Price per Person £0.00 | ||||
| Promotions | ||||
| Product | £50.00 | £50.00 | £50.00 | £2,500.00 |
| Product discounts | £300.00 | £300.00 | £300.00 | £900.00 |
| Special offers | £200.00 | £200.00 | £200.00 | £600.00 |
| Promotions Costs Total | £4,000.00 | |||
| Advertising | |
| Brochures (development and £5,000.00 £5,000.00 £5,000.00 production)
E-Mails £10,000.00 £10,000.00 £10,000.00 Radio £600.00 £600.00 £600.00 |
£10,000.00
£20,000.00 £360,000.00 |
| Advertising Costs Total £390,000.00 | |
| Public Relations | ||||
| Taster Day | £300.00 | £200.00 | £200.00 | £60,000.00 |
| Advertising | £200.00 | £200.00 | £200.00 | £40,000.00 |
| Employee promotions | £200.00 | £200.00 | £200.00 | £40,000.00 |
| £200.00 | £200.00 | £0.00 | ||
| Public Relations Costs Total | £140,000.00 | |||
Evaluation and Control
The objective of the IMC plan is based on two elements: increasing sale and increasing awareness of our specific objective (Healthy Living). These elements will help to evaluate the IMC campaign and determine whether the plan will be successful. To measure and evaluate the IMC plan, there are various methods been carried out to test and gather feedback and information?
Methods that will be used to measure and evaluate the IMC plan, will be introducing a new range of healthier ready-made meals, which the whole family can enjoy. The whole idea of the ready-made meals is to have one specifically made for kids and another specifically made for adults, then in this way the age group can get the right amount and balance of nutrition they need. To get customers to try this new range, there will be promotions on the meals for BOGOF and buy 3 for the price of 2 offers which can only be redeemed in one of the Sainsbury’s stores. The whole concept of this method is to motivate customers to shop with Sainsbury’s and when doing their weekly or monthly shopping, to choose a healthier option.
To emphasize the campaign, current customers who are subscribed with Sainsbury’s, will receive an email informing them with all the information they need to know about the campaign. The purpose of sending emails is to also make customers aware of the free event that will be taking place, which is family friendly, gives information on living a healthier lifestyle, getting families to participate in fun sports activities and to also try out some of the food from the healthier option new range.
All Sainsbury’s stores will be advertising the campaign, informing customers and shoppers on the new exciting healthier range and upcoming free even. Customers who are interested there and then, can subscribe to Sainsbury’s healthy eating email where they will receive regular healthy lifestyle updates to keep the whole family motivated. The idea of emphasizing the campaign is primarily focused on explaining to customers the benefits of living a healthier lifestyle and why they should make a change and how they can make the change.
These methods will evaluate the process of the campaign and how effective it will be. Which method works-out to be more productive, how many customers make a healthier change, how many customers will be involved to generate a profit and how much money customers spent? This will effectively demonstrate how successful the campaign has become and if not, allow room for improvements and adjustments for future campaigns.
Measure of Sales Response (Single Source systems)
The ideal testing method to determine whether or not the chosen integrated marketing tools (direct marketing, sales promotion and public relations) were effective for the Healthy Living campaign is measuring sales responses. Single-source systems are an effective testing method, measuring the collection of purchase data from a panel of selective households. Optical scanners will be placed within the participating households through the United Kingdom.
This process will be conducted when household members purchase products from the Healthy Living range and the barcoded receipts will be scanned through the optical scanning devices. Also, gathering of the information will be conducted by the household members giving in the barcode receipts to the checkout operators in the Sainsbury’s stores on their next visit. In return, the household members will receive vouchers for discounted theme park tickets.
During implementation of the Sainsbury’s Healthy Living campaign, reviews and corrective measures will be included throughout the duration of the campaign to ensure the continuity of the Healthy Living range and make sure that sales volume targets are met. Reviews will be conducted on a weekly basis to monitor whether the sales of the Healthy Living range have increased, using the chosen IMC tools we introduced to the campaign. Corrective actions will be implemented every month for the duration of the campaign, if the sales of products decrease. Appropriate measures would need to be implemented, such as sales promotions methods ranging from the vouchers, BOGOF offers and in-store samples.
Conclusion
Essentially, we created the Sainsbury’s “Healthy Living” campaign to enter the market and establish its place by selecting appropriate IMC tools and adopting a “Healthy living/lifestyle” image to attract potential customers.
Grabbing families’ attentions is key for this campaign, especially kids as they can sometimes not understand the full concept of eating healthy and keeping active. To get more kids involved the campaign will launch free theme park vouchers and handing out leaflets full of information through schools and institutions that participate in Sainsbury’s Taster Event
This integrated marketing communication plan of Sainsbury has explained and evaluated the effectiveness of the healthy living products range and taster event. We have incorporated direct
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marketing, sales promotions and public relations into the IMC strategy and then implement and execute these methods to match the objectives of Sainsbury. The IMC strategy integrates in-store advertising, taster event, BOGOF offers, vouchers and email subscriptions to help spread awareness of the Sainsbury “Healthy Living” range, throughout the duration of the campaign (June 2017 to August 2017).
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Butler, S. (2017). Sainsbury’s becomes UK’s second-biggest supermarket. [online] the Guardian. Available at: https://www.theguardian.com/business/2015/jul/28/sainsburys-becomes-uks-second- biggest-supermarket [Accessed 31 Jan. 2017].
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J Sainsbury plc / Respect for our environment (2017) J-sainsbury.co.uk. Available at: http://www.j- sainsbury.co.uk/responsibility/our-values/respect-for-our-environment/ (Accessed: 5 April 2017).
Knights, Miya. UK Discount Pricing Strategies: Optimising Operational, Merchandising & Promotional Plans. 1st ed. 2016. Web. 5 Apr. 2017.
Reaching more customers through additional channels – J Sainsbury plc Annual Report 2011 (2011) Annualreport2011.j-sainsbury.co.uk. Available at:
http://annualreport2011.j-sainsbury.co.uk/businessreview/operating/focus3.shtml (Accessed: 6 April 2017).
- plc J. (2017) J Sainsbury plc / business strategy and objectives. Available at: http://www.j- sainsbury.co.uk/about-us/business-strategy-and-objectives/ (Accessed: 1 March 2017).
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Swot and Pestel Analysis of Sainsburys Marketing Essay (2015) UK Essays. Available at: https://www.ukessays.com/essays/marketing/swot-and-pestel-analysis-of-sainsburys-marketing- essay.php (Accessed: 5 April 2017).
This is Money. (2017). Aldi and Lidl draw in more shoppers as MPs vote on Sunday trading. [online] Available at: http://www.thisismoney.co.uk/money/news/article-3481797/Major-supermarkets- sales-rise-sliver-Tesco-Asda-Morrisons-lose-market-share-Aldi-Lidl-draw-shoppers.html [Accessed 31
Jan. 2017]
Sainsbury: Annual Report and Financial Statements 2016. 1st ed (2016), pp. 30-32. Available at: http://www.j-sainsbury.co.uk/media/3169495/sainsburys_ar_2016_2005.pdf (Accessed: 6 April 2017).
“Children, Youth, Families And Socioeconomic Status”. http://www.apa.org. N.p., 2017. Web. 6 Apr. 2017.
“J Sainsbury Plc / Sainsbury’S Launches Mobile By Sainsbury’S”. J-sainsbury.co.uk. N.p., 2013. Web. 6 Apr. 2017.
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UKEssays. (2017). Swot and Pestel Analysis of Sainsbury’s Marketing Essay. [Online] Available at: https://www.ukessays.com/essays/marketing/swot-and-pestel-analysis-of- sainsburys-marketing-essay.php [Accessed 6 Apr. 2017].
