Marketing Strategy and SWOT Analysis of Sainsbury’s

Sainsbury plc  (Sainsbury’s), is the second-largest supermarket chain in the United Kingdom. When John J. Sainsbury and his wife Mary Ann set up shop in London in the mid-nineteenth century, they formed a partnership. They started out as a fresh food merchant before expanding into packaged products like tea and sugar. There are around 440 Sainsbury’s locations in the United Kingdom, the largest of which contains over 23,000 products, with Sainsbury’s logo on 40% of them. This article will look at Sainsbury’s marketing and SWOT analysis.

We will start our analysis by looking at Sainsbury’s Mission Vision statement.

Mission Statement:

Sainsbury’s mission statement is: “To provide high-quality service to customers and also maximize or provide good Financial return to stakeholders“.

Their goal is to exceed customers’ expectations for nutritious, safe, fresh, and flavorful food daily to make their lives simpler. Sainsbury’s principal goal is to meet its responsibilities to the communities and surroundings. It operates by delivering high-quality items at reasonable costs and adapting them to meet the requirements of individuals. For example, most of its things cater to many clients, including children. Vegetarians, the physically challenged, pregnant women, and nursing moms are all excluded.

Vision Statement:

Sainsbury’s vision statement is: “Our vision is to be the most trusted retailer where people love to work and shop. This includes treating people fairly wherever they are in our business and supply chain“.

Since the onset of the recession, Sainsbury’s claims that marketing and clear brand messages have helped the store increase earnings by 17% and attract 1 million customers.

Sainsbury’s has come up with five main pillars to keep up with its promises, vision, and mission statements: knowing our customers better than anyone else; great products and services at fair prices; being there for our customers whenever and wherever; colleagues who make a difference; and our values that set us apart.

Next we will figure out the positioning strategy of Sainsbury’s.

Nowadays, more and more people tend to choose a veggie diet. The reason to do that might differ; someone might be very much concerned about the life of animals and the environment around them. Vegans are also healthier since they consume vegetables high in vitamins, minerals, and fibre instead of high-fat foods and red meats. You may need to pay greater attention to certain things, such as your iron and vitamin B12 levels, but that’s about it.

Sainsbury’s takes all these aspects into consideration. Increasing the variety of food, specifically veggie food, introduces a very caring attitude towards their customers. 

Also, sales of own-brand food products and its online and convenience store businesses drove Sainsbury’s remarkable growth. Sainsbury’s success has been fueled by its ability to communicate both quality and value when both are critical in the retail industry.

Based on the abovementioned characteristics, we can indeed say that Sainsbury’s belongs to Everyman (Regular Guy) brand archetype.

What should we know about this archetype?

Desire: active communication with others

Aim: be part of (a group)

Strategy: develop everyday solid values and the ability to fit in. ​

Level One: desolation.

Level Two: orphans who feel abandoned and alone are looking for a place to belong.

Level Three: the newcomer is learning to connect, fit in, accept help, and make friends.

Level Four: the humanitarian, who believes that everyone, regardless of their ability or circumstances, has a natural dignity.

For brands, the Everyman archetype gives an excellent identity if they stick to these characteristics: ​

• whose application is relevant to people;

• whose goal is to be used in everyday life;

• a price that falls between average and below-average;

• Offered or promoted by a corporation with a family-oriented corporate culture;

• Those who wish to set themselves apart from a more expensive or snobbish competitor.

Moving forward, we will do a detailed SWOT analysis of Sainsbury’s.

Strengths:

Correct expansion moves. The brand grew to include convenience stores from tiny grocery stores with a limited selection of items. Subsequently, it evolved into supermarkets with various merchandise categories that suited the customer’s day-to-day requirements. In the United Kingdom, the supermarket chain is presently among the top four supermarket brands.

Philosophies of good Business. Sansburys’ business concept is to assist clients in living well on a budget. Sainsbury’s has attracted and kept consumers from all income sectors by pursuing and maintaining a low-cost strategy across all product categories. Many of these customers are brand loyal and rely on the supermarket for their daily requirements.

Possibility of catering to a wide range of clientele. The retail outlet caters to a wide range of clients. While their value items appeal to the lower-income group, they also have various branded and pricey products and speciality products that the upper-income segment may be interested in.

There are two types of banking: wholesale and retail. The retail brand’s financial services segment offers a variety of wholesale banking and retail banking services. While retail banking is an unconnected industry that rivals do not monitor, it has aided in risk diversification across other sectors.

Unique promotional methods. The majority of its advertising techniques are very inventive and put the brand squarely against its competitors. One example is Brand Match marketing. Each product offered by the brand is compared to competitor brands such as Tesco and Aldi to determine the cheapest.

Voucher cards. Unlike other stores that just give coupons, Sainsbury’s coupons are created using research data on buying behaviour. Gathered and assembled through their Nectar Loyalty Card Scheme.

Weaknesses:

Switching from one brand to another. Sainsbury’s, like other retail brands, is vulnerable to brand switching. Even though there are strict loyalty programs and promos. Customer retention continues to be a challenge for Sainsbury’s.

Low-profit margins. Most shops have lost volume due to increased competition in the retail industry and the added risk of internet merchants. Sainsbury’s has been striving to slash expenses and maintain prices lower than the competitors to attract customers, but this is no longer viable.

Rising costs. Aside from procurement expenses, retailers must invest in the shopping experience, which is significant, particularly for higher-income segments. Self-service technologies, broad aisles, multilevel parking, educated and well-informed salesmen, and so on are essential requirements, each of which comes at an additional cost.

Opportunities:

24/7 Service. Sainsbury’s must implement automated self-checkout technology to service consumers 24 hours a day, seven days a week. Most significantly, making the process more efficient would enhance total revenues.

New styles have emerged. Due to changing customer behaviour, Sainsbury’s may tap into a new market. As we all know, Sainsbury’s has created a big network in the United Kingdom. It is a fantastic chance for the company to develop new profit and revenue streams and diversify into other product lines. Now, the organization must extend its operations in Africa and Asia, which are the world’s largest consumer markets with enormous potential and opportunity.

‘Alliances’. In 1995, Sainsbury’s and Tesco combined, and Tesco took over the company’s activities. Sainsbury’s was able to improve its market position due to it. However, the corporation should continue to merge with other companies to broaden its client base.

Threats:

COVID-19 pandemic. Many Sainsbury’s stores throughout the UK have been closed because of the covid-19 epidemic and international lockdown. As a result, the company’s yearly sales and net income have decreased by 3.2 per cent and 32.78 per cent, respectively. Following the epidemic, a period of economic slump began, reducing the purchasing power of ordinary people.

Growth. The globe has become a global village as a result of technological advancements. Many enterprises and corporations extend their markets and establish themselves as global multinational corporations. Various countries have different laws and regulations. As a result, it poses both vast potential and a massive threat to its expansion and legitimacy.

Lastly, let’s analyze one of Sainsbury’s commercial to find their targeted customers.

Okay, let’s be honest; we all love shopping in big supermarkets. The main reason is that it makes our lives easier. Finding everything we need in one place helps us not waste time, money, and gas driving from one place to another.

The most challenging part, I would say, is to decide which supermarket offers a great variety of products of high quality at affordable prices.

So, what is the central message of the commercial? At Sainsbury’s, the wide variety of products is of the best quality. Compared to other supermarkets like Tesco, even twenty pounds is enough to fill your basket here.

This remark leads us to believe that Sainsbury’s ideal client is the Sharer — those who appreciate even the little pleasures in life and share their delight with others.

Doesn’t it sound intriguing?

Now, let’s try to figure out who the Sharer is.

Values, Attitudes, and Lifestyle:

A sharer is someone who wants to completely appreciate life in all of its elements. These folks like taking chances. They accept a variety of difficulties. Sharers handle their regular duties and routines with a pleasant attitude. They look after their loved ones, friends, and parents.

They are content even when they go shopping regularly. They never get carried away with optimism and positive energy, though; they realize their financial limits and are typically good with money. However, if something catches their eye at the grocery, they lose control and purchase it (this happens to many of us).

Aside from shopping, they also enjoy cooking. They always make sure the food is delicious and that everyone in the family eats appropriately. They are willing to spend a higher price for high-quality organic and environmentally friendly items simply to protect the health of their parents and loved ones.

They do, however, look after themselves! They are concerned about their appearance and wellbeing. Sharers aim to dress stylishly, exercise for their health, and stay in shape or reduce weight if necessary.

Sharers like spending a lot of time in and around their houses for leisure and activities. They prefer getting lost in some cleaning, either inside or outside their homes, and they appreciate taking care of their gardens. Furthermore, they adore repairing various oddities. Painting a room, putting up shelves, and ornamental works are only a few examples.

They also like reading publications and watching movies. It doesn’t really matter to them what genre they’re in. They appreciate all types of film, including action, thrillers, romance, family, and cartoons.

Other fascinating tidbits regarding the Sharers include:

They seldom take vacations or other short travels. They don’t travel much outside of the country.

Sharers are brand loyalists who are well-versed in the industry.

Despite their modest living standards, they prefer to buy luxury brands whenever feasible since they are concerned about the quality of the things they use. Quality, rather than quantity, is considerably more vital to them.

Following a thorough examination of Sainsbury’s SWOT analysis and marketing strategy, we have concluded that Sainsbury’s is the world’s top grocery chain. The corporation faces several significant obstacles, including the economic downturn, rivals, and globalization. Sainsbury’s has to grow its market and employ cutting-edge technologies to stay competitive.

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