Business Report On Sainsburys Plc Marketing Essay

The business I decided to survey on is J Sainsbury's. This organisation is perfectly known and well-established; this is why I decided to make a written report focusing on different areas of this organisation. On this report I will speak about;

The key business objectives

Major influencers of Sainsbury's

Functional regions of the business enterprise.

History of Sainsbury's

Sainsbury's was founded in 1869 by John James and Mary Ann Sainsbury. They opened up their first small shop at Drury Street, London. Drury Street was one of London's poorest areas and the Sainsburys' shop quickly became popular for offering high-quality products at low prices. It had been so successful that further branches were opened up in other market streets in Stepney, Islington and Kentish Town. By 1882 John James Sainsbury possessed four retailers and continued extending his business further. He exposed a depot in Kentish Town, London, to supply this growing chain. On the same site, built bacon kilns that produced the first Sainsbury brand product. It was also in1882 that John James opened his first branch in Croydon. This shop sold a variety of 'high-class' products which were more descriptive in decoration.

At this moment in time Sainsbury's established itself as the 3rd largest supermarket string in britain with a talk about of the united kingdom supermarket sector if 16. 3%.

Sainsbury's business objectives

Sainsbury's current priority is to grow and survive. In March 2007 Sainsbury's identified key areas to give attention to *

Great food at good prices: To generate on and expand the lead in food. By showing our customers' interest for healthy, safe, fresh and yummy food, Sainsbury's will continue steadily to innovate and offer leadership in delivering quality products at fair prices, sourced with integrity.

By increasing the quality of food and changing the prices due to the current financial situation, Sainsbury's plan to have more customers.

Accelerating the growth of complementary non-food amounts: To continue to develop and accelerate the introduction of non-food ranges following the same rules of quality, value and development and to give a broader shopping experience for customers.

Sainsbury's try to extend services in non-food areas; a lot more areas they successfully expand in the greater attention they'll get from customers.

Reaching more customers through additional channels: To increase the reach of the Sainsbury's brand by opening new convenience stores, producing the online home delivery operation and growing Sainsbury's Financing.

This means that they need to consider opening new stores in areas preferably where there is less competition taking place (e. g. areas that Tesco or Asda is not)

Growing supermarket space: To grow the business's store estate, positively seeking and creating a pipeline of new stores and stretching the largely underdeveloped store portfolio to provide an even better food offer while also growing space for non-food amounts.

Sainsbury's now have a refurbishment programme; they are trying to extend their current store space by closing down stores for a certain time period to develop capacity. A good example is Sainsbury's store in North Finchley, London which currently re-opened after a month's refurbishment. (Own knowledge) **

Stakeholders

Sainsbury's is a Open public limited company, meaning ownership is divided up between all the shareholders and the decisions are made by the board of directors with the shareholders pursuits in mind. The primary objective is usually profit maximisation, since each shareholder gets a trim of the profits depending on their share size at the end of each year.

Below is a diagram demonstrating the stakeholders of Sainsbury's plc.

Employees

Employees are essential stakeholders within a company because a company cannot operate without any individuals. Sainsbury creates competition between its employees giving the cheapest wages easy for its employees to be competitive to get to higher ranks within the company. Employees will be self motivated as a result of 'award', doing better at work and rushing to help the customers around the marketplace. An improved service will appeal to more customers, increasing revenue that may also gratify the shareholders. Sainsbury's also offer pension strategies providing motivational factors such as job security

Customers

Customers are vital for the survival of a business. Without anyone purchasing the goods and services an enterprise can not make it through. It is essential for a small business to fulfill their customer's needs. Market research is vital to find out just what customers needs are. Sainsbury's strong on promoting its goods and services to customers. Sainsbury's usually use 'buy one get one free' strategy, which allows customers to purchase 2 of the determined items for the price of one. This has a positive influence on client satisfaction. Sainsbury's also used Jamie Oliver before as its general population face to appeal to more customers.

Suppliers

Suppliers will be the companies who supply products which businesses sell. Suppliers are extremely important stakeholders. If Sainsbury's fail to keep its suppliers happy this could cause a string reaction, if suppliers refuse to source goods for Sainsbury's and the client demand is high; following a certain time customers will change sides and go to a store which satisfies their needs.

Managers/Directors

Mangers are essential to Sainsbury's, because it's down to the mangers impact and commitment that the business's activity can flow efficiently. Their job within the business is to make sure various departments work very well together. They are essential for Sainsbury's, without them the business would be missing as they might not have got the correct support to maintain a sufficiency.

Government

The government influences the workings of businesses in lots of ways

1. Businesses have to pay a variety of taxes to central and local government, such as Firm tax on the profits and Value-Added Taxes (V. A. T) on their sales

2. Businesses also have to stick to a wide-range amount of legislations, which is targeted at safeguarding the consumers, the employees and the neighborhood environment from business activities.

3. Businesses will be damaged by different economic plans, (for example changes in rates of interest which will impact businesses when they borrow funds). However, businesses can reap the benefits of federal incentives and initiatives such as job creation plans and business relocation packages, offering low-interest lending options and cheap rent.

The administration as a stakeholder is there to be sure that businesses are following legislations and rules effectively. If Sainsbury's do not follow legislations correctly the government could penalise the business enterprise.

Competitors

Competition has a large impact on Sainsbury's. Sainsbury's main competitors are Tesco, Asda and Safeway. Sainsbury's always will try to stay one step before its competitors through regular market research. If a competitor launches a successful product or something then Sainsbury's will either replicate the idea or produce something better. Sainsbury's Market Research Department plays a essential role for the business enterprise survival. This team continues a close eye on Sainsbury's opponents and customers attitudes.

Functional Areas

Human Resources

The first functional section of Sainsbury's I am covering is Human Resources. Human Resources Office manages and utilizes the employees of Sainsbury's. RECRUITING threat the staff as the main resource for their success. If the employees aren't motivated sufficiently and work below a reasonable level then the business are affected at getting together with its seeks and goals. However if the employees are keen to work at a satisfactory level then Sainsbury's will be successful at their seeks and objectives. This is why RECRUITING Department is important for Sainsbury's

Marketing and Sales

Sainsbury's marketing office developed 'the Tv set solution' idea to promote their products on TV. Jamie Oliver has been the public face of Sainsbury's since the "Try something new today" launched in Sept 2005 *** the purpose of this strategy is to be sure this message stands out from competitors' give attention to low prices. Sainsbury's is wanting to mention that not only they can source great quality at good prices nevertheless they are also the only store offering such a wide range of ideas. Their aim is to attain all potential clients.

In December 2005 Sainsbury had 15. 8% of the marketplace but a yr later experienced increased its share to 16. 0%. This demonstrates their strategy is working fine.

Effect of current economical situation

The UK economy unexpectedly shrank 0. 4% between July and September 2009. (See body 2) However Sainsbury's were able to fight back resistant to the recession, unveiling full-year income, up more than 11% at 543m.

Sainsbury's been owning a "switch and save" plan to drive its consumers to change to lower listed own-label alternatives. They also moved their advertising campaign focus away from food images to emphasis on price, with campaigns exhibiting how to supply a family group for 5 and create meals from leftovers.

Market research TNS exhibited that the store has a market show at 16. 3% while Sainsbury's rival Tesco fallen from 31. 8% to just over 30%.

In my judgment Sainsbury's should come up with more offers on "Basics" range of foods; for example buy 2 get 1 free milk products would sketch customers attention since most people ingest milk products whether its milk or cheese.

1. 499 words excluding References, bibliography and Appendices

References

*(offered by: http://www. j-sainsbury. co. uk/index. asp?pageid=12)

** (Available at: http://www. macegroup. com/projects/project-library/sainsburys-store-refurbishment-programme )

*** (offered by: http://www. thinkbox. tv/server/show/ConCaseStudy. 763 )

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