A2)
a) Relationship marketing
Marketing designed to create, maintain, and enhance strong relationships with customers and other stakeholders.
Relationship marketing is a facets customer relationship management ( CRM) that focuses on customer loyalty and long –term customer engagement rather than shorter-term goals like customer acquisition and individual sales
The goals of relationship marketing is to create strong, even emotional, customer connections to s brand that can lead to ongoing business, free word-of-mouth promotion and information from customers that can generate leads.
b) By the decision of Sainsbury they may be good decision to them and community. Here are some advantage and disadvantage by the decision.
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Sainsbury was founded in 1869 by John James Sainsbury and his wife Mary Ann in London, England and grew rapidly during the Victorian era. It grew to become the largest grocery retailer in 1922, pioneered self-service retailing in the UK, and its heyday during the 1980. The founding Sainsbury family still retain approximately 15% of Sainsbury plc. shares (as of May 2008), through various trust. The family sold down their stake from 35% in 2005. The largest Sainsbury family shareholders are Lord Sainsbury of Turville with 5.83. Largest overall shareholder is the investment vehicle of the Qatari royal family who now hold 26.145% of the company. The report is analyzing the growth of the company by PESTLE, SWOT and Porters five force …show more content…
The environmental factors in the organization are divided into Internal and External factors. Internal factors are further classified as Strengths or Weakness and the external factors are further classified into Opportunities or Threats. Such an analysis of the strategic environment is referred to as SWOT analysis. SWOT analysis provides all the information that is required to match the organizations capabilities to the competitive environment in which it runs. How SWOT analysis fits into environmental scanning is shown as
SWOT Analysis Framework
SWOT ANALYSIS OF SAINSBURY'S:
Strengths
• This is a very strong company with huge traders who are interested and trust worthy to the company. Also it had 509 supermarkets and 276 stores, thus became a Established trader. • to develop in business every company has to depend on customers. It is said that 'Customer is God', as a popular and reputed company Sainsbury's followed the saying and won its customers trust and developed a good customer base. • Had a huge chain of Supermarkets with 509 supermarkets, 276 stores and a bank. • Also it had large volumes of stock so it helps in reducing the cost.
Weakness
• Having huge staffs make them pay more. • Having 509 supermarkets and 276 stores it is having high maintenance cost. • Because of heavy stocks if product is failed huge stock will be
In the following report we will be going over our analysis and findings during the process of our study of Sainsbury’s internal and external environment.
Sainsbury’s have a long term goal to deliver their products and keep their customers happy. One of their objectives is to make life easier for their customers by offering products with good quality and service with a fair price. This also makes the customers happy and makes them want to shop
Sainsbury’s goal is to reflect they commitment to meeting customers’ needs; however, they want to shop food, clothing, general merchandise and services also they vision is to be trusted retailer where people love to work and shop. They strategy plan is to know they consumers better than anyone else, be there for them whenever they need them also offering great products and services at fair prices. They colleagues make the difference; they value makes them different.
Owners- Sainsbury’s have shareholders in the form of stakeholders. Owners are one of the most important stakeholders. They want their business to expand and earn as much profit as they can. Owners aim to make money and raise the business they have shares in. They buy and sell their shares in order to see their share of profit increasing.
Customer needs A range of different products and services Products: - Sainsbury has many ranges of products from groceries to toiletries. Sainsbury always try and make there products value for money. Check out queues: - Sainsbury always aim to minimise waiting time at the checkouts. Colleges of Sainsbury are multi skilled at busy times they are able to call on more colleagues to operate tills. Elderly people: Sainsbury realise that elderly people like to retain their independence by doing their own shopping. Sainsbury always put chairs for their older customers to rest. Employees at Sainsbury help elderly people pack their purchases and help them take them to their cars. Facilities for disabled people: - Sainsbury ensure that disabled customers are not offered a low standard of service.> They have disability parking spaces> Wheelchairs and specially adapted trolleys are available in every store and electric scooters.
A SWOT analysis is an evaluation of the business environment and organizational strategic capability to identify key issues that may impact strategy development (Ireland, R., Hoskisson & Hitt, 2008). Strengths and weaknesses define a firm’s internal environment whereas opportunities and threats constitute the external environment.
section). This shows an increase in product purchases and an increase in market share (an increase
Sainsbury has developed different supply chain channels to manage the complexity faced due to different store formats such as country town, Sainsbury local. Sainsbury believes in continues improvement and aims to achieve it in many different ways. Sainsbury recognise the importance of its people who plays a major role in delivering excellent business. The logistic staffs of Sainsbury tend to work in flexible and well maintained environment. One of the collaboration of Sainsbury is to focus on the demands of the consumers and maintain a healthy relationship with the suppliers and other partners. Above all Sainsbury is committed in reducing the impact of its operation towards the environment (J. Sainsbury Plc-b, 2002).
Opportunity- If Sainsbury were been able to transfer their brand into Egypt market, it would be the biggest opportunity in conducting their business as Egypt is perceived as a market
In 1999, the first Giant Hypermarket store opened in Shah Alam, Selangor. By 2007, the company had grown to operate a total of 85 hypermarkets/ supermarkets in Malaysia with outlet size ranging from the 350,000 sq. ft hypermarket in Shah Alam to the 11,000 sq. ft supermarket in Bangsar, Kuala Lumpur. The chain also includes 7 stores in Singapore and 15 hypermarkets in Indonesia. Giant hypermarkets offer a wide range of local merchandise, such as fresh local fruits, vegetables, and seafood within a wet market environment.
Sainsbury’s customers give most credit to the company’s passion for healthy, safe, fresh and tasty food .Despite the present economic conditions the company stands by its quality related objectives. Good food at fair prices, providing a satisfying shopping experience, spreading and reaching out to customers by opening new stores at various locations. Hygiene anh heath and safety issues given utmost importance .
Sainsbury's continued their programme of change aimed at releasing the talents of their colleagues, helping them to focus on the customer, and restoring their pride in working for Sainsbury's. It's clear to them that new and exciting working environments add to this pride. This will grow as they increase the pace of their programme of developing and extending stores. It is also why they're keen to tell everybody about their acknowledged successes, such as organics and ready meals, their record in protecting the environment and supporting farmers, and new initiatives, such as their innovations in e-commerce.
The purpose of this report is to compare and discuss the performance of Sainsbury and Morrison’s, check their performance as a food retailers and evaluate them on CORE framework analysis. The framework comprises four stages: context, overview, ratios and evaluation together with external and internal analysis which will help evaluate and compare two retail companies.
Sainsbury’s plc has been operating in the UK market since 1869. Annual report’09 suggests that the company is currently serving 18 million customers each week with strength of 150,000 staff. It floated itself in 1973 under London Stock Exchange in 1973 as the biggest floatation at the time.
Sainsbury 's is the second largest cable of supermarkets in the United Kingdom with a share of the UK supermarket area of 16.8%. Originated in 1869 by John James Sainsbury with a shop in Drury Lane, London, the company developed the biggest grocery dealer in 1922, recognized self-service trading in the UK, and taken its peak through the 1980s. In 1995, Tesco passed Sainsbury 's to become the marketplace lead, and Asda developed the second leading in 2003, relegating Sainsbury 's to third place. The holding company, J