Section A
A1
a)
A retailer may be seen as a business that focuses its marketing efforts on the final consumers with the intention of selling goods or services to them. This means that any business that sells a product or service to a final consumer, whether it is to a customer in a shop, by mail, over the telephone, door to door or by means of a vending machine, is a retailing business. Retailers usually buy in bulk and sell these items in smaller quantities to consumers for personal, family or household use.
b)
Internal Expansion
Sainsbury’s expansion refers to raising the market share, sales revenue and profit of the present product or services. The business can be expanded through product development, market development, expanding the line
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Sainsbury Plc established in 1869 is a leading retail organisation with a chain of Sainsbury's 502 supermarkets and 290 convenient stores (Annual report 2009) across United Kingdom. It also has a financial interest venture in the form of Sainsbury's bank.
The company workforce consists of over 148,000 employees across United Kingdom. The company caters to 18 million customers per week.
External environment of the company - Major competitors
The company's chain of Sainsbury was the UK's biggest food retailer until 1995 when competitors like Tesco Plc and ASDA Group Limited took over the market. Other competitors include Hannaford Bros. Co., Safeway Plc and The Stop and Shop Companies, Inc.
Social factors
In today's market, the customers tend to prefer one-stop shopping. This means that they prefer to have all the products available under one roof. Sainsbury by introducing non-food products have largely benefited from this strategy.
In addition other social factors such as increasing female workforce, longevity in the population, etc. has resulted in a decline domestic meal making. Therefore there is a growing demand pattern of a certain types of products. One of the marketing themes of Sainsbury being ‘Cook and Save' promotes easy to cook products thereby allowing the customers to make their household budgets stretch
Sainsburys is currently the second largest chain of supermarkets within the UK, with a current supermarket sector share of 16.9%. Sainsbury’s was founded in 1869 and today operates in over 1,200 supermarket and convenience stores, and has over 161,000 employees. We will be looking at a number of areas internally and externally and see how they are effectively or not effectively performing.
S: The social factor that affects Lidl is the change in people’s lifestyles over the past few years. The change in customer’s lifestyle has come in they way that people are living a lot healthier over the last number of years; they are doing this by watching diets and looking after themselves. This will affect Lidl as it can increase sales in areas such as fruit and vegetables and all fresh products. This will also give Asda the opportunity to come up with an innovative idea to target customers to come in and shop at Lidl.’’ ‘’http://www.deloitte.com/view/en_BE/be/industries/consumer-‘business/9438452413144310VgnVCM3000001c56f00aRCRD.htm’’
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.
J Sainsbury plc (Sainsbury) is a retail chain based in the UK. Sainsbury is engaged in grocery retailing through its supermarkets and convenience stores principally in the UK. The company operates its business through three divisions, namely, Retailing, Financial Services and Property Investment. Sainsbury serves its customers through a chain of 537 supermarkets and 335 convenience stores under the brand Sainsburys, and financial services via Sainsburys Bank. Sainsbury offers around 30,000 food and non-food products and services. The company is headquartered in London, the UK J Sainsbury plc Key Recent Developments Mar 11, 2010: Sainsbury launches first bakery college in the UK Mar 08, 2010: Sainsbury to add
The UK supermarket industry is a very competitive and profitable industry. It is made up of four main players with significant share of the market, and then various smaller companies who focus on smaller niches in the market such as the bottom of the market discounters and the top of the line speciality stores. It is an interesting market and this report evaluates the attractiveness of the industry using Porter’s five forces model with an insight into how market nicher Waitrose sustains a competitive advantage. Next this report looks at how major player Sainsbury’s successfully competes against its rivals using differentiation strategies, and analyses current consumer trends and problems can effect this industry.
Greggs plc (Greggs) is a UK based bakery products retailing company. Through its subsidiaries, the company produces and retails takeaway foods that include savouries, sandwiches and fresh bakery food products. It also offers health range and regional products with lower fat, calorie and salt quantities. The bakery food products offered by the company comprise pasties and sausage rolls, pies, doughnuts and drinks. It also offers health range and regional products. Greggs operates 1,400 stores across the country and serves approximately six million customers each week. The company is headquartered in Jesmond, Newcastle upon Tyne in the UK
Within this report, diligent focus will be shown to the financial year of 2010 and the final year of
Strength-The main strength of Sainsbury is that they are the oldest existing supermarket chain in the UK. Hence, the brand name of Sainsbury is widely recognized and building a loyal customer base in their region. Outstanding quality and competitive price for products are unique resources that other competitors could not imitate.
This report provides a view on operations of SAINSBURY’S , the third largest supermarket chain across United Kingdom. SAINSBURY’S , in spite of being the longest standing retail chain has been facing stiff competition from rivals like TESCO , MORRISONS. The competitors seemed to have developed at a faster pace since SAINSBURY’S has been through a difficult time in recent years and TESCO is now twice the size in terms of turnover.
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.
supermarkets like Tesco offering the biggest discounts in the UK and Sainsbury 's offering of substitute products too (Mintel, 2010). This shows the responsiveness and flexibility towards consumer needs in the supermarket industry.
* External Context of Sainsbury’s belongs to the biggest supermarket leaders in UK. In other words, Sainsbury’s is part of big four ‘Asda, Tesco, Sainsbury’s, Morrison’s. The biggest rival today in UK market is Morrison’s, they booth fighting for a market but Sainsbury’s ram in a higher place. In Appendix 3, we can find concept of retail and types of functioning.