Marketing plan
Bugaychuk Ann
21/02/2019
Assignment 2: Sainsbury's Case
1.
What was the problem the company was facing in the beginning of the story?
In the beginning of the story the company faced two main obstacles availability and pricing.
These problems needed to be solved urgently and fast. The first problem is connected to such a
fact that people had been great fans of Sainsbury’s because of its past glory, but at the same time
they were disappointed then because “the shelves were still not full”. The second problem is
related to the prices of Sainsbury’s which were not competitive. According to Table 1 on the
second page, we understand that in October of 2004 grocer 100 basket price in Sainsbury’s was 5
pounds more than competitive average.
2. What was Justin King's vision for Sainsbury's?
All he wanted to do is to turn troubled supermarket around. He wanted to make Sainsbury’s
great again. The plan had at its heart a goal to drive a sales-led profit recovery. It was based on a
simple strategy: to deliver great products at fair prices to all.
3. What business objective did he define?
The main business objective of the company was to achieve the target of £2.5bn additional
sales over 3 years.
4.
What was his marketing objective?
In order to meet Sainsbury’s business objective of £2.5bn additional sales over 3 years, they
decided to win extra spend from existing customers (it was the focus of the recovery). With 14m
transactions per a week and 3 years to achieve the goal, they calculated that they would need to
earn an extra £1.14 for every shopping trip. So, they transformed the main objective of their
company into something as tangible and approachable as it's possible to imagine: from delivering
£2.5bn extra sales to getting shoppers to spend a little extra. Just 1.14£ per each shopping, and
this was their marketing objective.
Then they invent a new brand idea: “Sainsbury’s. Try something new today”. It was designed
to help inspire 150,000 colleagues to deliver extra spend from customers. In communications it
was designed to give people simple food ideas. They transformed the store. They had cards
featuring simple food ideas in displays in store entrances Try something new today was created
to inspire people to try simple food ideas, and in so doing, earn a little extra spend from them
every time they shopped. And eventually, they succeeded.
So, the idea worked so successfully because of its fitness for purpose. Try something new
today was created with a specific business objective in mind – to help Sainsbury's deliver an
additional £2.5bn in revenue. And it shows that this idea delivered value by changing how
Sainsbury's operates from the inside, not simply by changing how it communicates to the
outside.