How Sainsbury’s marketing strategy drives growth

in marketing •  3 years ago 

Of course, Sainsbury’s sustained success over the course of three centuries is largely due to the company’s high-quality products, excellent standards, and exceptional customer service. But while these qualities are certainly necessary for sustained success at the national level, other factors and strategies play a role as well.

In many cases, Sainsbury’s success also stems from a bold and dynamic marketing strategy that implements a number of different approaches in a manner that is comprehensive and interconnected. While Sainsbury’s has successfully implemented dozens of effective marketing strategies over the last several decades, six stand out as most indicative of their successful approach.

Key Strategy #1: Going omnichannel

Sainsbury’s marketing strategy has successfully implemented an omnichannel marketing focus across its numerous marketing outlets. In addition to the effective innovation of in-store and online shopping options, the company has also successfully integrated its various product lines with its shopping experience. Not only does it offer its own high-quality brands of products, but the company has also invested in developing delicious recipes for a wide variety of dishes, which are then streamlined with its online and in-store shopping experiences.

For a chain of grocery stores, an omnichannel marketing approach will provide customers with a comprehensive and unified shopping experience between in-store, online, and catalog retailing. In this case, Sainsbury’s marketing segmentation flourished when the company committed to an omnichannel approach. Such an approach has allowed it to divide its core customer base into more useful marketing sub-groups to which the company can market specific products and services more directly.

Additionally, Sainsbury’s digital marketing strategy has successfully integrated its in-store and online shopping experiences into a complementary omnichannel medium. Their customers can shop for groceries online and then pick them up at the nearest store location. They have also introduced the use of grocery delivery for customers who wish to do their shopping without needing to leave their homes.

Key Strategy #2: Pandemic damage control

Very interesting talk of Sainsbury’s Head of Property Strategy David Pilbeam at Carto’s Youtube Channel
In light of the COVID-19 pandemic, Sainsbury’s was able to mitigate a potential crisis by integrating its online retailing options with its preexisting customer service structure. With enhanced online shopping and delivery options, Sainsbury’s successfully reached out to a significant customer base who did not wish to shop in person.

Within a year, Sainsbury’s had the fastest growth in online shopping of all major supermarket retailers. By employing cutting-edge omnichannel marketing principles, Sainsbury’s marketing strategy serves as a useful case study for anyone in the business and marketing world who is looking to rise above the competition and help their business to thrive.

Key Strategy #3: Shifting brand positioning

Another excellent example of Sainsbury’s marketing strategy is its ability to shift its brand position based on the changing preferences of its customer base. For many years, Sainsbury’s marketed itself under the slogan “Live Well for Less.” However, as times changed, marketing data began to suggest that Sainsbury’s customer base was starting to prioritize healthy eating habits and overall bodily wellness when making decisions on where and how to shop.

In 2021, Sainsbury’s changed its slogan to the new “Helping Everyone Eat Better.” While Sainsbury’s pricing strategy still remains a significant and long-term focus for the company, the revised slogan proved to be a better match for a contemporary customer base with an emphasis on healthy eating and sustainable food production. Sainsbury’s promotion strategy in this instance shows that a company need not be beholden to past traditions when faced with changing preferences in its customer base.

Key Strategy #4: Stellar supply chain

In addition to its commitment to omnichannel marketing and brand positioning evolution, Sainsbury’s has also successfully implemented an excellent supply chain into its marketing approach. By prioritizing the quality of its products, Sainsbury’s has been able to associate its brand name with freshness, high standards, and ethical sourcing. Its customer base does not wish to sacrifice food quality in pursuit of lower prices; so the company has been able to market a stellar supply chain to its customers as a means of creating a brand association between the company’s competitive prices and high-quality products.

With 33 distribution centers and a seamless chain of transportation and storage, Sainsbury’s is able to ensure that its customers are able to purchase high-quality products at affordable prices. Today, it sources products from hundreds of suppliers in over 70 companies. What’s more, the company ensures that the suppliers it partners with are able to meet the company’s high standards for the products sold to its customers.

Key Strategy #5: Locally-sourced products

Related to the company’s excellent supply chain, Sainsbury’s has successfully marketed itself in terms of its locally-sourced products for the British public. Today, Sainsbury’s oversees innovative development groups for its farmers and suppliers, specifically prioritizing farms within the United Kingdom. With around 1,300 members across Britain, Sainsbury’s development groups provide the added bonus of investing in British business and agriculture. Thus, Sainsbury’s is able to appeal to its customer base by means of its investment in homegrown British products.

Key Strategy #6: Consumer choice and convenience

Another major selling point for Sainsbury’s brand is the high level of choice and convenience in the shopping experience that it provides customers. Today, the company markets several of its own brands through various locations, including the Argos and Habitat brands. However, Sainsbury’s stores offer a variety of other brands and products as well, ensuring that their customers have a wide range of choices while shopping for food and other products. Sainsbury’s has also diversified its product offerings beyond groceries.

Today, it also offers choices in clothing, general merchandise, and even financial services. Sainsbury’s customers across the United Kingdom and Ireland also have the convenience of shopping in larger supermarket locations, smaller convenience stores, or through the company’s innovative online shopping and mobile app. The latter two items now account for around 20% of the company’s total food orders. This emphasis on customer choice has been another significant step forward in Sainsbury’s marketing strategy.

Read the detailed Sainsbury's marketing strategy here.

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