Sainsbury's: In-Store Value Communication

Point of sale

Lambie-Nairn

2. EXECUTIVE SUMMARY

The main objective of the new ‘in-store value communication’ was to change price perceptions about Sainsbury's and by doing so, drive sales in a recession.

Sainsbury's existing ‘value’ point-of-sale did not stand out or achieve cut-through. As a result, Sainsbury's was simply not getting the credit for the ‘value’ it offered to its customers.

The design solution uses a series of design elements that are widely recognised as a way of communicating value. However, these elements are used in a unique combination that is very different from all other in-store point of sale and competitor value executions.

The results have been impressive.

Increased product sales Increased sales as a result of the redesign resulted in additional revenue in excess of £ •
Sainsbury's original investment for the design paid for itself • times over
Increased revenue from suppliers Revenue from suppliers increased • % in the Health & Beauty category, equating to increased revenue of £ •
Increased awareness and satisfaction Customer awareness and satisfaction of ‘value’ increased across both ‘budget conscious’ and ‘quality conscious’ customer types
Changes in perception Positive changes in ‘Value’ perception were seen as a result of each design refresh, with Sainsbury's overtaking Tesco for the first time
Changes in customer behaviour Though not part of the original brief, significant changes in customer shopping behaviour were seen. The value aisle has since become a shopping ‘destination’ as customers now incorporate the value aisle into their shopping trip and view it as an aisle in its own right

3. PROJECT OVERVIEW

Outline of Project Brief