Sainsbury's - Attracting potential customers without damaging the Sainsbury's brand

In 2001 Tesco had 21% of the grocery retail market, a 5% lead on Sainsbury’s. A key contributing factor was that as the market had focused on value, Sainsbury’s had been left behind both in perception and in reality.
Agency: Prager Proximity/Proximity LondonAuthor: Alison Meredith

Sainsbury's Supermarkets Ltd

Attracting potential customers without damaging the Sainsbury's brand

1.0. Executive Summary

In 2001 the picture looked grim for Sainsbury's; Tesco was a clear number one in the market with 21% share and Sainsbury's stood at 16%. All the indicators suggested the gap was still widening.

The key contributing factor to this was a perception that, whilst Sainsbury's brand still delivered the everyday quality it promised, the price premium was too high (although perception was significantly worse than reality). Tesco and Asda were competing on 'value' and heightened promotional...

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