Marketing Communications by Supermarkets to Build Their Brand

The aim of this research is to investigate and obtain information about two of the most successful supermarkets in the United Kingdom. Develop a clear picture of how they allocate funds to marketing, which marketing strategy they use, how they are able to reach out to the customers and understand them through marketing, how they develop their brand loyalty and how they are using online resources to engage with customers. It will also look into some of the similarities between the two supermarkets and how they contrast. It is intended to paint a picture of how various marketing strategies can be used successfully to come up with an almost similar impact on the market.

Marketing communication is the most important tool used by business in the UK and across the globe to maintain dominance in the market. Various institutions have different ways of reaching out to convince its customers, the method of approach is what primarily determines how successful a business will be. While marketing can be ignored by many it is the backbone of the companies because it gives them access to their potential customers and helps them keep their loyalty. Marketing strategies and tactics vary from one organization to another however it will take either online or offline form. Online marketing is the use of the internet and social platforms to reach out to potential customers while offline is the approach of customers through print media or other forms such as radio advertisement.

Sainsbury’s is one of the UK’s biggest supermarkets standing for about one and a half centuries. It has been able to withstand the thick and thin of competition and economic crisis; it has been able to maintain its position as a reliable source of products and services due to its ability to reach out to a large group of customers. Its stand against pollution as a result of waste of food is well established therefore using this approach it was able to win Marketing Society Brand 2013 Award because of the successful advertisement the previous year where they were its Christmas advertisement was crowned the most watched with about 17 million views.

Commanding a staggering 17% of the market share, Sainsbury is spending a fortune in the marketing strategy. The introduction of online shopping has made it an even more powerful shopping mall in the sector. According to the Marketing Campaign, its resolve to venture into ad development bore fruits when it rose to the second position after Asda; within no time in 2019 it went for a petition to have a merger with the core competitor. The famously known “Christmas Ad” gave the power to Sainsbury that allowed it to reach more people than it ever had.

On a battle for dominance over the Brits’ market, another supermarket giant Morrisons is on the rise with huge investments going to developing their footprints in the online marketing sector. During the 2015 December boom which was predicted to be doomsday for supermarkets, a positive sale was registered by Morrisons. According to the Marketing Week’s article on January 18th, 2016; Morrisons registered a rise in sales by 0.2% which was the first of its kind in about four years. Morrisons have also initiated a unique step in its advertising method by introducing its workers in the advertisement sector while eliminating the brand ambassadors Ant and dec (Marketing Week, 2017)

Understanding a customer is the most important thing any company can focus its strengths on. In 2015, while doing its research on the marketing approaches they should use, The Morrisons discovered what would be the turning point of the company from a dropping economy to one of UK’s fastest growing economies over four years. They discovered that the customers were not for the idea of using brand ambassadors but rather appreciating the workers who were giving their best to the Morrisons’ shops. This important decision has seen a rise in the sales done by about three percent; including real-life storekeepers in the ad recently is responsible for this rise. (Hobbs, T., Woollen, P., Fleming, M., Barnett, M., Lyons, E., Ritson, M., Joy, S. (2019). Having your customers understanding in mind makes one a powerful advertiser. Sainsbury’s has been a master in this when last year they introduced a personalized promotion approach towards its customers. The usual use of loyalty cards has always been used to acquire information about customer’s preferences; however, they took a further step when they delivered ads targeting specific customers through messaging apps. This was received so well that it won the Mobile and Messaging Award 2019 (Woollen et al., 2019).

At Morrison, the customer is king. They have integrated serious attention to customers such that they are able to understand the customer’s and address it to the very core. Their advertisements range from Television Ads to social media. Incorporation of digital marketing and sending emails to customers; they also use print media and the local press (Morrisons.jobs, 2019). Sainsbury’s approach is way similar; they have ads on TV, billboards, fliers, print media and radio adverts. Their online ads are one of the biggest and the most effective. Posting groundbreaking records with Christmas is for Sharing Ad (About.sainsburys.co.uk, 2019).

By studying the trends in the lives of customers and how they relate online, the Sainsbury’s have been able to make use of the growing demand for goods online to provide for its customers, shopping online with Sainsbury is one of the easiest ways to shop. Introducing ads which were available in the network was another step that boosted the Sainsbury; advertising using the internet is a cheap method that means they would give a cut to its heavy budget and spare funds to be channeled on other factors of their marketing. It is also true that marketing online is one of the most effective ways since it covers a larger area than any other means in a short time. By collecting data about their customers and how various customers will prefer to be served, they quickly understood their needs and started striving to meet them. They have since then developed good customer loyalty which they intend to keep. On the other hand, Morrisons have used the online network to make sure they reach to as many potential customers as possible. They have used personalized messages which they send to their customers and even deliver their orders. This approach has allowed the Morrisons to use a relatively small amount of fund while reaching out to a larger group of people. By reaching out to individual customers, they have been able to identify various needs that the customers have and how this need differ from others. By serving these individual needs, Morrisons has won a large market share of about 11%.

Customers play an important role in the achievement of any business and are the main reason why the business exists, to serve their needs. With this in mind, the introduction of personalized messaging at Morrisons has enabled them to reach the customer at an individual level. When a customer is messaged or mailed by such a famous business they feel a sense of importance, this customer is then obliged to maintain a loyal approach towards the company. Many customers would prefer receiving the goods they want without having to visit the shop, this has been provided by the introduction of online shopping which makes the customer more comfortable. They have enhanced the communication between the customer and themselves which sets them apart from any other company. Sainsbury’s approach is at the psychological level. Customers are treated with the utmost respect and their view and opinions taken very seriously. With this feeling of importance, many customers will choose to be loyal to the business. When Sainsbury’s introduced customized ads they were able to reach more people than before, the advertisement incorporating sharing reached the brim because it touched on a view which is accepted. In the community sharing is a noble virtue and by adding this to the ad, many people were moved to take part in this accepted practice. Customers gained during this period have maintained their loyalty to Sainsbury.

Marketing and maintaining your brand is the most important part of the business marketing strategy. This section is aimed at finding out what the two supermarkets have in common when it comes to marketing and how they differ. In his theory, Kevin Keller defines Brand Equity as the process of developing a positive view of the product from the customer’s perspective (2016).

This can be achieved by making sure that you have positive thought and experiences attached to the product. Once this has been achieved a customer will more likely be loyal to the product than to any other. These two companies have different approaches to the idea of maintaining a positive mindset in the customer’s mind. Sainsbury’s most memorable time was back in 2015 when it was able to pull out a stunning advertisement that kept its marks up to this day. By stimulating empathy for any loss that occurs and hence sharing with the person in need, Sainsbury attracted attention which boosted its sales. They emphasized how some ideas that may be seen as small and of negligible impact can, in fact, be a big influencer. The cat, which is small, is able to save the family and as a result, forms the basis for the Christmas sharing party. On the contrary, Morrisons incorporate the idea of serving individual customer interest. By associating with its customers at a personal level they create memories that are stuck in the minds of their customers. They provide a feeling special treatment which the customer appreciates and hence develops trust and affection for the company. While both achieve the same objective they employ different methods and criteria; however, the objective is to make sure that your customer is not only satisfied but also has positive feedback about the service that day. An impression is created that is never forgotten by the customer.

According to Prof. Aaker, the brand is all about a combination of awareness, loyalty, and associations which then sum up to what the brand becomes in the market. By developing awareness the brand has to be known to its potential customers then develop loyalty and have the right associations.

The Morrisons have a well-established market share because of its long existence in the market. It has been able to develop its own brand which is well known over the country. It is undoubtedly among the businesses that have been able to stand for more than one and a half centuries. The quality of a product is sometimes perceived by its name or the financial power of the producing company, however, the quality can be weighed in terms of customer response and how they give the feedback. By 2015 the company was not doing but with the introduction of better marketing ideas, it has been able to steadily rise and be among the leading chain stores in the UK today. Similarly, Sainsbury has developed a good market share which has boosted its customer loyalty. It has been able to achieve a fair share in the market with 11%. Compared to the Morrisons, Sainsbury has had a gradual improvement in their outreach to potential customers in the past five years. The profits have also been in the rise with about a 3% increase. With the exploitation of online marketing, the two have boosted their businesses to what they are today.

From Carl Jung’s theory Brand Archetypes have been developed. Each and every one of us has a feeling connected to their need or desire. When this desire is satisfied we form a bond towards the source of the satisfaction.

Marketing has therefore been directed at identifying the needs that customers have and then satisfying these needs. The customer then feels a stimulation of satisfaction and the company is able to achieve loyalty from the customer. From the Psychological view, what is today known as brand archetypes have been developed? It is believed that each one of us will at least find one of these archetypes fulfilling our needs. By involving originality and uniqueness, a company will be able to convince the customer that they are the best.

Morrisons develop an advertisement that was aimed at convincing the customers to share, the move was synonymous because it enabled the company rises the heights of sales because of the satisfaction that the customers felt from the virtue of sharing. The idea was also an original one and according to Jung, originality played an important role by separating the advertisement from others. The company drew a lot of customers to itself in the subsequent years as the people felt the need to be found in the place where they could share what they had together. The advertisement also focused on the value of coming together and the importance of the people we have around. This brilliant move allowed the company an opportunity to open gates to many neighbors sharing and coming together.

At Sainsbury, the satisfaction was derived from initiating a program where the customers would feel special attention. The keen interest the company had on its consumer’s comments made the company a favorite in the industry. When a customer went back to the supermarket and found that what they had suggested had actually been taken seriously and acted upon, they would develop a sense of ownership and appreciation, this would enable them to have a strong bond with the company which Keller (2016) calls loyalty. They went further to introduce customized messaging which allowed them to associate with the customer at a personal level. The customer is able to feel a concern for the appreciation to the supermarket for the effort they put to ensure that they get what they want at their convenient time and location. Once the loyalty was developed then the marketing cost was compensated by the rise in sales.

Advertisement and marketing are aimed at increasing the sales of a company, however, investing heavily in an advertisement doesn’t necessarily mean the sales will drastically increase. Taking Morrisons as an example, in 2016 they invested a large percentage of their budget towards advertising and marketing, they developed various ads which even won them awards as the best ads of the year but on the contrary their sales dropped by about 0.4% percent; it worth noting that this drop was way below the prediction that had been given 1%. On the other hand, the Sainsbury’s who had invested much less but had changed the tactic of approach gained a 3% increase that same year. By studying the perception of risk, we understand that the customer is more likely to buy a cheaper commodity regardless of the amount of publicity and advertisement invested on the more expensive one.

While Morrisons were busy investing in advertisements, the opponent took an uncommon step of changing the strategy of advertising. From research, Sainsbury’s had been conducting, they discovered that the customers wanted them to appreciate the staff more by involving them in the advertising process, they quickly acted upon this revelation and within no time the sales at the company were improving. This change is also attributed to the employment of a new Head of marketing Jack Wallace, he was able to incorporate new ideas which led to the current state of the company as one of the fastest growing businesses in the UK.

In conclusion, the two supermarkets were able to achieve their goal with each using their own way of advertising; they achieved different strengths and were able to reach different people. It is, however, worth noting that the two supermarkets focused more on using online marketing compared to offline. This is primarily because the growth of the online community has allowed it to gain a larger group of people. Many people are able to access the internet through their smartphones and iPhones, also the internet is much cheaper to use compared to other forms of communication; these then make the advertisement through online platforms the best option. With the introduction of online shopping, the transaction of business through the network becomes even easier.

References

• Hobbs, T., Woollen, P.,Fleming, M., Barnett, M., Lyons, E., Ritson, M., Joy, S.,. (2019). Morrisons on how staff are inspiring its marketing and its turnaround. [online] Marketing Week. Available at: https://www.marketingweek.com/2017/09/20/morrisons-inspiring-marketing-turnaround/
• Woollen, P., Fleming, M., Barnett, M., Lyons, E., Ritson, M. and Joy, S. (2019). How Sainsbury's used location to make its marketing 'ultra personalised'. [online] Marketing Week. Available at: https://www.marketingweek.com/2018/11/23/sainsburys-marketing-ultra-personlised/ [Accessed 4 May 2019].
• Morrisons.jobs. (2019). Customer & marketing | Morrisons Careers. [online] Available at: https://www.morrisons.jobs/our-teams/teams-head-office/marketing [Accessed 4 May 2019].
• About.sainsburys.co.uk. (2019). Our business strategy. [online] Available at: https://www.about.sainsburys.co.uk/about-us/our-business-strategy [Accessed 4 May 2019].
• Kumar, V., Keller, K.L. and Lemon, K.N., 2016. Introduction to the Special Issue—Mapping the Boundaries of Marketing: What Needs to Be Known.
• Keller, K.L., 2003. Brand synthesis: The multidimensionality of brand knowledge. Journal of consumer research, 29(4), pp.595-600.