Sainsbury and Samsung Marketing
Unit 3 P1
I am going to describe how marketing techniques are used to market products and evaluate the effectiveness in two organisations (Sainsbury and Samsung). These companies use marketing techniques such as branding, relationship marketing and growth matrix.
Branding
Branding is very important to marketing because it helps establish a product in a market and build the brand. Most brands have certain things that make them noticeable like a logo or a slogan for example Samsung has their name in bold writing on their products like phones and TV’s and Sainsbury also use their name they do this so people will know what product they have,
is known for its orange colour and name also one of their many slogans “live well for less” they have been massively successful, their logo is recognized very in the U.K. Sainsbury’s has made strong uses of is the color and text. The color and text is smooth and comforting, and when these colors are seen, they make you think of Sainsbury’s which make customers think that of their cheap and good quality products. All Sainsbury’s products have the logo on it even the bags so when someone has a Sainsbury’s product they know that their product are from Sainsbury’s and therefore it acts as advertising which is very successful.
Both companies take their branding very seriously and both have similar logos however consumers recognise Sainsbury’s most of the time because of their colour and slogan
* Live well for less
* Try something new today
* Making life taste better
Sainsbury’s change their slogan every few years their slogan mainly focuses on the price of their products or their food. Samsung also have a few slogans for their phones or home and appliances. Their latest slogan is:-
* The next big thing is here –for the Samsung galaxy note 4
But not many people know about the Samsung slogan because people know the logo because it’s simple and easy to remember. Samsung produces only electronics however Sainsbury’s sell electronics, clothes and food. This tells us that Sainsbury’s sell to a bigger market with a wide range of product where else Samsung have a limited market.
Relationship marketing
The next marketing techniques are relationship marketing. Relationship marketing is how business such as Sainsbury’s and Samsung keeping their existing customer either by building a long-term relationship with the customers or attract new customers from other markets or making customer satisfied with their existing products for example Samsung releases new phone and they see its been sold very well then afterwards they might release the same phone but with a slightly better hard drive and processor so they can keep existing customers satisfied and repeat the same process. Also Samsung has different ranges of phone like androids and windows this is how they keep existing customers by bringing different phones for different purposes for example the Omnia 7 this is a windows phone this allows you to keep all windows related work on your phone as well as the computer. To use a Samsung phone you need to sign up to a Samsung account this allow you to connect all Samsung devices together this also forms a relationship with Samsung because now Samsung can send promotions and deals to the consumer.
However Sainsbury’s has a different kind of relationship they try to keep the customers to keep coming to the shop by promoting deals like the ‘2 for 1’ deal and the and they have a loyalty card which is points in return of buying products which you can later exchange in to cash to buy more products. The nectar card keeps existing customers or attract new ones to come to their store the nectar card gives you points in exchange of buying products which you can later use to buy products for free also Sainsbury’s has deals on their nectar card for example “double points for 2 weeks” however to get the card you need to sign up using an email which Sainsbury’s can send promotions out through the post or email Samsung also does this for their Samsung accounts on their phones.
Transactional marketing
Transactional marketing include advertising and promotions to make the sale successful also using discounts to make as many sales as they can during a short period. Transactional marketing does not focus on a long term relationship with the customers it only focuses on the new customers and how to attract those customers to create interest to the brand overall Transactional marketing focuses on price and bringing short term benefits to the brand.
Value of lifetime customer is the Total profit or loss estimated to the result from a long term relationship with a customer. Products that last a long time value may justify comparatively higher marketing expansion or salesperson compensation, also called lifetime proceeds.
Difference between transactional marketing, relationship marketing and value of lifetime customer
The difference between transactional marketing and relationship marketing is that transactional marketing focuses more on providing good service for new customers, persuading new customers to buy their products by advertising and promoting deals so that customers can have the interest in the brand, making as much as sales the brand can to create short-term benefits. However relationship marking focuses on existing customers and creates a long term relationship with the customers so that the brand secures sales well into the future. Relationship marketing creates special deals and products so that the existing customers will be satisfied. On the other hand, the difference between value of lifetime customer and the other two is that the special relationship with a customer lasting lifetime, making a total profit or loss over lifetime.
Ansoff matrix
Many companies use growth strategies the one I’m going to talk about is Ansoff matrix. Ansoff matrix is broken down into four parts
* Market penetration
* Product development
* Market development
* Diversification
Business us this strategy to build the company or keep its customers, get new customers or go in a completely new area.
Market penetration
Market penetration is using a product which already exists and then putting it into an existing market for example Samsung had made a phone called the Samsung galaxy s4 or GT-I9500 which has been around for over 1 year bit during that time Samsung has bought out six different models of the phone to satisfy their existing markets. The difference between these models is mainly the operating systems and the RAM. Another model is the Samsung galaxy s4 active which is waterproof this is to appeal to existing customers because the phone is water proof and has lots of different sensors to appeal to their ‘sporty customers’
However Sainsbury’s changes their recipes or packaging so then their products have different flavour or look different or cheaper so then they can satisfy their customers. Sainsbury’s have a “new and improved” range this is where they improve their existing products e.g. Sainsbury’s has a cheap biscuit and have a premium range of biscuits which is slightly more expensive but taste better this is to satisfy all their customers
Product development
Product development is where business aims to introduce new products into existing markets. For example Samsung develops their phones every year this is to keep customers satisfied with new products e.g. Samsung galaxy s5 this phone is an upgraded version of the Samsung galaxy s4 the difference is that the camera, ram, processer and screen size is bigger, the phone also has a heart rate monitor and is waterproof also the packaging is different this is so to attract new customers who want a better phone.
Sainsbury’s also develop their product in the similar way they would add different types of clothes to their “tu-clothing range” their new and improved range is their way of product development for example Sainsbury’s would add new kind of shirts or jeans to their market so the customers won’t get bored with the same range.
Diversification
Diversification is when a company goes into a new market to release a new product. This is a very big risk for company’s take Samsung for example back into 1995 Samsung diversified into cars called
Samsung Motors Inc. (SMI). They did this to help the Asian economic crisis but I didn’t go to plan as no one was buying any of their cars so they sold their plans to Renault. Although Samsung has also the diversified into many other markets like their SAMSUNG TOTAL PETROCHEMICALS CO., Ltd. The company manufactures building block chemicals that go into the making of a host of other chemicals needed to make the stuff we can use. This company is very successful in Korea and has been since 1998.
However Sainsbury’s diversified into banking in 1997 the bank provides a range of financial products including insurance, credit cards, savings and loans. This company has proved to be very successful. This is because there was a need in the economy and people needed a bank were they could have short term loans.
M1
Compare marketing techniques in Samsung and Sainsbury’s
Techniques | Samsung galaxy s4 | Sainsbury’s gas | Similarities | Differences |
Market penetration | Samsung focuses on selling its s4 into existing markets by promoting their products with limited offers and price chances. They also make new promotion videos to attract their customers | Sainsbury’s focuses on selling their gas using method such as advertising their products in such a manner it will attract their existing customers also Sainsbury’s has a fixed price on gas so customers will know Sainsbury’s are reliable | Both Samsung and Sainsbury’s advertise their products in similar ways like videos and adverts on TV or even emails. | The difference is that Sainsbury’s can keep their prices the same because it’s the cheapest also there is more market penetration because Sainsbury’s can afford to selling a wide variety of products for example “buy one get one free “ but however Samsung needs to lower the price or customers will go for other phones.Sainsbury’s spends a lot of time on its market penetration because it has a lot of competitors. |
Product development | Samsung makes different types of s4s with slightly different types of hardware to appeal to their existing customers. Like the Samsung galaxy s4 active this phone is waterproof and dust proof and can measure your speed this was to appeal to their sporty customers. Or bringing out an entirely different phone with different speciation’s to appeal to the markets. | Sainsbury’s have changed their gas station so it’s more appealing and more productive. Also Sainsbury’s has extra-long pipes so the customers can go on either side of the petrol station | Both companies’ develop their products so it can appeal to their customers. | The differences in these two companies is that Samsung have to continuously change their products and make big developments or the markets will go for something new however Sainsbury’s develop their products but don’t make big changes because it’s a big supermarket where else Samsung are only supplying in phones so they need to make big developments. |
Market development | Samsung has made the Samsung galaxy s4 active this is to bring in new customers and new markets because the Samsung galaxy s4 has a heart rate monitor and it is waterproof so it can measure runner’s heart rate and swimmers as well. | Sainsbury’s has opened many more gas stations in the east midlands and also Sainsbury’s has changed their price so it’s the cheapest in the country with a fixed price this will bring in new customers because the customers will know Sainsbury’s price won’t change and because of the fuel cost. | Sainsbury’s and Samsung both sell cheaper product than other companies this is to attract other customers to come and buy their product. | Sainsbury’s gas station are only in the UK however Samsung has released their phone worldwide to appeal to all customers all over the world where else Sainsbury’s stay national |
Relationship marketing | Samsung creates a long term relationship with its customers they do this by offering 1 year insurance and guarantee also Samsung now makes accessories with different designs to fit theirs customer’s personality. Samsung as also bought out a new phone called the Samsung galaxy alpha this is to appease apple customers because it has a metal housing this is so it feels just like the iPhone also the phone is for existing Samsung costumers specifically teens because the phone is really cheap on contract | Sainsbury’s like most supermarkets has a loyalty card called the nectar card Sainsbury’s has done this to create a relationship with its customers. Nectar card works really well because their customers are buying the cheapest fuel in the UK and on top of that they’re getting points which converts into money which you can use to buy gas. But to get a nectar card you have to sign up using your email which then Sainsbury’s can send promotions to you. | Both Samsung and Simsbury’s use emails to promote their deals to their customers sometime personal deals so then the customers may come back and use these dealsAlso Sainsbury’s gives you points for each time you shop. | Samsung has trust in the products it makes therefore the consumers have trust in Samsung. Samsung also has its own app store which the customers have to sign up to this can also link all your Samsung products together. However for Sainsbury’s it’s a different kind of relationship they try to keep the customers to keep coming to the shop by promoting deals and they have a nectar card this is to keep existing customers or attract new ones to come to their store. |
Branding | The branding of this product has simply taken place through the name galaxy s4 this is very well known by Samsung customers. The product also has the organisation logo on at the top of the phone and at the back “SAMSUNG” but the product still has its own slogan “life companion” which not many customers know but that know the product very well Samsung has their name in bold writing on their products like phones and TV’s etc. which is what the customers realises not really the slogan. | Sainsbury’s provides gas, clothes, food, electronics and many more. Sainsbury’s started as just a supermarket but saw that people needed gas as well so Sainsbury’s built their brand by expanding to different servicers. This is to attract their existing and new customers to come because Sainsbury’s offers very cheap gas so when people know about the gas they will remember Sainsbury’s and want to try other products as well because Sainsbury’s slogan “live well for less” suggest to the gas customers that Sainsbury’s also provides other cheap products. | Both companies use these techniques and they take branding very seriously and both try to make their products stand out in front of other competitor’s products. Sainsbury’s and Samsung both have logo and slogan Sainsbury’s “live well for less” and Samsung’s “life companion” and their logos are Samsung itself and Sainsbury’s itself it is not unique but helps the customers know what product it is straight away. | Samsung produces a new slogan for a new product however Sainsbury’s has one slogan to cover all its products “live well for less” this the emphasizing the price of Sainsbury’s gas |
D1 Evaluating the effectiveness of the use of techniques in marketing products in Sainsbury’s.
Branding
Sainsbury’s is well-known all over the UK. The Sainsbury’s logo is orange this makes it stands out and lets everyone know that the colour orange is associated with Sainsbury’s. Branding has a lot of meaning in Sainsbury’s this is because there is a lot of competitors they have the same logo for all Sainsbury products. It stands out because for all their other products they have the same logo. Sainsbury also has a slogan, ‘Try something new today’. But Sainsbury has many slogans this is not always good because people may forget the slogan and then not remember Sainsbury’s. The advantages of branding are that people recognise Sainsbury by its logo and the slogan attracts customers. Branding promises and delivers high level of assurance to consumers; it helps consumers identify the origination and gives its product values. However it also has its limitations. Creating a brand involves a lot of marketing cost and can be highly time consuming. Sainsbury’s also have a good reputation of selling cheap quality products.
Conclusion- Sainsbury is a well-known brand and they do well with branding I think that Sainsbury’s branding strategy is a huge success because they have a good reputation and is very well known
Market Penetration
Sainsbury’s uses market penetration to market its products to existing markets. The whole point is to sell more of the product to the current market segment. Sainsbury’s is a shopping centre its main aim is to target any market audience families or students. Sainsbury’s focuses on selling products such as their own make to existing customers. Also advertise their product in a manner that will attract their chosen target audience. Sainsbury advertise their products on T.V Build boards, the internet and also email. Sainsbury do offers such as 20% off or 3 for 2 and buy one get one free. The advantage of this technique is that it will attract more customers and sales will increase and Sainsbury’s will be earning profit. The offers above will increase more demand for the product therefore Sainsbury’s will be making more money however there are drawbacks to these kinds of offers. The disadvantage of this technique is that if the offers and sales don’t go well because most of the time its on products that the target market don’t need like clothes, bikes etc. If they don’t go well Sainsbury’s would have wasted a lot of production money. Also Sainsbury’s will use a lot of money to advertise their products this is also a disadvantage. Competitors will also use the same technique but may put cheaper prices which mean Sainsbury’s existing customers will buy similar products anywhere.
Conclusion- Sainsbury’s is that Sainsbury’s are good at using Market Penetration because they have to make sure that they maintain good customer base. However overall I think they use the technique well but one thing they can improve is that they can put better offers on.
Diversification
Sainsbury’s also uses Diversification. For example Sainsbury also has a petrol station. The advantage of this is this is that they sell a lot of products of different ranges which attract new customers as well as existing customers. The disadvantage is that other companies such as Asda and Tesco’s also sell these products. This could also end as a loss as customers may like their products better.
Conclusion- Sainsbury’s should sell their products at a cheaper price and advertise them more so more customers come to them. Also my opinion is that Sainsbury’s should keep on selling at a cheaper rate and maintain that rate.
Market Development
Sainsbury’s has used market development to introduce existing products to new markets or market segments. As an example I am going to use - Market development by opening franchises all over the UK and buy promoting their products such as their kettles and Mp3 players. As soon as Sainsbury made their own products such as the kettles and by putting cheap prices the demand increased so they advertised more and put the prices up due it being good quality. The advantage of market development is that a business gets a chance to expand and if successful increase profit and improves publicity. However there are certain bad points as well. The disadvantages are that there could also be other competitors in the same area advertising at cheaper prices that could mean the business could be a loss.
Conclusion- Sainsbury’s should put reasonable prices up so new customers and existing customers can come to them more and buy products of them. This would also mean that there sales will increase and there will be more demand for their products.
Relationship marketing
Sainsbury’s uses relationship marketing to keep existing customers. They do this by having a nectar card. The nectar card is a card that you get points on in return for buying an item and you can use these points later to buy an item for free. The advantage of this is that customers will want to keep coming and get points so they can get an item for free however there is a disadvantage that id that other super markets might return more points than Sainsbury’s do so customers may want to go there instead
Conclusion- Sainsbury’s nectar card is a good idea and is very successful and it keeps existing customers. My opinion is that Sainsbury’s should have the nectar card but allow it to go to more places like eBay so buyers can get more points and be a happier customers.