Management Research Methods
Sainsbury's supermarket is part of the multi-national company J Sainsbury that retails in both the UK and USA. The first store opened in London Drury lane which is the poorest street in London, The Sainsbury has different chains like Sainsbury's Supermarket, Sainsbury's Bank, Sainsbury's Property Company and JS Developments in the UK, while the Star Market and Shaw's are situated in the USA (Anon1, 2002). This research will focus on Sainsbury's Supermarket hw they will success in the business by the customer relationship, which was started in 1869 and is the UK's longest standing food retailer with reasonable prices . Currently, Sainsbury's has 535 stores and employees over 145000 people (Anon2, 2003).Sainsbury is well developed with data based information With reference to e-business, Sainsbury's is focused on both its consumer and its basic electronic data interchange (EDI) programme titled SID, which is available to suppliers (Anon3, 2003).
Sainsbury's was established as a partnership in 1869 when John James Sainsbury and his wife Mary Ann opened a store at 173 Drury Lane in Holborn, London. In 1922 J Sainsbury was incorporated as a private company. The first self-service branch opened in Corydon in 1950. In 1973 the company was names as J Sainsbury plc in what was at the time the largest ever flotation on the London Stock Exchange; the company started the smaller bids for shares in order to create as many shareholders as possible.
J Sainsbury plc is the parent company of Sainsbury's Supermarkets Ltd, commonly known as Sainsbury's, a chain of supermarkets in the United Kingdom. The group also has interests in property and banking. The group has an estate worth about £7.2 billion (March 2007).
In 1975, Sainsbury's introduced the "Sainsbury's SavaCentre" hypermarket format as a joint venture with Bhs. This was the first attempt to launch supermarkets with a large non-food range in the UK. Sava centre became a wholly owned Sainsbury's subsidiary in 1989. As the hypermarket format became more mainstream, with compitions of other companies such as ASDA and Tesco launching ever-larger stores, it was decided that a separate brand was no longer needed and the stores were converted to the regular Sainsbury's superstore format in 1999. This is in direct contrast to rival firms Tesco and ASDA, which have been rapidly expanding their Tesco Extra and ASDA Wal-Mart Supercentre hypermarket formats in recent years.
In 1998 Sainsbury's launched the Family Programme to communicate to with family customers with young children as well as pregnant women. The aim of this research is to demonstrate that it has a caring organisation that
knows its customers well and understands their needs.
Sainsbury's needs to go back to its strengths. With the increasing focus on diet, health and nutrition, championing basic everyday quality at appropriate and fair prices. Sainsbury's is committed to restoring and delivering its unique customer proposition. Sainsbury's traditional focus on fresh and own label products in order to increase Sainsbury's reputation for innovative and quality products at fair prices. In particular, through sub brands like Taste the Difference and Be Good to Yourself, premium and health ranges will be the best available and a significant point of difference from other mass-market operators
In Sainsbury's Customers want to be healthier, but that they would like more information and specific ideas about what they can do. The thinking behind the days is to champion specific issues and help customers and colleagues to make small changes today that can make a real and lasting difference in the future.
Sainsbury's concentrate on an iconic initiative that can make a difference. These initiatives are based around our five corporate responsibility principles:
‘Respect for our environment'
‘Best for food and health'
‘Sourcing with integrity'
‘Making a positive difference to our community' and
‘A great place to work'.
Identify a research proposal
Identify a research question or hypothesis and justify choice
What are the advantages of Sainsbury's in building relationships with customers?
The basic idea of this research is to present an innovative framework for understanding and learning about marketing strategies and how they are successful in the competitive world with the customer relationship. This concept provides a detailed insights into alternative ways of dealing with new information needs and demands brought about by environmental changes. Today's marketing is all about building profitable customer relationships.
Marketing is the art and science of creating value for customers in order to capture value from customers in return. They should effort a lot for giving best service for the customers .
The marketing process begins, continues, and ends with consumers. Customer Relation Management (CRM) is the overall process of building and maintaining profitable customer relationships management by delivering superior customer value and satisfaction. Customer relationship management (CRM) is a customer-centric business strategy with the goal of maximizing profitability, revenue, and customer satisfaction. Technologies that support this business purpose include the capture, storage and analysis of customer, vendor, partner, and internal process information. The marketing concept holds at achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors. Customer value and customer satisfaction are key building blocks for developing and managing customer relationships.
The marketing plan shows how the company will develop and maintain profitable customer relationships. In the process, however, it also develops a number of internal and external relationships.
It affects how marketing personnel work with each other and with other departments to deliver value and satisfy customers.
It affects how the company works with suppliers, distributors, and strategic alliance partners to achieve the objectives of the company.
It influences the company's dealings with other stakeholders, including government regulators, the media, and the community at large.
All these relationships are important to the organization's success, so they should be considered when a marketing plan is being developed.
The objectives of a CRM strategy must consider a company's specific situation and its customers' needs and expectations. Information gained through CRM initiatives can support the development of marketing strategy by developing the organization's knowledge in areas such as identifying customer segments, improving customer retention, improving product offerings (by better understanding customer needs), and by identifying the organization's most profitable customers
It is essential to understand and define clearly what you are providing to your customers in Sainsbury's. This description should normally go beyond the products or services, and critically must include the way you do business, and what business benefits your customers derive from your products and services, and from doing business with you.
The focus on ‘making' and ‘selling will not work in today's competitive environment. Sainsbury's has identified its customers and increasing valued added components to the customer is a key dimension to its profitability. Sainsbury's is driving towards establishing a dialogue with customers, understanding and anticipating customer change, and attempting to maximize the lifetime value of the customer. Think about what your service, and the manner by which you deliver it, means to your customer this strategy is helping Sainsbury's to narrow its losses
Task1 Chapter 3
Justify the chosen methodology in terms of the research question
Sainsbury's generally create and follow yearly marketing plans, although some plans cover a long period. Marketers start planning well in advance of the implementation date to allow time for marketing research, thorough analysis, management review, and coordination between departments. Then, after each action program begins, marketers monitor ongoing results, compare them with projections, analyze any differences, and take corrective steps as needed.
Some marketers design contingency plans, for implementation if certain conditions emerge. Because of inevitable and sometimes unpredictable environmental changes, in Sainsbury's marketers are ready to update and adapt marketing plans at any time. An average Sainsbury's supermarket stocks approximately 30,000 products - 50% of which are own label. Around 148000 people are employed in Sainsbury's, there are 788 stores of Sainsbury's all over out of that there are 490 supermarkets and the remaining 298 are convenience stores.
Before attending to the detail of how to achieve your marketing aims you need to quantify clearly what they are.
What growth targets does the Sainsbury's have? What major benefits it can realize from a CRM program?
How many new customers do you need, by size and type, by product and service?
What is your product mix, in terms of customer type, size, sector, volumes, values, contribution, and distribution channel or route to market?
What are your projected selling costs and net contributions per service, product, sector?
Prepare an action plan with target dates and methods for monitoring and updating:
Planning for the management for different companies may vary but their main is to be success but in this research management I am explaining about how the Sainsbury develops their organisation through customer relationships , as customer relation ship is main important in the business without which we cannot succeed in the firm. Strategic planning plays a vital role for implementing the action as they are required XXXfor the marketing analysis. Sainsbury supermarket plan of action is planned through e-business so as to implement the quick functioning system in operation
Plan of action
Implementing new promotions
1month approximately , even according to culture and market they will change
Implementing new foods and products
2 months approximately
Changing display systems
Checking the product quality
Customer feedback reports
5 months even the maintenance work will be done according to requirement
1 or 2 months even depends on the new products and promotions
In Sainsbury their may be several plan of actions may be taking place. Main why they implement the action plans for several departments so as run the system smoothly without any problem , to give quick service to the customers and for customer satisfaction.
By implementing the new promotions for the products the customers are willing to the buy promotional products more because they will get the product will low price as this is a marketing trick for the management to improve the sales.
Implementing the new products every time that will attract the customers to taste the new item every time in the Sainsbury even they will provide the product will reasonable prices with quality.
Marketing research is required for every organisation so as to know how the market is and what they need to change according to the seasonal , in Sainsbury they are implementing new schemes every time about the research to develop their company.
Reports maintaining is most important , some useful data is store in the form of reports as they are useful for the future or for the functional purpose in the organisation.
How I observed how they are maintaining the floors in Sainsbury regularly cleaning or not, they maintained the floors cleanly every time even I came to know about their process through one of the staff how they are cleaning everyday the shop floors and display shelves and other things.
CRM is special team they used to work in the Sainsbury customer relation management they used to check each and every activities how they are providing services to the customers even they are helpful for the staff and for the customers.
Recently they introduced the home delivery, they planned systematically for the home delivery operations, they used to take the orders through online and they will delivery the products directly to the customers home , so that the customer no need to worry precious time as they Sainsbury providing the quick service to the customers
Even some other department functions in Sainsbury are like marketing, maintenance ,advertising and other activities are planned systemically by the management .
Carry out the research into a specified area of management Part
collect and review data using appropriate methods, including primary and secondary research Techniques
In every contact with customers an opportunity exists to capture customer information, invest in the customer relationship, and build loyalty. Real time communication between the buyer and the enterprise enables the firm to enhance its positive interaction with customer. It collects customer data relating to demographics, billings, transactions, satisfaction levels, and service quality. Many customers surf the internet, signing onto the internet, visiting virtual storefronts, sending and receiving e-mail, or chatting in newsgroups – all these activities are increasingly being tracked by Sainsbury's. Many business use CRM to gather information about current or prospective customers, Such searches are classified as passive, active, or directed.
Passive data, is referred as automatic data, are automatically given to a business once a customer visits a particular Web site. The data obtained by the business is the Internet address, and it can appear in two forms, The internet protocol (IP) address is the numeric location of a computer physically attached to the Internet. Each computer has its own unique and individualized IP address. The domain name (DN) is the second form of data obtained over the internet. This type of data combines geographical and specific user information. For example, look at j-sainsbury's @co.uk. j-sainsbury's is the user name. co is the server name and uk is the location.
Active data is acquired when customers interact with the business's Website. Through use of ‘cookies' or online application forms filled out by the customer, a tremendous amount of information about the customer obtained. A cookie is a small piece of information a Web Server can store with a Web browser and later read back from that browser. For example, a customer can visit www.j-sainsbury's.co.uk and select items such a clothing, DVDs, toys, or sporting goods. As the customer adds these items to the shopping cart on the Website, the list of these items is kept in the customer's browser's cookie file so that all the items can be paid for at once at the end of the shopping experience.
Directed data is not necessarily new information on customers but can be considered newly accessed information on customers, for example, starting with only a customer's last name, the Internet can be used to find a person's full address, get a map of the exact street location a zip code, motor vehicle registration, even the amount of political contributions made by the individual.
Primary and secondary research techniques are used to know about the company and to collect the data for the research and to implement some changes if required in the company
Primary research techniques:
Meeting anyone in the organisation and knowing about company it gives correct information what exactly is going in the organisation even I met one of the senior manager in Sainsbury I asked about the customer relation how they are maintaining the relation with the customers and how they are serving the customers and about the company . The service in the Sainsbury is good they treat every one equally there is no disputes in the levels, he explained a bit about service and he explain more about company how they are producing the products and, how they are maintaining quality in the service and how they are maintaining quality in the products.
Internal research :
Even I absorbed one of the Sainsbury in Kingston, London how they are maintaining food quality and quantity, and how they are maintaining relationship with customers, how the services they are providing for the customers
Feedback from customers :
Feedback from the customers are required in any company so as to know about current quality of the service of the company if any change they required they can change, In Sainsbury they have separate department called customer relation management they used to know about the customers service ,and they used to maintain the relationship with everyone, on every month they will check the customer feedback reports and they will inform for the higher authorities about the customer relation if change required they can do it.
Secondary research techniques:
Marketing analysis is most important for the research as it required to review the date for the organisation development ,customer relation management has to review the data so as to improve customer relation in Sainsbury, the information may be know by the customers feedback reports , analysing the customer relation in the company , even the analysis of the outside of the company.
Now a days e business is the communication technology tool for the company as it utilises the e-business system for advertising about the company products and services, most of the customers they used to know about the company through e-business , the company used this e-business as a marketing tool for the company . Even they used the technology for the share of internal data within the Sainsbury so as to run organisation smoothly and quick in service.
Analyse and interpret appropriate qualitative and quantitative data
Data analysis is the process of looking at and summarizing data with the intent to extract useful information and develop conclusions. Most businesses are trying to make more out of the data they collect as a result of everyday transactions in order to improve their business. For example customer behavior may be analyzed in an attempt to increase revenue. Alternatively, analysis of operational data might reveal ways that a company could reduce costs and become more efficient.
Sainsbury's, which has around 16 per cent of the UK's £110bn grocery market, has been steadily losing market share to competitors Tesco and Asda, a Wal-Mart-owned business that knocked Sainsbury's out of the number-two position in 2003 and hasn't looked back. Sainsbury's analysed purchases and identified the product category from which each customer purchased most frequently. A coupon for that category would then be sent, along with five other coupons for areas in which it was hoping to boost sales - to encourage customers to buy other types of products.
Sainsbury's is aiming to revive young people's excitement in regional cuisine through its Active Kids Get Cooking scheme*. Over 7,500 schools are already involved in this healthy eating and cookery scheme and to engage children with local produce and regional specialities, it recently included a challenge for them to devise their own dishes based on the theme ‘Best of British with a twist'.
Qualitative data research :
As the company main source is suppliers they should choose the better option for supplying the products for the company as it directly effects to the customers. Even Sainsbury started producing their own products they should be confident about their quality Customers should be confident while choosing product at Sainsbury as that they has developed by providing the better quality of their brand products for the customers as everything should be researched for knowing about the company quality and standards
Quality management system:
As soon as the product is produced or supplied for the company the quality management focuses on the product to know whether they are getting the right product at right time , quality controllers will check the product whether they are reaching their standards to implement if they are not up to the mark they will not introduce the product , even they will check the suppliers whether they are supplying the quality food every time to reach their values at the products .
Quality at service:
Observing the standard service in the company, as better service increases the sales of the company, every customer will expect the better service without which the company may loose their customers it they ar not providing the standard service, as in Sainsbury they will provide good service assisting the customers every time on every department they have customers assist to help the people if they have any problem in choosing the product or to know about the product, they will greet each and every customers when they are in and they will give the exact product information to the customers, by providing the standard service customers will come regularly to the same place.
There are many competitors at the same place even though the customer will comes to the Sainsbury because of quality products within the limited prices , quality controller will check the products everyday so as to provide standard food products for the customers .even in the labeling they will provide the information about the products so as to know the product easily .
Quantitative data research :
As we should know more about the CRM through the e-business or by knowing directly interact with company we can know about the company to make some researches on the quality of the information we get about the company , they will provide right product at right time , even they will give the product in reasonable price. If we compare products from other companies like ASDA, lidl they will provide the product with quality only but they will not concentrate on the quantity , but were as in Sainsbury they will provide quality as well as quantity with reasonable prices , the company will provide the value for their money. Even their will be quantity survey for every department whether they are maintaining their standards are not. Even Sainsbury provides some promotional offers if the customers will buy in quantity products .
Present and evaluate the findings with regard to the initial proposal
Record findings in an accepted format
I got the information through the e business about the Sainsbury
Customer feed back
Even I asked some of the people about the Sainsbury company how they are providing quality food &services
Sainsbury senior people
They said about the company and they said how they produce the products and how they serve the products
I referred some of the book for the research methods
Outside the company how they are talking about the Sainsbury and how the competitors are ,
Internet is best source to know about the company information what we need for research
I referred some the magazines to know about customer relation in retails
All the records should be maintained for the research management so as to how the things are going in and around the company about customer relationship in the above I showed where the sources I used to refer for the research, most of the information I used to get through company and through websites and I referred some of the books for research methods , mainly I used to explain in this research is about customer relation management how they are used for the management success I made research how they are maintaining the customer relationship and how they are implementing the service .
(10.3,b)Research method chapter2 .1
Present and summarise the findings using suitable Methods:
With the below diagram we can see how the CRM will function with different methods
CUSTOMER RELATION MANAGEMENT
Three key methods:
1. Customer Acquisition.
2. Customer Retention.
3. Customer Extension.
Three contextual factors:
4. Marketing Orientation.
5. Value Creation.
6. Innovative IT.
1. Customer Acquisition - This is the process of attracting customer for the first of their first purchase in Sainsbury's.
Growth - Through market orientation, innovative IT and value creation Sainsbury's aim to increase the number of customers that purchase from them for the first time.
2. Customer Retention - Our customer returns to us and buys for a second time. We keep them as a customer. This is most likely to be the purchase of a similar product or service, or the next level of product or service according to Sainsbury's.
Growth - Through market orientation, innovative IT and value creation Sainsbury's aim to increase the number of customers that purchase regularly.
3. Customer Extension - Customers are regularly returning to purchase from Sainsbury's in order to introduce products and services to loyal customers that may not wholly relate to their original purchase. These are additional, supplementary purchases. Of course once loyal customers have purchased them, their goal is to retain them as customers for the extended products or services.
Growth - Through market orientation, innovative IT and value creation Sainsbury's aim to increase the number of customers that purchase additional or supplementary products and services.
4. Marketing Orientation - means that the wholes organisation is focused upon the needs of customers. Customer needs are addressed by the Three Levels of a Product whereby the organizations not only supplies the actual, tangible product, but also the core product and its benefit, and also the augmented product such as a warranty and customer service. Marketing orientation will focus upon the needs of consumers for all three levels of a product. (N.B. 'market' orientation and 'marketing' orientation are not the same).
5. Value Creation - Centers on the generation of shareholder value based upon the satisfaction of customer needs (as with marketing orientation) and the delivery of a sustainable competitive advantage.
6. Innovative IT - is exactly that - Information Technology must be up-to-date. It should be efficient, speedy and focus upon the needs of customers.
Whilst IT and/or software are not the entire story for CRM, it is vital to its success. CRM software collects data on consumers and their transactions. Huge databases store data on individuals and groups of individuals. In some ways, CRM means that an organization is dealing with a segment of one person, since every consumer displays different purchasing habits and preferences. Organizations will track individuals, and try to market products and services to them based upon similar buyer behaviour seen in other individuals (e.g. When Sainsbury's tells you that customers that viewed/bought the same product as you, also bought another product.
(www.marketingteacher.com on NOV3 2008)
Evaluate the methodology used and critically analyse the findings
CRM, Customer Relationship Management, is a company-wide business strategy designed to reduce costs and increase profitability by solidifying customer loyalty. True CRM brings together information from all data sources within an organization (and where appropriate, from outside the organization) to give one, holistic view of each customer in real time. This allows customer facing employees in such areas as sales, customer support, and marketing to make quick yet informed decisions on everything from cross-selling and up selling opportunities to target marketing strategies to competitive positioning tactics.
The process of gathering information during each transaction or at each contact with the customer and using that information is critical to the success of a CRM program. It is also critical that the information not remain in the hands of marketing or advertising but be disseminated throughout the enterprise. Successful CRM enterprises use information across all business units to manage the supply chain, create customized products and pricing structures, acquire new customers, and improve service and quality.
(www.businesslink.gov.uk on nov5 2008)
Propose recommendations based on the findings which identify and justify areas for future research
The review of literature is obtained from SID, (Sainsbury's Information Direct) acts as the portal between Sainsbury's and its business partners. It provides an online directory of useful information and applications to help you manage your relationship with Sainsbury's.
SID acts as the portal for electronic Business to Business relationships between Sainsburys and its business partners. Primarily, the focus of SID is on services to support the Food Supply Chain, however recent additions to the B2B Toolkit have facilitated other business processes. Further collaborative tools are being developed by the Sainsbury's B2B team to help deliver the shared benefits of eBusiness.
Sainsbury's intranet site, called Connect, is used for communicating news about social and business events, and news of colleagues, as well as spreading information on company policies.
Sainsbury's recognizes that there is a need for collective action, particularly at the retailer, processor and investor level, to drive change throughout the sector.
Mostly in this research I explained about customer relation management and some of the other areas like quality management they are maintaining quality in the system works and quality in the products. Even in management systems how they are dealing with all the other department they has o made the researches on this areas so as to improve there service and systems in the company
Management research methods are required for the company so as improve and develop the company, as in this assessment I made a research on customer relationship in Sainsbury, how they are maintaining relations within the department and with the customers even I collect management information for the research process.
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