Consumer loyalty is the primary result that is being achieved through the continuous emotional and physical satisfaction of the customer in a positive way (Sirakaya-Turk, Ekinci, and Martin, 2015). It helps the organisation to maintain their market share their brand value within the market. The primary purpose of the paper is to provide the investigation on the customer loyalty to the home branding by Sainsbury. The paper will also provide an effective understanding of the concept of a research study with the help of effective primary and the secondary data for the examination of the study.
Aim and objective of the study
The aim and objective of the research study are;
The supermarket own brand or the house branding generate more than the half of the UK grocery sales. According to Mazour, (2018), in the recent years, shoppers are generally choosing the home brand rather than the other popular brand name from the supermarket in the UK. It can be seen from Swaffield, Evans, and Welch, (2018) that due to selecting the home brand the sale of UK supermarket has raised more than 54% of the accounting. Consumer loyalty for the house branding is the essential feature to develop the market share and competitive advantage.
In the words of Gwynn, (2018), 71% of the UK customers have the loyalty towards their home brand and they think that it has also improved over time. It is the fact that with time the home brand is developing and they are changing to provide valuable service and product for the consumer. This became quite challenging for the name brands because consumers of UK have provided their loyalty towards the home brand due to their developm4ent process. From the view of Dunkley, (2009), it can be seen that home brands of UK supermarket are also providing the quality of the product which is the primary reason to attract consumers. It is the primary fact that total own-label sale of UK is three time as compared to global average.
At the time of economic downturn when first hit the economic condition of the UK in 2012, the supermarket Sainsbury manage their position as the successful food retailer. According to Bold, (2014), the success of Sainsbury is not the exception because they have eventually utilised an effective strategy and their consumer loyalty to maintain the position. In the words of Zhang, Sogn-Grundvåg, Asche, and Young, (2018) the price of the commodity provided by the supermarket in most of the cases as expensive. It was quite challenging for Sainsbury to gain the loyalty of their customers at the time of economic downturn. From the view of Miller, (2016).
it is clear that Sainsbury maintains their customer loyalty by providing them with the value-for-money home brand products. It is the fact that they have utilised the strategy of comparing their home brand quality and price with the name brands. For gaining the loyalty the supermarket Sainsbury of UK has also utilised the use of mobile phone for scanning the items in the early stage. According to sainsburys.co.uk, (2018), the mobile scan and go is the best step considered by Sainsbury to maintain their position in the market. Providing the value and the effective working function for the customers is the valuable process to maintain their loyalty to the house brand.
The consumer loyalty to the house branding by the supermarket is one of the best ways to gain the market share. According to Wallop, (2014), Sainsbury has effectively gained their customer loyalty through the process of service and the quality of products. It can be seen that people with the changing world are very much addicted towards the branding of the product. From the view of TheGrocer.co.uk, (2018), it can be seen that Sainsbury supermarket of UK has eventually grabbed the intention of their customer and provide them the best in the field as compared to the name brand.
Gaining the consumer loyalty in the case of house branding is one of the biggest achievement for the supermarket retail chain and this also enhances the suitability and the feasibility of the house branding technique. In the words of Ramanathan, Subramanian, Yu, and Vijaygopal, (2017), it can be seen that Sainsbury utilise the effective strategy for understanding the need of their customer and provide them the best home brand product that also at the suitable price. It is essential for the supermarket to maintain their customers need. It can be also seen from the view of Dawes, and Nenycz-Thiel, (2014), customer loyalty for the home brand help to enhance the suitability of the product within the market.
The loyalty of the consumers are changing from the offline to the online retail stores and in this phase, it is essential to maintain the brand loyalty. From the view of Melis, Campo, Breugelmans, and Lamey, (2015), the supermarket in the UK have utilised the various technology and also online process to maintain their brand position within the market. Maintaining the technology in the retail supermarket allow the customers to get their product in the easiest way. In this process, Sainsbury is the first who have utilised mobile scan and go process. In the words of Sturley, Newing, and Heppenstall, (2018), the entire working function and the development of customer loyalty to the house branding by Sainsbury is one of the biggest achievement of the firm.
This process effectively allows the business to develop their market and gain competitive advantage within the UK market. According to Harris, and Usuriaga, (2017), it can be seen that the organisation is utilising various customer loyalty process to maintain their own-label product active within the market. The organisation has eventually developed their new customer loyalty scheme to maintain the consumer for their home-based products. As per Trinh, Anesbury, and Driesener, (2017), the organisation have adopted the money-off coupon to the consumers for getting the own-label brand products from the retail store. This effectively helps to maintain the loyalty of the consumers.
The consumer loyalty within the supermarket retail sector allows the firm to maintain their value and the position within the field. It can be seen from the view of Thompson, and McLarney, (2017), the customers are facing the saving of around 20pc on the home brand products and this help to improve the customer loyalty for the firm. This is the primary fact of the firm where they have the ability to enhance the profit ration of the firm. Moreover, it can be seen from the view of Aluko, and Knight, (2017), the customer loyalty for the home brand has a high impact on the economic condition of the country. It is clear from the view of Newing, Clarke, and Clarke, (2015).
the highly effective and valuable working function within the field is being preferable for developing the customer loyalty within the market. This is the basic concept where the customers have the ability to achieve a home brand that also in the suitable price. According to Filimonau, and Gherbin, (2017), Sainsbury has less focus on the hypermarket and for that, they did not face the negative performance like the other retail supermarket. It is the fact that gaining customer loyalty is the most effective technique to upgrade the value and the working function of the organisation within the market.
Research methodology
Research design
The research design is the blueprint of the research process which helps to maintain the research study (Lewis, 2015). The most common form of the research design is the descriptive, exploratory and the explanatory. The research design helps to understand the format of the entire research paper and provide the suitable outcome for the study (Abdulkadiro?lu, Angrist, Narita, and Pathak, 2017). In this paper, the descriptive design is being selected to analyse the detail of the research topic. The descriptive design is also helpful for providing the detailed understanding regarding the consumer loyalty to the house branding by Sainsbury.
Data collection
Data collection is the process which helps to gather valuable information for the further discussion on the research study. In this research study, the primary data along with secondary data is utilised. The primary data is being collected from the interview of the selected senior management of the firm. The analysis of primary data clearly describes the research study in the most effective way (Kenyon, Meixell, and Westfall, 2016). The secondary data for this research study is gathered from the various internet and other sources for understanding the concept of consumer loyalty to the house branding by Sainsbury supermarket in the UK. Data collection help to enhance the understanding regarding the concept of the research study.
Timetable (Gantt chart)
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Main Activities/ Stages |
1st Week |
2nd Week |
3rd Week |
4th Week |
5th Week |
6th Week |
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Selection of topic and discussing the aim and objectives |
Ø |
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Secondary data sources identification |
Ø |
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Research proposal preparation |
Ø |
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Preparation and discussion of literature review |
Ø |
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Identification and the description of the research methodology |
Ø |
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Preparation of the interview process for the research paper |
Ø |
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Collection of the primary data |
Ø |
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Data analysis |
Ø |
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Finding and discussion |
Ø |
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Conclusion |
Ø |
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Finalising as well as submission |
Ø |
Data analysis
The data is gathered from 10 selected senior executive of the firm for understanding the various concept regarding the development of customer loyalty for the house brand. The primary data clearly show that the customers and the retail supermarket are interlinked for their economic development within the business.
Table 1: Consumer play the vital role in enhancing the supermarket own brand
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
4 |
10 |
40% |
|
Agree |
2 |
10 |
20% |
|
Did not provide comment |
2 |
10 |
20% |
|
Disagree |
2 |
10 |
20% |
|
Strongly disagree |
0 |
10 |
0 |
It clearly shows that customers the biggest part of the business development. A maximum number of senior management provides the view on the satisfaction level of customers to improve the business market share. Maintaining the customer loyalty within the field is highly effective for developing their view and their working function in the market.
Table 2: Consumer loyalty for enhancing the house branding process for the retail supermarket
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
3 |
10 |
30% |
|
Agree |
3 |
10 |
30% |
|
Did not provide comment |
1 |
10 |
10% |
|
Disagree |
2 |
10 |
20% |
|
Strongly disagree |
1 |
10 |
10% |
It is clear from the facts that the senior management of Sainsbury maintains their activity to provide valuable customer loyalty within the market. It can be seen from the view of primary data that the consumer loyalty for the home branding effectively maintains the working function within the market. It clearly shows that the entire working function of the firm needs to be developed for enhancing the market share of the firm.
Table 3: Use of technology for developing the customer loyalty to house branding
|
Options |
No of respondents |
Total respondents |
Response % |
|
Strongly agree |
4 |
10 |
40% |
|
Agree |
3 |
10 |
30% |
|
Did not provide comment |
1 |
10 |
10% |
|
Disagree |
1 |
10 |
10% |
|
Strongly disagree |
1 |
10 |
10% |
It can be seen from the view of primary data that the technology is vital in the recent years for developing the customer loyalty. It is one of the most effective and valuable processes where the organisation effectively use the technology to maintain their customer loyalty for the house branding process.
Conclusion
The paper eventually concludes the fact that consumer loyalty is one of the vital factors for the development of house branding by the Sainsbury in the retail industry of UK. The paper also concludes that the organisation with the technology of their mobile scan and go have maintained their customer loyalty in the early days. It can be seen that Sainsbury with their customer loyalty process has developed their business and the economic condition within the market.
References
Abdulkadiro?lu, A., Angrist, J.D., Narita, Y. and Pathak, P.A., 2017. Research design meets market design: Using centralized assignment for impact evaluation. Econometrica, 85(5), pp.1373-1432.
About.sainsburys.co.uk, 2018. Welcome to Sainsburys Home.
Aluko, O. and Knight, H., 2017. From corner store to superstore: a historical analysis of Sainsbury’s co-evolution. Journal of Management History, 23(4), pp.423-435.
Bold, B., 2014. Supermarket own-brands generate more than half of UK grocery sales.
Dawes, J. and Nenycz-Thiel, M., 2014. Comparing retailer purchase patterns and brand metrics for in-store and online grocery purchasing. Journal of Marketing Management, 30(3-4), pp.364-382.
Dunkley, J., 2009. Sainsbury unveils new loyalty scheme
Filimonau, V. and Gherbin, A., 2017. An exploratory study of food waste management practices in the UK grocery retail sector. Journal of Cleaner Production, 167, pp.1184-1194.
Gwynn, S., 2018. Sainsbury’s boss: ’20 or 30′ ways we could integrate brand with Asda.
Harris, P. and Usuriaga, D., 2017, June. An Investigation of Offline/Online Channel Patronage Transference in the UK Grocery Sector. In Academy of Marketing Science World Marketing Congress (pp. 53-59). Springer, Cham.
Kenyon, G.N., Meixell, M.J. and Westfall, P.H., 2016. Production outsourcing and operational performance: An empirical study using secondary data. International Journal of Production Economics, 171, pp.336-349.
Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, 16(4), pp.473-475.
Mazour, I., 2018. The Nectar of any business: why Sainsbury’s is trialling changes to its loyalty scheme.
Melis, K., Campo, K., Breugelmans, E. and Lamey, L., 2015. The impact of the multi-channel retail mix on online store choice: does online experience matter?. Journal of Retailing, 91(2), pp.272-288.
Miller, G., 2016. Sainsbury’s Marketing: Dominating the Retail Industry in the UK.
Newing, A., Clarke, G.P., and Clarke, M., 2015. Developing and applying a disaggregated retail location model with extended retail demand estimations. Geographical Analysis, 47(3), pp.219-239.
Ramanathan, U., Subramanian, N., Yu, W. and Vijaygopal, R., 2017. Impact of customer loyalty and service operations on customer behaviour and firm performance: empirical evidence from the UK retail sector. Production Planning & Control, 28(6-8), pp.478-488.
Sirakaya-Turk, E., Ekinci, Y. and Martin, D., 2015. The efficacy of shopping value in predicting destination loyalty. Journal of Business Research, 68(9), pp.1878-1885.
Sturley, C., Newing, A. and Heppenstall, A., 2018. Evaluating the potential of agent-based modelling to capture consumer grocery retail store choice behaviours. The International Review of Retail, Distribution and Consumer Research, 28(1), pp.27-46.
Swaffield, J., Evans, D., and Welch, D., 2018. Profit, reputation and ‘doing the right thing’: Convention theory and the problem of food waste in the UK retail sector. Geoforum, 89, pp.43-51.
TheGrocer.co.uk, 2018. Sainsbury’s has got under the skin of shopper loyalty.
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by next Plc have on themselves and their competition in the UK Clothing Retail Market?. Journal of Commerce and Management Thought, 8(2), p.234.
Trinh, G.T., Anesbury, Z.W. and Driesener, C., 2017. Has behavioural loyalty to online supermarkets declined?. Australasian Marketing Journal (AMJ), 25(4), pp.326-333.
Wallop, H., 2014. Loyalty to supermarkets is dead.
Zhang, D., Sogn-Grundvåg, G., Asche, F. and Young, J.A., 2018. Eco-labeling and retailer pricing strategies: The UK haddock market. Sustainability, 10(5), p.1522.
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