Sainsbury's Supermarkets | Company Profile, Marketing Contacts, Media Spend, Brands
Sainsbury's Supermarkets one of the largest grocery chains in the UK. The company offers a wide selection of grocery, home, and personal products through retail and online operations.
|Main Telephone||020 7695 6000|
|Main Fax||020 7695 7610|
Sainsbury's Supermarkets ContactsContacts (5/18)
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|John R.||Chief Executive Officer||London|
|Mike C.||Chief Executive Officer||London|
|Andy D.||Chief Data Officer||London|
|Kevin O.||Chief Financial Officer||London|
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Social Media/CRM Opp: Sainsbury's pursues new marketing channel with finance division
Subject: B2B, Supermarket, Digital, PR, Multi-Channel, Mobile, Struggle.
Company: Sainsbury's supermarkets, owned by J Sainsbury.
Opportunity: DV has learned that Sainsbury’s is on the hunt for an agency to handle direct marketing and eCRM. In addition, the supermarket is reviewing its social media business for the Sainsbury’s bank division. Integrated agency Tangible has held the bank’s direct marketing account since 2010, and Abbott Mead Vickers BBDO has held its creative business since 2007.
This all follows recent reports by Sainsbury’s that its half year profits were down 18% and like-for-like sales were down by 1.6%; however, analysts are saying the supermarket is putting up a great fight, as it struggles along with the wider grocery market.
The decline was actually expected to be much steeper, and prices “remain as competitive as ever”. Price satisfaction scores have increased this year. Mr. Simon Hathaway, president and global chief retail officer at Cheil, said that Sainsbury’s has continued to do “all the right things” and that the real issue for Sainsbury's is the similar struggles of its rivals. As a result of challenges in the sector with the growth of digital, the growing number of grocery retailers in the grocery and convenience sectors and the increase of structural costs at a time of low profitability, profit margins in the sector have shrunk from 5% to 2% in just five years.
Sainsbury's has already been investing in digital, but it needs to continue to look at digital transformation, according to Mr. Hathaway. Though challenging, it needs to look at how new technologies can remove cost from its operations and how digital will enable it to connect better with customers as shopping habits change. They have made some key investments in digital as of late, such as the Halloween campaign and its “Spooky Speaker” voice changing app. This needs to continue to increase, and innovation should be top of mind.
A quick note that in accordance with the supermarket’s “reinvention” (see product launches below), the company last month brought on a director of fresh food, Mr. Adrian Cook. He joined from Babcock International as its group head of procurement. Mr. Cook will likely be instrumental in the development of bringing Sainsbury’s products up to a competitive standard.
Marketing Overhaul: In August, Sainsbury's CEO decided to get rid of a head of brand, replacing the role with a new head of campaigns role. This followed the departure of the company's head of own-brand marketing Kirstin Knight earlier this year, and the exit of the head of customer experience Anna Shirley.
The newly-created head of campaigns role was given to Mr. Sarah Kilmartin, former head of price, promotions and marketing finance, while Mr. Mark Given, former head of brand communications, was handed another newly-created role as director for planning propositions on an interim basis. Mr. Given was responsible for the grocer's World War One Christmas advert and will now be responsible for bring brand campaigns more “powerful and distinctive propositions” while overseeing the Nectar loyalty scheme.
Also in August, Ms. Rachel Eyre joined from Barclays as head of marketing design and delivery to oversee a team of more than 40 marketers.
In addition, Sainsbury's said it would bring an early end to its British Athletics sponsorship in order to save on case, two years before it was meant to end. It will, however, keep sponsorship deals with the British Paralympic Team. It also sold its pharmacy business to Celesio's LloydsPharmacy for £125m.
Product Launches: Under some outrageous pressure to his plan in July to “reinvent” the superstore. This entailed launching six new styles of its stores, and showcasing an easier-to-shop layout to compete with online offerings.
Fresh food was moved to the front of stores, self scan technology was unveiled to allow for smartphone payment via Sainsbury's mobile scan & go trials and in-store concessions were set up with Argos and Jessops. Reach out with in-store opps and adtech to support Mr. Coupe’s push to emphasise its larger and more attractive stores.
Keep in mind that 40% of British families with children under the age of 10 have switched their main grocery store in the last year, according to a recent survey commissioned TCC. This means Sainsbury's will have to not only appeal to the “newer generation” but retain loyal consumers.
Digital Breakdown: In the last year to date, Sainsbury's has published 322 standard display ads with 1,491 different publishers, 4% of which were mobile (compared to the prior year's 116 ads on 533 publishers, 2% of which were mobile). 98% of the ads this past year were purchased via ad exchange, compared to only 52% the year prior.
This is a huge increase in digital ad placement. Top placements this year were via technology (by far), followed by media, film and weather publishers. For 2013/14, top publishers were finance, sports and women's magazine sites. This looks like the group may be targeting a slightly different audience.
Accounts on the Move: The retailer Golin to lead its UK consumer comms.
Media Spend: The retailer spent £73.34m in 2014, over 21% more than 2013 spend (£60.45m), according to Nielsen. Highest spend was in TV, Press, Direct Mail and Door Drop.
33 Holborn, London, EC1N 2HT, 020 7695 6000
Ms. Linda Lee
Manager, Online Marketing Strategy
Mr. Adrian Cook **
Director of Fresh Food
Ms. Sarah Warby **
Ms. Sophia Weir **
Head, Media & Advertising
** Unable to confirm emails; however, they follow company format, so give them a try!