¶ … difficulties with marketing varies from organization to organization and the first matter to learn when dealing with the marketing of any organization is to understand the nature of functioning of the organization and then decide on the methods of marketing that will be applicable.
Present position
Let us hear from Sainsbury's as to what they are: "We're a leading UK food retailer with interests in financial services. J Sainsbury plc consists of Sainsbury's Supermarkets, Sainsbury's Local, Bells Stores, Jackson's Stores and JB Beaumont, Sainsbury's to you and Sainsbury's Bank. Sainsbury's stands for great products at fair prices and our objective is simple; to serve customers well." (J Sainsbury Plc) The Company has been having difficulties with managing its supply chain and the present individual in-charge is Lawrence Christensen as supply chain director. He had joined Sainsbury's in September 2004 for a fixed period of 16 months and has now been asked to continue till the end of December 2006. He will now be in an advisory capacity and a new person has been appointed -- Roger Burnley. (J Sainsbury Plc announces management change)
Roger Burnley will be the supply chain director in the operating board of the company and this will be in place of Lawrence Christensen. His starting date has not been confirmed, and he is now working in Matalan where he is now the supply chain director. Earlier he was in retail management and buying before joining Asda or Wal-Mart and in that organization also held a number of positions before he became the supply chains director. So far as Sainsbury are concerned, they are happy that they have got a new supply chains director who will be able to add value and were also very grateful to Lawrence Christensen who had made a great contribution to their supply chain services and customer services. They are also happy that he has agreed to stay on and continue providing his services. (J Sainsbury Plc announces management change) Thus it is clear that the company has some difficulty in the supply chain services area though the organization has had an existence for quite some time.
Previous Performance
Let us go a little further and try to find out how the company has really been performing. We are specifically concerned with retail marketing here and this has to be selected carefully from the results of the company that are available. Part of the information is available from dividends paid and this had been rising continuously from 12.10p in 1995-96 to 15.69p during 2003-04 and has come down sharply to 7.80p during 2003-04. No investor likes to get reduced dividends and this was certainly due to compulsion. The compulsion becomes obvious when one looks at the profitability. This was at 462 million pounds in 2001 and went up to a figure of 572 million pounds in 2003. This was more or less at the same level or 564 million pounds during 2004. Even worse than this, the company was getting a sizeable amount of profit of 153 million pounds from discontinued operations. This has also been lying at almost the same level and was 145 million pounds in 2004. Thus it is clear that the profitability of the company was probably not increasing at fast enough rates for satisfying the shareholders. There have also been sharp increases in the interest paid from 76 million pounds in 2001 to 92 million pounds in 2005. (Company Profile)
Thus it seems that the company's shareholders are not seeing that the company is performing well enough and this is leading to problems for the company. The company has been recruiting and training young individuals for the line functions and it does not seem that there is a problem there, as they can only follow the decisions that are made by the top management. Thus the problems are with the top management and that is also clear from the earlier paragraph. Another important point to note is the organization from which the new director for supply chains is coming. It should be remembered that Wal-Mart has succeeded in practically wiping out many of the giants in the American retailing scene.
Reasons for success
Now let us look into the various reasons that affect marketing of products, though what we are talking here is about retail sales only as that is the job Sainsbury's is really involved in. They are not marketing companies selling a range of products that are...
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