Customer Relationship Strategy Case Study: Sainsburys

Research background:

This research paper is focused strategy fallowed by Sainsbury to maintain customer relationship. In this research paper we will go through the different methods implemented by Sainsbury to gain relation with a customer. In today’s global market relationship management had gained a lot of importance in every business. The customer relationship is not confined with service industry, now a days manufacturing industries too fallowing good relationship with their customers. The customer relationship management is applied by most of organizations because customer is the king in every business and he is the centre point to provide the revenue to a organization. Customer relationship management is a transparent wall between the customer and organization. Customer relationship will be measured based on the loyalty presenting by customer. So now going to discuss about the strategy fallowed by Sainsbury to maintain customer relationship

3. Organization background:

Sainsbury is a super market which will operates its business in retail sector from the year 1869. Sainsburys is started by james and Mary Ann Sainsbury’s. The growth and development of the Sainsbury was increased rapidly and leads to one of the major player in the retailer’s of UK. It started from single shop and now grown up to 900 retail outlets in the UK. It performs its business operations with 180,000 employees.

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Sainsbury’s is the first supermarket which came in market with their own products like soft drinks, food materials and glossaries. It is one of supermarket which provides it services by online and the customer in the store is also given the chance to bill their products. The major competitors of the Sainsbury are TESCO and ASDA. In the part of business, store deals with different range of products for all class of people in the society. Sainsbury maintains good customer relations.

Pest Analysis of Sainsbury –

Political Factors –

• Taxation – Sainsbury will get taxed based on their taxation code provided by the governing bodies of taxation.
• Salary – The employees are paid highly when compared to the other supermarkets. 
• Working hours – They will give only 2 hours per school children and 20 hours for the people aged above 18.
• They follow equal employment and wages act and they provide more health and safety to employees.

Economical Factors-

• Inflation Rates
• Unemployment Levels
• Income
• Labour laws
• Skill level of work force

Social Factors –

• Demographic Trends
• Level of education
• Culture & living styles
• Lifestyles and Attitudes

Technological factors –

• Online shopping facility
• Self checkout tills
• Widespread availability and high speed broadband internet
• Electronic Data Interchange

4. Rational for the chosen topic:

It is decided to research on the above topic, because of academic, personal and business perspectives. In academic carrier, research proposal study is very appropriate subject for course and my future purpose .This research paper is focused strategy fallowed by Sainsbury to maintain customer relationship. In this research paper we will go through the different methods implemented by Sainsbury to gain relation with a customer.

In today’s global market Customer relationship management (CRM) is one of the important tactics to gain the relation between consumer and organisation. Customer relationship management will leads to the enhancement of popularity of the organization in the global market. In today’s market many of the organisations are implementing this customer relationship management because customer is the centre point at every business. From the past records organisation came to single opinion i.e. which organisation has good relation with it customer will survive for long period in the market.

5. Literature review:

According to (Mike Hoots), Customer relationship management is implemented by most of organizations to know the potential customers of their business and their requirements expecting from organization side.

The organization position in the global market may defined by the customer relations and their satisfaction. In today’s scenarios customer is the king and he is one and only option for generating the revenue to the business. Customer plays a key role in almost of all the industries which are service and manufacturing. The organization which is having good customer satisfaction and excellent customer relationship will gain the business from the market and the growth of that particular organization will be more when compared with other organizations which are giving less priority to customer relationship.

6. Research questions:

According to the reviewed literatures, they all mentioned that the important of customer satisfaction programme and in which ways it is gained in an organisation. But they did not discover that how the customer satisfaction programmes and customer satisfaction draws a path to a organisation toward success. Thus, this research proposal proposes to analyse to answer these questions:

1. What are the key activities included into Customer relationship management?

2. What are the customer services provided towards customer satisfaction?

3. To what extent does the Customer relationship management contribute to Sainsbury financial success?

7. Research objectives:

Objectives of this research paper are to present the evidence for some of the questions and to gain theoretical knowledge on what’s customer relationship management and its effects on the business.

Find out Sainsbury’s improvement in customer satisfaction and its relationship with existing customers?

What are the best approaches to gain a relationship with a loyalty customer?

What are the influences of customer relationship on the Sainsbury’s business and its development?

What are the important strategies implementing by Sainsbury in customer relationship management to return to its old market position in the retail sectors?

8. Methodologies:

Methodology –

Exploratory research method chosen for this research paper

Exploratory research will present the relationship which is existing between two different variables. Before starting with exploratory research we shall know about the advantages in taking this kind of research method and how it is more helpful than the other research methods.

Exploratory defines the relationship between the two distinct factors and it will be more convenient method for this research. This research method is very flexible for providing a understanding during the decision problems and opportunities. This research method will help in grabbing the strategy fallowed by sainsbury’s for gaining the relationship with the existing customers and to attract the new customers from the global market

Sainsbury and customer relationship management are the two distinct variables in this research paper. This research will goes on what are the different strategies fallowed by Sainsbury to maintain good customer relationship. Exploratory research will be comfortable method to carry this research.

Data is gathering from either sides of the organization. Inside of a organisation data is collected from employees and from the customers of Sainsbury That to data is collected from the employees who are involved in maintaining customer relationship management. Data is gathered by introducing myself to the customer and explaining the objective of the project and later had chat about the satisfaction and impression on the organization.

Due to casual chat with customer and enquired by about some important things like cost, quality and services providing and finally collecting the information from employees about the customer number of visits to that particular shop

Later i followed the passive style, in which i observed reactions of the customers for the services providing by the employees in the Sainsbury’s.

This research paper is mainly focused to gain a brief understanding about the customer behaviour; this study was done more qualitative rather than quantitative research. Qualitative method was carried based on three types which are mentioned below.

1. Face to face interview
2. Semi-structured interview
3. Passive style

Face to face Interview- The face to face interview was done with topic related employees in the Sainsbury’s and later conducting a interview to a customer directly. This face to face interview is also called as In-depth interview.

Semi-structured interview – this is same as face to face interview but i distributed the pre-questionnaire concerning about the interview.

Passive style- Passive style is the process of observing the customers without informing them.

The customers are identified secretly when the employees are providing service.

Apart from the three methods, fallowed the survey method.

In the survey method i went through the secondary data like, company website, news papers and the articles related to the Sainsbury.

In this research paper the data collected through both quantitative and qualitative methods. In the quantitative method the data is in the form of numbers and which is collected by using the questionnaire. The qualitative data which provides the information in the form of description which is collected by conducting the interview to customers and the employees of Sainsbury’s.

This research paper needs a detail study so sample questionnaire is supplied to the existing and new customers of Sainsbury and even collected the information orally by asking about the services provided by Sainsbury.

Data collection:

When conducting data collection, the un structured interviews will be used with Tesco’s employees and customers to evaluate customer loyalty programme and investigate the customer perspectives. The data concern with perspectives like thinking, satisfaction and believes. To collect these qualitative data, un structured interviews will be suitable than other methods. Because, we can not have predetermined questions for the perspective which might change for place to place as well as person to person. That is why it is decided to conduct un structured interviews.

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The data will be collected with selected sample units by asking one or two opening questions and conversations for ten or fifteen minutes. The questions will interact with some matters, for example, why Tesco introduced loyalty card?, why the customer prefer often to shopping in Tesco?, how the customers fell when using loyalty card in Tesco?, what are the other services provided to customer? Is the loyalty programme useful to customer? At the mean time, do Tesco achieve its purposes by that programme? This interview will be conducted once a week for five weeks in the Tesco in London. Every time will choose different areas for research; this is because the answers of customers will vary from place to place. And 3 sample units will be selected to investigate each time.

6. Data Analysis:

The collected data from fifteen sample units by interviews, will be analysed to accomplish the objective of research proposal. The obtained qualitative data such as opinions, satisfaction and believes will be analysed to decide that really the customer loyalty programme brings customer satisfaction as well as customer satisfaction brings financial success for Tesco within competitive market in UK.

References –

Alan Bryman & Emma Bell,2007, Business Research Methods, second edition, Oxford University press, UK.

Mc Burney & White, 2007, Research methods, eighth edition, wadsworth cengage learning, USA.

John gill and Phil Johnson, 1991, Research methods for managers, first edition, paul chapman publishing ltd, UK.

AD Jankowicz,2000, Business Research projects, third edition, Thomson learning, UK.

Judith Bell, 2008, Doing your Research project, fourth edition, open university press, MC Graw hill education. UK.

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www.oppapers.com, 2010, Customer relationship management, (Online), Available from URL-http://w ww .oppapers .com/es s ays /Cus tomer- R elationship-Management/189988, Accessed on 07-04-2010.

www.rgis.com, 2010, Sainsbury overview, (Online), Available from URL- http://www.rgis.com/assets/pdfs/casestudies/Sainsbury_Case_Study.pdf, accessed on 09th-04-2010.