ICM Presentaiton - Sainsbury's NPD

The chocolate colourful team…

…with a white chocolate core…

Presents…

PlanSainsbury’s & Caribbean HistoryMarket AnalysisNew Product DevelopmentRetail & PromotionSainsbury’s benefits

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Sainsbury’s HistoryFounded by J. J. Sainsbury

The largest grocery retailer

Pioneered self-service retailing

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Présentateur

Commentaires de présentation

We wished to start by some points from the Sainsbury’s History to justify some ways we have chosen to take. - Sainsbury's was founded in 1869 by John James Sainsbury It grew to become the largest grocery retailer in 1922 And a private company pioneered in self-service retailing in the UK during the 1980's

Sainsbury’s HistoryTrading philosophy

« Quality perfect, prices lower »

Innovative==> 1st store has launched own-brand lines==> 1st store has own-brand goods !

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- During his first years, his trading philosophy lean on "Quality perfect, prices lower" Sainsbury’s was consider as a Very innovative company ->first store which has created own-brand lines. And later, Sainsbury's brands has recognised as the first store which proposed own-brand goods !

Sainsbury’s CurrentlyFigures

SupermarketsConveniencestores

Market ShareTescoASDASainsbury’s

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Source – TNS UK – Jan2008

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It is the third largest supermarket chain in the UK with 502 Supermarkets, plus 290 convenience stores, a total of 792 stores in the UK. - Places an emphasis on a higher quality grocery offering compared to its other large rivals, according to TNS rankings published in January 2008, Sainsbury's market share was 16.4% compared to Tesco's 31.5%, ASDA's 16.7%

Sainsbury’s Currently

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- Currently, Sainsbury’s uses the "Try something new today" slogan which was launched in an effort to make consumers venture into purchasing more varied goods.

Sainsbury’s own-brand lines

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50,000 lines of which 20% own-label

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Today, Sainsbury’s offer around 50,000 lines of which around 20% are "own-label" goods. With 11 own brand product range : Basics, Taste the Difference, Different by Design, Kids, Be Good To Yourself, Free From, Sainsbury's Organic (SO Organic), Fair Trade, Super NaturalsTM, TU, TU Home, Sainsbury’s is recognized as a quality store.

Caribbean History

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Caribbean HistoryCarribean Culture "Out of many one people “

Mix Spanish/Indian/Chinese

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Caribbean HistoryEmergence into UK -June 22nd 1948 -World War 2Armed forcesWindrushVital part of British Society

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Caribbean HistoryEvents

Notting Hill CarnivalOriginated in 1964Variety of peopleCultural Experience

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Caribbean ExperienceVariety of people Try something new

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Market AnalysisCompetitor

Competitive Analysis

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Source – Defra 2008

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Yellow – Market Share Green – Consumer Spend Post it – Increase market share

Competitive Advantage1st supermarket to work with

Farmers => encourage to Organic gapPackaging Industry => more compostable

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In 2000, they launched fully compostable packaging with breakthrough biodegradable trays on some of our organic produce. In 2002, they held the first organic conference by any supermarket, leading to the launch of our design award winning Sainsbury’s SO organic range in 2006. Speaking in 2006, Justin King, Sainsbury’s Chief Executive, laid down a two-pronged challenge to both other retailers and Government: “Our customers tell us that food packaging is extremely important to them and can determine what they buy, so our packaging team has been looking at ways to address these concerns.”

Competitive Advantage“Our customers tell us that food packaging isextremely important to them and can determine whatthey buy, so our packaging team has been looking atways to address these concerns.”

Justin KingSainsbury’s Chief Executive

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Présentateur


“Our customers tell us that food packaging is extremely important to them and can determine what they buy, so our packaging team has been looking at ways to address these concerns.”

Competitive AdvantageLaunched fully compostable packagingHeld 1st organic conferenceWon design award for SO organic

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- Sainsbury’s brand is the one of supporter of British organic farmers. Sainsbury’s is the first supermarket to work directly with farmers to encourage them to undertake the change to organic farming. Sainsbury’s brand it is also more compostable packaging than any other supermarket.

Market AnalysisEthnic food

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The second part of Market Analysis concern the Ethnic food

Ethnic food environment

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Source – Mintel Ethnic Restaurants UK 2008

2%2%3%3%

5%6%

8%9%

11%13%

23%29%

61%72%

KoreanSouth African

VietnameseNone of these

MalaysianMiddle Eastern, eg Lebanese

African, eg Algerian/Moroccan/TagineCaribbean/Jamaican

CajunI never eat ethnic food

Mexican/Tex-MexThai

IndianChinese

Présentateur


You can see on this graph the placement of Caribean food in the ethnic food environment in UK. It is the 6 place with almost 10% of consumption, because we want to show you the opportunity of Caribbean food

Emerging ethnic food

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Source – Mintel Ethnic Restaurants UK 200843%

23%

9%

9%

16%

42%

21%

10%

8%

19%

38%

21%

12%

8%

21%

Thai

Cajun/Caribbean

Southeast Asian ( including Malaysian, Singaporean, Indonesian and Vietnamese)

Japanese

Other (including Middle Eastern, African, Korean and South American)

Présentateur


And this second graph is really relevant : the Caribbean food take the 2nd place in Emerging ethnic food. During the presentation, we will show that the interest about the caribbean ethnic food is growing most quickly than thai food.

The product(s)Customer insight

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Sainsbury's is an iconic British food brand, well loved by its consumers. Our intention is to create natural flavour combinations of caribean dishes under the taste the different brand in J.Sainsbury product. We will be creating nutritionally balaced diet containing protein, carbohydrate and vitamins. The range will offer fabulous flavour and maximum satisfaction taking healthy convinience to the next level by not adding extra salt to all our dishes. It will include healthy ingridients like chicken, Oil-rich fish, beef and lamb. Our product will be sold in compostable parkaging which means customers can dispose of the tray on their compost heap and it totally bio-degrades.

Attitude towards ready meals

Consumers PerceptionConsumers purchasing behaviourLifestyle changes

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Source – Mintel - Ready Meals UK - May 2008

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"In the UK the ready-made meal has undergone a change of image, from being seemed as unhealthy, lazy food to being repositioned as a premium, indulgent option.” “Retailers have further enhanced the image of chilled meals by using premium packaging and premium positioning.“ Anne Bourgeois Mintel Analyst

Customers Survey

Ready meals ?

YesNo

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Our Quality Survey UK 2009

85%

15%

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Have you ever eaten ready meals ?

Customers Survey

RM convenient ?

YesNo

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82%

18%

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Do you feel ready meals are convenient ?

Customers Survey

Caribbean food ?

YesNo

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68%

32%

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Have you ever tried Caribbean food ?

Market opportunities=> Positive attitudes towards RM=> Positive attitudes towards Caribbean

foods=> Market ready to be penetrated=> Genuine Interest in Caribbean foods

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Source – Mintel - Ready Meals UK - May 2008

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Roots’ easy-going half-hour programme Caribbean Food Made Easy was watched by 2.2m (9.9%) between 8.30pm and 9pm, in line with what the slot normally draws.

Customer needs

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exotic food varieties of food source of ingredient different sizes easy to cook well packaged organic food feel at home special taste quality food

The product(s)Design

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We are going to present our product we want to launch, which is deducted from the last analysis

Features

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The main features of our product are - Organic Compostable packaging Healthy & Nutritious - Special taste & the last point very relevant – Quality -

Sunshine

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Coconuts

Exotic

Spic

yHappiness

RomanticTrop

ical

Terminology ?

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What terminology do you thing is associated with the Caribbean ? Sunshine 74% Coconuts 44% Exotic 44% Spicy 24% Happiness 18% Tropical 15% Romantic 9% Tasty 6%

Product name !

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Packaging

Desi

gn

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PackagingSizes

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XLS L

Are you hungry ?Fasten your seat belt !

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Tantalising meals !

= Spice Chicken

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+++

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1st Meal « Jamaican inspired » Coconut Rice, Kidney Peas, Jerk Spiced Chicken & Vegetables It’s call « Spiced Chicken »

Tantalising meals !

= Curry Beef

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+++

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2nd Meal « Caribbean inspired » Exotic flavours including Coconut Rice, Black Eye Peas, Curry Beef & Vegetables

Customers SurveyNew products ?AlwaysFrequentlyNever

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12%

68%

21%

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How often do you try something new at Sainsbury’s ? We have chosen to design 2 Tantalising meals - « Taste The Difference » Quality - Healthy - Easy & Convenient preperation instructions - Tropical Organic - Natural Exotic Flavors => Familiar Carribean Food available at Notting Hill Carnival

Price

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Location Convenience

Other

Competitive Prices

Exceptional Quality

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- What are your reasons for shopping at Sainsbury's ? - What do you think of "Taste the difference" quality ? Excellent - 13% Good - 69% Average - 19% Bad - 0%

PriceCost of product Price to sell

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Présentateur


Price to sell £5.39 – 8.5/kg £3.99 – 10% more than XL £2.39 – 20% more than L Cost of Product £1.08 – 80% margin £0.99 – 75% margin £0.72 – 70% margin

RetailPromotion

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Event wayNotting Hill Carnival 2010« Prepare, Live, Continue the experience »

=> One week

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PREPARE - From Wednesday 2 days before LIVE - 2 days during CONTINUE - To next Wednesday 2 days after

Media wayInnovative multimedia using advertising

MEDIAPRINTWEB

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Store waySales developmentSales entertainmentSales promotionLoyalty card

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TargetCore

22 – 38 years oldSainsbury’s LoyaltyCustomersUsed to purchaseReady meals

Main18 – 55 years oldUsed to purchaseethnic foodConvenience Store

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Value addedThe right way

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Sainsbury’s gapExtend the “taste the difference” & ethnic product rangeNew gap in a special marketIn agreement with the Corporate Responsibility !

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Sainsbury’s benefitsImprove Brand ImageCompetitive advance⇒Win a step compare to your Competitors !

Increase the RM sales by +15%

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Thank you !The Caribbean Team

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ICM Presentaiton - Sainsbury's NPD

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Transcript of ICM Presentaiton - Sainsbury's NPD