Product and Brand Planning
Sainsbury’s products are divided into three man categories; each category meets different customer needs. The three different categories are the basic products, the core and the premium. It is key for Sainsbury to plan the location of their products; the basic products are usually placed on the bottom shelves. The premium products are located at much higher level, normally around the eye-level of customers. This is done in order to catch the customer’s attention. The premium products are high quality therefore it has much more priority. The core products are situated at the middle section of the shelves.
When planning for new product Sainsbury needs to make sure they can gain an advantage over a certain product, not only by meeting certain customer segmentation and gaining profit but also by satisfying the customer. For example Sainsbury’s organic range also includes fair trade products, with Sainsbury selling the fair trade products, it helps with the economic side o the external influences, this is because the fair trade products are sold and a portion of the costs goes to those less fortunate, so with Sainsbury’s selling these products, they are helping the economy therefore customer will be satisfied and more likely to be persuaded to buy these organic products.
Manage product mix and lines
The main purpose for having different product lines in a business is to expand the business itself. Sainsbury stocks approximately 30,000 product lines, which about 20% are “own brand” goods. Some of these |own-brand lines] include Basic products, By Sainsbury, Taste the Difference, Different by design, Children, Be good to yourself, freeform, organic, fair trade, TU and UT home.
“Basic products” have an economy range of nearly 700 lines, most of them are food but some include other areas such as toiletries and stationary. “By Sainsbury” has over 6500 different lines, and is branded under the