Page 211 - DMGT554_RETAIL_BUYING

Retail Buying

Notes
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Caselet Sainsbury’s Brand Relaunch

n June 1999, Sainsbury’s unveiled its new corporate identity, which was developed by
M&C Saatchi, which consisted of the current company logo (right), new corporate
Icolours of “living orange” and blue, Interstate as the company’s new general use
lowercase font from the old all uppercase font, the new slogan “Making life taste better”,
which replaced their old slogan from the 1960s and new staff uniforms. The strapline was
dropped in May 2005 and replaced in September of that year by “Try something new
today.” This new brand statement was created by Abbott Mead Vickers BBDO. While the
Interstate font was used almost exclusively for many years, the company introduced
another informal font in 2005 which is used in a wide range of advertising and literature.
In 1999, Sainsbury’s acquired an 80.1% share of Egyptian Distribution Group SAE, a retailer
in Egypt with 100 stores and 2,000 employees. However poor profitability led to the sale
of this share in 2001. On 8th October 1999, the CEO Dino Adriano lost control of the core
UK supermarket business, instead assuming responsibility for the rest of the group. David
Bremner became head of the UK supermarkets. This was “derided” by the city and described
as “fudge”. On 14th January 2000, Sainsbury’s reversed this decision by announcing the
replacement of Adriano by Sir Peter Davis effective from March.
Source: http://en.neko.wordview.org/wiki/Sainsbury%27sv

Self Assessment

Fill in the blanks:
5. For Marks and Spencer, .................... was the cornerstone of the food product range and the
only brand provided was its proprietary label.
6. Underpinning Tesco’s winning private label .................... was spectacular packaging design
across the entire range
7. In order to be truly...................., retailers must advance from the generic or store brand
mindset of the past to a new private label paradigm.
8. Collaborative .................... management is vital to retail marketers.
9. A successful “own” brand has the capacity to strike a chord with .................... in multiple
product categories.
10. Exclusive or “own” brands reinforce enduring .................... and positive feelings for the
overarching retail brand.

13.4 Advantages of Private Label Branding

According to a 2008 report by the global business advisory firm AlixPartners, from 1997 to 2005,
the sales of private label brands grew at twice the rate of national brands. Private label products
are on average about 30 percent lower in price than national brands, according to Packaging
Digest. Store label merchandise, however, is slowly moving away from being considered solely
as a cost savings to consumers over national brands. Once viewed as second-class alternatives,
they are now bridging this gap by delivering quality comparable with national brands.
1. Control: Private labels offer retailers control over product factors such as pricing, size,
package design, production and distribution. Retailers can build up and implement

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