SAINSBURY BANK

Evaluating Sainsbury's Financial Service Products (Banking)

Evaluating Sainsbury's Financial Service Products (Banking)

Introduction

This research proposal is based on evaluating the financial services offered by Sainsbury Plc when it focussed its shift from supermarket to providing financial services, as well.

Aims and Objectives

This study is based on answering the following research aims and objectives:

To analyze ways in which Sainsbury offers services different from other banks.

To discuss the role of Sainsbury in the banking sector, and its potential effects on the organizational success and customer loyalty factors.

To identify the major products of Sainsbury Plc that enables the bank to penetrate into consumer markets.

To assess the role of Sainsbury as high street retailer.

To evaluate the practices of Sainsbury plc that it adopts for meeting changing consumer needs.

Research Questions

What are the motivations behind Sainsbury's initiative to go into the banking sector?

What are the reasons that makes Sainsbury exclusive than other banks?

What are the trends in consumer demands for Sainsbury banking?

Why Sainsbury have moved into banking sectors and benefit it gives to the organisation and customers?

How do Sainsbury adopt the role of high street retailer along with meeting needs of consumers?

Literature Review

Sainsbury is the third largest supermarket chain in the UK. She holds a market share of over 16% and operates over 900 stores in the high segment of the market. It also provides a system of Internet sales, home delivery, has a large property portfolio and manages the Sainsbury's Bank, in collaboration with a partner in the banking sector. Sainsbury Bank, founded by Sainsbury food group, meets its responsibilities to the communities and the environment (Barich, 1991, p. 104).

Sainsbury is one of the leading chain of stores in UK, and it has been the first retailer store in UK in introducing the scheme of “Coupons at Till”, which had become the biggest investment from Sainsbury in customer loyalty since the Nectar Card has been launched in retail stores in 2002 (Choi, Kim, 2006, p. 925). The scheme of Nectar Card will serve as the foundation of database which will be used significantly. Customers past data and historical shopping choices will make sure that coupons are particularly targeting what Sainsbury Nectar card holders buy. When you take out more than one type of product included in this offer you could see your Nectar points add up even more.

2 new products = 3 x points

3 new products = 4 x points

4 new products = 5 x points

5 new products = 6 x points etc.

Since 12 months, the same initiative has been implemented very successfully in several stores but the main and foremost push Sainsbury simultaneously along with latest save and switch campaign that was launched recently. Customers will benefit from discounts on a wide range of branded and Sainsbury's own-brand products, with savings of up to 20% on some of the retailer's most popular items (Creswell, 2009, p. 81). The types of services offered by the Sainsbury include insurance, loans, savings accounts, credit cards, online banking support, and online ...