MARKETING MANAGEMENT

Marketing Management

Table of Content

Introduction1

Present Situation of Retail Industry2

Customer Loyalty and Insights from Retail Industry3

Importance of Customer Loyalty in Service Industry4

Models to Assess the Service Quality and Significance of Assessing Service Level in Retail Industry6

Commitment of Fidelity7

Conclusion10

References11

Marketing Management

Introduction

The progressive integration of the world economy and the associated increase in the complexity of the task accomplishment pose significant challenges to the management of modern enterprises. The key drivers of this process are political-administrative (successive liberalization, deregulation and privatization) and specialized divisions (improved transport, information and communication technologies). Steadily rising international commodity, financial and investment support in this global economic development and accelerate at the same time increases the international competition in the market. This increases the importance of strategic marketing for the company, because without a well defined and effective marketing plan a company will not survive in the present day competitive environment. For this assignment, retail industry of UK has been chosen, because supermarkets associated with retailing in UK are referred as the most competitive markets all around the world. The state of profit margin between companies operating in this industry is very thin, but, requires for their overall progress. The UK market is dominated by Sainsbury's and Tesco, two giants of the supermarket industry in UK and all over the world.

From these two giants, I have selected J Sainsbury Plc for this assignment because J Sainsbury Plc is among the largest retail chains of UK employing around 146900 people all over the UK. J Sainsbury Plc is one of such organizations that have given tremendous attention to its strategies to cope with all kind of challenges and to gain competitive advantage.

Present Situation of Retail Industry

Supermarkets associated with retailing in UK are referred as the most competitive markets all around the world. The state of profit margin between companies operating in this industry is very thin, but, requires for their overall progress. The UK market is dominated by Sainsbury's and Tesco, two giants of the supermarket industry in UK and all over the world. Though, there are a number of companies operating in the region, which makes the market more saturated, however, Sainsbury and ASDA are in a race to capture the large share of the market. Thus, it can be said that in UK's supermarket industry, Sainsbury is competing with many retail giants of the world. In order to maintain the competitive advantage companies in this industry introduce new offers for their customers to ensure their loyalty. Loyalty cards are also an addition to this scheme.

Loyalty cards became very significant during the period of 1990's, where the intensity of competition began to rise. The severe competition that arouse in the market gave birth to various business schemes that could be used to attract customers and make them loyal to the company in the form of permanent customer (Newell, 2003). According to Books (1996) a loyalty card could not be considered as a replacement for essential loyalty drivers, rather they are just a supplement, because the card itself does ...