10:45 am, November 12, 2008
SAINSBURY’S has just reported half-year profits up 13 per cent, despite the slipping economy.
How is this possible? Surely people are tightening their belts? Didn’t Sainsbury’s catchphrase used to emphasise the fact you spent more in its stores?
Not anymore. So, why are we reporting on it here? Well, the success of the supermarket in attracting customers could provide tips to car dealers, too.
Sainsbury’s has really marketed its cheaper own-market brands recently. Campaigns around the store, highlighting how Sainsbury’s goods are ’20 per cent cheaper’ than branded products, have got customers spending more.
It shows that people are buying on price above all.
This is something that has never been more imperative to your business. Make sure all your dealers, all your offers, all your promotions shout about what good value you are.
Prioritise advertising to highlight the cheaper models in the range. Really jump upon any incentives you can. Have ‘value’ as your overriding watchword.
People need to be convinced that they’re not wasting money. Sainsbury’s results shows that the supermarket giant has successfully exploited this fact, despite the dominance of Tesco and the rise of value-led retailers like Aldi and Lidl.
Car sales figures support this trend. Why? They show that buyers don’t necessarily want to drop favoured ‘premium’ brands. Jaguar and Volvo were among the few makers to report sales increases in October, for example.
So drop by your store, to see if you can learn any tricks that could be applied to your own dealership.
