Table of Contents 1. Introduction: 2. Brand Style Guide: 2.4 Brand Image, Organisation Values, and 22. Customer-Based Brand Equit 3. Marketing Activity. 3.1 Marketing Activity Propositi 3.2. Customer Segmentation: 3.3 Marketing Summary: wom 4. HRM Activity: . 4.1. HRM Activity Propositio 4.2 Talent Management and Employee Engagement: 4.3 HRM Summary 5. Marketing and HRM Linkage: 6. Conclusion: 7. References... 8. Appendix 1:a T. Introduction: ‘The aim of this report is to display and grasp the marketing and HRM departments of Sainsbury's while understanding the organisations brand and values and proposing two activities that will enrich their complete organisational value. The underpinning value to enhance their overall organisations value is the environment; although their colleagues is another important value, itis another value that will substantially reduce the organisations environmental impact using the proposed HRM activity (Sainsbury's, 2019). ‘The proposed activities are designed towards reducing the organisations environmental impact because the amount of waste supermarkets distribute annually is astronomical. The supermarket industry is blamed for nearly one million tonnes of plastic packaging Waste per Year. and although there is some action being taken, there rnceds to be a greater initiative taken to becoming the supermarket leader in plastic reduction (Taylor and Laville, 2018) There has been an increase in competition throughout the UK supermarket industry, and there are specific values that Sainsbury's has in place to remain as one of the most successful supermarkets. The two values that will assist Sainsbury's to outperform their competitors are the environment and their colleagues (Sainsbury's, 2019). In addition to this, while instilling these two values within the company and enhancing overall organisational value, they should also be implementing ‘a customer-based brand equity (CBBE) model. As this model is crucial to create a positive experience for the customer in order to ensure customer retention and loyalty (Verhoef et al, 2009), The CBBE model will build their brand equity and continually attract more consumers to their organisation, Furthermore, it can be used as.a key driver for the marketing and HRM activities, as it illustrates how the consumers need to be the focal point in order for the organisation to continually be successfulAs of October 2019, Sainsbury's has remained second in the supermarket market share at 15.3% according to (Wunsch, 2019). What influences the organisations success is how they ensure the quality of their marketing mix remains high and up to date — product, price, plac and promotion. They have a diversified range of products, including food, drinks. health and beauty, baby products, cleaning products, clothing, electronics, and more. They also carry 15,000 own-brand products and have an inventory of over 90,000 otal products, In terms of price, Sainsbury's isseen sa premium product with high quality, positioning them at the upper end of the pricing scale even though they do offer lower-cost basic products (David, 2018). Moreover, they allow the consumers, to buy their products online and in-store, providing over 2,300 supermarkets and convenience stores (Sainsbury's, 2019). Lastly, they promote their products mainly through media using celebrities as ambassadors, and through promotional offers and price reductions while offering consumers with a nectar rewards card (David, 2018). 2, Brand Style Guide: Creating a solid brand equity stems from differentiating the organisations brand image from competitors and adding significant value to a company's product (Wang etal, 2011). The first step for Sainsbury's should be to focus on the consumers, as itis vital to satisfy the consumers to enhance the overall brand equity of the company. Once a strong brand equity is established, not only will the organisation benefit, but the consumers will as well because in order to have a solidified brand equity, the quality of the brand has to increase substantially (Aaker, 1991). Accordingly, if Sainsburys can engage with its consumers, so they perceive their company in favour over its competitors, they will be willing to pay a premium price for their product, ultimately benefiting and increasing the organisation’ s profit (Wang et al, 2011). The most efficient way forSainsbury's to accomplish this is by evaluating their brand equity why and then using the CBBE model among their organisation to enhance it 21 Brand Image, Organisation Values, and Vision: As mentioned previously, having a solidified brand image is the Key factor for Greating and sustaining strong brand equity, which ultimately leads to the brand image being the main influencer for consumer decisions (Zhang, 2015). Sainsbury's claims (o know their customers better than anyone and attempts fo build their relationships through their organisation's logan, ‘Live well for less? (Sainsbury's, 2019). This slogan is the organisations driving force behind their brand image, and it portrays the message that they sell high-quality products for an appropriate price (Sainsbury's, 2019). Additionally, there is even a reason behind the organisation’s logo that contributes to their brand image in a positive manner - the intention is that bold orange lettering is proven to be portrayed as friendly, confident, and cheerful (Rodger, 2017). By using this logo it ‘makes the customers feel welcomed and instills trust between Sainsbury's and the consumers. By enhancing its brand image and building sustainable relationships with its customers, Sainsbury's will increase their profit and grow their market share. In order to do this, the organisation needs t0 have a solidified vision and set of values they follow to keep them on the right path for success Sainsbury's has a set of five core values: health, sourcing, environment, community, and thei colleagues. By abiding by these values, they firmly believe that they will reach their vision, which i Sa Son eT retailer, where people love to work and shop. We'll do this by putting our customers at the heart of everything we do and investing in our stores, our colleagues and our channels to offer the best possible shopping experience” (Sainsbury's, 2019). Following the identified values and vision of the company, they also need to have a business strategy to follow‘that supports their vision and provides guidance and structure within the organisation to maximize their potential to develop organisational value continually. 22 Customer-Based Brand Equity: As shown in appendix 1, they have five pillars for their business strategy: we know our customers better than anyone else, there for our customers, great products and services at great prices, colleagues make the difference, and their values make them different (Sainsbury's, 2019). This portrays that they are committed to creating strong customer to employee relationships; furthermore, by using Brees (2001 siaeet Consumer Bax BF Equity (CBBE), Sainsbury's has the opportunity to make their customers feel valued, and to develop strong relationships with their customers to increase customer loyalty. The model of CBBE is shown below in figure one: Figure 1 x 1. Relationships /™\ ‘What about you and me? Aesonan a, / 3, Respome /rvdgments| Feeling) What about you? —— —_—___—_— \ 2, Meaning Performance | Imagery \ Pode Salience 1, Hentity / Who are you Source: Keller, 2001How Sainsbury's fits into this model using its brand guidelines: 1, Salience: Living well for less. 2, Meaning: Delivering high-quality products for a great value with an extensive history of ig one of the UK's top supermarket, 3. A trusted and well-known company which adapts to consumer needs and has a solid sustainability plan for continued success for the consumers and the organisation. 4. Know their customers better than anyone else and invest in their colleagues to enhance consumer to employee relationships. (Sainsbury's, 2019) Using the CBBE model as a fundamental tool is an effective way to portray how important the customers are to Sainsbury's and how much they value them, and how they are the key driver for the onganisation’s success. Additionally, itis an effective way to underpin their business strategy and create sustainable relationships aeross all stakeholders in the organisation, and as Jobber and Ellis-Chadwick (2016) explain that positive CBBE will build R. customer loyalty, low price Sensitivity, and a Strong base for brand extensions. The importance of this model is to provide Sainsbury's with guidance on how to develop and build their brand while ensuring they are ‘meeting the needs of their consumers and shaping their feelings about the product in a positive ‘manner (Keller, 2001), 3. Marketing Activity: o As the rise in competition between the big four Supemiarkets = Sainsbury's, Asda, Tesco, and Morrisons increases, it is critical for Sainsbury's to have a differential advantage over its a competitors. As Jobber and Ellis-Chadwick (2016) illustrate, creating a differential advantage using the marketing mix breaks down into four different categories: product, distribution, price,and promotion (see figure 2). Being able to display the marketing mix effectively will result in an increase of organisational value, which then further results in profit maximization Jobber and Ellis-Chadwick,2016). As the recent increase in awareness about sustainability and its importance becoming the market leader in this area and putting the environment at the forefront is just the competitive advantage that Sainsbury’s needs to get ahead of their fellow competitors (Retail Insight Network, 2019). Using the creating differential advantage model and ensuring Sainsbury's is using the marketing mix to its full potential will only assist them in getting ahead of its competitors (Sainsbury's marketing mix is identified in the introduction), Figure 2 Creating a differential advantage Product al N / \ Distrbution( Daferental ) promotion \ _ / Source: Jobber and Ellis-Chadwick, 2016An integral part of becoming the market leader in sustainability is knowing the organisations obligation to the environment. A key aspect of this falls under the term corporate social responsibility (CSR). Corporate Social Responsibility isa broad topic with many definitions, Still, the one that is most appropriate in this case is one by Van Marewijk and Werte (2003. pe.1), ‘Refers to a company’s activities - voluntary by definition - demonstrating the inclusion of social ‘and environmental concerns in business operations and in interactions with stakeholders.” In simple terms, taking into account everyone who is affected by the company’s decisions, while ensuring it benefits the stakeholders, society, and the environment (Van Marrewijk and Werre, 2003). Being sustainable and being socially responsible as an organisation will assist Sainsbury's in delivering the proposed marketing activity identified below. 3.1 Marketing Activity Proposition: A pivotal part of inereasing Sainsbury's sustainability is significantly decreasing their impact on the environment, Ultimately, UK supermarkets are still producing approximately $00,000 tonnes year of plastic, according to a recent report conducted (Retail Insight Network, 2019). As the increase of awareness on how product packaging has been affecting the environment, Sainsbury's has claimed to offer a place in store for consumers to remove unnecessary packaging to be recycled by Sainsbury's (Sainsbury's, 2019), but if itis that unnecessary it should not be included in the first place, and if it is there would be should be consumer rewards and benefits to engage with these initiatives offered by the organisation. Providing these rewards for consumers would enhance their loyalty t0 the organisation, and as Dowling and Uncles (1997) suggest. this will benefit the organisation equally as much as it benefits the consumer. Moreover, creating consumer loyalty in an organisation is a key aspect for anNaubisi, (2007) identifies that for an organisation's success and its relation to marketing, as Oly organisation to achieve effective marketing, they should be focusing on issues of trust, commitment, communication, and conflict handling. Resolving these issues, in relation to the consumer within an organisation, will enhance the marketing activity and benefit all stakeholders isis the first indicator that shows there is a strong correlation between ‘marketing and HRM and how they are interconnected, as they both benefit from the other. This falls in line with Sainsbury's business strategy and is an excellent method for creating the desired differential advantage (figure 2) across the UK supermarket industry, by putting the consumers first and adhering to their apidly changing needs. Asthe importance of sustainability continues fo grow around the world, Sainsbury’ needs to have the capacity to attack this issue and separate themselves from their competitors by offering rewards programs for consumers who use little to no plastic. There has been extensive research done on loyalty programs, and for them to be effective, it needs to enhance the overall value ofthe product or service (Dowling and Uncles, 1997). Loyalty programs have become quite common, especially across supermarkets, so in order for this proposition to be successful, there needs to be a detuiled evaluation of risks and benefits of the program before the implementation phase (et al, 2003). If consumers were to see this change, they would identify that Sainsbury's is taking the necessary steps to become the market leader in sustainability and fulfilling their CSR obligations to the environment, therefore adding significant value to one of their existing core values, whic already been identified as the environment.3.2. Customer Segmentation: In orderto implement the suggested proposition within Sainsbury's marketing strategy, there needs to be a clear understanding of Sainsbury's customer segmentation, They are aware of the rapidly changing environment and customer needs, so they have accepted this change and are committed to adapt tothe evolving shopping culture (Sainsbury's, 2019). As previously examined, being able to differentiate from competitors is a key component in gaining the desired competitive advantage (Wilson-Jeanselme and Reynolds, 2006). A major sector that Sainsbury's has been working on developing their online shoppi as they have identified that society is becoming more inclined to use this option as itis convenient for consumers and this option is continually becoming more and more competitive as the supermarket industry grows (Sainsbury's, 2019). Staying competitive in this sector is crucial for their success. Still, as Sainsbury's annual report (2019) states, “Wwe are confident that we have the resources to remain competitive in our rapidly changing markets.” 33 Marketing Summary: It can be debated both ways as to what effect Sainsbury's packaging has on the environment compared to other competitors, as they have continued to reduce their plastic packaging but do still have many unnecessary packaging throughout their stores. As already identified, awareness, levels of the adverse effects plastic packaging has on the environment have only grown, offering a place to remove unwanted or unneeded packaging in store will not reduce the amount of plastic produced, it will only improve the recycling aspect of it assuming the consumers do not recycle at home (Sainsbury's, 2019). Lastly, if the packaging is deemed to be unnecessary by the organisa fon, their focus needs to be shifted on how they can cut their plastic production rate down, not just how it can be recycled in-store.As eliminating all plastic production is unrealistic for the organisation to do in the foreseeable future, they need to be offering incentives and rewards for consumers who purchase their products, with little to no plastic packaging or use the in-store reeyeling system, contrary to purchasing the same product with plastic packaging and not recycling the plastic entirely, Recently, Sainsbury's, has removed all of the loose plastic produce bags and are alternatively providing consumers with reusable tore produce bags (Sai ‘bury’ 2019). In contrast to this, a good portion of their produce is still packaged with unnecessary plastic. Although the consumer sometimes has the option to purchase products with no plastic, there needs to be incentives and rewardsiff they choose to purchase the product with no plastic packaging. By implementing this marketing ctivity and committing to their consumers and reducing their environmental impact, their organisational value will increase significantly. The initial steps of implemer jon start with its employees and creating sustainable HRM department. 4, HRM Activity: For any company to be successful and continually build value, creating sustainable work environment for the employees should be an essential part of the business model. Part of creating this desired cultural environment stems from havii a ¥y to sustain proper balance between and ecological aspects of a company; therefore, enhancing corporate the cap: the economic, 5 reputation, customer relationships, quality of products and services. conducting ethical business methods, and radically increasing the overall organisational value of the company, so all stakeholders are rewarded (Székely and Knitsch, 2005), Sainsbury's will be able to adopt these practices through establishing a fundamental HR department by building sustainable relationships with corporate members, employees and consumers, while having the ability t manage talent, attract and retain employees, and boost employee engagement,Sainsbury's proposed raising the wage of their employees, but there was something else in the proposition that counteracted the original offer. While the salaries were supposed to increase, insbury’s would take away paid breaks and bonuses from their employees. In the media, this proposit on made it seem as though the organisation was investing a significant amount of money in their employees. In addition to this, the public was not made aware of the disadvantages that ‘came with this deal, and the union leader strongly suggested the rejection of this proposal as it ‘would harm the employees in the long run and provide no benefit for them (Butler, 2018). Contrary {o this proposal, investing time and money into employee training and development would be far more beneficial for the organisation, as it would instill strong talent management and retention, and significantly increase their employee engagement (EB). 4.1 HRM Activity Proposition: Sainsbury's needs to see it as essential to invest more time and money in their line managers and prepare them to display talent management among their colleagues effectively. The way to develop this behaviour is by developing their EE. By developing these two behaviours, it would help build the previously mentioned value, the environment, and another one of their core values, their colleagues (Sainsbury's, 2019). The reason being, boosting EE within the line managers would put the proper people in place to effectively implement the market proposition about encouraging consumers to reduce their plastic waste usage by offering consumer rewards. Once these people are in place, they will be able to manage their talent intemally and provide them with that desired sense of value and competitive advantage (Christensen Hughes and Rog, 2008) The reason line managers need to be the foundation of effective talent management within Sainsbury's is because these employees have been proven to be the most effective when beingresponsible for performing this task (Irfan and Khan, 2016.) Although it can be argued that this should be done from the executives of the company, once they have delegated the responsibility to a distinctive department of employees within the organisation, they can then oversee the progress and adapt pertaining to how it is developing. Moreover, as Purcell and Hutchinson (2007) suggest that if this is displayed firstly by line managers instead of being carried out by upper executives of management, it can increase the quality of work and development from the other employees. 8 42 Talent Management and Employee Engagement: ‘Talent Management is a term that has a variety of definitions, but one that is most appropriate for this report is that; the outcome of positive talent management within an organisation should make the employces feel valued and give the company a distinct competitive advantage (Christensen Hughes and Rog, 2008). As discussed previously, Sainsbury’s should be targeting a segmentation that its competitors are not, and then implementing and creating a sustainable HR department that will equip the organisation to conduct this activity. Furthermore, two of Sainsburys’ core values are the environment and their colleagues (Sainsbury's, 2019), and training and developing their colleagues. more specifically their line managers, will drive forward their goal to become more environmentally sustainable. There are two main reasons why talent management should be imperative; it attracts and retains positive and influential employees, and it encourages EE within the organisation (Christensen Hughes and Rog, 2008) Employee engagement is an area that the executives and upper managers in Sainsbury's need to be focusing on because there has been research done that proves there is a positive correlation between FE and organisational profitability (Kumar and Pansari, 2015). To further promoteinesing in RAGES CA (2000) RESTS oreo TRH EE performance. In addition to this correlation with performance, EE also promotes innovation amongst employees (MacLeod and Clarke, 2009) and as Sainsbury’s 2019) identifies the supermarket industry as rapidly changing and having the capacity to adapt is incredibly important, instilling innovation by EE methods will only benefit them and provide them with that desired competitive advantage. In order to achieve successful EE, Kahn (1990), identifies that there are three areas that employees need to develop and be able to retain: meaningfulness, safety, and availability. IF employees within Sainsbury's are to develop in these three areas, they will become properly equipped to boost their EE, therefore improving the quality of their work, which ultimately benefits the company as it will grow their profitability. Using the Employee Engagement Determinants model in figure 3, Sainsburys will be able to successfully deliver this program as the listed determinants all lead to positive employee engagement (Anitha, 2014). All of these determinants are pivotal, and most have been explained already, but being able to ensure these are incorporated within the company and its employees, will be the underpinning model that certifies the success of the proposed HRM activity.Figure 3: Employee. Engagement Determinants Work Environment Leadership J Team and Co-worker 1 ing and Career. |__| __,J _ Development Engagement Compensation — |_| Organizational Policies -— ‘Workplace Well-being Source: Anitha, 2014 43 HRM jummary: One of Sainsbury's core values is their colleagues and how they see it as essential to invest in their employees to continually provide great service for their consumers (Sainsbury’s, 2019). Increasing employee engagement will influence positive talent management acro Tine managers and will eventually lead to one of their other core values, reducing their environmental impact. It has to start with the employees as they are the ones in direct contact with the consumers, and as mentioned before, the consumers have to be the main focus of the organisatio is they are the key drivers of success for any company (Kumar and Pansari, 2015). To clarify, the HRM activity needs to be implemented before the marketing activity because without positive EE and talent management. the marketing activity will not be successful. As identified earlier, this HRM activity will substantially influence Sainsbury's suecess. It will further develop all aspects of the organisation, 16including the delivery of the proposed marketing activity and reducing its environmental impact, by continually eliminating plastic packaging in stores. 5. Marketing and HRM Linkage: ‘There are two main links between the marketing and HRM activities 1) the outcome of both benefit the consumer and organisation, and 2) they are both focused mainly on the environmental value of Sainsbury's, which will eventually enhance the overall organisational valuc of the company. Using 4 market-oriented approach through an effective HRM delivery system has been proven to be an effective method that provides positive benefits for the employees and the organisation (Wei and Lau, 2008). The order of steps of the implementation process of the two activities will start with, the development and investment in the employees of the organisation to promote employee engagement and effective talent management. Then once this is established, the proper employees will be set in place to deliver to the marketing activity that promotes the reduction of plastic usage for all stakeholders within the company. This can be referred to as Strategic Human Resource ‘Management (SHRM) approach. as this mobilizes and equips the employees of an organisation to strive towards an agreed upon goal (Wei and Lau, 2008). The synergy of these two approaches will provide Sainsbury's with the competitive advantage they require to significantly grow their value within their organisation and become a well trusted company that continues to deliver products with substantial value to their consumers, In addition to this, what will assist Sainsbury's delivery of these two activities is their commitment to Comporate Social Responsibility (CSR). They need to be focusing on using the triple bottom line approach, as Jain (2013) describes this as increasing economic prosperity, environmental preservation, and social justice. Using these three sectors as a definition of CSR, committing to them will only increase their development and grow organisational value. By investing and being facommitted to their consumers and employees (social justice), by reducing their plastic packaging hence reducing their environmental impact (environmental preservation), and their organisational profit will grow as their employee engagement, and customer loyalty will increase, and Kumar and Pansati (2015) conclude this leads to economic prosperity. Accomplishing these three sectors, of CSR, starting with their commitment to their employees and consumers, will lead to enriching the organisational value of Sainsbury's 6. Conclusion: In conclusion of this report, the proposed HRM activity is about investing in the development of employees OF Sainsbury’s, so consequently, they Will be able to deliver the proposed marketing activity properly. As the outcome of the interconnected marketing and HRM activities is to benefit, the consumers, developing the B2C value and creating a strong consumer relationship with the organisation will assist in the guidance of the implementation process and keep it sustainable this strat f the executives (Dowling, 2002) . The process of implementin is complex. Stil, and managers of Sainsbury’s collaborate and take the essential steps to deliver this program, it has, the potential to give them the competitive advantage, which all supermarkets are now trying to own (Sainsbury's, 2019), Moreover, the implementation of this strategy will boost Sainsbury's organisational value by increasing their commitment to reducing their environmental impact, and by creating a culture that employees look forward to working in (Sainsbury's, 2019), Previously examined in this report, Sainsbury's needs to be using the CBBE model for these propositions as it has been made clear that the consumers are the key factor to success if these activities are to be delivered, Cistomer Based Brand Equity can be used as the underpinning model t0 grow Sainsbury’s organisational value, but once this is established across the organisation they need tobe able to effectiv ly deliver the marketing and HRM activity to create that competitive differential advantage:a 7. 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