space.template.Sainsburies

Questions for Secondary Research Sainsburies
Author: Anel Mamet, Anel Ibrayeva, Meruyert Yertemir, Daniyar Sultanov, Askhat Prali, Nurzhan Onashabay.

Company Name
Sainsbury's

Question 1 Meruyert
What loyalty system do they currently use?  Include a picture and description of the loyalty card plus system they use

1) Nectar loyalty card 2)

3) Nectar is the most popular and the largest loyalty card scheme in the U.K.

Contribution by Daniyar:

Sainsbury's uses loyalty program, called Nectar program. Nectar program was launched in September 2002. Originally founded by a privately owned and managed firm, Loyalty Management UK (LMUK), which was chaired by Air Miles co-founder Keith Mills (now Sir Keith Mills), the programme was developed over a period of eighteen months using extensive consumer research to make sure that it addressed most of the concerns that UK consumers had with loyalty card programmes. At the time, consumers felt that there were too many loyalty programmes in the market and that they wanted to earn bigger rewards more quickly.

http://www.thewisemarketer.com/features/read.asp?id=15

Question 2
by Nurzhan What are the features of the scheme? For example: Do customers gain points, vouchures for points, discounts etc?

Sailsbury's supermarket chain is part of Nectar loyalty card system. Sainsbury's shoppers gain 2 points for each pound ( £) spent. Once they collect 500 points customers can get £2.5 off. So, customer gain £2.5 off for each £250 spent, that is equal to 1%. However, from 11 of April, 2015 there will be changes in bonus system. Now customers will have only 1 point for one pound, which means that they get £2.5 off for spending £500.

Sailsbury's offers few more ways to earn bonus points. Shoppers get 1 point for every bag customer reuse in store. However, this feature will also be removed on 11th of April, 2015.

Sailsbury's also publish some additional offers for collecting bonus points. For example, now there is a gift of 300 bonus points for first ebook purchased.

Additional information by Yerkebulan:

You can collect Nectar points in store and online:
 * Collect 2 Nectar points per £1 spent in store in each transaction
 * Collect 2 Nectar points per £1 spent at sainsburys.co.uk
 * Collect 1 Nectar point for every 1 litre of fuel purchased at a Sainsbury's forecourt
 * Collect 1 Nectar point for every bag you reuse in store

Additional Bonus Nectar points:


 * Sainsbury's customers get about 120 points for participatin in surveys
 * <span style="background-color: #ffffff; font-family: Arial,Helvetica,sans-serif;">Sainsbury's customers get point for selling/recycling old mobile phones.

Redemption:
 * For 1 point they get 0.5 pens, so 1000 points is 5 pounds

Collect Nectar points with Sainsbury's - in store and online (n.d.). Retrieved December 9, 2014 from

@http://www.nectar.com/collect/sainsburys.points

Question 3 Anel M
<span style="font-family: Arial,Helvetica,sans-serif;">What are the benefits for the customer? <span style="font-family: Arial,Helvetica,sans-serif;">For example: what do they get out off the scheme and how does it make their shopping experience better?

<span style="background-color: #ffffff; color: #333333; font-family: 'Guardian Text Egyptian Web',Georgia,serif; font-size: medium;">People will be involved in in-store promotions, they will be able to collect double, triple or quadruple points. Customers can earn double points by booking hotels and packages with Expedia, and can cash in points with other partners, such as Vue cinemas, Argos or Virgin Experience Days, listed on www.nectar.com. Points are often worth more if you put them towards meals or days out. For example, their value is boosted by 50% at Pizza Express and adventure course Go Ape, and doubled at Legoland Windsor or Madame Tussauds.


 * <span style="background-color: #ffffff; color: #333333; font-family: Arial,Helvetica,sans-serif; font-size: 12px;">Saving Money / Make Money
 * <span style="background-color: #ffffff; color: #333333; font-family: Arial,Helvetica,sans-serif; font-size: 12px;">Convenience Factor – Ease of Payment (Speed and Simplicity)
 * <span style="background-color: #ffffff; color: #333333; font-family: Arial,Helvetica,sans-serif; font-size: 12px;">Special Offers / Discounts for Card Holders
 * <span style="background-color: #ffffff; color: #333333; font-family: Arial,Helvetica,sans-serif; font-size: 12px;">Feeling Of Belonging and Membership
 * <span style="background-color: #ffffff; color: #333333; font-family: Arial,Helvetica,sans-serif; font-size: 12px;">Possibility of Receiving other Financial Services
 * <span style="background-color: #ffffff; color: #333333; font-family: Arial,Helvetica,sans-serif; font-size: 12px;">Member Magazines etc

Contributor: Askhat

http://www.theguardian.com/money/2015/jan/06/what-are-loyalty-card-schemes-worth

Contributor Daniyar Syzdykov
media type="youtube" key="XuvhDITxAxs" width="420" height="315"

<span style="background-color: #ffffff; font-family: 'Trebuchet MS',Helvetica,sans-serif;">Question 4

 * Consumers can collect Nectar points by swiping Nectar card at the till in Sainsbury's stores, cafes and petrol stations. They can also collect points online through [|Nectar eShops], on both [|grocery] and [|non-grocery] products, or via Sainsbury's.co.uk.


 * The number of points consumers can collect depends on what you are buying. They can get 2 points per £1 spent in store or online and 1 point per litre of fuel purchased at Sainsbury's petrol stations. They pick up an extra point for every bag you reuse in store.

Source: http://www.theguardian.com/money/2015/jan/06/what-are-loyalty-card-schemes-worth

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px; line-height: 0px; overflow: hidden;">media type="youtube" key="_7zh79g_Tqk" width="560" height="315" Source: https://www.youtube.com/watch?v=_7zh79g_Tqk

Additional contribution by Anel M: http://www.nectar.com/collect/sainsburys.points

Question 5
What are the drawbacks/issues with the system? You should include the current problems that the company face with this system e.g. losing market share with another company?

> 1) It takes time to set up the loyalty card, therefore buyer has to spend more time at Sainsbury's supermarket > 2) Privacy issues: supermarket administration will know all basic information client wrote in order to fit the blank and take loyalty card. Also, follow which products are bought and sent ads to the customer mail. CONTRIBUTOR: Shynggys Implementing new system may result with big money spending which may not worth all work. Implementing new system may not return money spend on it, and didn't guarantee market share.
 * Nectar points are not available on the following limited range of Sainsbury's goods and services: savings stamps, car park tickets, vending machines, cash back, postage stamps, gift vouchers, baby milk products, lottery tickets, tobacco kiosk, proprietary medicine, spirits and liqueurs, mobile phone cards and mobile phone vouchers.
 * Points are also not available in Sainsbury's concessions or franchises.
 * Points cannot be earned on any element of a transaction which is paid for by redeeming points. See for latest details. Minimum spend to collect points = £1. Minimum redemption value = £2.50. Nectar partners occasionally change.
 * Contributor Meruyert:
 * 3) It is hard to get out of the system: client will buy more products in order to take more "Points"

Question 6 Anel M
Include any illustrations/pictures of the loyalty card/system For example: what information is stored on the card? The information which is stored in the card: Customer's full name, identificational number (will allow to find the customer from customers database), phone number (may be) and e-mail (may be) for sending news messages, house address (may be).

Contributor Alen • The information Sainsbury’s collects will be used to process your orders, to allocate Nectar points on your behalf and to help us ensure that all customers are genuine. • To allocate Nectar points, we will pass limited information to Loyalty Management UK Limited who operate the Nectar programme. Additionally, we will look at the products you buy, together with information about the way you have viewed our website obtained by a ‘cookie’ (see below). We may use this information for market research and statistical analysis, to enable us to send you information about products and services that may interest you, potentially send you money off vouchers and to help us to develop this website to make your shopping easier in the future, including the personalising of our website. The information we communicate to you may be sent by email, post or via telephone provided you have consented to us doing so.

Question 7
by Nurzhan

Explain the process on how the company collects the data and what benefits does it bring to the company as a stakeholder and the company as a whole? What analysis does Tesco conduct on the data it collects and for what purpose?

Data is collected during ordering loyalty card. Customers add data while registering like name, birth date, phone number and e-mail adress. When customers buy something data about buyings is saved to database and used by Sainsbury's

Sailsbury's uses the data collected from shoppers to determine what to sell in the stores, to introduce promotions and analyze impact of these promotions. Nectar also partners with Mastercard to study shopper's spendings elsewhere. It is important to understand not only spendings in one supermarket, but in different shops.

There is direct quote from the privacy policy of Nectar:

<span style="font-family: Arial,Helvetica,sans-serif;">"**What information will we use?** <span style="font-family: Arial,Helvetica,sans-serif;">By participating in Nectar, we will collect and use information about you and any Additional Collectors within your account. This information includes your registration details, information about the use of your Nectar card, shopping purchases and other information that you give us (together "your information"). <span style="font-family: Arial,Helvetica,sans-serif;">Your information may be analysed to see how you use the Nectar programme, to understand your shopping behaviour and to send you (and/or Additional Collectors on your account) information and offers for the products or services which are most likely to interest you. <span style="font-family: Arial,Helvetica,sans-serif;">You agree to receive these communications in order to enjoy the benefits of participating in Nectar. <span style="font-family: Arial,Helvetica,sans-serif;">We will only share your information with the [|Nectar Partners] (including their sister companies).
 * <span style="font-family: Arial,Helvetica,sans-serif;">How will your information be used? **
 * <span style="font-family: Arial,Helvetica,sans-serif;">Who will we share your information with? **
 * <span style="font-family: Arial,Helvetica,sans-serif;">We promise we'll never share your details with anyone else." **

<span style="background-color: #ffffff; font-family: Georgia,'Book Antiqua',Garamond,'Times New Roman',Verdana,Arial; font-size: 15px;">LMUK (the owner of Nectar program) is independently owned and managed. Sponsors, or 'partners' as they are more usually known, contractually sign up to LMUK's Data Management Rules. Each partner's own data is owned by that partner - which includes the purchase total, the points earned, the customer's Nectar ID number, the offer code, the date and location. Partners are expected to maintain their own transactional and customer databases. Any item-level basket analysis is carried out by the partner on its own database. The combined data that makes up the Nectar programme is owned by Nectar's operator rather than the partners. This data includes the necessary customer registration details, and information about the number of points earned for each transaction (but not about the specific purchases).
 * <span style="font-family: Arial,Helvetica,sans-serif;">Contribution by Daniyar **

http://www.thewisemarketer.com/features/read.asp?id=15

Question 8 Askhat
Explain the benefits for the customer for having their data collected by the company.

=
<span style="background-color: #ffffff; font-family: adobe-clean,myriad-pro-1,myriad-pro-2,sans-serif; font-size: 16.7999992370605px;">Consumers fear big data—but they do so because they don’t understand it. It’s important to show consumers why it benefits them that marketers have their information. We should work to relay this message to consumers: that marketers (us) having consumers’ information can be beneficial to their online experiences. It’s clear how information can benefit the marketers and the companies they represent, but it’s not always evident to the consumer why marketers should have their information. Marketers should lead the battle on clarity. We should be the ones clearing the fog and stigma behind data collection. It benefits all parties when marketers know their consumers’ preferences. =====


 * <span style="font-family: Georgia,'Times New Roman',Times,serif; font-size: 16px;">Collecting too much or too little data. Collecting too much information slows down the system, clutters screens with unnecessary fields, and inflates the costs of gathering data. Recording too little data can render the database worthless for compiling reports that can help the business grow; instead, money spent on inputting the little data that is there is wasted.
 * <span style="font-family: Georgia,'Times New Roman',Times,serif; font-size: 16px;">Poorly conceived data fields. The most common mistake is putting too much information in one field—the computer can only sort by field, not by what is in the field. The best rule of thumb is to put each unique record element—ZIP code, phone number, fax number, address—in its own searchable field.
 * <span style="font-family: Georgia,'Times New Roman',Times,serif; font-size: 16px;">Try to avoid using personal names as the key identifier of a record or as a link between records. Instead, use numbers, assigning a unique number to each record. Personal names cause problems when two or more people have the same name; additionally, if the name is not entered exactly the same way every time it is used as a link—a middle initial is included in one instance and left out in another, for example—the records will not link properly.
 * <span style="font-family: Georgia,'Times New Roman',Times,serif; font-size: 16px;">Check the database integrity at least once a month. Corrupted links or other problems can creep in over time. Utility programs are available for this function.
 * <span style="font-family: Georgia,'Times New Roman',Times,serif; font-size: 16px;">Back up information and store it in a separate location, preferably someplace that is fireproof and waterproof.
 * <span style="font-family: Georgia,'Times New Roman',Times,serif; font-size: 16px;">Set strict standards that must be followed whenever data is input into the system to ensure consistency. This is especially important if multiple departments will be adding data to the system.
 * <span style="font-family: Georgia,'Times New Roman',Times,serif; font-size: 16px;">Periodically clean out the database, weeding out records that are inactive or no longer relevant. If you do not want to lose those records permanently, create an [|archive] database and move the records into that file.

<span style="font-family: Georgia,'Times New Roman',Times,serif; font-size: 16px;">Read more: [|http://www.referenceforbusiness.com/small/Co-Di/Database-Administration.html#ixzz3QYE9tpXw]

Contributor Meruyert: 1) Administration can send ads to the customers based on their ususal purcchases, so customers will know about sales and actions. 2) It is easier for customer to control their purchases.

Question 9: Meruyert
What analysis does the company conduct on the data it collects and for what purposes? Ways: 1) Through mail survey 2) Phone survey 3) IN-person survey 4) On-line internet survey 5) Interview 6) Observations

Then, data should be analyzed, and in order to make it easier to analyze, people can present it as tables, diagrams, pie-charts or bar charts.

The purpose of this data collection is to collect the most necessary information: favorite food costumer which customer buys in supermarkets, favorite proposal which customer offers to the clients, favorite seller and etc. It is made in order to define what is the most beneficial way for both customer and supermarket.

=Contributor Anel I:= http://www.theguardian.com/money/2013/jun/08/supermarkets-get-your-data https://www.theacademicpapers.co.uk/samples/Case-Study-on-Employment-Satisfaction-at-Sainsbury.pdf http://www.sainsburys.co.uk/sol/iw_container_page.jsp?pageRef=sites/www/site_furniture/Site_Furniture_PP.page

Question 10 by Daniyar
What are Nectar's IT features ?

<span style="font-family: Arial,Helvetica,sans-serif;">This section is further explanation with images and perhaps videos that further define the concept. Label images/videos Figure 1, Figure 2, etc with a title and place the APA citation at the bottom of the page.

Question 11 by Ibrayeva Anel
Which information about a customer is included to visit the Sainsbury website? <span style="background-color: #ffffff; font-family: tahoma,arial,sans-serif; font-size: 11px;">two types of information: <span style="background-color: #ffffff; font-family: tahoma,arial,sans-serif; font-size: 11px;">1. Personal information such as name, address, telephone number and email address as provided by customer when register <span style="background-color: #ffffff; font-family: tahoma,arial,sans-serif; font-size: 11px;">2.Also, computer’s IP address and anonymous information collected from cookies when customer is browsing website to help us understand how to improve our website and services.

http://www.sainsburys.co.uk/sol/iw_container_page.jsp?pageRef=sites/www/site_furniture/Site_Furniture_PP.page

Question 12 by Ibrayeva Anel
What are the security issues in Sainsbury?

Put your contribution above with the appropriate question number
Contributor:

This section provides additional examples with images and perhaps videos that further define the concept. Label images/videos Figure 1, Figure 2, etc with a title and place the APA citation at the bottom of the page.

Resources

 * 1) http://www.sainsburys-live-well-for-less.co.uk/products-values/nectar/collecting-nectar-points/
 * 2) http://www.sainsburys-live-well-for-less.co.uk/products-values/nectar/nectar-is-changing/
 * 3) http://www.thewisemarketer.com/features/read.asp?id=15
 * 4) Smithers, R. (2012, September 14). Nectar makes a point about rewarding green issues. Retrieved January 19, 2015, from http://www.theguardian.com/money/2012/sep/14/nectar-card-rewarding-green-issues
 * 5) UK - Sainsbury's Reward Card. (n.d.). Retrieved January 20, 2015, from http://www.delcampe.net/page/item/id,76077414,var,UK-Sainsbury-Reward-Card,language,E.html
 * 6) []
 * 7) http://cals.arizona.edu/arec/wemc/nichemarkets/07conductingmarketresearch.pdf