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Investigating The Device And Impact Of Nectar Cards Marketing Essay

To explore the potency of customer centric theory by the implementation of loyalty cards in retail business. To make a critical review about the procedure and success of Nectar greeting card Sainsbury in preserving the customer relationship in current business environment.

To check out more about some useful theories used by Sainsbury for the execution of Nectar credit cards in their business.

To evaluate the impact of Nectar card among Sainsbury customers to point out some valuable suggestions thereby to improve the performance of nectar greeting card in business of Sainsbury.

Research background

In this competitive market the key factor affecting the business enterprise is the effective strategic management available. It is the very best factor now days. Therefore all the business organizations are to be careful in retaining effective IT related strategies for the effective business. Sainsbury is a more developed supermarket network in London. They have got made a proper approach by using the IT sector as by using the nectar card as an service to the customer where as using it as the information collector for the effective business. They mainly target to meet customer requirements.

In this proposed research I am planning to do a research on the nectar cards utilized by the Sainsbury at Holborn, London. By using this effective strategy of management Sainsbury have achieved an array of customers at Holborn. Because they use this card to keep an updated record of data of these customers and to keep a track of their regular customers. By this research I am concentrating on the main areas on the tactical application of the info technology of the Nectar credit card in the business management of the Sainsbury.


Sainsbury, An organization with more than 140 years of age opened its first showroom in the entire year 1869 by Mr. John James and Mary Ann Sainsbury from the time of its establishment towards Sainsbury has very well strategic planning for the instant we can very well notice that Sainsbury opened its first showroom in Drury street, it was the one of the poorest area in the in the country England plus they started to sell the high quality products at the low rate which enticed people everywhere and from the time being the pace of success of strategic decision were high which lead to the development of the Sainsbury from 1 store to the 800 stores by the year 2010. The other main strategy adopted by the Sainsbury was they aim to sell to product under their own brand name and first included in this was the smoked bacon. The bacon was smoked in their in store under the smoking range. Sainsbury had a very large shortage of the employees during the First World Battle and they started to recruit women to work in their waiting for you and a great many other store roles were given to the ladies. (j-sainsbury, 2009)

In 1950's Sainsbury our do it yourself service stores are started in the united kingdom much before many opponents have implemented which acquired made Sainsbury a new store from others constantly the strategies followed by the company runs at higher success rate one of the result among them was the in the entire year 1969 their own brand products accounted for the 50% of their start. (j-sainsbury, 2009)

GOAL OF SAINSBURY: The major o goal of the Sainsbury is by giving good quality shopping experience at the convenient price with the highest quality available for sale. Sainsbury aims at the higher customer prospects for the daily lives making the life of the customer easier. (j-sainsbury, 2009)

VALUES OF SAINSBURY: "Sainsbury value for the interest for the healthy, safe, fresh and delightful foods, our focuses towards providing great products at fair prices, a history of technology and command and a solid regard for the public, ethical and environmental ramifications of our procedure - have persisted to stand the test of time. " (j-sainsbury, 2009)

Five major principles followed by the Sainsbury are:

Bringing the best for the meals and health.

Integrity in sourcing

Environment value.

Marking positive effects locally.

Making working environment a much better destination to work. (j-sainsbury, 2009)



Loyalty card is an another online marketing strategy adopted by many business corporation and loyalty card is provided by different group and advertised by different business in different name and some included in this is the Nectar cards, Club card, Prize credit card etc. Usually devotion credit card is a vinyl or paper cards usually looks like credit or debit card where the name of the greeting card holder will be imprinted when confronted with the card. Commitment card is the usual name famous in the united kingdom region and its own name varies in several region on the planet. The other area of the cards typically will have a magnetic remove or a barcode in order to be easily scanned to the machine when purchasing the products. (loyalty, 2008).

A retail firm in the in the retail industry may issue this loyalty credit card towards the clients or consumers that can be then used as an recognition procedure and discover the particular customer. The loyalty gives the data of the buyer regarding demography as well as the other relevant data. It gives data like the address as well as the amount of families in the home. Each and every loyalty card granted by the retail items will have customer personal privacy declaration as well as the non- disclosure data about the customers and these data will not be disclosed between your others users of the same retailing sector. These data provided by the commitment card can be utilized for the both externally as well as internally. These data may be used to analyze the data such which is better and favorite brand for this customer or whether the consumer is vegetarian or not. ( loyalty, 2008)


Electronic point of sales: EPOS data are usually utilized by the retailing groupings like supermarkets, hypermarkets, pharmacies, chemists, convenience stores, small impartial stores, petrol bunks, cash and hold, off license as well as in pubs and restaurants. Electronic digital point of sales data will be the much useful data to the retailer like one which when the client swipe the credit card at the right up until of the shop everything like what all are the things purchased by the buyer will goes for the marketing wing and according to the info available the marketing wing can in a position to analyze the client and they can offer provides rewards and loyalty program according to the taste and dynamics of the consumers or customers. ( loyalty, 2009)

NECTAR Credit card:

Nectar credit card is a commitment card as well as a loyalty incentive program mainly located in the UK region given the partnership of the business enterprise giants like Sainsbury, North american share and BP. The nectar credit card was unveiled into UK in later of 2002. (nectar, 2009)

Nectar is preserved by the private business named Commitment Management Group UK and now it became the part of Group aero plan. The helpline is principally based on the Tyne and in Mumbai. Nectar card has retained a 5 12 months plan from the year 2002 and therefore helped to overtake the membership card given by the Tesco and by the year 2010 Nectar card has became popular 2in the united kingdom. (nectar, 2002)

Sainsbury uses the info from the nectar card by the process of EPOS. Sainsbury valuate every single customer by the procedure of EPOS services provided by the nectar card. At the time of billing process Sainsbury stores each data in the data source through this process they could be able to evaluate what all are the products that happen to be mostly sold in this day and they can analyze the developments in shopping of the consumers as well as the clients. By looking over the database of every customer they could be able to assess the flavor of the consumers like whether they're vegetarian or non vegetarian through this analyze they can be in a position to provide particular offer toward for this products for the clients and at the same time they could be in a position to provide offers for the merchandise that are not usually employed by the buyer. During each months for example during the month of Xmas if consumer or customer consumes wines they could be able to provide seasonal offers for this products at particular time. (j-sainsbury, 2003).


I have been employed by the firm and also have discovered that with the advancement of loyalty cards the company is capable of promoting its sales very easily. The loyalty credit cards have made market examination and exploitation of customer habit take with nominal costs very effectively than some other method. Hence being from an IT history and as learning Business Management, I considered to keep me in advance in this period of technology founded business. This research will horn me with more knowledge.


Loyalty cards are the simplest ways to examination and understand periodical customer behavior and also to promote business regionally.


Don Erwin says "The primary reason for studying research methodology is that it provides a time-tested, proven means of providing new, reliable knowledge that collect the growing body of knowledge. "(Ethridge, 2004, p. 10)

The methodology of research can be explained as the systematic method to solve the study problem or the medical method of doing the research and reaching the goals of the study. Research methods and methodology closely related parts of the research, in which the strategy has many dimensions and method can be viewed as the part of this. This makes the strategy of a study always wider than the study method. Thus in this context researcher should well aware about the research methods as well as methodology before performing a research. (Kumar, 2008, p. 5)

The research can be categorised on the basis of lots of factors like goals, data used, data collection methods, the use of the study, strategy of the researcher etc. almost all of the time a study might be the combination of more than one type. So pursuing will be the classification of some major kind of research where my research is more related to.

Descriptive Vs analytical research

The descriptive research mainly specializes in the descriptive way of stating the affairs and research problems. This employ the main research methods like review method, observation and other key data collection method in spite of the extra data which has already been available. An important characteristic of this research is that it can only express what is took place or happening no control over the factors of the study topic. But in the situation of analytical research the researcher use the various information and facts which has already been designed for the analysis of the research topic, so that no need to collect fresh or principal data. (Kumar, 2008, p. 8)

My research is prepared to use both primary and extra types of data so my research is more related to descriptive type research than analytical type.

Theoretical Vs Empirical Research

In the theoretical way of doing a study the researcher mostly selects some of the theoretical facts and information from the resources like articles, publications, books etc then your researcher further analysis the study questions based on this data which is mainly the secondary data. However in the case of the empirical data the research begins by making use of secondary data but second option the researcher also utilize some of the primary data for the further examination of assessing the hypothesis and locating the answer to the research questions. . (Schwab, 2004, p. 15)

In the empirical research supplementary data helps to make an in depth analysis of the research topic were the principal data helps to determine key ideas and ideals of this issue, altogether makes the research more reliable and signifying full. As a result of this strong gain I am utilizing Empirical research method in my own research.

Explanatory Vs predictive Research

Explanatory research mainly carried out in the situation in which the researcher should find out the real reason for a particular occurrence which is already happened and relates to the research issue. In this type of strategy the researcher recognizes different facets or parameters and analysis this variables by making use of predicted hypothesis and targets. In this type of research the researcher can make strong interpretations based on the collected data, however in the case of predictive research the researcher is making predictions regarding the various factors by making use of the accumulated data. (Gratton, 2004, p. 9)

Since in my own research there is absolutely no range for prediction of occurrence and also requires the interpretations of gathered data my research is more explanatory.

Qualitative and Quantitative Research

Qualitative and Quantitative is the main classification based on the date used to handle the research. The data is mainly categorized into two, one which is made up of narrative explanations and interpretations called qualitative data but the other contains numerical data and its own examination called the quantitative data. The studies which uses qualitative data for proceeding the study is called qualitative research, in the same way research which uses quantitative data is named quantitative research. A lot of the research is the combination of the quantitative and qualitative methodology called the blended approach. In my research also in making use of both type of research so its a blended research methodology.

Quantitative Research

This approach concentrates more on measurement and evaluates of the product quality or amount, on the factors which can be expected in conditions of the product quality. This is more related to the quantitative occurrence and quantifiable data. By implementing this research type the researcher can be able to analyses the topic very precisely by making use of set of types of procedures and rules so the audience can get a definite picture of the issues in mind. (Kumar, 2008, p. 10) The opportunity and restrictions of the quantitative solutions are follows.

Scope of quantitative research

The quantitative research is effective to the stake holders to judge the performance of the business very plainly and easily.

Since the examination is strictly predicated on the objectives and main points the comparisons can be easily done.

Quantitative methodology is easily replicate and highly reliable.

The authenticity of data found in this type of research can be verified easily

The authenticity of quantitative data which is used in the quantitative research research can be easily confirmed.


The main restriction of Qualitative kind of research is that it can be effective only with the help of quantitative research.

The approach keeps minimum overall flexibility.

Highly will depend on the authenticity of the numerical data found in the examination. If the data is not reliable the complete research becomes meaningless and insignificant.

Highly time consuming and expensive to execute. This type of research should be designed carefully to guarantee the correct vacation spot.

Qualitative research

Through this type of strategy the researcher can simply evaluate and demonstrate human habit and related issues. Qualitative research is an essential in business researches because it is vey useful in the merchandise design and sales. Through this the user can easily measure the preference and behaviors of folks and can predict the future of the product whether it is feasible or not commercially. Qualitative research mainly recognized by a realistic and provable hypothesis that can be analyzed to reach the research result. (experiment-resourses, n. d. )

Scope of qualitative research

Qualitative research is very useful if the research topic is complex with the aid of hypothesis and clear objectives.

Approach helps the researcher to explore and interpret real life encounters which is impossible in the case of quantitative examination.

Depth analysis of the topic is possible in a detailed manner so that the research will be more useful for the visitors.

Procedures are adaptable so that new degrees of research can be proven quickly.

Can make maximum use of the prior researches and also can point out the disregarded factors in the previous researches.


Highly influenced by the non-public skill of the researcher so that the quality of the study cannot be ensured with the product quality data and data collection methods.

Systematic evaluation is difficult as a result of aggregative approach of the research.

Low reliability and less correct when compared to the quantitative research.

Since the research is more concentrated on the personal experience, general fads views, judgment etc, this may only be effective in the qualitative approach to analysis. Mathematical research is impossible.

Data collection Methods

The most significant step in a study is its data collection. By which the info for the research is collected. This step is a lot important in a research, as care is to be taken for the stability of the data collecting and towards relevance of these data. For these collecting of data there are few methods which may be classified as major and secondary data. The primary collection methods used are extra method which include methods like collecting data from internet, literature journals etc. but in the few instances the collection of principal data may face issues as it is fresh and new data accumulated.

Primary data collection methods

This method is employed to gather data from the area of research directly by using various principal data collecting methods. The researcher uses various methods like questionnaires, interviews, studies etc the principal data is completely depended on the subject matter and hence there is a potential for bias if the topics are not trust deserving.

In this research I am likely to do:

Observation method: This is actually the method of data collecting by the process of watching the working environment at the area of research, in this research it is the working environment off of the Sainsbury very market at Holborn, London. This collection method is done by the direct contribution of the researcher.


In this method of data collection the data collected may become more reliable as the researcher has a primary personal experience in the area of research.

Observation method is a powerful while an simple way the researcher can get a direct contact with the working environment of the area of research and can collect data effectively and easily

Direct contact with the employees are a good idea for the success of the study. As they may be able to provide data easier.


In few situations the info gathered by the direct contact may be imperfect and could require further work onto it.

The validity and consistency of the data accumulated by the observation method might not be validated. As only an effective skilled researcher can assess the working environment of an activity effectively.

As the part of collecting data in this research, I am using the observation method as I had an event of six months in this super market and this method is mostly reliable one.

Questionnaire method

In this technique of data collection, I am going to prepare a collection of questions related to the study topic to learn relevant data for the study.


Questionnaire method really helps to provide data based on the relevance of the study. As the questions in the questionnaire are directly linked to the research goals.

Collection of data can be done much effectively and easily than performing an interview.

In this method of data collection it is easy to get data from an extremely large number of individuals as the questionnaire can be provided to them in a brief period of time.


In this method of data collection in few situations the members may not prepare yourself to provide correct data.

All the questions in the questionnaire should be solved effectively by the participant incase to do easy examination.

As there is certainly likelihood of anonymous questionnaires the members may have a poor feel for the questionnaire. (Cresewell, 2002, p. 25).

Interviewing method:

This is the technique by which I must formulate a set up body of the questions which lead me to collect the info which helps my research. The responses towards my questions by the members make my research much effective one.


This is a method by which the info is collected by the researcher by direct contact with the individual related to the research area therefore this is much effective to acquire relevant data for the research

This method of data collection can be an flexible one as the questions may vary in line with the person.

This method helps to get the principal data more easily and reliably as the interview is done with the person who provides effective data and it is conducted by the researcher itself.


There may be constraints for the researcher to publish data provided by the interviewee in the interview in a few situation. As the info may be much private related to them.

This is a process which takes much time in analyzing and sorting of the data also to lead the info to the sees of the research questions

I am planning to conduct a primary interview with the administrator of the Sainsbury Supermarket at Holborn, London.

Secondary data collection methods

Secondary data collection means those data which have already be gathered and published. Also can be accessible from various sources like journals, articles, books, internet etc. these data gathered will be much reliable if we take care in selecting the resources we use. In this particular research I am going to use various previously listed sources which can be reliable.


The data can be easily and effectively accumulated in this technique as the required resources are easily accessible by the researcher through various libraries, internet etc

The books which can be much reliable as released and written by qualified persons makes those data more reliable and relevant.

As the data collected will be already set up or sorted by the pre-publisher the sorting of data will be easier.


As there are many unreliable resources it is difficult to identify the reliable one and the unreliable one.

The poor updating of varied websites in the internet may affect the stability and relevance of the info.

As all the data are published before there may be a inclination to copy the task done by every other person this means doing plagiarism.

Ethics in research

Ethics in the study is one of the most important factors the researcher should manage because this can create trust of the reader on the research. The ethical concepts can be applied to all levels of the study like planning, analyzing, data collection doing etc. Integrity, credibility and confidentiality are the key factors which can contribute a lot to the ethical tendencies of the research. A number of the ethical standard a study should maintain is uses,

Avoid the use of information which can harm environment, specific and property unnecessarily.

Reliability of the information and individuals in the study should be made certain.

The confidentially and privateness of the data should be maintained whenever necessary.

Suitable safeguards should be taken when coping with the individuals in the study to keep up the trustworthiness of the research.

Try to avoid big economical expenses, big prize and contract for the analysis to stay away from the falsification of information.

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