Favourable or unfavourable PR can affect a business financially. Supermarkets are learning to make the most from any advantage they have. Tesco and Sainsbury’s have been very proactive in their royalty card schemes and giveaways, PR campaigns, celebrity ambassadors (Jamie Oliver, David Beckham), community/charity projects and premium high visibility events. In recent years both companies have achieved positive PR and increased goodwill towards their brand by their involvement in a series of campaigns including: Active Kids / Sainsbury’s Ebooks / Comic Relief / the 2012 Olympics (and paralympics) / Royal Jubilee celebrations / Royal British Legion sponsorship / Million Meals Appeal / Race to Rio / Active …show more content…
The general perception was that the big supermarkets, by the very nature of the buying power and ‘gatekeeper’ access to the consumer were squeezing their suppliers financially, demanding unreasonable prices. (See diagram below). The investigation focused on larger supermarkets with over 600sq of grocery sales floor, under the direction of an entity or group which controls ten or more similar stores. The investigation looked at practices and processes governing pricing, supply chain management, consumer satisfaction, environmental awareness and overall profitability …show more content…
Supermarkets Code of Practice
A non-voluntary code of practice was suggested by the Competitions Commission (covering a variety of concerns such as provision of written terms of business, promotional practices and resolving disputes) and applicable to any multiple with at over 8 per cent of market share.
Tesco, Asda, Sainsbury’s and Safeway (with Morrison’s subsequently having purchased Safeway) initially agreed to comply fully with the Code taking full effect in March 2002.
The Code was reviewed in 2004 by the OFT – highlighting additional issues after concerns were expressed that the Code being implemented properly. General consensus among suppliers was that the code was weak and follow-up legislation vague and impotent. Supermarkets subsequently confirmed their commitment to the Code and asserted that generally relations with suppliers were satisfactory albeit they had noticed very little operational changes since their adoption of the