The market was unprecedentedly tough - falling food prices coupled with an ongoing price war saw the large retailers battling it out to maintain market share from aggresive competition from both ends of the market.
In addition to this Sainsbury's were faced with the challenge of a 23% reduction in brand spend versus 2013. This in the face of increased spend above and below as Lidl increased their spend by 77% YOY (an increase of £7M) and M&S by 41% (an increase of £5M).
This meant the analysts were predicting a dire Christmas for Sainsbury's (-3.7%).
Sainsbury's ended up surprising everyone. They performed twice as well as the analysts predicted while doing good.
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(Please note: parts of this case study may have been redacted for confidentiality purposes.)
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