Sainsbury’s share price: Targeting austerity-hit shoppers with new ads

on Dec 17, 2013
Updated: Oct 21, 2019
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iNVEZZ.com, Tuesday, December 17: Ignoring celebrity chefs, J Sainsbury (LON:SBRY) has turned to a 25-year-old single mother for its new advertising campaign, hoping the story of a woman struggling to make ends meet will help it connect with hard-pressed families in the country.

Sainsbury’s share price was 0.45 percent lower at 393.73p as of 10:15 UTC today, valuing the company at £7.48 billion.
Jack Monroe from Essex, whose stories of struggling to feed her son for £10 a week while on benefits have propelled her to national fame, will front Sainsbury’s new six-week TV and print campaign called “Make Your Roast Go Further” from next month. Two years after terminating its decade-long relationship with famous chef Jamie Oliver, Sainsbury’s has hired Monroe, who blogs as “A Girl Called Jack” and is a freelance writer who contributes to The Guardian.

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Monroe, who has at times been critical of Sainsbury’s in her blog, has attracted a huge following for her carefully-costed recipes which often use pre-cooked and frozen products as well as canned food from value ranges. In an apparent dig at the use of culinary superstar Heston Blumenthal in adverts by the sixth-largest UK supermarket chain Waitrose, Sainsbury’s said consumers are less interested in celebrities chefs in these austere times.

Sainsbury’s marketing director Sarah Warby said: “In the current economic environment we’re all less interested in the ideas of celebrity chefs. We’re looking more for help and inspiration from people you can really relate to and practical, achievable ideas for food your kids will actually eat.”
Monroe’s appointment comes less than a month after data from Kantar Worldpanel revealed that Britain’s four biggest supermarkets had all lost market share for the first time in at least a decade in the 12 weeks to November 10 as they continued to be squeezed by discounters such as Aldi and Lidl and upmarket grocers (Tesco share price: UK’s biggest supermarkets lose market share).

Bryan Roberts, a retail analyst at Kantar, commented that the new campaign followed the success of Sainsbury’s Brand Match scheme and “Feed your family for a fiver” campaign.

He said: “They have been focusing on real shoppers over celebrities over a while. They are trying to connect with families who may otherwise have felt that Sainsbury’s is too expensive.”
**Analysts on Sainsbury’s**
Equity analysts at Deutsche Bank reiterated their “hold” rating on Sainsbury’s stock with a target price of 425p last Thursday. Separately, analysts at Citigroup reaffirmed their “buy” rating on Sainsbury’s shares with a price objective of 470p on Wednesday.
Four analysts have given the stock a “sell” rating, 16 have assigned a “hold” rating, nine have it as a “buy” and one calls it a “strong buy”. Sainsbury’s currently has an average rating of “hold” and a consensus price target of 391.12p
**As of 10:47 UTC buy Sainsbury’s shares at 393.80p**
**As of 10:47 UTC sell Sainsbury’s shares at 393.50p**
Trade stocks with Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.

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