Asda and Sainsbury’s must balance unity with differentiation to make their merger work
To maximise both revenues and savings, Sainsbury’s and Asda’s merger must get brand architecture right, unifying operations while keeping the brands distinct.
To maximise both revenues and savings, Sainsbury’s and Asda’s merger must get brand architecture right, unifying operations while keeping the brands distinct.
This week’s deal might have created the UK’s biggest supermarket group, but questions remain over how the two businesses will work together when they have such distinctive brand propositions.
The deal between the UK’s second and third biggest supermarkets gives the combined entity about 31% of the supermarket sector, ahead of current market leader Tesco.
Sainsbury’s boss Mike Coupe believes that just because the two brands will be owned by the same company, that doesn’t mean they can’t co-exist.
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Marketing boss Richard Warren claims boards see advertising as a running cost, meaning marketers shouldn’t “cloak” campaigns in the word “investment”.
Overall digital advertising spend grew 11% in 2023 to £29.6bn, according to data from IAB and PwC.
Chief brand officer Ije Nkoworie, who takes over as CEO next year, says marketing can get distracted by trends and risk preventing customers discovering product.