Customer Value and Value Proposition in UK Supermarkets

Marketing & Management 1 | P a g e
Marketing & Management

Marketing & Management 2 | P a g e
Executive Summary
Customer value and value propositions are two major factors for an organizational success,
growth and development. With regards to this, it is necessary for the organization to adopt
appropriate measures through which they could be able to satisfy its customer’s demands with
their products. Customer value and value propositions are linked with each other. These two
concepts are linked with the consumption of products by customers. Customers always seek for
higher benefits from a product and the sum total of benefits which a seller promises a customer
will receive in return for the payment. Customer value is directly linked with the payment made
by them and it is the combination of satisfaction and experience. Value propositions refers to a
business and marketing statement which describes those customers are required to purchase
and consume their products and services. This statement is generally used by the companies to
approach to their target audience because target customer segments will get the higher benefits
from the particular product (Hassan, 2012).

Marketing & Management 3 | P a g e
Table of Contents
Executive Summary.......................................................................................................................2
Introduction....................................................................................................................................4
Customer value..............................................................................................................................4
Value proposition...........................................................................................................................5
Impact of both concepts on financial performance........................................................................5
Ways through which UK supermarkets deliver value....................................................................6
Sainsbury’s methods for delivering value......................................................................................6
Waitrose’s customer segments.....................................................................................................7
Communication of customer value and value proposition.............................................................7
Recommendations.........................................................................................................................8
References....................................................................................................................................9
Appendices..................................................................................................................................11
Appendix 1 Food retail sector..................................................................................................11
Appendix 2: UK’s retail industry sales, 2013-2018..................................................................12
Appendix 3: Growth in retail sector in UK................................................................................13

Marketing & Management 4 | P a g e
Introduction
Customer value is the terms used for analysing the value obtained by customer through a
particular product against their payment. From the perception of customer, they always seek for
higher benefits in fewer payments. While value proposition is the term used for determining the
value offered by seller along with their product with regards to a particular product. In relation
with this, customers always seek for those products through which they could obtain higher
value amongst the all product offerings in terms of satisfying their needs and wants. As every
customer has unique set of demands and wants, thus, their choices in terms of products and
services are also unique and distinct from each other. Benefit from consumption of one product
is measured on the basis of the cost of the product and in relation to delivering higher value to
the customers, companies enhances the quality of their products. It is not necessary that the
products which are of higher quality will delivery higher customer value. Some customers prefer
consuming higher quality goods irrelevant to its prices while, some customers select the
products and services on the basis of price factor (Hassan, 2012). Customer value and value
proposition are directly linked with the company’s financial performance, thus, it is necessary for
the organization to analyse customer’s requirements so that adequate value could be offered to
them along with enhancing financial as well as reputational performance of the organization.
This report will focus over discussion of customer value and value proposition which are related
concepts but concerned with opposite parties i.e. customer value is linked with customers while
value propositions are linked with the value offered by the organization in their products. This
will be major findings of this report and in relation to make better and clear undertaking
regarding the concepts of customer value and value proposition, four-five articles will be
studied. Further, the focus of the report will be over analysing the impact of these two concepts
on organizational financial performance. Apart from this, this report will also focus over the
measures adopted by supermarkets in UK in terms of delivering value to the consumers and the
measures adopted by them in terms of communicating the value to the target audience. The last
part of the report will include recommendations for enhancing value propositions through which
customer satisfaction could be enhanced.
Customer value
Every customer has unique set of needs, thus, their measures for analysing the value obtained
from a particular product is also unique and distinct from each other. UK’s supermarkets are