Sainsbury’s is readying a Christmas push at ‘busy mums’ for its new MVNO by launching an above the line marketing campaign this autumn.
Mobile by Sainsbury’s is aggressively targeting the value market and rivals Three, Tesco, Carphone Warehouse and Phones 4u by using its Nectar Card scheme to sell cut price handsets, Pay-As-You-Go and monthly Sim-only contract deals to the 23 million customers who walk through the supermarket’s doors each week.
Mobile by Sainsbury’s is offering customers double Nectar Card points on all shopping and fuel purchases during the life of a £10 Sim-only 30 day contract which includes 200 minutes, unlimited texts and 250 MB of data. The MVNO claims a family of four can earn around £180 a year in Nectar points by signing up.
Shoppers can pick up the MVNO’s PAYG and Sim-only deals at till points in over 1,000 Sainsbury’s stores with 250 stores stocking its range of phones, in addition to six trial mobile store-in-stores. Up to nine entry-level and mid-tier devices, such as the Nokia 100 and the Samsung Galaxy Fame, will be available. Emma McLaughlin, marketing director at Mobile at Sainsbury’s, said: ‘Our handsets are aimed at our target market. They are not the latest, cutting edge phones but they are really good, affordable phones offering smartphone technology and the Android operating system [in some cases].’
McLaughlin (pictured) said the MVNO is targeting its female shoppers who make up the vast majority of Sainsbury’s customer base. She added: ‘We wanted to focus on Sainsbury’s key shoppers who are busy mums and who don’t want to go into a mobile phone shop and be faced with a million choices. Instead they are looking for good value presented in a simple way from a company they can trust and that is our proposition.’
She said simplicity would be key for the mobile offer. She added: ‘Our customers tell us that they don’t trust mobile phone networks and that they find choosing phones and tariffs a daunting and stressful experience. We wanted to address these issues in a way that that gives customers fantastic value.’
While its initial focus is prepay and Sim-only, McLaughlin did not rule out Mobile by Sainsbury’s launching 24 month contract deals at a later date. However, she added: ‘Our customers are telling us that they don’t want to be tied into a contract. They want freedom and flexibility because often their budgets vary from month to month. So they may want a £10 Sim one month and a £20 Sim the next. So for those reasons we tend more towards PAYG. But that is not to say we won’t ever do contracts. If eventually our customers say they want handsets bundled in as well then we will look at that.’
Author: Carol Millett