C a s e S t u d y

TESCO Case Study Content

① Company Overview ② Organizational Chart ③ Question 1 – On type of relationship TESCO

have with its customer ④ Question 2 – Win-win situation for TESCO and

Stakeholders ⑤ Question 3 – Recommendation ⑥ Conclusion ⑦ The End!

TESCO Case Study

S E G i U N I V E R S I T Y R e l a t i o n s h i p m a r k e t i n g

F o r M s . S o n g

Group m e m be r s …. .

Kab i ru Ahm e d Sha h i r SCM 013621

Awa t i f Ezz a h SCM 014066

Fa r i d D i n - SCM 016807

TESCO Case Study

S E G i U N I V E R S I T Y R e l a t i o n s h i p m a r k e t i n g

F o r M s . S o n g

Shahir IntroductionCompany overview Question 3General Conclusions

Awatif Organization chart Question 2Conclusions question 2

FaridQuestion 1Conclusions question 1

Introduction Overview

Tesco was founded in 1919 by Jack Cohen

from a market stall in London’s East End.

Tesco plc is a UK-based global supermarket chain

Tesco is one of the world's largest retailers with operations in 14 countries, employing over 500,000 people and serving millions of customers every week.

most popular online grocery site in the UK and has grown and they now operate in 14 countries around the world

Today they continue to focus on doing the right thing for their customers, colleagues and the communities we serve

Organization chart

Mission and vision

Our vision is for Tesco to be most highly valued by the customers we serve, the communities in which we operate, our loyal and committed staff and our shareholders;

to be a growth company; a modern and innovative company and winning locally, applying our skills globally

Question 1

'To create value for customers to earn their lifetime loyalty

1. Customer Acquisition

long-term relationships for firms and customers strategies in developing customer relationship

THEORY OF CUSTOMER RELATIONSHIP MANAGEMENT

using technology to organize, automate, and synchronize company’s interactions with customers, clients, and sales prospects.

Example: an enterprise or company might build a database.

Customer Relationship Management

• Tesco will collects, stored and analyzes customer data to deliver the right information at the right time such as name, address, contact information and their buying history.

 

• to encourage customers to continually return to Tesco for doing their shopping again.

Customer Relationship Management

2) Mobile phone operators

Tesco offer them a package as per their usage through:

a) Text messages

b) Voice minutes

 • By give best offer and try to make sure that customer

get less spending time, as a reward it will gain customer loyalty and long term relationship.

 

2. Customer Retention

The key features of particularly customer loyalty.

The effectiveness of loyalty schemes.

THEORY OF LOYALTY SCHEME

This Is a structured marketing efforts that reward, and therefore encourage, loyal buying behavior

Loyalty ProgramTESCO CLUB CARD

Loyalty Program

LIST TYPES OF TESCO CLUB CARD

1) Tesco Kids Club

2) Tesco Baby and Toddler Club

3) Tesco Healthy and Living Club

4) Tesco World of Wine Club

5) Tesco Air Miles Travel Company

Conclusion On Question 1

• Tesco has been able to address to the customer segments of different age groups.

• Tesco’s online strategy seen as very simple. Information on products and services of all the groups companies are presented on a single website and always update.

• the main reason why it is so successful because it has managed to establish Club Card not as a marketing tool but as a product’s relevance to the value for customers.

Question 2

Who are the winners and who are the losers or is this the “win-win’ situation for all stakeholders? Justify your answers by applying relevant RM theories.

Question 2

• Morgan and Hunt describes commitment as an enduring desire to maintain a relationship and trust based on confidence that the partner has other’s reliability and integrity.

• RM requires an organization wide commitment in providing high quality service which are reliable, emphatic and responsive.

2. Tesco Stakeholders

STEERING WHEEL‘NO ONE TRIES HARDER THAN THE

CUSTOMERS’

CUSTOMER

OPERATIONPEOPLE (EMPLOYEE)

SUPPLIERS

Continuation

Employees

May want an increase in pay rise. Staffs have a very big interest in Tesco; they have an interest in the business in the form of wages, bonuses, discounts, and holiday pensions.

• Suppliers

Suppliers stock the business with all its business supplies; if late, it causes conflict between business and suppliers. Therefore, it is vital that all the business supplies are on time.

If they are not on time it poses a great threat to the financial state of a business. On the other hand, suppliers aren’t that important in decision making because they’re scared of losing their contract with Tesco. The main jobs of the suppliers are to sell fresh stock daily at market price.

Customers

• They are looking for a wide range of products. They also want easy accessibility to the premises and hope to buy quality products at competitive prices. They are really important because they provide the money for the store to be successful. Also an expanding amount of customers mean more profit for the business. Most customers expect fresh fruit and vegetables at high quality for good value.

It’s a win-win situation. Why?

• The Seacroft store was Tesco’s first partnership.  Tesco’s aims for the project were to:

• Develop a profitable business model in communities characterized by social and economic deprivation

• To solve local skill shortages by developing a unique jobs and training guarantee particularly applicable to the long-term unemployed

• To engage with community partners so as to foster a sense of community and shared ownership for regeneration

The key benefits for Tesco of its regeneration partnerships are:

• Commercial sustainability• Developing effective staff teams• Developing a safe and attractive

environment for customers to earn their loyalty

• Contributing to a clear sense of community

Conclusion on Question 2

Question 3 Recommendations and General Conclusions

Recommendations on Tesco relat ionship marketing to

individual

Personalized Email Communication

Create A Stellar FAQ Page

Social Networking Channels = Customer Service Opportunity

Create Content Based on Customer Need

Turn Customers Into Brand Advocates

Recommendations on Tesco relat ionship marketing to

organizations

Respond to Clients as Soon as Possible

Keep Clients Updated

Go the Extra Mile

Fix Your Mistakes

Listen to Your Clients

Keep Your Promises

Be Patient

Put Yourself in Their Shoes

General Conclusions

As a conclusion to this case study , Tesco has been in existence for over 90 years and this is great advantage for them but applying a modern business or customer relationship is vital to today type of business from the

list shopper to the most frequent shopper it is important for Tesco to keep a good relationship generally

Thank you for listening Any

questions ??