Case Study

TESCO Case Study Content

Company Overview Organizational Chart Question 1 On type of relationship TESCO have with its customer Question 2 Win-win situation for TESCO and Stakeholders Question 3 Recommendation Conclusion The End!

TESCO Case Study

Group members .. Kabiru Ahmed Shahir SCM 013621 Aw a t i f E z z a h S C M 0 1 4 0 6 6 Farid Din - SCM 016807 SEGi UNIVERSITY Relationship marketing For Ms. Song

TESCO Case Study

Shahir Introduction Company overview Question 3 General Conclusions Awatif Organization chart Question 2 Conclusions question 2

Farid Question 1 Conclusions question 1

SEGi UNIVERSITY Relationship marketing For Ms. Song

Introduction Overview
Tesco was founded in 1919 by Jack Cohen

from a market stall in Londons 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 companys 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 Program
TESCO 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. Tescos 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 products 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 others reliability and integrity. RM requires an organization wide commitment in providing high quality service which are reliable, emphatic and responsive.

2. Tesco Stakeholders

CUSTOMER

SUPPLIERS

STEERING WHEEL NO ONE TRIES HARDER THAN THE CUSTOMERS

PEOPLE (EMPLOYEE)

OPERATION

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 arent that important in decision making because theyre 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.

Its a win-win situation. Why?

The Seacroft store was Tescos first partnership. Tescos 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 relationship 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 relationship 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 ??