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Tesco Tesco Presentation Transcript

  • Tesco The CRM Champion Presented By: Wadekar Vishal
  • Introduction - Tesco
    • Various customer services schemes such as First Class Service Initiative, loyalty Card Scheme etc.
    • Tesco has moved from customer service to customer delight.
    • Presentation discusses the customer service initiatives at Tesco.
    • Tesco followed the model of “pile it high and sell it cheap.”
  • Background Note
    • The first store was opened in 1929 in Burnt Oak, Edgware.
    • By 1930, around 100 stores were operating under the Tesco label.
    • In 1948, the first self-service Tesco store was opened in St Albans.
    • Gradually Tesco grew over 400 stores.
    • In 1960, Tesco began selling clothing, household goods, fresh foods and groceries.
    • In 1968, Victor Value came under the company’s fold.
    • In 1974, Tesco began operating petrol pumps.
  • Continue…
    • Tesco pioneered the large format stores concept in the UK.
    • By now Tesco was renowned for its competitive prices.
    • Entered in France in 1994, Hungary and Poland in 1995.
    • In 1995, joint venture with the Royal Bank of Scotland as “ Tesco Personal Finance ” (TPF)
    • TPF offered customers a wide array of personal finance services.
    • In 1996, entered the Czech Republic.
    • In 1998, entered in Northern Ireland and Thailand.
    • In 2000, Tesco established tesco.com and began operations in Taiwan.
  • Continue…
    • In 2001, Tesco acquired a 53% stake in Dunnhumby.
    • In 2001, a host of new ranges of food products were launched.
    • In May 2002 Launched 1 st store in malaysia.
    • By mid 2003, Company was operating 2291 stores around the world.
  • A Master at CRM
    • Tesco mass-customized the magazines by sending it to their customers.
    • Every magazine had a unique combination of articles, advertisements related to its offerings and third party advertisements.
    • Promotional coupons were distributed though this magazines.
    • Launched Loyalty cards which fall under the domain of customer retention strategies.
    • Collection of data through this Cards, which formed the basis for formulating strategies that offered customers personalized services in a cost effective manner.
  • Answer for RPM
    • Retail price Maintenance system had restricted Retailers from pricing goods below a price agreed upon the MRP.
    • Tesco were not able to compete on price with small retailing outfits.
    • Tesco came up with an idea of Trading Stamp, this stamps were given to customers in return for making purchases at its stores.
    • Customers can redeem this stamps against cash or gift.
    • This strategy of Tesco proved very successful and this lead to worked towards getting the RPM abolished.
  • Adoption of Strategies
    • In 1979, company successfully launched a price cutting campaign named “ Checkout at Tesco ”.
    • In 1985, Tesco Launched the “ Healthy Eating ” initiative which aimed at conveying the nutritional value of the company to the customers.
    • In 1990, Tesco came with three new formats stores, Tesco Metro : To serve local community of region,
    • Tesco Express : Combination of petrol pump & convenience store,
    • Tesco Extra Store : Hypermarket focused equally on food and non food merchandise.
  • Continue….
    • In 1995, Tesco launched the Clubcard Loyalty scheme.
    • Tesco adopted the policy of offering its service to customers in innovative ways.
    • Instance: “Tescooters” (scooters) were purchased by the thailand customer and it was delivered to their home.
    • With www.tesco.com company emphasized on E-commerce.
    • In 2000, company tied up with a Safeway Inc to launch an online grocery shopping services
  • CRM – The Tesco way
    • In 1993-94, Tesco launched the “ First Class Service ”.
    • In 1994, company launched the “ One on Front ” scheme to reduce the time of customers at check-out counters.
    • Tesco store personnel ensure that if there was more than one person at any counter will lead to open for the person second in line.
    • In 1994, Tesco began tied up with Dunnhumby.
    • Tesco began testing of Clubcard Loyalty Scheme.
    • In this way Company started collecting the Database of customers like name, add, dob, e-mail etc.
  • Continue….
    • With the help of data mining they analyzed the data and classified the customers into four broad categories: Premium, Standard, Potential and Uncommitted.
    • Further analysis on the type of product purchased.
    • Customers were categorized along dimensions such as, value, convenience, frozen, healthy eating, fresh and kids.
    • Tesco began giving many special privileges, such as Valet parking and personal attention from store managers to customers.
    • Special cards were created for students and mothers.
    • Special attention given to expectant mothers in the form of personal shopping assistants.
  • Tesco used the info.
    • Tesco used the information generated by the Clubcards in following ways:
    • Pricing
    • Merchandising
    • Promotions
    • Customer Service
    • Media Effectiveness
    • Customer Acquisition
    • Market Research
    • Customer Communication.
  • Reaping the Benefits
    • Tesco adopted “ the rifle shot approach ” instead of “ the carpet bombing approach ”
    • Due to the captive customer base and the cross-selling opportunity, the cost of acquiring customers for its financial service was 50% less.
    • Due to the data Tesco was able to offer better services to the customers.
    • Tesco was ensured that the footfalls in its stores did not decline on account of competitive pressures.
    • Tesco developed a totally new product rage, “ Tesco Finest” for the high income bracket who are attracted by rivals.
    • Tesco, removed the impulsive products like candies from off-shelf still company earned profit.
  • Customer Service to Customer Delight
    • Tesco adopted the four-pronged approach: launch better & bigger stores, offer competitive prices, increase the products offered and focus on remote shopping services.
    • Tesco, employed a dedicated team of employees, called “ Price Checkers ”.
  • Every Customer Offered Help (ECOH)
    • All employee were given clear instructions about the way in which they were expected to deal with customers like:
    • Greet customers,
    • Offerings them help and
    • Wishing them a good day.
    • In 2001 – 02 Tesco, introduced Customer Chamapions in its stores.
    • It also collaborate with suppliers to develop a “ Lean Thinking ”.
    • Company also followed a continuous replenishment of policy to ensure at leat 99% of stock availability.
    • In 2003, company launched a fixed line telephone and mobile phone service in the UK.
    • Tesco launched a new initiative targeted at its women customers name “ Me Time ”
    • “ Me Time ” was offered ladies free sessions at leading health spas, luxury gyms and beauty saloons and discounts on designers clothes, perfumes and cosmetics.
    • In 2003, company cut a total $60 million off on a vast range of products to continue offering competitive prices.
    • Than you