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Tesco
- 2. HISTORY • Founded in 1919 by Jack Kohen ,Tesco's main purpose is to earn a customer's loyalty by creating a value. • TESCO opened its first store in September 1931 at 54 Walting Street ,Middlesex.
- 3. • Tesco has many awards to its credit which include The Best Grocer of the Year. • It is the 4th most admired brand in UK. • It is ranked among the 100 best companies to work for by the Avatar. Achievements
- 4. Varied Range of Products & Services
- 5. • Tesco has 6,351 stores spread across 12 countries in the world most of them being in European and Asia. • It has its presence in the United States also in the name of Fresh & Easy Neighborhood Market. However due to several reasons it pulled out from the market. • Tesco's major competitors include Walmart , Morrison's , Sainsbury , Aldi . Presence and Competition
- 6. Customers and Employees Tesco's core brand values aim at winning the loyalty of the customer. It has conducted many events to attract customers and reach out to them .
- 7. Tesco has always concentrated in creating a better shopping experience for its customers through constant innovation and application of technology by expanding its channels and updating the existing and attractive advertising. Why Tesco?
- 8. Some of its innovative ideas include drive-thru , Tesco Direct . It has also tried to adapt with the growing technology by introducing plans like Tesco Direct , Tesco.com , mobile Websites , magazines and many more.
- 9. In order to provide a better experience Tesco has different floor plans for different needs of the customer. "Express" floor plan "Home plus " plan Tesco provides food recipes for special dishes .
- 10. As Tesco expands overseas, can it succeed by using the same strategies it has used in the UK? What factors should it take into account while formulating global strategies in the global market ?
- 11. Yes ,Tesco will be able to expand its operations with its current strategies. However it must make some amendments and adaptions to its strategies.
- 12. coмpeтιтιoɴ It must consider its competitors their brand positioning and their brand images in the market.
- 13. Tesco must ensure that expansion does not lead to the increase in the supply channels in the form of franchise for the firm . It must limit its channels of supply to avoid channel conflict.
- 14. ⓁⓄⒸⒶⓁ ⓉⓇⒺⓃⒹⓈ The firm must also take into account the local trends and ideologies and act accordingly. Neglection of this might result in severe losses as in case of fresh & easy Neighborhood.
- 15. What are the ways in which Tesco connects with its customers to provide more value for them ?
- 16. Research • Tesco involves in immense research projects about customers and their purchases. • It has found that its top 100 customers were worth the same as the bottom 4000 I.e. the bottom 25% of the customers represented 2% of the sales and the top 5% represented accounted for the 20% of the total sales.
- 17. Personalized Services Tesco try's to preserve customer loyalty through club cards and vouchers. It offers personalized vouchers to customers .It also connects through appealing calls and mails to customers for their feedback . Every year Tesco polls around 12,000 customer data through its Customer Question Time.
- 18. Tesco uses social media extensively to connect with its customers regularly.
- 19. "One-in –front " plan. For instance if there are more than one customer at a counter then another counter will be opened.
- 20. • Introduction to TESCO and its core values. • The products and services it provides • Its presence across the globe • What it does to achieve them. • Factors it must consider for its global expansion. • What it does to remain as a favorite brand . • Plans and strategies it adopts to connect with its customers.
- 21. DISCLAIMER Created by Seethamraju Purvaj, IIIT Bangalore , during a Marketing Internship by Prof. Sameer Mathur , IIM Lucknow.
Editor's Notes
- TESCO every little helps. Hello, Today we will analyze a mini case about the retail giant TESCO and discuss how it grew over the years by managung and designing its marketing channels and strategies to suit its customers and remain as the Britains favourite brand and what it should do to expand itself.
- Jack Kohen's TESCO's history dates back to 1919 when Mr. Kohen began selling surplus groceries from a stall in London's East End. Tesco's main purpose is to earn a customer's loyalty by creating a value. Tesco opened its first store in September 1931. first day sales of 6.4 and profit of 1.6. Under Dave Lewis tesco had a revenue of 111 billion with profits befor taxes hitting a margin of 4.7 billion in the year 2014.
- Tesco has many awards and rewards to its credit. It is 4th most admired brand in UK. It was also awarded the best grocer of year and also it is ranked among the 100 best companies to work for.
- Starting from groceries Tesco provides a large variety of products and services which include pharmacy , petrol stations , apparels , electronics , software and many more.
- It is spread across 12 countries with different brand names. It has its stores in the brand name of fresh and easy Neighbourhood. With such a large business area it has many competitors which include Morrison's , Walmart , Sainsbury etc.
- Tesco does its best to reach tout to its customers through interactive sessions and events . It also encourages its employees by awarding them and conducting events for them. Sponsorship of events like London Pride brings tesco closer to the people
- But Why Tesco? To preserve the loyalty of the customer tesco aims at providing a better shopping experience every time to its customes. It does this through integration of techinlogy and innovation . It uses innovative ways to advertise and attract its customers
- Tesco has grown along with its customers . It introduced its online marketing platforms Tesco.com and Tesco Direct to give the next generation shopping experience I.e online shopping. It has also come up with apps compatible with ios to ease the shopping experience of the customers. Driv-thrus , in – store innovaitons like scand u shop , electronic shelf edge labels and many more are the examples of tesco's innovative strengths.
- For easy shopping for customers tesco also has many floor plans ranging from Express which consists of only groceries and has an area of 600 sqft. To Home plu plans which have non-food items and cover upto 50000sqft .another interesting fact is that if one would surf through the website of tesco we could see the recipes of dishes by famous chefs based occassions.
- Tesco has a great scope in expanding its business by using its current strategies and plans. However it must make suitable amendments and adaptions to its plans to suit local ideologies and trends.
- With increasing businesses there is an increase in competition that must be taken care of. Tesco must also cnsider the positioning of the prevelant competitors like Aldi Walmart and also try to analyse what makes them desirable.
- There is no solution without a problem .Expansion also brings in more problems due to increase in area of oprtns. This might make the company to increase its channels of supply thus weakening the integrity of the firm . Therefore it must carefully design its expansion strategy and ensure that it must not lose the quality of its services.
- Tesco must also pay attention to the local trends and then act accordingly . Neglection of these was the main reason for the failure of fresh and easy Neighbourhood in the US. The customers were not adaptable to the british style of shopping .
- Tesco involves many research projects to analyse the customers' purchasing trends. For example it found out that the bottom 25% of the customers represented only 2% of the sales whereas the top 5% of them represented 20% of the sales.It also estimates the time spent by customers on particular type of products by analyzing their purchases
- Tesco is also an expert in providing personalised experiences to people . It introduced Clubcard to bring customers together and also gives personalised vouchers to customers based on the research analysis.
- Tesco has used social media to its full extent for its advertisement and also for it to connect with its customers. This a glimpse of the facebook pages of tesco
- Tesco has also many plans and strategies to create a comfortable shopping experieence. The one – in front plan is an example for this . For instance if there are more than one customers at a single checkout counter then another will be opened.