A take on how TESCO handles customer value and relationships. Done under the guidance of Prof. Sameer Mathur, IIM Lucknow

1. A “Rags to Riches” Story (Not Literally)

2. ?

3. Was founded in 1919 by Jack Cohen
The name TESCO was formed by combining two
words– “Thomas Edward Stockwell” and “COhen”
Business Motto of “Pile it high, Sell it cheap”
One of the biggest domestic store chains in UK.
Blah, Blah Blah…...............

5. NOT VERY FRIENDLY
POOR SHOPPING EXPERIENCE
BAD IMPRESSION ON CUSTOMERS
ANYTHING ELSE?

6. Top
Managem
ent
Middle
Management
Frontline
People
Customers
IT’S OLD APPROACH

7. IT’S NEW APPROACH
Customers
Frontline People
Middle
Management
Top
Management

8. SO, HOW WAS IT
DONE?

9. IMPROVING QUALITY
OF
SHOPPING
* NOTE : I know that this image is too “cheesy”, but you get the point right? (I hope you do)

10. HANDLING
CUSTOMER
COMPLAINTS

11. CONNECTING
WITH
CUSTOMERS

12. BUT OVER ALL OF THIS,
THE MOST
SIGNIFICANT
CHANGE WAS

13. THIS TESCO CLUBCARD

14. SO,
HOW DID
THIS
HELP?

15. GAVE A LARGE
DATABASE
TO WORK ON

16. STUDIED CUSTOMER SHOPPING DATA
TRACED SHOPPING PATTERNS OF CUSTOMERS
TARGETED THEM WITH SPECIFIC OFFERS
BY CREATING “DNA” PROFILE OF CUSTOMERS

17. THE
OUTCOME?

18. oBetween 1990 and 1995, They attracted 1.3
Million new customers
oBecause of new customers, revenues increased
oTESCO surpassed Sainsbury in 1995
oWithin 15 months of Introduction, 8 Million
ClubCards had been Issued.
oBy 2005, it had 35% market share in supermarket
spending.

19. WAS THE
EFFORT
WORTH IT?
GO
FIGURE.

20. SUMMARY
o HISTORY
o ISSUE
o OLD vs NEW MODEL
o METHODS
o TESCO CLUBCARD
o DATA MINING
o OUTCOME

21. DISCLAIMER
Created by Rishab Dev Bhaskar, BITS Pilani Dubai, during a
marketing internship by : Prof. Sameer Mathur,
IIM Lucknow