...Journal Article: Building Brand Webs: Customer Relationship Management Through the Tesco Clubcard Loyalty Scheme Group Topic: Customer Relations and the Food Industry In this journal article, the author, Rowley, examines the use of loyalty schemes and the role that they have in developing a customer relationship with the brand distributing, or communicating with the loyalty scheme. The role of loyalty schemes in branding is also examined alongside their effectiveness of keeping customers loyal. A central argument that is portrayed is ‘Do loyalty schemes work?’ (Rowley, 2005:194). This is assessed on their effectiveness on the way the brand or organisation is perceived and the way customers behave towards the brand. The theory that Rowley basis her argument around is that ‘relationship marketing acknowledges that a stable customer base is a core business asset’ (2005:195). The role of theory in this instance is used to help understand the use of loyalty schemes and the relationship they build with the customer and the brand. So by a brand opting to use a loyalty scheme, they can effectively get to know their customers. This can result in a stable customer base for them, therefore benefiting the business or brand in many ways. Another theory that is used in this article is that customer loyalty cannot be bought through such schemes, rather it is developed overtime through a sense of customer satisfaction and value. A number of different perspectives are...
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...|Tesco’s Customer Relationship Management | | | |The case describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing | |company in the United Kingdom (UK), since the mid-1990s. The company's growth and its numerous customer service efforts | |are discussed. The case then studies the loyalty card scheme launched by the company in 1995. It examines how the data | |generated through this scheme was used to modify the company's marketing strategies and explores the role played by the | |scheme in making Tesco the market leader. The case also takes a look at the various other ways in which Tesco tried to | |offer its customers the best possible service. Finally, the company's future prospects are commented on in light of | |changing market dynamics, the company's new strategic game plan, and criticism of loyalty card schemes. | |Issues: | | | |»Examine how the information gathered through CRM tools can be used to modify marketing strategies and the benefits that | |can...
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...The Effectiveness Of Loyalty Cards To Build Store Loyalty. The Case Of Tesco YourFirstName YourLastName University title EFFECTIVENESS OF LOYALTY CARDS TO BUILD THE STORE LOYALTY Abstract The main purpose of this research is to assess the effectiveness of loyalty cards and identify how loyalty cards build store loyalty. The research entailed selecting a survey from a sample of British households, which included 175 loyalty card holder and 175 non loyalty card holders. The data involved sending of a structured questionnaire to potential participants via email and the result was expected back in a period of two week time. Both the qualitative and quantitative methods of data analysis were used, Cronbach’s Alpha and Independent T-Test. The qualitative analysis was done with the use of content analysis. The findings from the research revealed that loyalty cards are less effective to build behavioral store loyalty but more effective in influencing attitudinal store. Introduction Considering the current economical crisis, new and existing companies have a reason to establish as well as maintain customers and earn profit as much as possible. New trends have emerged in the market which involves shortening products life cycles, and specialization in service area as well as focusing on customer preference, (Lee et al, 2010). Different countries adopt different methods of implementing customer relationship management (CRM). Traditionally, companies focused...
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...sounds good - loyalty cards entitle us to freebies or cash simply for shopping at our local superstore. Of course, retailers get something in return: a heap of information about us we might prefer them not to know. That's before they get started on the new tags that track you and what you buy. Rachel Shabi investigates Every time you reach the checkout in the two biggest supermarket chains, it's the same question: have you got a card? It can get irritating, but nonetheless we have willingly signed up to their reward schemes - in droves. According to market researchers TNS, around 85% of UK households have at least one loyalty card. We've accepted the membership rules of these innocent-looking, points-mean-prizes clubs: you show us some loyalty, say the retailers, and we'll give you nice bonuses in return. That loyalty, on the face of it, is based on how much you spend with one particular retailer. Sure, the rewards aren't huge but, as Tesco likes to put it, "Every little helps." Besides which, we in the UK love bargains, and getting something for nothing even more. But the question is: how much does the nothing really cost? It is not simply a matter of choosing to be "loyal", now synonymous with "open your wallet", to one supermarket over another - the cost is in having your purchases scrutinised and analysed in staggering detail by the loyalty card retailers. You'd be amazed what they can do with a seemingly innocuous flow of till receipts, coupled with your loyalty card. Worse...
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...Tesco Club Card Essay | 10359762 | | 4/11/2013 4/11/2013 Introduction The aim of the survey was to establish my hypothesis which was. To investigate how efficient and effective the Tesco’s Clubcard is and has this loyalty scheme helped the customers. Which gender is using the schemes most and finally what are they predominately using the points gained for. There was mixed views amongst the people I surveyed but overall my hypothesis was proven right, on the other hand I only surveyed fifty people which is not enough to make final conclusions and really money cannot be invested as it could be wrong. As for this purpose it was enough due to cost restrain. If this was to be presented to the Tesco management, they will not really believe that a hypothesis can be proved with the aid of fifty participants. Therefore, the success of this survey is decided on the fact that are there enough data to make a meaningful conclusion of the data and it did not have to be correct as such. On the other hand, my survey was a success because I have got the questionnaire fully answered and fortunately fit my hypothesis. Amazingly males seem to be members of the Clubcard more than females do, this is not often expected as females do tend to do the household shopping and often have the patient to deal with Clubcard and other paper work that it brings along. The points gained for is amazingly high amongst over the 55+ as they seem to have taken an interest on using them for others and outing...
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...2015 BBMR4103 RELATIONSHIP MARKETING 1.0 Introduction Tesco is the world leading retailer in United Kingdom and has now entered the retail industry in Malaysia. Tesco Stores (Malaysia) Sdn. Bhd. was established on 29 November 2001, partnering with Tesco Plc UK and Sime Darby Berhad. Sime Darby holds 30% of the total shares. The first Tesco hypermarket was opened in 2002, at Puchong, Selangor. Today, Tesco Malaysia has nearly 15,000 employees and 43 stores in Malaysia. Tesco Malaysia started to operate in two formats which are Tesco Hypermarket and Tesco Extra Hypermarket. Tesco Hypermarket is a place that offers customers a complete one stop shopping for their needs from fresh food to groceries, from household needs to apparel. It carries more than 86,000 lines of products including nearly 4,000 own brand of products ranging from food to non-food items. Tesco Extra Hypermarket serves the needs of small businesses, families and individuals all under one roof by providing a comprehensive range of products and services focused for small businesses including bigger pack sizes, special trolleys and checkouts as well as a dedicated business development team to support small business owners with their orders. Tesco Malaysia believes that their success depends on people, which include the people who shop with them and people who work with them. If customers like what was offered to them, they are more likely to come back and shop with Tesco again. If Tesco team find that their...
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...implementation of customer relationship management in chain of supermarkets in the United Kingdom 1. Introduction Today, more and more companies find that cultivating customer loyalty is a key factor to achieve success. Customer relationship management (CRM) focuses on the relationship between customer and company. Due to this feature, many companies are trying to establish their own CRM system for helping them to connect new customers and boost old customers’ long-term loyalty. CRM systems include operations and analysis, and relationship marketing strategy and supporting, customer-centric business processes (Buttle 2004). With the development of information technology (IT), using CRM system is more convenient. It is considered as an important strategic compulsory (Coltman 2007), with investment predicting that global costing will increase on CRM system over the future (Gartner Group 2009). From a U.S. based survey, it was found by Goodhue et al. (2002) that a CRM system had already been established or was planned by 91 percent of companies. However, according to Rigby, the application of a CRM system is not very successful (Rigby et al. 2002).The main reason is that more than half of total companies consider CRM as a simple technology solution which aims to build a bridge among marketing, sales and service (Peppers and Rogers, 1999). A successful implementation should consist of different functional departments and be based on the needs of customer, at the same time...
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...prescribes satisfying the market through an understanding and response to local needs, which include those of final and intermediate customers, competitors and the macro-environment and leads to superior performance (Narver & Slater, 1990). Due to the retail industry’s direct contact with the market and customers, it makes sense to look at market orientation as a concept to assess the success of Tesco. Market orientation is of even greater interest when entry into emerging markets is undertaken by a Western retailing firm, suggesting that a close understanding and response to customer needs is vital. Tesco’s management places an emphasis on customer needs through the ‘Tesco Values’ philosophy, expressed as two values – “no one tries harder for customers; treat people how we like to be treated.” The values are disseminated through an internal marketing strategy, which includes distribution of company newspaper to employees. However, these values emanate from the UK and recognition of a need for country-specific practices and local can be secondary to corporate unity. Tesco has a reputation for innovative information solutions, and its ‘Clubcard’ loyalty scheme and web sites are central to this. Tesco is the UK’s largest retailer and therefore has a significant customer base on which analysis can be performed. Because many of those customers return at weekly or similar intervals, Clubcard data and relationships are both deep and wide. Accordingly, Clubcard has significant potential...
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...Approach ------------------------------------------ 4 (P5- Micro and Macro environment factors affecting business. -------------------------- 5 (P6- Targeting strategies----------------------------------------------------------------------- 8 (P7- Targeting strategies of TESCO. ------------------------------------------------------- 9 (P8- Buyer behaviour affecting marketing activity. --------------------------------------- 10 (P15- Difference in marketing product and service. --------------------------------------- 10 (P16- International marketing operation. ---------------------------------------------------- 11 (P [9-12]- Marketing mix (4ps) --------------------------------------------------------------- 12 (P13- Extended marketing mix. --------------------------------------------------------------- 13 (P14- Recommendation------------------------------------------------------------------------ 14 Reference----------------------------------------------------------------------------------------- 15 Task 1 (P1- Marketing definition According to Philip Kotler, Marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. In this definition, the author tells that it is a social and commercial activity where goods and service are sold and bought. Different people have different needs. Now a days if we want to buy a product...
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...Introduction The report starts with looking at and exploring what marketing is and how it has evolved. The report is supported with marketing definitions from three different sources and what is meant by a marketing orientation and marketing process. Secondly, an introduction of Tesco the organisation the report will be focusing on throughout the report. Within the report there are some tables and graphs used to support the answers to some of the assessment criteria. The fundamental concepts and principles that underpin the marketing process are discussed and the use of environmental analysis in marketing, while the narrator carries out their own analyses at both macro and micro levels. The report investigates the importance of market segmentation and how this leads to the identification and full specification of target groups. It then considers buyer behaviour and positioning. The main elements of both the original and the extended marketing mix are then looked at. An introduction to the concept of the product life cycle, new product development, pricing strategies, distribution options and the promotion mix have all been discussed. Finally the narrator has developed marketing mixes to meet the needs of different target groups. The report includes the differences when marketing services as opposed to goods and examines marketing to businesses instead of consumers and the development of international markets. The report concludes by summarising the principles of marketing and...
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...Concept 3 1.2 Brief Background of Tesco PLC 3 Main Products and service range offered 4 Markets Served 5 Tesco’s Main Competition 5 1.3 Key Issues faced by industry players and Tesco PLC 5 2.0 Marketing Mix 6 2.1 Product Mix 6 2.2 Place Strategy 8 2.2.1 Current strategies used in distribution 8 2.3 Price Strategies 8 2.4 Promotion Mix 9 3.0 Technological Impact 10 3.1.1 Tesco and CRM (Customer Relationship Management) 10 4.0 Conclusion 12 Executive Summary The main objective of this report is to critically analyze the Tesco PLC’s overall operational scope based on a retailing perspective, since they are indeed the UK’s largest multiple retailer and across in Central Europe, it is the author’s main objective to study the marketing mix strategies and the components of the business as well. The technological factors as well the customer relationship management that Tesco has incorporated into their business in order to gain reputation and an established brand reputation is also what fascinated the author to conduct this research because Tesco has proven themselves in terms of the diversification of their services and the further expansion of their stores across the globe with an effective marketing strategy associated with it. Furthermore the highly advanced Information Technology and IT systems that has given Tesco a competitive advantage over the competitors on an international platform and has helped Tesco in maximizing the overall supply chain...
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...millions of customers each week. Our core purpose is 'we make what matters better, together” Philip Clarke, Chief Executive( www.tescoplc.com/interims2013) Our Three Big Ambitions Create new opportunities for millions of young people around the worldOpen Help and encourage our colleagues and customers to live healthier livesOpen Lead in reducing food waste globally * ------------------------------------------------- Our Essentials Trading responsibly: Tesco trade responsibly by putting our customers first and working with our suppliers to innovate and provide high quality products Reducing our impact on the environment: We are reducing our impact on the environment aiming to be a zero-carbon business by 2050 and using scarce resources responsibly, including in our supply chain Being a great employer: We are a great employer creating inspiring work that makes our colleagues happy and proud of what they do Supporting local communities: We support our local communities by being a good neighbour and running our business to the highest standards * Tesco has signed a £28 million deal with CA Technologies, adopting the vendor's systems management tools as a global standard. The UK retail giant has been a CA customer for 20 years, and has used its Unicenter systems management platform to support international operations since 2005. “We rely on CA Technologies software to tame a very big, distributed, heterogeneous infrastructure," explained Tesco CIO Mike...
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...DEIGHTON Nectar: Making Loyalty Pay Persuading British households to do anything was not easy, yet, in the 18 months leading up to March 2004, Loyalty Management UK (LMUK) had induced over 54% of them to try collecting Nectar points and 40% to persist, making Nectar Britain’s largest rewards program. Each week it added 50,000 new members (whom Nectar called collectors). Rob Gierkink, CEO of LMUK, was pleased with his team’s accomplishment. In March 2004 Justin King had just taken over as group chief executive at Sainsbury’s, the supermarket chain that was Nectar’s largest issuer of points. He saw that more than half of Sainsbury’s 240 million pound (₤) annual marketing budget went to Nectar and said: “Nectar represents a significant investment for Sainsbury’s, and I can’t help but feel that if we put the investment into more staff in our stores we’d see a better return. I was part of the senior management team that turned around the ASDA supermarket chain before it was sold to Wal-Mart, and the changes we made at ASDA were all about price and value for money. ASDA didn’t have a loyalty program.” He continued: But I do understand the value of knowing more about what our customers are doing dayto-day and this is part of the value we get from Nectar. We use the Nectar data on our customers to help us determine which stock to carry in which stores. The Nectar data also allows us to do much better and more targeted marketing to our customers. In six months time I’ll...
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...Task 1 Tesco, the largest retailer in UK as well as the third biggest in the world in terms of revenue, originally specialising in food and drink, it has diversified into areas such as clothing, consumer electronics, financial services, telecoms, health and car insurance, dental plans, retailing and renting DVDs, CDs, music downloads, internet services and software. Tesco was founded in 1919 by Jack Cohen. In 1924 the brand Tesco was first started the journey and 1932 it became a private limited company. Now Tesco is operating in 14 countries all over the world. There are 4,331 Tesco stores and employ over 500,000 people and serve tens of millions of customers every week. Tesco’s well established and consistent business strategy has enabled it to strengthen the core UK business and expand into new markets successfully. Tesco’s business strategies are mainly focusing on huge domestic market of financial services, telecoms and non-food. One of the main objectives of Tesco’s business strategy is to create sustainable long term growth and according to the company this could be achieved by expanding into global market. The company initially focused on Asia and central Europe. Most recently it has made its entry into the US market. In 1997 Tesco first decided to diversify and according to the company itself this was the basis of its recent success. As a result of this strategy several new businesses have been created by Tesco for the last 12 years and most of these businesses are...
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...Customer Relationship Management Proposal For Fish Lover’s Content Section I: Introduction Section II: Previous Works In The Field And Its Advantages Of The Approach Over Existing Prototypes Section III: Key Ideas Of Research With CRM In Today’s Trends Section IV: Prototype CRM System For Fish Lover’s Section V: Extending System To Other Area Of Business. Section VI: Conclusion SECTION I: INTRODUCTION The key element of a business is to make profit. To reach these goal customers has to be satisfied. Giving attention to the customer’s need and requirement has become the foremost important goal of 99% of the companies today. Customer Relationship Management, or CRM is a strategy highly required to enterprises in cost savings and increasing customer base by solidifying them. CRM allows bringing true data sources in to the organization giving a holistic view of customers in real time, which will help the enterprise to function according to their demands with high quality services; hence allowing the organization to make informed decisions at the right time. Through good customer care organization gain its reputation. The proposal is based on implementing a CRM system to a newly establishing organization in Maldives. The enterprise is to establish a fish processing company; mainly canning flavored fish. The CRM system for the business is the latest trends in 2014,including social media, cloud technology and mobile devices...
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