Essay About Bar Codes And Loyalty Card Scheme

Tesco
Essay Preview: Tesco
Report this essay
Strategies
1) Internationalisation
•
Operations in 12 countries outside of UK mainly Asia & Europe
•
Expansion into the US
Through organic growth
Initial planned capital of ÐЈ250 million a year
Based on express concept
First store opened in 2007 in USA
Want to reap advantages from the largest economy in the world
2) Loyalty Card Scheme (CRM)
•
Develop loyalty and foster relationships with customers, increase retention and repeat purchase
•
After 6 months:
16% increase in half year profits
2.1% increase in market share
10% increase in like for like sales
•
Allowed DB mkg:
•
Identify trends/spending habits
•
Aids basket building
•
Aids NPD and extending product ranges
•
Gives invaluable knowledge which helps with
Supplier negotiation
Competitor defenses
Strategic differentiation — competitive advantage
•
Re-launched to meet customer needs and beat competition with success
•
Overhauled and introduced new added value factors such as:
Simplicity
Ease of use
Higher profile in store
More rewards
Bar codes (also aided DB)
Key fob — easier to remember
Ability to convert vouchers into deals online
Christmas saving — option to store vouchers
Offers to suit the individual customer — customization
3) CSR
3.1) External
•
Local regeneration
•
Employment projects
•
Computers to schools
•
Recycling
•
Ethical supplier relationships
•
Energy efficiency
3.2) Internal
•
Employment diversity
•
Health and safety
•
Occupational pension scheme
Restructuring
•
Signed partnership agreement with USDAW for health