Tesco The Customer Relationship Champion Marketing Essay

Tesco The Customer Relationship Champion Marketing Essay The Tesco story dates back to 1919 when Jack Cohen, an ex-army man, setup a grocery business in Londons East End. In 1924 Cohen purchased a shipment of tea from a company named T E Stockwell. He used the first three letters of this companys name, added the Co from his name and branded the tea Tesco. Reportedly, he was so enamoured of that he named his entire business Tesco. The first store under the Tesco name was opened in 1929 in Burnt Oak, Edgware. The company grew rapidly in the years that followed, and evolved into a general food retailing outfit. By 1930, around 100 stores were operating under the Tesco Label  [1]  . Realising that the self-service mode of running supermarkets prevalent in the USA worked out much cheaper than the traditional mode of and enabled companies to offer their merchandise at lower prices, Cohen decided to adopt the same for Tesco stores. In 1948, the first self-service Tesco was opened in St Albans. Over the next few years, Tesco grew to 400 stores many of which were purchased by Cohen from other smaller shopping store chains in the country. In the early 1960s, the company began selling clothing, household goods and fresh food in addition to groceries. Tesco pioneered the large format stores concept in the UK with the launch of a 16,500 sq. Ft. store in Leicester in 1961  [2]  . A Master in CRM: Every three months, millions of people in the UK receive mailers from the countrys number one retailer, Tesco. Nothing exceptional about the concept all most all leading retailers across the world send out mailers/magazines to their customers. These initiatives promote the stores products, introduce promotional schemes and contain discount coupons. However what sets Tesco apart from such run-of-the-mill initiatives is the fact that Tesco mass-customises these mailers. Every mailer has a unique combination of articles, advertisements related to Tescos offerings, and third party advertisements as well. Tesco ensures that all of its customers receive mailers which contain material suited to their lifestyles. The company has worked out a mechanism for determining the advertisements and promotional coupons that would go in each of the over 150,000 variants of the mailers. This has been made possible by Tescos world-renowned CRM strategy framework. The Clubcard scheme (launched in 1995) laid the foundations of this CRM framework that made Tesco post growth figures in an industry that had been stagnating for a long time. The data collected through Clubcards formed the basis for formulating strategies that offered personalised services in a cost-effective manner  [3]  . CRM The Tesco Way: Tescos efforts towards offering better services to its customers and meeting their needs can be traced back to the days when it positioned itself as a company that offered good quality products at extremely competitive prices. Even its decision to offer premium end merchandise and services in the 1970s was prompted by growing customer demand for the same. In 1994, the company launched the One in Front scheme to reduce the time customers had to spend waiting at check-out counters. Under this scheme, Tesco store personnel ensured that if there was more than one person at any counter, another counter would be opened for the person in the line. In this way none of the customers have to wait at the check-out counters. Of course, it is not possible for Tesco to adhere this policy during peak trading hours. Nevertheless, this effort to improve customer was appreciated by customers  [4]  . The biggest customer service initiative (and the first focused CRM drive) came in the form of the Clubcard which was launched in 1995. This initiative was partly inspired by the growing popularity of such schemes in other parts of the world and partly by Tescos belief that it would be able to serve its customers in a much better (and profitable) manner by using such a scheme. Tesco knew that at any of its stores, the top 100 customers were worth as much as the bottom 4,000 (in terms of sales). While the top five percent customers accounted for twenty percent of sales, the bottom twenty five percent only accounted for only two percent. The company realised that by giving extra attention to top customers (measured by the frequency of purchases and the amount spent), it stood to gain a lot  [5]  . In May 1994, Tesco began testing the Clubcard loyalty scheme at two of its stores for a period of six months. The scheme started off like any other loyalty card scheme. Customers became members by paying a joining fee and providing personal details such as name, address, date of birth, e-mail, family composition, dietary requirements and product preferences. Impressed with the programs results over six months, the company introduced the scheme in all of its stores by February 1995. All the transactions were linked to individual customer profiles and generated over 50 Gigabytes of data every week. The analysis of the data enabled Tesco to accurately pin-point the time when purchases were made, the amount customer spent, and the kinds of products purchased. Based on the amount spent and the frequency of shopping, customers were classified into four broad categories: Premium, Standard, Potential and Uncommitted Further, profiles were created for all customers on the basis of the types o f products they purchased. Customers were categorised along dimensions such as, Value, Convenience, Frozen, Healthy Eating, Fresh and Kids  [6]  . Tesco also identified over 5,000 need segments based on the purchasing habits and behaviour patterns of its customers. Each of these segments could be targeted specifically with tailor-made campaigns and advertisements. Tesco also identified eight primary life stage need segments based on the profiles of its customers. These segments included single adults, pensioners and urban professionals among others. Another classification of customers developed from the insights generated through data mining. Using this information regarding the classification of customers, Tescos marketing department devised customised strategies for each category. Pricing information and product related decisions were taken after considering the preferences of customers. Also, customers received communications that were tailored to their buying patterns. The data collected through the Clubcard scheme allowed Tesco to modify its strategies on various fronts such as pricing, inventory management, shopping analysis, customer acquisition, new product launches, store management, online customer behaviour and media effectiveness. The data generated by Clubcard was used innovatively, e.g. special attention give to expectant mothers in the form of personal shopping assistants, priority parking and various other facilities. Tesco also tied up with airline companies and began offering Frequent Flyer Miles to customers in return for the points on their Clubcards. Reaping the benefits: The data collected through Clubcard allowed Tesco to target individual customers (the rifle shot approach), instead of targeting them as a group (the carpet bombing approach). As the customers receive the coupons which matches their buying patterns, over twenty percent of Tescos coupons were redeemed as against the industry average of 0.5 percent. Customers falling in different categories receive mailers which are specifically for them. The mass customisation of these mailers also attracted third-party advertisers, since it assured them that their products/services would be noticed by those very customers they plan to target. Naturally, Tesco recovered a large part of its investment in this exercise through revenues generated by third-party advertisements  [7]  . When Tesco discovered that around 25 percent of its customers, who belonged to the high income bracket were defecting to rival Marks Spencer, it developed a totally new product range, Tesco Finest to lure back those customers. This range was then promoted to affluent customers through personalised promotions. As planned, the deflection of customers from this segment slowed down considerably. From Customer Service To Customer Delight: To sustain the growth achieved through the launch of Clubcard, Tesco decided to adopt a four pronged approach: launch better, bigger stores on a frequent basis; offer competitive prices (e.g. offering everyday low prices in the staples business); increase the number of products offered in the Value range; and the focus on the remote shopping services (this includes the online shopping venture). To make sure that its prices were the lowest among all retailers, Tesco employed a dedicated team of employees, called price checkers. This team checked and compared Tescos prices with those of other companies on a weekly basis. The company even helped its customers to compare prices by providing the information on Tesco.com  [8]  . Recommendations: Even though Tescos CRM efforts have resulted in superior financial performance and market share, the company has to look at its customer service standards. Tesco have spent so much time improving the way their stores look, the range of products they sell and their service processes that they may have temporarily overlooked the impact that their people can make on customers through their behaviour, they need to re-address this issue. Tesco should launch initiatives like Every Customer offered Help (ECOH). As part of ECOH, all employees should be given clear instructions about the way in which they are expected to deal with customers. Employees at the check-out counters, for instance, should be asked to be very particular about greeting the customers, offering the help to the customer and finally, wishing customers a good day. Store managers should be empowered for making the ECOH initiative successful, and they should participate whole-heartedly in the scheme. Tesco should also realise that Clubcard initiatives was just one part of the overall thrust on CRM and customer enhancement is needed to survive and excel in the intensely competitive British retail industry. Tesco therefore have to take host of initiatives in its stores to further the thrust given to customer service. Tesco should also introduce new scheduling system for the store employees to increase customer satisfaction levels. Tesco should also make it mandatory for all employees (including top level executives) to spend some time every year in the stores to help them to get acquainted with the nuances of customer service. This program will help Tesco employees to ingrain customer service as a company philosophy in all employees and it will also result in the development of many innovative ideas. Unlike Asdas customer service program, Tescos program should not require employees to get too personal with customers, as Asda have posted employees at the entrance doors to greet customers. To ensure that its CRM efforts are backed by a strong operational framework, Tesco should pay special attention to controlling costs and streamlining its supply chain. In association with its suppliers, Tesco should try to remove all non-value adding costs. Tesco should also collaborate with its suppliers to develop a Lean Thinking approach, which should focus on smart and efficient working.

Advantages of Credit Cards

Throughout history, men invented ingenious ways to solve problems. Some simple, but most will leave a big impact on our future. Men invented trading as means to acquire things that is needed, with another individual who wants what the trader has. But sometimes, what we want to trade with is not what the tradee wants. So currency is formed. Currency is accumulatable, powerful and can be used to acquire our wants and needs. Currency had been created in many shapes and sizes.When it was first invented, precious metals such as silver and gold chips are the most widely used. But in our modern era, paper currency reigns dominance. As time goes on, men started craving, craving for thing or material objects that only money can buy. And one might not have the funds to buy such things or if that certain desire costs a lot, bringing a whole load of cash with you to the store might not be such a good idea for many reasons. And so the credit card is invented. This small little piece of plastic wi ll leave a big impact on society.There are repercussions of misusing this object but let’s talk about the advantages for now. So what exactly are the advantages of credit cards? BUY TICKETS OR SHOP ONLINE EASILY In modern society, people have found ingenious ways to make acquiring everyday needs or material objects of desired. Grocery shops were invented so that we don’t need to wake up early and go all the way to farms to get fresh food like vegetables, eggs and meat. But what if we want require specific items, something that is not common but it needed as quick as possible.We might go around asking our friends and relatives to acquire those items. How troublesome would that have been, or had been as people actually did this back then. But then, utilizing the power of the internet, people had discovered that they can acquire things that are unusually rare, but is available. Sometimes from a seller from another country. To buy, means to pay. But how do we pay someone f rom another country? Mailing a wad of cash in an envelope to the seller might not be such a good idea, as mail do get lost from time to time.And so the credit card plays the role in rectifying this problem. Using the credit card we can pay the seller using borrowed funds from the bank and send it to the seller in the form of digital data in which will then be added to the account of the seller and thus the seller is paid. We can acquire things easily from the internet, and now with the usage of credit card,everything we need can be acquired. If it exists, if it is being sold, it can be acquired. It doesn’t matter if it’s in China, New York or timbuctoo.And lets say if something is on sale or your favorite band is having a concert in your hometown but you don’t have enough cash to buy it and if you wait until your pay check to arrive, your opportunity is long gone. Don’t worry your credit card is here to help. Instant currency with just a swipe of the card or a few presses of some numbers and information on the internet. No longer will you have to wait in line at the airport to buy tickets, you get get them through the internet using your credit card in just a few minutes.Nowadays people would rather stay home and shop through the internet than having to endure a long drive to the local mall especially if during the peak hours where there are traffic jams. Sites such as Lazada. com are common shopping websites that welcomes the usage of credit cards. It’s like a virtual mall in which the items bought need not be carried in accumulative quantities to the car park, but is put in a virtual shopping cart and then sent directly onto your doorsteps after the credit card payment has been made.

How to Reduce Accident on Our Road?

Time to time, half a million of Malaysians died because of road accidents. Malaysia is the country that has the highest accident rate in the world. The rise in the number of road accidents is indeed worrying. Even the road safety campaigns aimed at reducing road accidents have met with little success. Only when there is a change in the mindsets of road users can we expect a decrease in the number of road accidents. Even though we cannot prevent the accidents from happening totally but we can help to reduce the many accidents to its minimum stage by taking the following several steps and ideas are suggested. The first and foremost, every driver should be advised to take good care of their vehicle. We have to make sure that our vehicles are in good running condition and rectify them at the earliest before travelling. It’s better to be shocked and to realize something was wrong while we were in the garage, rather than realizing the same while we were driving. If we are not sure with our own auto-mobile engineering skills, we should check our vehicle problem by using the help of mechanic. We should service our vehicle regularly as recommended by the manufacturer. So, we can drive our vehicles and arrived to our destination safely. Secondly, every driver should do not speed while driving their vehicles. This is the main reason that contributes to the road accident happen in Malaysia. The government should introduce deterrence to reduce the accident on our road. For instance, the government can install speed cameras in the accident-prone place. This will help authorities to identify and take legal action to the driver that do not follow the speed limit. Besides that, every driver should obey road sign and traffic rules. Every legal that have been made are for our own safety. On the other words, we have to follow the rules and we should try our best to prevent accident to happen frequently. In addition, we can reduce accidents on the road by introducing heavy penalties for traffic offenses. Authorities can increase the summonses for the drivers that break the rules. Every offender is compulsory to pay the summons. If they cannot make a payment, they will send to the prisons. This will prevent people to do not make the offense for the second time because of fear with punishment that have been made. Moreover, an individual’s penalty can be considered a mirror at which other people can look and try not to do the same thing. This method will help to minimize the accident from happening. Furthermore, we can take action to control this problem by educating the public on road safety. The government or NGO should educate people through a campaign or advertisement on television or radio. The public should be exposed to the way safety while driving a vehicle on the road. The government can implement campaigns to instil awareness to all Malaysians. In addition, the younger generation should be exposed to the rules of the road in Malaysia. So they can follow the legal and reduce the accident that happens on our road. As a conclusion, the road users must implement their obligations. So, they can guarantee their safety. Accordingly, all parties need to work together to mobilize energy to overcome this problem completely. Collective efforts that I suggest should be implemented immediately. If the above measures supported by the people of Malaysia, I'm sure the amount of road accidents in Malaysia can be reduced effectively.

Renewable Energy Alternative Energy - 1559 Words

Alternative energy can be defined as Energy, as solar, wind, or nuclear energy, that can replace or supplement traditional fossil-fuel sources, such as coal, oil, and natural gas. When thinking about alternative energy sources we generally focus on the main types: nuclear, solar, wind, and hydroelectric. These are things that mainly do not cause pollution and are very environmentally friendly (Alternative Energy). Alternative energy is thought to be renewable and â€Å"free.† Biomass Energy, Wind Energy, Solar Energy, Geothermal Energy, and Hydroelectric Energy all have very low carbon emissions compared to the conventional energy sources (Alternative Energy). With using the alternative energy route instead of conventional energy sources, we can help to keep this earth going for a very long time. So how are all of these things generated? Nuclear energy is fueled from a power plant, much like fossil fuels. To start, water is first turned into steam which helps to produce elect ricity. The heat that is used to make the steam out of the water is what makes the uranium atoms split; this is called fission. Here in the United States we have two types of nuclear reactors, Pressurized Water Reactor and Boiling Water Reactor. The first type is to help keep the water under a lot of pressure to make it heat up, but does not allow it to boil. The water then travels though a number of tubes that the water can steam up in which helps to turn the turbine generators. The second type of waterShow MoreRelatedAlternative Energy : Renewable Energy966 Words   |  4 PagesAlternative Energy. What is it? Alternative energy: energy generated in ways that do not deplete natural resources or harm the environment, avoiding the use of fossil fuels and nuclear power (Google Definition). ALternative energy is the way to go: it is cleaner than Fossil Fuels and Nuclear Power, it works with the environment, and is benefitial to the community. First off, the majority of the world, 80% of the United States uses Nuclear power or Fossil Fuels as a source of energy and electricityRead MoreRenewable Energy : Alternative Energy1419 Words   |  6 PagesAlternative energy includes forms that can be continuously renewed without the concern of the supply running out. Over the last two centuries, renewable energy has become much more popular, worldwide. Forms of renewable energy most popularly include solar, wind, and hydroelectric power. Laws and regulations are constantly created to improve the forms of energy we use and the amount in which each form creates. Alternative energy is also referred to as renewable, and received its name from being theRead MoreAlternative Energy : Renewable Energy1785 Words   |  8 Pagescurrent energy usage, which is fossil fuels, is not sustainable and carries negative effects to the environment. However nothing is perfect, even renewable energy has its fair share of disadvantages. Can alternative (reusable) energy sources such as nuclear, hydrogen, biofuels or solar energy meet the energy demands needed by humans to carry out their everyday tasks such as electricity, commuting, and so on better than fossil fuels such as coal and oil which creates a mast amount of energy today.Read MoreAlternative Energy And Renewable Energy1668 Words   |  7 PagesThroughout the 20th and 21st century, our knowledge about the environment and energy has steadily grown, as well as our dependence on them. Nowadays, power and electricity are in every facet of our daily lives. Due to this, we overlook several negative effects our traditional use of fossil fuels have caused. Fossil fuels are fuel deposits that were formed hundreds of millions of years ago, which is where the term fossil fuels come from. The two most common fossil fuels currently in use are coal andRead MoreAlternative Energy Sources For Renewable Energy1710 Words   |  7 Pagesconcern for our environment, alternative energy ha s become a source of energy that is an alternative to the problem that these fossil fuels have caused our Earth. Alternative energy are renewable and is considered to be free energy sources (Alternative Energy). All alternative energy sources have lower carbon emissions when being compared to conventional energy sources. These sources include Biomass Energy, Wind, Solar, Geothermal, and Hydroelectric Energy (Alternative Energy). With the use of recyclingRead MoreAlternative Energy Sources For Renewable Energy1511 Words   |  7 PagesRenewable energy has become a widely popular topic in society. With the rapid depletion of fossil fuels, scientist are looking to natural and renewable resources to create a means to produce sustainable energy. There are many alternative energy sources that have proven useful in the past couple of years. Some of the alternative energy sources are not only more useful than others but have proven to be easier to attain and also prove to create a more substantial amount of energy. Today, the most widelyRead MoreAlternative Sources Of Energy For Renewable Energy1766 Words   |  8 PagesAbstract Majority of electricity generated in New Zealand are mainly from renewable source of energy that are naturally occurring. These source of energy are not consumed when converted hence they will not be depleted, and they are constantly reusable and replenish naturally. Increase in research and investment toward renewable energy will benefit New Zealand society as it will generate less pollution, and more jobs opportunities will emerge. Furthermore it will benefit New Zealand by reinforcingRead MoreAlternative Energy Solutions For Renewable Energy1295 Words   |  6 Pagesunderdeveloped technology and overlooked industry. There is much debate on whether any alternative energy solutions are able to effectively replace fossil fuels. Even if they are, we are then faced with the problem of how renewable energy programs could be implemented and improved. There are many aspects of this debate to consider, including energy demand, financial support, and ecological factors. The push for altern ative energies is essential and the need is eminent, therefore government subsidization shouldRead MoreAlternative Energy Sources For Renewable Energy1466 Words   |  6 Pagesseeking new forms of energy that will provide clean energy and also preserve Earth s lifespan. The use of renewable and non-renewable resources has been a major controversy throughout history; renewable energy such as wind power has been the main focus of this issue. Many would believe wind energy is the best renewable power source because it is the cleanest and most efficient, whereas, others view wind energy as a time bomb that will soon destroy the planet. Alternative energy sources should replaceRead MoreRenewable Energy : Alternative Energy Sources1906 Words   |  8 PagesNon- Renewable Energy These energy sources are very efficient in the way they work and provide for our needs. Unfortunately, there are two immense disadvantages for fossil fuels and non-renewable resources. They are named non renewable for a reason, the process that these resources go through literally takes millions of years for them to be useful for our needs. â€Å"We have to recognize there is a finite planetary quantity of each nonrenewable resource that can be recovered economically. In theory,