TESCO - The Customer Relationship Management Champion

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Case Details:

Case Code : MKTG070
Case Length : 16 Pages
Period : 1998-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Tesco
Retail ing
Countries : UK

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

The Tesco story dates back to 1919 when Jack Cohen (Cohen), an ex-army man, set up a grocery business in London's 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 company's name, added the 'Co' from his name and branded the tea 'Tesco.'

Reportedly, he was so enamored of the name that he named his entire business sco. The first store under the Tesco name was opened in 1929 in Burnt Oak, Edgware...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

CRM - The Tesco Way

Tesco's 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...

Reaping the Benefits

Commenting on the way the data generated was used, sources at Dunnhumby said that the data allowed Tesco to target individual customers (the rifle shot approach), instead of targeting them as a group (the carpet bombing approach).

Since the customers received coupons that matched their buying patterns, over 20% of Tesco's coupons were redeemed - as against the industry average of 0.5%.

The number of loyal customers increased manifold since the loyalty card scheme was launched (Refer Figure I)...

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