TESCO - The Customer Relationship Management Champion
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Case Code : MKTG070
Case Length : 16 Pages
Period : 1998-2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Tesco
Countries : UK
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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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From Customer Service to Customer Delight
To sustain the growth achieved through the launch of Clubcards, 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 focus on remote shopping services (this included 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.'...
An Invincible Company? Not Exactly...
Tesco's customer base and the frequency with which each customer visited its stores had increased significantly over the years. However, according to reports, the average purchase per visit had not gone up as much as it would have liked to see.
Analysts said that this was not a very positive sign. They also said that while it was true that Tesco was the market leader by a wide margin, it was also true that Asda and Morrison were growing rapidly (Refer Exhibit II). Given the fact that the company was moving away from its core business within UK (thrust on non-food, utility services, online travel services) and was globalizing rapidly (reportedly, it was exploring the possibilities of entering China and Japan), industry observers were rather skeptical of its ability to maintain the growth it had been posting since the late-1900s. The Economist stated that the UK retailing industry seemed to have become saturated and that Tesco's growth could be sustained only if it ventured overseas...
Exhibit I: A Brief Note on CRM
Exhibit II: A Brief Note on UK's Retailing Industry
Exhibit III: Tesco - Key Statistics