Case Study Anaalysis: TESCO
Introduction:
This case talks about Britain’s leading food retail group Tesco with its presence in Europe and Asia has also been a pioneer online. Products line of Tesco includes various non-food ranges (for example, books, DVDs and electrical items under the. 'Extra' banner), Tesco Personal Finance and the telecoms businesses, as well as services offered in partnership with specialist companies, such as dieting clubs; flights and holidays, music downloads, gas, electricity and DVD rentals.
Analysis of Case:
1.Tesco been a pioneer online because of that its sales increases year-on-year by 31 %, and profit increased by 37% to £21 million. It receives 170,000 orders each week. Soon it should reach an annual turnover of. £1 billion online and it is generally accepted as the world's largest
2.Tesco leads the UK's other leading grocery retailers in terms of market share because the reason is only other competitors are offline retailers
As with other online retailers, Tesco.com relies on in-store advertising and marketing to the supermarket's Club card loyalty scheme’s customer base to convince customers to shop online. However, for non-food goods the supermarket does advertise online using keyword targeted ads. For existing customers, e-mail marketing and direct mail marketing to provide special offers and promotions to customers important
Tesco then uses automated event-triggered messaging to encourage continued purchase. For example, Tesco.com has a touch strategy which includes a sequence of follow-up communication triggered after different events in the customer lifecycle
Trigger event· 1: Customer first registers on site (but' does not buy)
Trigger event 2: Customer first purchases online
Trigger event 3: Customer does not purchase for an extended period
5. Tesco's online product strategy intangible offerings, such as e-diets and music downloads and also focused on improving the customer experience online -the time it takes for a new customer to complete their first order has been decreased from over an hour to 35 minutes through usability work culminating in a major site revision
6.Wade-Gery's strategy was 'to make home delivery part of the DNA of Tesco' according to NMA (2005c) and also extending home-delivery services to the likes of bulk wine and white goods
For creating synergy they did many alliance
Tesco is built on a core premise of convenience and value and Wade-Gery believes what it's already done with mobile tariffs, broadband packages and music downloads are good
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