Tesco
Essay by 24 • July 7, 2011 • 363 Words (2 Pages) • 826 Views
Strategies
1) Internationalisation
• Operations in 12 countries outside of UK mainly Asia & Europe
• Expansion into the US
o Through organic growth
o Initial planned capital of Ð'Ј250 million a year
o Based on express concept
o First store opened in 2007 in USA
o 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:
o 16% increase in half year profits
o 2.1% increase in market share
o 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
o Supplier negotiation
o Competitor defenses
o Strategic differentiation вЂ" competitive advantage
• Re-launched to meet customer needs and beat competition with success
• Overhauled and introduced new added value factors such as:
o Simplicity
o Ease of use
o Higher profile in store
o More rewards
o Bar codes (also aided DB)
o Key fob вЂ" easier to remember
o Ability to convert vouchers into deals online
o Christmas saving вЂ" option to store vouchers
o Offers to suit the individual customer вЂ" 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
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