Why are Customers so valuable to Tesco?
Tesco have to keep the public happy and fulfilled or else they would not have such towering takings, and at such a high market share.
Tesco always make sure that they keep their customers satisfied because this way they keep hold of many customers, and also gain more of the public for their future needs. Tesco also provide customers with low prices, the UK population is known for its bargain hunting. By selling objects at a low cost Tesco’s are gaining more customers and more profit.
Tesco are a 24 hour service which helps them to get on with their duties, as well as the customers because in the late evening there aren’t many customers, and that’s when Tesco find an opportunity to stack and fill up their shelves. In my views, I think that this is well-situated for customers because sometimes they run out of substances that they may need at a particular time, and if Tesco are not opened, then customers will be dissatisfied but now Tesco's new and improved 24 hour services, allow them to purchase material whenever.
Customers:
One of Tesco’s individual objectives is to preserve the constancy of their customers. The company will achieve this by submitting the public with better deals then any other major supermarkets. They offer possessions like loyalty card; Tesco is open 24 hours day also by internet shopping. The customers are the key to there success. Having more customers accesses more profit to be made.
Tesco’s loyalty cards helps the stores keep hold of their clients as the card automatically shows what is most popular with their customers. You can get points for your club card by spending money in the Tesco stores. Tesco rewards you when you spend more and more money in there store by giving you vouchers for the preferred objects you buy. The card shows, what is being brought on a regular basis with each customer.
Tesco have the advantage of being able be open 24 hours a day this helps attract customers that have a busy working life. There open all day so they can supply up during the night. Also there collection vans come into the store to stock up during the night as they are not allowed to during the peak times of the day. This helps people who come to Tesco on there way home and do there weekly shopping. Food is an essential and is a consumer product. They give a extensive range of products and are well market orientated stocking, every type of creation all shapes and sizes.
They launched the website tesco.com for internet shopping; this benefits the public who are unable to come in to Tesco stores. They invested the shareholders money into internet shopping. The company knew from there market research that 91% of the U.K population have access to the internet at home. This is a simple and dependable way of shopping but charges £5 for deliveries. They ensure you will get your shopping within the next 24 hours. This has made life easier for the elderly, sick and people who disown a car. The internet shopping option helps hold on to customer devotion.
I think Tesco should not charge for there deliveries for the reason that they have made such a big profit of 2.2 billion pound. That just shows that Tesco are being greedy and desire more money. Also I think Tesco should stay open 24 hours a day so they don’t cause large traffic jams during the peak times of the day.
Shareholders:
The Tesco company require for the shareholders to devote there money into there business other wise they would not of had the assets to introduce the club card and internet shopping. They convince there shareholders by giving then high dividends. Tesco have been giving large amounts of dividends year by year this encourages a majority of shareholders.
Share price
This source shows one of there latest share prices.
424.50p
6 Mar: 1:32pm
Share prices have to be towering as this will encourage more shareholders from around the world to empower into Tesco.
This graph shows the quantity of dividends a investor will get showing an raise in % over the last 6 months.
Suppliers:
At Tesco’s suppliers are vital for them. If the company are buying low-priced from suppliers this will automatically mean that the stock in side of the store will have a very low price.
Tesco superstore increase huge discounts from there suppliers as they buy in vast bulks for all there stores. They have many benefits of dictating the price from the suppliers.
The EPOS system is in process in a variety of businesses all over the United Kingdom and is intended for the business that requires easy entry of in rank coupled with stock control and the ability to print and use barcode labels.
The method includes the most recent computer hardware, with flat screen monitor and complete software for the till and stock control. The classification is Euro well-matched and can handle double exchange at point of sale. This allows Tesco to have absolute control over there stock levels throughout the day. The computer automatically even sends for more stock when the stock levels are running low.
Going Abroad:
Tesco superstores currently are operating in 12 worldwide countries, and have strategies at a mixture of levels of enlargement to enter into as much as possible. A quantity of countries have moderately not fully formed grocery retail markets, but are undergoing swift changes and supply huge possible markets for companies such as Tesco whom have marked these locations. Tesco has succeeded in being an appropriate business amongst the peak retailers in a few Eastern European countries, has determined tactics of following in China, is trying to enter India, and is also soon to open its first store in America.
Above shows the locations of Tesco stores around the world. The graph shows that Tesco want to overcome the Asian market and European countries too.
Charities:
Tesco donate a huge amount of money to charity. Such as the £500 million pound they gave to charities last year. This amount was more then any other super market has ever donated. Tesco give huge amounts to charity because this is a good tactic to as they can attract more of the public. The clients will think the money they spend in Tesco stores will be going to a good cause such as charities.
However shareholders will some times object to Tesco giving a large amount away to charities as they consider that this is their money that they are giving away. So Tesco decide to give higher dividends to their shareholders to keep them contented.
Environment:
Every Business around the globe has to be concerned and retain the environment when carrying out their business activities. The governments have set these rules and guidelines that all companies be obliged to follow regarding water, air and visual pollution. The governments have to keep an eye on the activities of Tesco’s and other businesses.
Tesco are monitored on a full-size scale as they have the highest market share of 29% and a profit of £2.2 billion. Over 1/3 of the U.K population shops at Tesco. The nationwide press keeps tabs on every single thing that Tesco does, good or bad. This either helps gain or loses customers. Tesco’s main objective is to keep hold of customers.
Tesco superstores have used intelligent strategies in keeping the pressure groups of their support by using their £2.2 billion profit and reinvesting into schemes that defend and preserve the environment. I.E green trays, degradable plastic bags. Tesco’s have used objectives to cut down on energy, fuel and water spending on all there stores across Britain. They have a very refined way of recycling bins and trees, regenerating areas and lorry deliveries during of peak times.
The Tesco Company is a large international business PLC, People all around the country will want to know what Tesco does to uphold the environment. They have to hang on to customers and gain customers. To keep customers keen and keep pressure groups off their back they need to look after the environment. If Tesco’s started using new environmental reduction schemes this will help increase more customers also helping their major aims to retain customers.
Tesco have invested their £2.2 billion pound profit into schemes that help the environment. Such as energy consumption, water efficiency and fuel efficiency technologies. However this costs Tesco a lot of cash to put in, into all their shops so not most of there stores have these new systems. Tesco’s have provided recycling bins around their Tesco stores which get recycled properly. They launched a new scheme of degradable plastic bags which are more environmentally better then usual plastic bags.
The company has to stick to the rules and the guidelines that the government has set them. If they do not stick to the rules the government could issue Tesco with a fine and pressure groups will start to form. This could make Tesco lose their high reputation and give them bad publicity. If they get bad promotion the public that shop at Tesco will stop and go to other companies such as Asda or Sainsbury. This will make Tesco lose there status of being the leading supermarket in the U.K.
This will affect the local solitary traders around in the area. As Tesco are fulfilling all their customers needs. This determination means the shareholders get more money and higher dividends. The company’s sales and profit will increase so they will be able to reinvest more. And invest into the company.
I think that the Tesco’s company should help preserve and defend, because they have such a massive profit of £2.2 billion. If they keep on protecting the environment there market share will keep on rising. This will further make certain that they will remain the leading supermarket in Britain.
