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  • Level: GCSE
  • Subject: ICT
  • Word count: 4560

Tesco plc is the most innovative food retailer in the UK retail market.

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CASE PRESENTATION TESCO.COM A SHORT SYNOPSIS OF TESCO PLC. Tesco plc is the most innovative food retailer in the UK retail market. The Company was founded by Sir Jack Cohen. He opened a grocery stall in the poor section of London's East End and became well known for his cut-price approach to retailing. In 1924, a partnership with T.E Stockwell, a tea company, gave birth to Tesco. Cohen opened his first store in 1929 and Tesco flourished over the years through opening new stores and buying floundering supermarket chains, thus increasing its market share in the region. The success of Tesco is due to its practice of buying in bulk and keeping costs really low. This in turn they share with their customers by providing basic groceries at very low prices. From then on, Tesco has grown from strength to strength, making it one of the most successful food retailers in the UK. Tesco's history is rich in innovative activities. It was one of the first food retailers to develop a "superstore" in the UK, it was the first to launch a cut-price policy, it was also the first to introduce the card loyalty scheme and the first as well to add financial services to it and finally it was the first to launch electronic shopping in the mid-1990's. Tesco was known for its customer focus. When Tesco says, "Every little helps", it really means it and the consumers love it. Analysis and sales data of the company has shown that in years of recession, customers will be very price sensitive. Thus, Tesco launched its own lower-priced private label goods. The executives at Tesco headed by Terry Leahy are not afraid to act even if it goes against the norms. In 1994, Tesco started "One in Front" policy by opening a new checkout counter whenever the line size exceeded two customers. Tesco knew that customers get very agitated if they wait in line for too long and this may cause some people to abandon their shopping carts. ...read more.


Online customers varied, according to the Lifestyle Internet Survey, the current breed of online shoppers is younger and wealthier people mostly being between the 18 - 25 years old age bracket. But there are a significant number of online shoppers who are between the ages of 26 - 45 years old. The numbers of silver surfers is also on the rise, with over 55's making up a fifth of all online purchases. Housewives are also jumping into the online shopping band wagon so that they can plan the household's meals more efficiently and saving those times to do other chores around the house. Let's look at how a customer would shop online using Tesco.com (experience of a person living in UK)7 : PC owners could browse on Tesco.com's Web site easily and at their leisure. The first impression of the Tesco.com's website is excellent graphics and handy information. Not only do they offer grocery shopping, they also sell and deliver various other products such as baby and toddler products, books, computer games, DVD's, CD's and videos, electrical goods, flowers, music and wine. You can also find information about booking your holiday, buying insurance for your home, and getting a credit card from Tesco online. Clicking on the 'departments' link will list products by department for you - you could say it's similar to walking down the aisles of a real supermarket. Express shopper is probably the easiest method of all, and the one that frequent shoppers online would use the most - you simply type in the product you're looking for and it will bring up the closest matches. If you're a bit of a bargain hunter clicking on the 'special offers' link will bring up a list of what Tesco.com consider their best customer deals at that time, and in addition there are links to other special offers by department. Another interesting feature is the 'recipe ideas' link, which claims to have hundreds of different recipes for you to choose from. ...read more.


Different customer demographics are also an important issue to look into. Net Perception's software is used to analyze each customer's buying habits and draw their attention to goods and offers they maybe interested in. Thus each customer is given a tailored Web site which will reflect their specific interests. Some older customer might want a very simple, user friendly interface, while younger customers might be interested in having various options and functions. To overcome the chances of severed connection while customers were placing orders, Tesco.com began working on an offline version of the shopping system. Customers can download this offline shopping interface via its Web site, and then they can choose any time to start making a list of items they want to order offline. Finally, connecting on the Internet and by a click of the button...Voila! Your order is immediately sent to Tesco. Making shopping easy and lowering call charges associated to shopping online. Continuous replenishment software is used to poll sales data on over 40,000 different product line every hour. An advantage which enabled the company to adjust delivery quantities as little as five or six hours before the goods arrive at the stores. This improves stock availability and increased labour productivity. Tesco.com is trying its best to fulfill all its customers' demands. And it is doing a good job of ensuring customer's loyalty and luring new customers to use its service. Tesco.com has won various awards for its success. The latest was conferred by The Global Retail Achievement Awards on April 11th, 2003 for Best in eCommerce Innovation for the convenience store giant's mobile shopping application, optimized to provide all features available to online users and allowing customers to shop at any time, regardless of location or Internet connection. 1 Morningstar: Dow Jones Newswire. 2 Market shares are as of July 2001, as reported by Merrill Lynch Industry Report. 3 Businessweek e-biz - Web Smart Companies 4 Interview withJohn Browett, CEO-Tesco.com 5 DataMonitor reports, 2001 6 Interview with Andrew Higginson, CFO, Tesco plc, 2001 7 Testimonial of a regular Tesco.com's customer 1 ...read more.

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