TESCO Mini Case Study

A“RagstoRiches”Story(NotLiterally)

?

Wasfoundedin1919byJackCohen

ThenameTESCOwasformedbycombiningtwowords– “ThomasEdwardStockwell”and“COhen”

BusinessMottoof“Pileithigh,Sellitcheap”

OneofthebiggestdomesticstorechainsinUK.

Blah,BlahBlah…...............

NOTVERYFRIENDLY

POOR SHOPPING EXPERIENCE

BADIMPRESSION ONCUSTOMERS

ANYTHINGELSE?

TopManagem

ent

MiddleManagement

FrontlinePeople

Customers

IT’SOLDAPPROACH

IT’SNEWAPPROACHCustomers

FrontlinePeople

MiddleManagement

TopManagement

SO,HOWWASITDONE?

IMPROVINGQUALITY

OFSHOPPING

*NOTE:Iknowthatthisimageistoo“cheesy”,butyougetthepointright? (Ihopeyoudo)

HANDLING

CUSTOMERCOMPLAINTS

CONNECTINGWITHCUSTOMERS

BUTOVERALLOFTHIS,THEMOST

SIGNIFICANTCHANGEWAS

THISTESCO CLUBCARD

SO,HOWDID

THISHELP?

GAVEALARGE

DATABASETOWORKON

STUDIED CUSTOMERSHOPPINGDATA

TRACED SHOPPINGPATTERNSOFCUSTOMERS

TARGETED THEMWITHSPECIFICOFFERS

BYCREATING“DNA”PROFILEOFCUSTOMERS

THE

OUTCOME?

oBetween1990and1995,Theyattracted1.3Millionnewcustomers

oBecauseofnewcustomers,revenuesincreasedoTESCOsurpassedSainsburyin1995oWithin15monthsofIntroduction,8MillionClubCards hadbeenIssued.

oBy2005,ithad35%marketshareinsupermarketspending.

WASTHE

EFFORT WORTHIT?

GOFIGURE.

SUMMARYo HISTORYo ISSUEo OLDvsNEWMODELo METHODSo TESCOCLUBCARDo DATAMINING

o OUTCOME

DISCLAIMER

CreatedbyRishab DevBhaskar,BITSPilani Dubai,duringamarketinginternshipby:Prof.SameerMathur,IIMLucknow