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Tesco, a UK retail giant, is renowned for their loyalty program; evaluate the effectiveness of Tesco’s Clubcard program.


Retail Management: A strategic Approach


Tesco in the UK are the largest within the Group, with over 3300 stores and over 310,000 colleagues. They have strengthened the foundations of the UK business and they are now accelerating plans to deliver the most compelling offer for customers with sharper prices, improved quality, stronger ranges and better service.

Tesco manipulates with each element of marketing mix to a great extent in order to offer competitive benefits to target customer segment discussed above with positive effects on the levels of sales. Product categories:

Tesco offers a large wide range of products and services, from bread to clothes; from telecom to car insurance, it tries to meet different people’s wants and needs in a one- stop-shop situation. While developing its own brands of products, Tesco also offers other companies’ brands of products, for the reason of supplying such a large varies brands of products and services, is to provide more choices for customers when they are shopping at Tesco, and this eventually help it to meet the customers different wants and needs more successfully as they don’t have to go to several places to find the products and services they need. For example, we can buy Tesco’s brand of shampoo, as well as find Pantene, and microwaves in the stores. Consumers have become keep an eye on fair trade and the influence of developed countries consumers on the Third World suppliers. Fairly traded products as tea, coffee and cocoa are viable, and such products are now widely available at the majority of large chains. Price:

The pricing strategy used by Tesco now is the predatory pricing, which is charging a low price for its products and services with an intension to win the campaign with other supermarkets, like Park’n shop, and save money for customers, as well as sets a barrier for new entrants. For achieving this aim, Tesco always takes out the price comparison with other supermarkets, and then tries to cut off the prices as possible as it can. Some people prefer to buy the vegetable rather than meat to obtain the benefits of convenience and healthy, but some persons, who are environment concerned would like to purchase the vegetable as it contributes less water and air pollution to environment and much cheaper price. Therefore, in order to satisfy different customers’ requirements, the company’s products’ and services’ ranges have to be wide. Although almost customers want to pay for their shopping as low as possible, they also have the idea of high price means high quality, low price means low quality. Hence some customers might doubt about the quality of the products and services offered by Tesco, as it puts a heavy emphasis on its low prices for the products and services offered in the stores. Therefore, there is a threat for Tesco on the quality of products and services it is offering, as some customers care more about the quality of products and services rather than their prices. The emphasis on low prices currently might also be dangerous in the future when Tesco wants to increase the prices for its products and services, as it has already created a high reputation for low price. Customer Communication:

In order to understand customers’ wants and needs better, the communication between the organization and its customers must be effective and efficient.Communication methods used by Tesco, are centered to its customers, for example, the advertisements are always showing during evening time, as this time, almost of people are free to sit down in front of the TV for what it has in stores already, what products and services it introduced to its stores recently, and the prices charged for these products and services, as well as the price comparison with other...