Tesco Local grocery store bringing in customers and keeping old customers
INTRODUCTION AND BACKGROUND
The Tesco brand first appeared in 1924. The name came about after Cohen bought a shipment of tea from T.E. Stockwell. He made new labels using the first three letters of the supplier's name (TES), and the first two letters of his surname (CO), forming the word "TESCO". The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. Tesco floated on the London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited. The first self-service store opened in St Albans in 1947 (still operational in 2007 as a Metro), and the first supermarket in Maldon in 1956. Tesco is a UK-based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic market share, is the world's third-largest grocery retailer, behind Wal-Mart of the United States and Carrefour of France. Originally specializing in food, it has diversified into areas such as discount clothes, consumer electronics, consumer financial services, selling and renting DVDs, compact discs and music downloads, Internet service, consumer telecoms, consumer health insurance, consumer dental plans and budget software. Tesco's sparkling growth has come at the expense of rivals, especially Sainsbury and Safeway, both of whom are battling to keep customers. Tesco used to be considered a cheap supermarket, compared to the more 'up-market' supermarkets like Waitrose and Marks & Spencer. However, in recent years, with the 'Finest' range, it has moved to capture that market too.
What are the critical factors in success of Tesco?
This research is designed to test critical success factors of Tesco and its impact upon Customer behavior. Additionally it will aim to evaluate the implications to the future opportunities. This research will also fulfill all objectives.
• Managers will be able to determine what the customer's value.
• It will help determine where to cut cost without affecting their profitability.
• It will help the manager to be able to determine what will lose customers.
• Determine what the customers like the most about their store.
Qualitative method would provide relevant first hand, error free information through interviews and personally administered questionnaire. The aim of qualitative analysis is a complete, detailed description. For this study I will be doing five qualitative one-on-one interviews of customers who shop at Tesco using:
• Looking at what is happening rather than directly questioning participants.
• Used to better understand behaviors, their social context and meanings attached to them.
• Useful for certain populations - children, infants.
• Can identify unanticipated outcomes.
Interviews (in-depth, individual)
• Usually provide rich data, details, and insights from program participants and stakeholders about their experiences, behaviors and opinions.
• Particularly useful for complex or sensitive subjects.
• Use open-ended questions.
Potential Managerial Benefits:
• Increased sales - more likely to try out other products/services too
• Customer loyalty -more likely to be a source of repeat business and to recommend the business to friends and family
• Enhanced public image - helps build a brand and provides protection if there is a slip-up in customer service
• More effective workforce - satisfied customers help create a positive working environment.
Satisfied customers will lead to more sales from their own repeat business and from the new customers generated by their recommendations. A positive public image will generate more sales by attracting new customers. Staff members who deliver good customer service receive their customers' appreciation and are further motivated to offer good customer service and so on.
Name (Optional): _______________________________
Gender: _______ Male ________ Female
Ethnicity: ______Caucasian ______African-American ______Asian/Pacific
______Hispanic ______Native American ______ Other
How convenient is it to shop at Tesco?
___ Extremely convenient
___Not at all convenient
Are all the products you need available at Tesco?
If your answer is no, please identify the product/s not available at Tesco______________ ________________________________________________________________________
The solution shows how a simple questionnaire for Tesco is designed.