How do you think Tesco has motivated over 22 million customers to sign up for its Clubcard program?
business
Description
WEEK 1: ASSIGNMENT
Problem
1.6 In comprehensive paragraphs, answer
requirements a to e. You will have 5 paragraphs total of four to five sentences
each. USE APA format.
Problem 1.6.
Based on Walmart’s success in the
United States, many expected the company to quickly dominate the British market
after it bought the Asda grocery chain in 1999. That did not happen; Walmart’s
market share in groceries grew to a little more than half that of its biggest
competitor, Tesco. Initially, Tesco’s sales and net income rose significantly
while Walmart’s sales and net income increased at a much slower rate. More
recently, Walmart has made small gains in market share, and Tesco has had small
decreases.
Walmart found out that Tesco is a
formidable worldwide competitor. Tesco operates almost 2,400 stores in Britain
in four different formats. It has a very successful operation in Central
Europe, and it expanded to the United States with Fresh & Easy stores. In
Korea, Tesco’s 174 stores thrived while Walmart gave up after an eight-year
effort to succeed and sold its 16 stores.
One of the biggest reasons for
Tesco’s success is its use of technology. In 1995, Tesco started a loyalty card
program, called Clubcard, and over 80% of its shoppers are members. Shoppers
fill out an application in the store and receive a plastic card and a key fob
in the mail that is scanned before they make a purchase. Tesco gathers massive
amounts of data about its customers’ 15 million purchases each week. Sales data
are analyzed and turned into information that provides Tesco with a significant
competitive advantage.
As traditional advertising loses
effectiveness, these large stores of data allow Tesco to find new and creative
ways to market its products.
Required
- What kind of information do you think Tesco gathers?
- How do you think Tesco has motivated over 22 million
customers to sign up for its Clubcard program?
- What can Tesco accomplish with the Clubcard data it
collects? Think in terms of strategy and competitive advantage.
- What are some of the disadvantages to the Clubcard
program?
- Do an Internet search to find out how Tesco is doing in
comparison to Walmart and other grocers and retailers. Write a few
paragraphs explaining your findings.
