Presented To- Prof. Pranay VermaPresented By- Varun Mark Sharma

Vikas Yadav Vinay Kumar

PGDRM 09-11

"CASE PRESENTATION ON TESCO"

Tesco at a glance….Founded 1919 in East London by Jack Cohen Headquarters Cheshunt, United Kingdom Key people David Reid (Chairman),

Sir Terry Leahy (Chief Executive)Jack Cohen (Founder)

Industry Diversified Retail Products Groceries, Consumer goods, financial services, telecoms

Employees 440,000 (2008)Stores: 3,729 Subsidiaries Tesco Stores Limited

Website www.tesco.com

Case Study..Tesco introduced its first store in London in

1929Self Service concept for customers in 1947 to

save time and reduce company’s labor cost.Launched its first Supermarket in 1956.In 1965, it expanded 365 stores and in 1968,

it opened a 40,000 sq. ft. superstore in Crawley, Sussex.

They ventured with Esso for oil retailing business and with Royal bank of Scotland for retailing of financial products and services.

Contd…Initiated e-CRM techniques in 1996 in

Osterley,England to accept customer orders via telephone and fax.

For convenience, TESCO divided its store into six zones- Groceries, Frozen items, Bakery, Chilled foods and Secure foods i.e. liquor and cigarettes.

Introduced Loyalty Card named “Tesco Club Card” in 1995 for retailing more customers.

Tesco brought innovation in whatever they ventured into.

Contd…They used delivery vans manned by a team which

did about 2-3 trips per day.Brought innovation in automation and technology

enabled TESCO in efficient transportation and reduce costs.

The rolling carts used for loading the goods were equipped with wireless touch pad computer which aided the person to use the best route through the store.

TESCO used cross-selling and up-selling in the website for customer suitable products. If a customer ordered Bread, items like Cheese and Jams would be offered to the customers.

Contd..They charged 7.5 $ per delivery from its

customers which they used to incurred in maintenance of delivery vans.

In 2002, they offered “Free From” which was dietary foods catering services to customers which was a personalized service.

In 2004, Tesco launched online music store with free downloading of music.

In 2000,TESCO made subsidiary with John Browett as the CEO and Carolyn Bradley as the COO which helped in focus efforts more in e-CRM initiatives and led to its development.

Contd..In 2001, the online service were expanded to 250

more stores and ensuring to cover the whole British population. This resulted in upcoming of customers who had never used TESCO online services as well as lower down its costs.

Use of small online store instead of large warehouses.

According to comScore Networks, by 2006, TESCO’s market share was 66% in UK whereas its competitors ASDA gained 16% and Sainsbury 14% of market share.

Thus, TESCO started receiving 30,000 orders per day

Thank You!!!