Analysis of Competitive Strategies of Tesco

Published May 13, 2020 | Author: PenMyPaper

TESCO is known for devising new strategies according to the changing tastes and preferences of the customers. Some of the devised strategies are the USP and the competitive advantage of the company. The strategies are 1) The Royalty Clubcard 2) Brand Loyalty 3) The quarterly mailing 4) Vouchers and coupons

Royalty Clubcard: TESCO introduced its Loyalty Clubcard in the year 1995. It became one of the most popular marketing concepts of TESCO and helped the company to increase its market share. The effect of Clubcard was very essential to TESCO’s accelerating business success. According to the market researcher Taylor Nelson, customers spent 28 percent more at the TESCO store and spent time 16 percent of their time at Sainsbury.

Loyalty Contract: The loyalty club contract offers customer to earn points when they shop at TESCO. The accumulated points help the customers to win prizes and rewards. This marketing strategy has facilitated the communication between the customers and the management of TESCO.

Customer Mailing: TESCO mails their customer four times a year and informs about the revised customer loyalty program. The company mailed around 65000 different content wise personalized letters to 8.5 million customers. This method seemed to be very effective, as customer base of TESCO started increasing again.

Voucher and Coupons: TESCO offered discount coupons and vouchers which could be redeemed within a stipulated time frame. After this marketing concept was introduced, the frequency of customer visits to the store increased.

The discount coupons and vouchers are very popular among the common people and there were less than 300 complaints about the loyalty program scheme. TESCO also takes initiatives for environment protection and the betterment of the society.  It has devised a scheme in which the customers will donate their loyalty points to the company. These loyalty points are encashed and then used for planting trees and taking environment protection measures.

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