What Is Clubcard?

Today’s world competition is very strong in every kind of businesses. Every organisations must provide high quality products or services in order to survive, however their competitors also providing the same or comparable products or services. An important way to an organisation to get an edge over its competitors is to provide extra service to satisfy and delight their customers, which can retain them and also gain new customers. Therefore the achievement of customer satisfaction must be a major objective in all organisations.

In this assignment I am going to produce report which identifying the expectation of client for my chosen organisation which Tesco and I will link the expectation of client to the organisation and the method they use to provide the Services and meeting the needs and expectation of the customers.

Today's world competition is very strong in every kind of businesses. Every organisations must provide high quality products or services in order to survive, however their competitors also providing the same or comparable products or services. An important way to an organisation to get an edge over its competitors is to provide extra service to satisfy and delight their customers, which can retain them and also gain new customers. Therefore the achievement of customer satisfaction must be a major objective in all organisations.

Tesco has developed from selling beans and biscuits to becoming a major player in approximately every area of the retail market. Clothing , mobile, furnishings, phones, DVDs and holidays. The survival strategy for Tesco is to aim and get to the customer’s needs by making the products cheap from season to season e.g. winter time they could bring in lemsip because this is the season were a lot of people catch colds. Their business is around the customers and colleagues. Tesco’s strategic priorities is to refresh all there UK stores to ensure that it is worth the visit for the customers, another strategy is to make sure that the prices are stable and logical. Finally another strategy that Tesco use is their Tesco club card it allows customers to choose how to unlock greater value for themselves.

The cost of operating such a scheme are greatly reduced due to the shared cost of having multiple partners involved.

Market players generally have a wide variety of potential customers, which considerably weakens buyer power. Although consumers in this industry may be loyal to particular brands or chains, loyalty to retailer brands is arguably less important than competitive pricing. Many supermarkets run rewards programs for frequent shoppers, such as Tesco’s ‘Clubcard’, and these schemes can help companies retain customers and reduce buyer power.

The economics factors are bit sign of worry for Tesco since they effect directly to buy of clients behavior. Although the economy of United Kingdom declared officially that country’s economy is in recession and due to this the positive aspect is that the clients to eat less and to eat in house that also offer opportunities for the retailers to increase its production and Tesco were on top in production.

Over the decades there were tremendous amount of challenges for every business. Customers have more knowledge, they have more options, and they have higher expectations. Customers are more informed with the humungous development in technology. Having more options in front of them, expectations has surpassed in retail industry. Loyalty is a customer having faith that your organization’s product or services offered is the best for them. It is the process of tapping the buying pattern of customers in a store based on their preferences. Customer loyalty is significant because it is economical to retain the old customers rather than acquiring new customers. So, organizations employ loyalty programs which reward customers for their repeat business.

Good value products, means that the product is worth the money paid. This is the minimum expected from any business, whether it be through a products or service. This means that we expect a better quality product/service, for a higher amount of money. An example of this is you would expect a better quality TV if you paid £400; than if you paid £50. The top

Tesco is a public limited company and it’s one of the largest retailer in UK and is the fourth largest retailer in the world. They have over 500,000 colleagues and they provide goods and services to 12 other countries like South Korea and Poland. Tesco is an international business but UK is where its business is more focused on. 75% of Tesco group revenue comes from UK business as they get lower sales from other countries outside UK. By offering the customer new goods and services in expanding UK markets, such as telecom and financial services and expanding their market abroad, enabled Tesco to expand their business so that it can deliver long term growth for the business. It also allowed Tesco to expand into new markets and improve their business in the competitive markets. On the other hand, Tesco main value is to provide good quality of goods and services that are cheap and affordable to the public. Which link to their slogan “every little helps.”

Tesco is the third largest multinational grocery and general merchandise retailer all over the world. It is observable that lots of people would choose Tesco as a place to go for purchasing daily groceries and household products. The reason why choosing Tesco for study case is because it has a long history so it has already experienced many evolutions of the economy. In order to survive .those competitive (in different) economical evolutions, Tesco has constantly changed its market operation methods and now it has mature and multiple ways to respond to many related issues. From another point of view, Tesco itself has a special operational way and marketing method, it advocates ‘Every little helps’ slogan and adopt the small profits but quick returns strategy to improve customers’ experience while shopping at Tesco. Besides, Tesco actively

The service I chose to analyze is ALDI’s Double Guarantee, a service that the ALDI foodstuffs brands boast. ALDI’s Double Guaranty touts a 100% satisfaction guarantee that includes monetary reparations for not meeting that 100% satisfaction guarantee, as well as replacement of that particular product. I chose the Double Guarantee because I think that it is a wonderful marketing strategy, and a great way to improve brand loyalty and customer satisfaction, as well as an interesting way to challenge the brand loyalty that customers of their competitors may have, in making it safe and cost efficient for someone to try a new/different brand.

Tesco is also doing well in the information system applications by including loyalty club card system to get valuable informations about customer's behaviors to extract their needs. In addition to the Information technology adopted by Tesco in using the newest technology and staying up to date. For example company has used a technological system that controls stocks, and keeps valuable record of customer's transactions and their purchasing

TESCO believes their most important asset is its people. Performance and contribution and teamwork of the employees lead to success. Therefore, their approach is to reward the employees guided by a framework of common objectives and principles. They offer the great opportunity or rewards for good performance in the work field. They give competitive salaries at all levels which motivates the employees to show better performance. Besides, in every area of their business they offer whole package of other ways to help the employees make more money. In addition they safeguard the future and look after the health of the employees. (Tesco PLC, n.d.)

The behavior in which a consumer keeps buying a product time and again instead of buying products from other competitive companies is called Brand Loyalty. Brand loyalty can often be termed as Customer Loyalty, Brand Commitment, Product Loyalty etc. Brand Loyalty is seen among consumers when they realize that the product is better than the other products that are available in the market. This affinity of a consumer towards a particular product is considered to be brand loyalty. Although, this consumer behavior is not limited to a simple repetition of a purchase, there is also a psychological reasoning behind the consumers’ affinity towards behavior.