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The Success Of Tesco And The Uk Supermarket Industry

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Kapferer (2004) stated that the majority of brand loyalty schemes in the UK supermarket industry are competitive in nature. This segment is highly competitive, as it is based upon capturing market share in the best possible manner to enhance the brand appeal and acceptance in the long run. Tesco is one of the largest supermarket chains in the UK, with a huge brand presence. It has introduced loyalty schemes that have been successful in attracting customers, along with enhancing the brand’s appeal and success. The success of Tesco is well known along with the fact that the brand lacked success in gaining the top position in the supermarket industry, when it followed the conventional path. This was mainly due to the fact that other brands,…show more content…
The initiative encouraged repeat purchases, which also helped enhance Tesco’s profits. The main purpose of introducing this card was based on offering value to customers, in order to earn their lifetime loyalty. Humby et al. (2003) stated that club cards were not only used to win the loyalty of customers, but also to maintain a relationship with their customers. This was mainly because of the fact that these cards were ment to greet customers along with thanking them for their support and trust. Tesco gained a lot of competitive benefits by introducing their club card, as it was yet to be seen by their competitors. Additionally, customers found it difficult to switch to other brands because of the benefits offered by Tesco. This initiative was good enough to create a positive impression on customers, along with winning their loyalty for a lifetime.
Even though the theoretical model suggested that winning loyalty is a long-term process and might be affected by some internal and external factors, in the case of Tesco, it was very much a positive impact helping to enhance the buying experience of customers, along with capturing high marketing share. Das (2009) stated that there are many factors that define the impact of loyalty schemes. Some customers are price conscious, meaning loyalty points do not matter to them. On the other hand,
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