...International Journal of Retail & Distribution Management Building brand webs: Customer relationship management through the Tesco Clubcard loyalty scheme Jennifer Rowley Article information: To cite this document: Jennifer Rowley, (2005),"Building brand webs", International Journal of Retail & Distribution Management, Vol. 33 Iss 3 pp. 194 - 206 Permanent link to this document: http://dx.doi.org/10.1108/09590550510588361 Downloaded on: 15 September 2014, At: 19:08 (PT) References: this document contains references to 37 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 17452 times since 2006* Downloaded by UNIVERSITI MALAYSIA SABAH At 19:08 15 September 2014 (PT) Users who downloaded this article also downloaded: Jason J. Turner, Karen Wilson, (2006),"Grocery loyalty: Tesco Clubcard and its impact on loyalty", British Food Journal, Vol. 108 Iss 11 pp. 958-964 Mark D. Uncles, Grahame R. Dowling, Kathy Hammond, (2003),"Customer loyalty and customer loyalty programs", Journal of Consumer Marketing, Vol. 20 Iss 4 pp. 294-316 Jennifer Rowley, (2007),"Reconceptualising the strategic role of loyalty schemes", Journal of Consumer Marketing, Vol. 24 Iss 6 pp. 366-374 Access to this document was granted through an Emerald subscription provided by 313615 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about...
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...Journal Article: Building Brand Webs: Customer Relationship Management Through the Tesco Clubcard Loyalty Scheme Group Topic: Customer Relations and the Food Industry In this journal article, the author, Rowley, examines the use of loyalty schemes and the role that they have in developing a customer relationship with the brand distributing, or communicating with the loyalty scheme. The role of loyalty schemes in branding is also examined alongside their effectiveness of keeping customers loyal. A central argument that is portrayed is ‘Do loyalty schemes work?’ (Rowley, 2005:194). This is assessed on their effectiveness on the way the brand or organisation is perceived and the way customers behave towards the brand. The theory that Rowley basis her argument around is that ‘relationship marketing acknowledges that a stable customer base is a core business asset’ (2005:195). The role of theory in this instance is used to help understand the use of loyalty schemes and the relationship they build with the customer and the brand. So by a brand opting to use a loyalty scheme, they can effectively get to know their customers. This can result in a stable customer base for them, therefore benefiting the business or brand in many ways. Another theory that is used in this article is that customer loyalty cannot be bought through such schemes, rather it is developed overtime through a sense of customer satisfaction and value. A number of different perspectives are...
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...Introduction Tesco is a British multinational grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK (where it has a market share of around 28.4%), Ireland, Hungary, Malaysia and Thailand. Tesco was founded in 1919 by Jack Cohen as a group of market stalls. The Tesco name first appeared in 1924, after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname, and the first Tesco store opened in 1929 in Burnt Oak, Barnet. His business expanded rapidly, and by 1939 he had over 100 Tesco stores across the country. Originally a UK-focused grocery retailer, since the early 1990s Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, toys, petrol and software; financial services; telecoms and internet services. The 1990s saw Tesco reposition itself, from its perception as a down market "pile 'em high, sell 'em cheap" retailer, to one which appeals across a wide social group, from its Tesco Value (launched 1993) to its Tesco Finest ranges. This was successful, and saw the chain grow from 500 stores in the mid-1990s to 2,500 stores fifteen years later. Overview...
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...sounds good - loyalty cards entitle us to freebies or cash simply for shopping at our local superstore. Of course, retailers get something in return: a heap of information about us we might prefer them not to know. That's before they get started on the new tags that track you and what you buy. Rachel Shabi investigates Every time you reach the checkout in the two biggest supermarket chains, it's the same question: have you got a card? It can get irritating, but nonetheless we have willingly signed up to their reward schemes - in droves. According to market researchers TNS, around 85% of UK households have at least one loyalty card. We've accepted the membership rules of these innocent-looking, points-mean-prizes clubs: you show us some loyalty, say the retailers, and we'll give you nice bonuses in return. That loyalty, on the face of it, is based on how much you spend with one particular retailer. Sure, the rewards aren't huge but, as Tesco likes to put it, "Every little helps." Besides which, we in the UK love bargains, and getting something for nothing even more. But the question is: how much does the nothing really cost? It is not simply a matter of choosing to be "loyal", now synonymous with "open your wallet", to one supermarket over another - the cost is in having your purchases scrutinised and analysed in staggering detail by the loyalty card retailers. You'd be amazed what they can do with a seemingly innocuous flow of till receipts, coupled with your loyalty card. Worse...
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...Literature review Tesco ‘Clubcard scheme’ Tesco, the UK leading supermarket, introduced the use of Tesco Clubcard in 1995. “…the loyalty Clubcard was to offer “benefits to regular shoppers whilst helping the company discover more about its customer needs” (Turner and Wilson, 2006 cited in Tesco, 2004, p.3) How can Tesco get more about its customer needs? The answer is on the Clubcard itself. It is not only the card for the customers to acuminate their reward points; instead, it is also a card which stores the data of customers purchasing information. Rowley (2005) pointed out that customers got the points from the loyalty or reward schemes. Customers then use the points they got as discounts or as partly or fully paid for their purchasing or service. For the company, the card is for collection of data, such as what kinds of products individual customer buy most and how often they buy them. A research done by Turner and Wilson (2006) showed that the majority Tesco Clubcard holders strongly agreed or agreed that the Clubcard made them to shop at Tesco more frequently and repeatedly. The Clubcard does have positive impact on customer loyalty to Tesco. Tesco Clubcard is not merely a gimmick that uses to draw customers attention towards the business; instead, every time the customers use it, the database records customers buying behaviour like purchasing habit, purchasing frequency, purchasing preference, etc., to Tesco. Tesco reviews these data and improves service to the customers...
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... | |The case describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing | |company in the United Kingdom (UK), since the mid-1990s. The company's growth and its numerous customer service efforts | |are discussed. The case then studies the loyalty card scheme launched by the company in 1995. It examines how the data | |generated through this scheme was used to modify the company's marketing strategies and explores the role played by the | |scheme in making Tesco the market leader. The case also takes a look at the various other ways in which Tesco tried to | |offer its customers the best possible service. Finally, the company's future prospects are commented on in light of | |changing market dynamics, the company's new strategic game plan, and criticism of loyalty card schemes. | |Issues: | | | |»Examine how the information gathered through CRM tools can be used to modify marketing strategies and the benefits that | |can be reaped through them. | Tesco ensured that all its customers received magazines that contained material suited to their lifestyles. The...
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...Customer Relationship Management (CRM) TESCO For almost two decades, Tesco was seen to be one of the most successful retail organizations in the world, with a pioneering Clubcard-based loyalty scheme and the development of a strategic CRM providing the company with the basis for true customer insight and greater brand engagement. The scheme is based upon the Tesco clubcard which rewards customers by giving them one loyalty point for every pound spent with the company. These points can then be redeemed either for products in store or with a wide range of other organisations including leisure attractions, hotel, museums between others. Each of the transactions is linked to individual customer profiles. Purchasing habits and behaviour patterns are then used as the basis for segmenting customers on the basis of need and target them with campaigns and advertisements. Internally, the information is used by the company's management teams for making a series of decisions about new products development, pricing strategies, promotions between others. The success of the Clubcard gave customers a sense of being recognised. "They loved that they were known". In mid-2009 the company re-launch of the scheme allowing customers to double the value of their Clubcard vouchers against a range of Tesco products both in-store and online. The company announced in April 2012 a review of its strategy which involved recruiting 8,000 new staff across the UK to improve service, a doubling of its...
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...The Effectiveness Of Loyalty Cards To Build Store Loyalty. The Case Of Tesco YourFirstName YourLastName University title EFFECTIVENESS OF LOYALTY CARDS TO BUILD THE STORE LOYALTY Abstract The main purpose of this research is to assess the effectiveness of loyalty cards and identify how loyalty cards build store loyalty. The research entailed selecting a survey from a sample of British households, which included 175 loyalty card holder and 175 non loyalty card holders. The data involved sending of a structured questionnaire to potential participants via email and the result was expected back in a period of two week time. Both the qualitative and quantitative methods of data analysis were used, Cronbach’s Alpha and Independent T-Test. The qualitative analysis was done with the use of content analysis. The findings from the research revealed that loyalty cards are less effective to build behavioral store loyalty but more effective in influencing attitudinal store. Introduction Considering the current economical crisis, new and existing companies have a reason to establish as well as maintain customers and earn profit as much as possible. New trends have emerged in the market which involves shortening products life cycles, and specialization in service area as well as focusing on customer preference, (Lee et al, 2010). Different countries adopt different methods of implementing customer relationship management (CRM). Traditionally, companies focused...
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...Tesco Club Card Essay | 10359762 | | 4/11/2013 4/11/2013 Introduction The aim of the survey was to establish my hypothesis which was. To investigate how efficient and effective the Tesco’s Clubcard is and has this loyalty scheme helped the customers. Which gender is using the schemes most and finally what are they predominately using the points gained for. There was mixed views amongst the people I surveyed but overall my hypothesis was proven right, on the other hand I only surveyed fifty people which is not enough to make final conclusions and really money cannot be invested as it could be wrong. As for this purpose it was enough due to cost restrain. If this was to be presented to the Tesco management, they will not really believe that a hypothesis can be proved with the aid of fifty participants. Therefore, the success of this survey is decided on the fact that are there enough data to make a meaningful conclusion of the data and it did not have to be correct as such. On the other hand, my survey was a success because I have got the questionnaire fully answered and fortunately fit my hypothesis. Amazingly males seem to be members of the Clubcard more than females do, this is not often expected as females do tend to do the household shopping and often have the patient to deal with Clubcard and other paper work that it brings along. The points gained for is amazingly high amongst over the 55+ as they seem to have taken an interest on using them for others and outing...
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...Table of content Page no (P1- Marketing definition----------------------------------------------------------------------- 2 (P2- characteristic of marketing oriented organisation. ------------------------------------ 2 (P3- Marketing concept. ----------------------------------------------------------------------- 3 (P4- Benefits & Costs of a Marketing Approach ------------------------------------------ 4 (P5- Micro and Macro environment factors affecting business. -------------------------- 5 (P6- Targeting strategies----------------------------------------------------------------------- 8 (P7- Targeting strategies of TESCO. ------------------------------------------------------- 9 (P8- Buyer behaviour affecting marketing activity. --------------------------------------- 10 (P15- Difference in marketing product and service. --------------------------------------- 10 (P16- International marketing operation. ---------------------------------------------------- 11 (P [9-12]- Marketing mix (4ps) --------------------------------------------------------------- 12 (P13- Extended marketing mix. --------------------------------------------------------------- 13 (P14- Recommendation------------------------------------------------------------------------ 14 Reference----------------------------------------------------------------------------------------- 15 Task 1 (P1- Marketing definition ...
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...with the market and customers, it makes sense to look at market orientation as a concept to assess the success of Tesco. Market orientation is of even greater interest when entry into emerging markets is undertaken by a Western retailing firm, suggesting that a close understanding and response to customer needs is vital. Tesco’s management places an emphasis on customer needs through the ‘Tesco Values’ philosophy, expressed as two values – “no one tries harder for customers; treat people how we like to be treated.” The values are disseminated through an internal marketing strategy, which includes distribution of company newspaper to employees. However, these values emanate from the UK and recognition of a need for country-specific practices and local can be secondary to corporate unity. Tesco has a reputation for innovative information solutions, and its ‘Clubcard’ loyalty scheme and web sites are central to this. Tesco is the UK’s largest retailer and therefore has a significant customer base on which analysis can be performed. Because many of those customers return at weekly or similar intervals, Clubcard data and relationships are both deep and wide. Accordingly, Clubcard has significant potential to influence consumer behaviour in the UK. Staff are briefed on the importance of Clubcard, and the initial launch was preceded by fervent internal marketing. Clubcard is not only closely integrated with business processes, but aligns with the brand and brand strategy as the active...
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...RELATIONSHIP MARKETING 1.0 Introduction Tesco is the world leading retailer in United Kingdom and has now entered the retail industry in Malaysia. Tesco Stores (Malaysia) Sdn. Bhd. was established on 29 November 2001, partnering with Tesco Plc UK and Sime Darby Berhad. Sime Darby holds 30% of the total shares. The first Tesco hypermarket was opened in 2002, at Puchong, Selangor. Today, Tesco Malaysia has nearly 15,000 employees and 43 stores in Malaysia. Tesco Malaysia started to operate in two formats which are Tesco Hypermarket and Tesco Extra Hypermarket. Tesco Hypermarket is a place that offers customers a complete one stop shopping for their needs from fresh food to groceries, from household needs to apparel. It carries more than 86,000 lines of products including nearly 4,000 own brand of products ranging from food to non-food items. Tesco Extra Hypermarket serves the needs of small businesses, families and individuals all under one roof by providing a comprehensive range of products and services focused for small businesses including bigger pack sizes, special trolleys and checkouts as well as a dedicated business development team to support small business owners with their orders. Tesco Malaysia believes that their success depends on people, which include the people who shop with them and people who work with them. If customers like what was offered to them, they are more likely to come back and shop with Tesco again. If Tesco team find that their effort is rewarding...
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...MarketLine Case Study Tesco plc Case Study How Tesco Became the UK's Largest Retailer Reference Code: ML00001-041 Publication Date: December 2011 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED TESCO PLC CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-041/Published 12/2011 Page | 1 OVERVIEW Catalyst Tesco is the largest retailer in the UK and dominates the UK food and grocery market, accounting for almost a third of all grocery sales. This case study examines the factors that have led to the growth of the company as the UK’s number one retailer. Summary In 1995, Tesco overtook Sainsbury’s to become the UK’s largest retailer. Since that time the company has grown from strength to strength, widening its lead year on year. The unrivaled success of the Tesco Clubcard in building customer knowledge and generating loyalty has been fundamental to the rise of Tesco. The company has created a powerful brand and a number of valuable sub-brands including store, product and service brands. Tesco’s grocery product brands tend to center around a three-tier branding system, allowing the company to appeal to a mass market. Tesco has been a forerunner in the price competitive environment of the UK food and grocery market, utilizing its economies of scale to lead price wars with other supermarkets. The company has grown inorganically, buying out various independent grocers...
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...In the recent years, Tesco has become a famous brand in the food retail feild of Britain; furthermore, Tesco was a brand which has been a lead online due to the participation in Asia and Europe. indeed, with 401 pound occuring twice a year in 2005 Tesco's Company is the biggest online vendor all over the world. Tesco sell different the type of product online such as books, DVD's, music, electricity and gas through the Internet. Tesco also began selling cloths by establishing the new website-clothinggattes.com. There are a summarize stratergic approaches that makes Tesco achieve success online: with a "commitment-based segmentation" or loyalty ladder which is according to the recency and frequency of purchase and value which is applied to analyze 6 lifecycle categories which are divided to the target communication: “Logged-on” • “Cautionary” • “Developing” • “Established” • “Dedicated” • “Logged-off With the existing customers, Tesco used E-mail marketing and Direct-mail marketing to notice the customer about the promotion and special offer. Indeed, to encourage and purchase shopping online of the consumers,Tesco based on the advertising in the outlet and develop the marketing stratergy with the Clubcard loyalty scheme's customer in the supermarkets. In addition, the factor element to has made Tesco achieve success online is Product Range Development because at the begining 2005, Tesco is not only has accomplishes 150,000 vendor orders per week, but also provide more indefinite...
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...Introduction The report starts with looking at and exploring what marketing is and how it has evolved. The report is supported with marketing definitions from three different sources and what is meant by a marketing orientation and marketing process. Secondly, an introduction of Tesco the organisation the report will be focusing on throughout the report. Within the report there are some tables and graphs used to support the answers to some of the assessment criteria. The fundamental concepts and principles that underpin the marketing process are discussed and the use of environmental analysis in marketing, while the narrator carries out their own analyses at both macro and micro levels. The report investigates the importance of market segmentation and how this leads to the identification and full specification of target groups. It then considers buyer behaviour and positioning. The main elements of both the original and the extended marketing mix are then looked at. An introduction to the concept of the product life cycle, new product development, pricing strategies, distribution options and the promotion mix have all been discussed. Finally the narrator has developed marketing mixes to meet the needs of different target groups. The report includes the differences when marketing services as opposed to goods and examines marketing to businesses instead of consumers and the development of international markets. The report concludes by summarising the principles of marketing and...
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