Part 2 - Business Sustainability (2d)

2(d) - Recommend one way for the business chosen to achieve sustainability.

As we know, Tesco is a retailer. Retail market is nowadays mature and have oligopolistic competition with their competitors, which a few of them have major power over the market. Tesco is a quite successful multinational grocery around the world and it is the second largest retailer. It is very important about how Tesco can achieve sustainability, as there are few powerful competitors exist in the market. It is crucial for a retail market (Tesco) to differentiate itself from other company. We recommend Tesco to emphasize on customer service skills.

‘The Tesco values are embedded in the way we do business at every level. Our values let our people know what kind of business they are working for and let our customers know what they can expect from us,’ said Group Chief Executive Officer (CEO) Philip Clarke. From this we know that Tesco Company take serious about their customers’ insight. Customers are king and success in their businesses are mostly dependent on their customer needs. It is proven that interest rate is increased since a company recognizes the importance of customer intelligence. For example, the recent Business Week ‘Best Performance 2007’ survey has concluded that companies in the top 50 have a deep understanding of their customers.

In recent years, Every Day Low Prices (EDLP) strategy was applied by most of the retailers because they think low price is attractive to customers. However, it is indeed a wrong view as it limits its business development. Wal-Mart and Tesco have greater proof that customer intelligence can add value to a retail business. Marketing data specialist, Dunnhumby make Tesco possible to apply a new methodology, customer intelligence. Tesco Clubcard is introduced as a way for creating customer relationship and it has become the world’s most successful retail loyalty scheme. Besides, it is much cheaper than other loyalty programs.

(Tesco.com.my, 2014)

(Tesco Paradigm Mall, 2012)

(Tesco Stores, 2012)

(Tesco Stores, 2012)

With Tesco Clubcard, Dunnhumby analyses and interprets the sales data and constructs suitable marketing strategies and promotional campaigns. With the sales data, they can know about customers’ actual buying behaviours and their management team can make vital decisions guided by these information. Besides, this insight helps the management team to adjust its discounting policy, send personalized offers to customers and shape product categories. Customers’ loyalty scheme has made them able to enjoy such customer insight because they can collect customers’ personal details and link with their customers’ purchases. Customers also can redeem against goods and money off their shopping bills with this card. I think this is a good way to sustain its business as Tesco Clubcard has gradually increased Tesco’s market share by 3 %.

Moreover, it is important for a business to have an online website to provide relevant information to their customers who would like to know more about the business. I would like to suggest to continue operating its online website and online shopping. It is a good way to keep in touch with their customers. The website provide the basic information and history about Tesco. Additionally, catalogue and current promotions are also shown in the website for the customers to read and search for the advertisements at anytime and anywhere. Moreover, Tesco online grocery shopping site in Malaysia provides customers the same promotion and price on online shopping in Tesco. Customers can buy for their groceries by credit or debit cards. Delivery from 10 a.m. to 10 p.m. daily will also be provided with a RM10 service charge. I recommend that Tesco can have an online forum for the customers to discuss about the feedback about the products from Tesco. From that, Tesco can know more about customer insight.

We believe that for a business to achieve sustainability, the most crucial factor is customers. Customers are who a business’s profit come from. Therefore, having a deep understanding about customers’ needs and wants and meeting customers’ expectation towards a business are the key factor for a business to sustain. Retail market is a competitive market and Tesco is a successful retailer that have great achievement over years. The success of Tesco is mainly because of their value that always emphasize customers’ expectation. They provide good and complete services to fulfill every need of their customers and try their best to improve themselves to even go for higher and higher.