Case Tesco

8/14/2019 Case Tesco

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CASE STUDY 2

INTRODUCTION

Tesco has expanded from its traditional supermarket base into the international arena

and now operates across ten markets. The first Tesco store was opened in 1929 but it

is only since the 1990s that Tesco significantly

increased its retail focus. They are a global leader in

the design, manufacture and service of technology

based solutions for the upstream energy industry.

Their ability to transform leading edge technologies

into reliable and costeffective solutions makes Tesco

!orporation a master of innovation. "n being members of the technical community in so

many locations, Tesco !orporation offers strength that comes from worldwide

resources. The company goal is to change the way people drill oil and gas wells,

making operations safer and more efficient.

#urthermore, Tesco $roup, is the largest supermarket chain, needed a new retail

data infrastructure operating in near realtime, to enhance store operations, supplychain management and stock availability in its 1,200plus stores. Tesco selected

%ysrepublic &eal Time "ntegrator' (&T") along with *icrosoft+ i-Talk+ %erver and

*icrosoft %/ %erver' as the preferred technologies to deliver this vision. The critical

business data made available through this

infrastructure has given Tesco head office staff and

systems a single, near realtime view of supermarket

sales data from all its stores, which was previously

unavailable in such detail or in such a timely manner.

The solution handles 100 */ 3% transactions a

second at peak times, which each have an average of

between 0 and 100 sales items. 4ll transactions are stored in a single multiterabyte

%/ %erver' database and are also published for subscription by real time.



Problems

Tesco is the largest supermarket chain, the

national leader in the food sector, and a global player

in retailing with outlets in "reland, !entral 5urope, and

4sia. 3ver the past 67 years, as the retailing market

has changed, the company has grown and

developed, responding to new opportunities and

pioneering many innovations, including online sales.

Tesco, with 1,200plus stores and almost 20,000 employees, is described by many

analysts as the king of supermarkets. 4part from its familiar high street supermarkets, it

operates small grocery stores under the Tesco *etro brand name, big supermarkets

outside cities (Tesco 5xtra), and 28hour stores.

ointofsale (3%) data is the lifeblood of

any supply chain. %upermarkets, especially, use this

information to understand and anticipate customer

behavior, manage stock in individual stores, aboveall, the speedy availability and accuracy of 3%

data makes a fundamental difference to a retailers

competitiveness and the strength of its supply chain.

For Tesco managing the supply chain is critical to maintaining its

leadership in the industry. Specifically this means ensuring a high degree of

product availability at all times. In a highly competitive market if a customer

can’t find an item in a Tesco store, there are many other retailers they can

turn to. Optimizing the operational effectiveness of a store is also a key

focus area hich means a complete understanding of factors such as !ueue

lengths cashier and e!uipment performance is vital in order to gain and

maintain an advantage.



4s the most successful, supermarket chain, Tesco is constantly refining the way

in which it sources, analyses, and manages 3% data. "n late 200:, Tesco began

working on a new realtime retail infrastructure based on %ysrepublic &T" and *icrosoft

technologies.#urthermore, today grocery stores do not leverage all the potentiality of

their loyalty cards and use it only as a way to provide discounts to customers. This is a

result of the costs involved to implement the process and disbelief from some of those

retailers that the investment can actually pay off, and ; or lack of internal analytical

capabilities to capture and process customer buying information.

esides that, multiple locations

presented Tesco !orporation with a

challenge in gathering information fromthe remote locations. "t was also difficult

to provide these locations the knowledge

and tools to manage business effectively.

The need for a fullyintegrated system that would provide continuity of

information across multiple locations and countries became increasingly urgent as

Tesco !orporation expanded to more locations in more countries. The company needed

the ability to support each local business unit while monitoring each unit for

accountability.



Solutions

%ysrepublic &eal Time "ntegrator (&T") enables retailers to integrate in realtime

with diverse and highly federated environments such as 3% is one of the way to solve

the problem. This opens up new channels with faster access to critical business

information, through use of accurate, detailed,

3% information. &T" can help to address issues,

such as stock availability, loss prevention,

customer service, instore productivity, and

promotion tracking and through <eb %ervices

initiate a series of responses without needed

manual intervention. "t is implemented using*icrosoft+ i-Talk+ %erver, part of the *icrosoft

<indows %erver %ystem, and the *icrosoft .=5T

#ramework for development. >ata from individual

stores is captured using &T" and transmitted via

*/ <eb services through i-Talk %erver, &T"

and into a single *icrosoft %/ %erver 200

database.

#urthermore, Tesco can be that successfully leveraged in its fre?uent shopping

program is based on the !lub !ard program that provides rewards customers with

points every time they shop at Tesco stores and allow them to redeem points for

products and airline mileage. The crucial facet here is the !lub !ard play an important

tool to better understand customer behaviors and preferences.



financial services. The promotions linked to the loyalty program also allow Tesco to

drive business to specific area giving extra points for certain merchandise categories or

for online sales.

Questions

1. <hich sources of data for Tesco come from within the company and which are

external to the companyE

2. <hy is Tesco !ard a valuable asset in contributing data mining for the company,

especially when it comes to point of sale (3%)E

:. #rom which sight of view, &eal Time "ntegrator (&T") function help in retail business

and how does this function been implementE

8. Bow can Tesco effectively coordinate its use of marketing research with its retail

informationE >iscuss and support with example.

. Bow should Tesco adapt its customer loyalties for the different countries in which its

operateE

Case Tesco

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