A CASE STUDY ON
TESCO STEERING WHEEL STRATEGY
PRESENTED BY- GROUP No 3
DATE: JULY 15th 2013
GROUP MEMBERS
NAME Enrollment No.
AAKASH BAFNA 12BSP2458
ASHISH BALDI 12BSP
ANKUSH GOYAL 12BSP
CHINMAY CHATURVEDHI 12BSP
AMIT KUKREJA 12BSP
DEEPAK SHEKAR 12BSP
DARSH MEHTA 12BSP
INTRODUCTION
1. Jack Cohen (1919)- Grocery stall
2. 1st product- Tea
3. TESCO= TE Stockwell (Tea supplier)+ Cohen
4. 1929- 1st store in UK following American Supermarket
culture
5. “Pile it high and sell it cheap”
6. 1948- Self service stores
7. 1956- Self service supermarket
8. 1960s- Acquired several store chains
PRICING OF PRODUCTS
1. “Pile it high and sell it cheap”; selling products at
cheaper prices
2. 1960s- RPM (Retail Price Maintenance) Act
3. Trading stamps introduced to offer discounts
4. 1970s- Policy backfired
5. Imperial Tobacco Company cancelled acquisition of
TISCO fear of image damage
6. 1990s- Saturation in retail market
OVERHAUL OF STRATEGIES
1. Greater priority to Superstores- small stores closed
down
2. Stores made customer friendly
3. Trading stamps discontinued
4. Checkout at TISCO introduced- offered price
discounts
5. 1974- diversified into Petrol pumps
6. Ian MacLaurin (1985)-large stores in Suburbs
7. Centralized distribution system introduced
8. TESCO labels on food products in store proved
successful
9. Customer centric programmes
‘One front’
Loyalty card
10. Grocery home shopping
11. 1995- Club card
TESCO’S BUSINESS OPERATIONS
1) Tesco focus on core UK business:
• International Operations
• Non Food Sector
• Retailing Services
• Tesco.com
2) Focus on Innovation of new products
3) Entering International Markets
4)Expanding of Business
FORMATS –FOUR TESCO STORE FORMATSTesco segments its store portfolio into four different store formats
Tesco’s Steering Wheel Strategy
1) Tesco’s implemented Balance Scorecard
2) Four Business Perspectives
Financial Performance
Internal Processes
Customer Knowledge
Learning & Growth
3) Renaming it to Steering Wheel
4) Tesco Steering Wheel- Four Quadrants
5) Core Values
Tesco Steering Wheel
CUSTOMER LOYALTY
1. To make shopping experience better
• Price reduction
• Improved product quality
• Well trained staff
• Information through in-store handouts
• Information through website www.tesco.com
2. Used term ‘inclusivity’ for customers
3. Different offers for different group of customers
4. Special attention to expectant mothers
5. Promote loyalty through club cards
• Design products according to customer recommendations
6. In house magazine every quarter
7. In 1998, launched ‘Every Customer Offered Help’
• Greeting customers
• Offering them help
• Wishing them good day
8. In Feb 2003, targeted at its women customers by scheme
named ‘Me Time’
9. Offered free session at leading health spa, luxury gym, beauty
salons and other discounts
10.TWIST(Tesco Week in Store Together), in this managers carry
different activities from stacking to attending customers
11.Constantly in touch with customers
FOCUS ON EMPLOYEES
1. Earlier focus more on revenue generation
2. High employee turnover
3. Under Leahy leadership employees were
considered as integral part of organisation
4. Greater employee empowerment
5. The Tesco Way Approach
6. Effective system of Communication
6. People Matters Group and Ideas Capture
7. Implementation of Personal Development Program
8. Informal and Friendly employee atmosphere
9. Rewards employees on its merits
10.Special Tesco cards were given to its employees
11. Led to high motivation and high productivity
MAKING OPERATIONS EFFICIENT
1. Electronic Shelf Edge Labelling
2. Primary Distribution
3. Continuous Replenishment Program(1999)
4. Project Refresh(2001)
5. Handheld Computers(2003)
6. Tesco Scales
7. International Sourcing
8. Corporate Responsiblity
FINANCE
CONCLUSION
THANK YOU
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