Customer Loyalty in Retail Sector
COUNTRY REPORT
ON
CUSTOMER LOYALTY IN RETAIL SECTOR WITH SPECIAL EMPHASIS ON TESCO
Submitted By:
Rajat Kaul
A1808709003
2009-2011
Submitted To:
DAVID OGLE
TABLE OF CONTENT
Chapter 1 Introduction
Introduction
Aims and Objectives
Chapter 2 Literature Review
The Concept of Loyalty
Loyalty Programs in India
Chapter 3 Methodology
Research Methodology
Comparative Analysis
Chapter 4 Analysis
Success Factors
Chapter 5 Conclusions and Recommendations
Limitations
Recommendations
Bibliography
[pic]
1. Introduction (Overview and Background)
Traditionally, Retail marketing has focused on market share and customer acquisition rather than on retaining existing customers and on building long-lasting relationships with them. More recently, however, market share has been gradually losing its revered status as marketing’s holy grail and the wisdom of focusing solely on customer acquisition (hoping that this effort will compensate for high levels of defection) is now being seriously questioned and considered as very high risk since ever more players enter an increasingly crowded marketplace. In response to these changes there has been a new emphasis on defensive marketing, which focuses on holding on to existing customers and getting more custom from them (higher “share of customer”), in contrast to activities which focus on winning new customers. Calls for a paradigm shift to the pursuit of loyalty as a strategic business goal have become increasingly popular over the recent years.
Accordingly, in Feb 1995, Tesco changed the way it did business so fundamentally that its effect is still seen in every part of the company. The events changed the way Tesco makes decisions, develop products, manages its stores and, most importantly the way it serves its customers. On that day Tesco launched ‘Clubcard’, its customer
ON
CUSTOMER LOYALTY IN RETAIL SECTOR WITH SPECIAL EMPHASIS ON TESCO
Submitted By:
Rajat Kaul
A1808709003
2009-2011
Submitted To:
DAVID OGLE
TABLE OF CONTENT
Chapter 1 Introduction
Introduction
Aims and Objectives
Chapter 2 Literature Review
The Concept of Loyalty
Loyalty Programs in India
Chapter 3 Methodology
Research Methodology
Comparative Analysis
Chapter 4 Analysis
Success Factors
Chapter 5 Conclusions and Recommendations
Limitations
Recommendations
Bibliography
[pic]
1. Introduction (Overview and Background)
Traditionally, Retail marketing has focused on market share and customer acquisition rather than on retaining existing customers and on building long-lasting relationships with them. More recently, however, market share has been gradually losing its revered status as marketing’s holy grail and the wisdom of focusing solely on customer acquisition (hoping that this effort will compensate for high levels of defection) is now being seriously questioned and considered as very high risk since ever more players enter an increasingly crowded marketplace. In response to these changes there has been a new emphasis on defensive marketing, which focuses on holding on to existing customers and getting more custom from them (higher “share of customer”), in contrast to activities which focus on winning new customers. Calls for a paradigm shift to the pursuit of loyalty as a strategic business goal have become increasingly popular over the recent years.
Accordingly, in Feb 1995, Tesco changed the way it did business so fundamentally that its effect is still seen in every part of the company. The events changed the way Tesco makes decisions, develop products, manages its stores and, most importantly the way it serves its customers. On that day Tesco launched ‘Clubcard’, its customer
Bibliography: According to Bergeron( 2000) , the definitions of loyalty fall into three broad categories: 4