Tesco background information:
founded in 1919 by Jack Cohen
a British multinational corporation (MNC) grocery and general merchandise retailer headquartered in UK
third-largest in the world (after Walmart and Carrefour)
has stores in 14 countries across Asia, Europe and North America, Malaysia, the Republic of Ireland and Thailand
four store formats: large superstores, large stores with limited non-food offerings, regular supermarkets, and Tesco Express convenience stores. Q1 - Tesco database – strong performance (loyalty Card)
1994 Tesco’s hired a company called DunnHumby to help them analysis their database and find the patterns in the data they would help them devise successful marketing program. It is interesting to note that within three months of hiring DunnHumby, Tesco realized the expertise they were bringing to their organization. As their then chairman Lord MacLaurin said "What scares me about this is that you know more about my customers after three months than I know after 30 years."
How it use:
Tesco Club card holders benefit when shopping at Tesco as receive 1 point for every £1 they spend, and double points on special offers. These points are stored and built up and 4 times a year the holder receives vouchers to the value of points they have saved (1p per point). Vouchers can be spent in store on shopping or used on Club card Deals where they are worth 4 times the value. 3 They are also entitled to free access to the Club card clubs which include: wine, baby and toddler, healthy food, food and Christmas clubs. For Tesco the benefits they give to the customers ensures that they can micro-segment customers by lifestyle habits, including individual personality traits from analysis of the contents of each grocery cart. They can then target them with newsletters and other personalized information along with a variety of other marketing program.
How it work
Tesco's Club Card generates valuable information for use in market...
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