Customer Relationship Management at Tesco


Case Code :SCMKTG070 Publication 2005 date : Subject :Marketing Industry :Retailing Length :10 Pages Price : Rs. 300 / US$ 7.0
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Abstract The case describes the customer relationship management (CRM) initiatives undertaken by Tesco, the number one retailing company in the United Kingdom (UK), since the mid-1990s. The company's growth and its numerous customer service efforts are discussed. T case then he studies the loyalty card scheme launched by the company in 1995. It examines how the data generated through this scheme was used to modify the company's marketing strategies and explores the role played by the scheme in making Tesco the market leader. The case also takes a look at the various other ways in which Tesco tried to offer its customers the best possible service. Finally, the company's future prospects are commented on in light of changing market dynamics, the company's new strategic game plan, and criticism of loyalty card schemes.

Issues: » Examine how the information gathered through CRM tools can be used to modify marketing strategies and the benefits that can be reaped through them.

Key words: Customer relationship management, CRM, Tesco, retailing company, United Kingdom, UK, mid1990, customer service efforts, loyalty card scheme, 1995, data generated, scheme, marketing strategies, possible service, changing market dynamics, game plan, loyalty card, schemes Questions for Discussion: 1. Examine the customer service efforts undertaken by Tesco prior to the loyalty card scheme's launch. Why do you think the company felt the need to launch Clubcards?

2. Analyze Tesco's Clubcard scheme in depth and comment on the various customer segmentation models the company developed after studying the data gathered.

3. How did Tesco use the information collected to modify its marketing strategies? What sort of benefits was the company able to derive as a result of such modifications?

4. What measures did Tesco adopt to support the CRM initiatives on the operational and strategic front? Is it enough for a company to implement loyalty card schemes (and CRM tools in general) in isolation? Why?

5. With Tesco moving away from its core business of grocery retailing and focusing on globalization, what do you think the future has in store for the company? What do you think the company should do to retain its growth pace and leadership status?

effectively utilized its customer service to increase word-of-mouth referrals among airline passengers. a New York-based low-cost airline flying to 32 cities in the US in 2005. the company began a brand building exercise right from inception. The caselet points out how airline passengers. jetBlue was named the top carrier in the 2005 Airline Quality Rating ranking. Issues: » Role of customer service in making customers loyal to a company » Role played by word-of-mouth referrals in attracting customers » The factors that should be taken care of to provide high quality service to customers jetBlue Airways (jetBlue). Customers found the JetBlue experience to be much better than their experiences with other airline companies..Abstract The caselet describes how JetBlue. In April 2005. an analyst. low-cost carriers in particular.. Questions for Discussion: 1. jetBlue manifested its culture credo of 'Bringing humanity back to the airline industry' through its customer-friendly attitudes and actions." How did JetBlue become the primary choice for passengers opting for low-cost air travel? 2. appreciated the high quality service offered by JetBlue. Therefore. "Michael Boyd. Putting its credo into practice helped jetBlue in evolving its branding strategy. Assess the marketing strategies followed by JetBlue. released by the University of Nebraska and Wichita State University. a low-cost airline in the United States. Jetblue Case Study INTRODUCTION BRIEF HISTORY JetBlue which was begun by Brazilian born and Seattle raised David Neeleman who studied accounting at the University of Utah for 3 years before dropping out to start his own Traveling Agency business partnering with Pineapple Express to sell Hawaiian packages including airfare and time-share vacation residence. . who were dissatisfied with the service offered by other airline companies. He had to shutdown his Travel Agency business when his partner Pineapple express went out of business in 1983 when it run out operating cash. The airline had to differentiate itself from others in an industry which had a number of low-cost airlines. started operating in 2000. said that JetBlue had a cult following. and became loyal to the airline.

or LiveTV provides in-flight entertainment systems for commercial aircraft. Co.S. operated an average of 600 daily flights with a fleet consisting of 107 Airbus A320 aircraft and 35 EMBRAER 190 aircraft. . Airline to install security cameras in passenger cabin for customer crew and safety JetBlue was the first U. digital satellite radio. fuel-efficient aircraft.S. p C-53)--entertainment at every seat. JetBlues fully owned corporate subsidiary. and five countries in the Caribbean and Latin America. pre-assigned seating and reliable performance. Puerto Rico. Airline to install bulletproof cockpit doors across the fleet. LLC.JetBlue Airways is a low-cost passenger airline that provides customer service primarily on point-to-point routes. As of Dec 31 2008.S. Airline to provide 100% ticket less boarding JetBlue was the first U. Mexico. . JetBlue offers its customers a quality product with young. JetBlue. As of Dec 31 2008. . including live in-seat satellite television. wireless aircraft data link service and cabin surveillance systems. free in-flight-. LiveTV.(24-Channel live television via satellite Direct TV. Thompson et al. ‡ JetBlue was the first U. serves 52 destinations in 19 states. leather seats.

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