STRATEGIC PROJECT

Strategic Investigative Project



Table of Content

Topic of investigation1

Aim, Scope and Objectives of the Project1

Justification of Aim, Scope and Objectives of the Project1

Consumer Loyalty Marketing1

Tesco3

Sainsbury4

Project Research Methodology5

Sources of Data and Information6

Primary Data7

Secondary Data8

Option or Alternative That Supports the Project Aims8

Research Analysis9

Medium Used to Present the Result9

Results9

References11

Strategic Investigative Project

Topic of investigation

The topic of the investigation is “Customer Loyalty of U.K. Stores”.

Aim, Scope and Objectives of the Project

The main objective of the strategic investigation project is to determine the impact of customer loyalty marketing and customer retention in two major retail stores in U.K.

Justification of Aim, Scope and Objectives of the Project

Due to recent and rapid changes in the economic environment and impact of change in technology, there have been changes in consumer behaviour hence some retailers are closing down. Although there are a number of studies about customer loyalty a gap still exist due to these changes in consumer behaviour, hence my interest in the subject. However the purpose of this endeavour is to determine whether there is a significant relationship between customer loyalty and buoyancy of the enterprise under such economic conditions and technological changes in business activity of grocery department of Tesco and Sainsbury. If so what factors loom large in determinants of customer loyalty?

Consumer Loyalty Marketing

Loyalty marketing is the practice of rewarding customer loyalty in order to keep customers patronizing a company. There are many different types of loyalty marketing strategies, but many of these involve making a certain number of purchases to reach a reward of some type that is seen as appropriate for the customers in question. Using small prizes, like those found in cereal boxes and candy, is also a popular strategy for retaining customers who are already interested in the brand. It is imperative that the reward for loyalty be appealing enough to inspire additional purchases or otherwise act as an incentive, because otherwise the company is losing money on the prizes or deals.

The potential benefits of loyalty marketing are numerous and the risks are often quite low for a company, depending on the strategy used. Customer rewards that involve giving a free item or discount after a number of purchases can be sustained in a manner that strategically limits the amount of money given away, and small prizes or other rewards can be branded to be appealing but are otherwise low enough quality to save money. This strategy can be implemented by businesses both big and small, although large companies are often more able to create large rewards programs involving prize catalogues and online point redemption.

There are many different reasons that loyalty marketing is successful, but most depend on the customer's perception that he or she is getting something for free. It has been demonstrated in many different ways that customers who carry loyalty cards usually frequent a chosen brand more often than those who do not, although the causality of the issue is certainly questionable. Subjectively, customers often feel that they are patronizing a business because of the ...