ANALYSIS TESCO PLC

Analysis: Tesco Plc



Analysis: Tesco Plc

Outline

Tesco is a globally successful retailing company. Tesco is the most successful grocery retailer in the UK and most parts of the world. One reason is that it is further down the road to customized branding than its competitors. By using customer data generated through the Tesco Club card or its loyalty card, Tesco understands its customers better than most, if not all, other retailers. This has provided Tesco with a significant competitive advantage. Tesco states clearly that the reward it gives users of the Tesco Club card is a thank you for sharing information. It is also obvious to the Tesco customers that it is a better store. It may not be obvious to everyone that this is the result of their customer information, but, if asked, Tesco managers can give a straight answer (Morgan 1999). The Tesco Club card's initial success was based on the program's success as a sales promotion tool.

Tesco has a wide of operation and wants every one to buy their products . This is though as it is normally people who have moved out of their parents home and have accomadtion of their own. Tesco's aim is to get full time loyaty from their costemers and to carry on increaseing the value of their goods for the costemers. They want to under stand and respect their customers better than other supermarket chains. Their staff is very important to them so they aim to please their staf for tescos valuesand also to relises their large controbutions in to tescos empirea. To increase life for custimers tescos are all ways ready to take sensable risks to improve this. They also want to make life better and custumers shopping experance more enjoyable in no way other competative companyscan, they will do this through using there bring people who work for them and also using technolagy, intelligence and sales this all should help increase better value. Tesco have also introged a range of finciail services this was started in 1997. This includes newly started pensions, investment sceams, insurance and credit cards.See back for information investment Tesco's.

At the time of the launch of the program, Tesco immediately gained market share points. This was due to many factors. It was a new initiative, it was very well introduced, the offers were interesting, etc. The Club card is an interesting example of the mix between short and long term. Most applications of customized branding methods concern established brands or extensions of established brands. Tesco used customer data to launch Tesco personal finance, a new venture as such, but from a brand marketing point of view a range extension; presumably customer data to support the launch plan came from Tesco's retail customers (Nilson 2003). This paper intends to apply the aganecy theory on Tesco Plc. The report also analyses the company's dividend policy in detail as well as the gearing policy that the company employs.It furthers explores the factors that are responsible for companies ...