Are Customers Loyal to the Tesco Superstores - Essay Example

The difficulties that Tesco faced previously were due to low price inflation for food, less growth in population, difficulty in getting permission for setting the supermarket, saturated market, and also competition. But today Tesco is considered as an example and treated as a model for supermarkets across the world.

Discussion

            The main aim of Tesco is to reduce the price, sell more products and expand its operation and become the market leader.

Customer Survey:

Questionnaire of Customer  Survey

Basis of Observation

Remarks

Gender, approximate age

Type of car

How dressed

Appearance

Time of Day

Was the store crowded?

Did the person have a list?

Did the person seem to be checking items off the list?

Did the person appear to follow the list and not deviate

Did the person appear to buy an impulse item if yes what was it?

What size of item did the person buy single serving, family packs?

            According to the survey conducted on a weekend in Tesco store, it was found that people of all ages visit Tesco. But customers in the age band 20-45 years is found more as compared to customers falling in another age band. Both male and female customer was found on the store but as compared to male, female customers were more in number. Jaguar and Rover were found more in number in the parking space of the store. They mainly preferred casual. The store was crowded as it was a weekend, therefore, the store was more crowded as compared to other weekdays. The research was conducted in the evening which is the peak time in the weekend. The customers were checking the items on the list. The impulse item of Tesco was confectionary. More than 50 % of the crowd of the store was found at the confectionary division of the store. (Rüther 32)

Customer Review/Feedback

Positive review

            While conducting a market survey it was revealed that a customer purchased Tesco extra large code fillets batter. The customer was so happy and overwhelmed when she came home and opens the pack. She was so excited and satisfied that she recommended her friends relatives and other family members.

Negative review

            In another case, it was found that a customer took his daughter for a lunch at Tesco and ordered a sandwich which they prefer to have whenever they come to Tesco. But when the sandwich was served it was found that the quality has degraded and the ingredient that was stuffed inside the sandwich was of low quality. But with disappointment when the customer reported to the manager of the low quality of the items used in the sandwich and the quality of the sandwich was poor, the manager reacted very casually instead of taking the matter seriously. This customer usually selects Tesco because it is situated at an arm's length from his residence.

            The above Feedback was found on the basis of the questionnaire filled up by the customer during a customer satisfaction survey conducted by Tesco.

QUESTIONNAIRE

Basis of comparison

Extremely

Very

Moderately

Slightly

Not at all

How professional is Tesco?

How convenient is our company to use?

How do you feel that the company understands your needs?

Compared to our competitors is the product quality better, worse or same?

How well is the customer service representative in solving the issues?

Does the company is able to satisfy your needs?

Are you satisfied with the services delivered by the employees?

Are you satisfied with the price that is charged for the products?

To what extent do  you like the company

Will you recommend the company to your friends, colleagues, relatives?

Data Analysis Plan

            Tesco has categorized and segmented its consumers into different categories before launching the brand to reach its target consumers.

Brands for Target consumers

Category of consumers

Percentage

Brands

Finer Food

19%

Tesco Finest

Healthy

17%

Tesco Organic

Traditional

15%

Tesco

Main Stream

24%

Tesco Kids

Convenience

9%

Tesco

Price Sensitive

16%

Tesco Value

Statistical Tool

            Standard deviation and co-variance have been used as statistical tools. It uses secondary data for a collection of information about the market and the consumers.

Standard Deviation

AGE BAND

Mean

(x-u)

(x-u)2

0-15

5

15

225

15-25

20

0

0

25-40

35

-15

225

40-60

25

-5

25

60 and above

15

5

25

Total

100

u

20

500

Variance

100

Standard Deviation

10

 Standard Deviation has been applied as a tool for finding out the different age bands of the consumer who visits the store.

Conclusion

            Tesco manufactures, packs its product every day and it is simultaneously carrying out investigations to satisfy the needs of the customers. Tesco wants to spread its operation worldwide and the prerequisites needed to satisfy the needs of the customers across the world and to cover the targeted international market it has identified some objectives for international expansion.  It wants to cover a large market, to set up its store in the underdeveloped market, to become the market leader, and considering the hypermarket and supermarket as the means for its growth and expansion. The main competitor of Tesco is Wall-Mart. The types of services offered by Tesco are travel service, mobile phones, Tesco financial service, Tesco telecom, and ivillage.com.