Customer Experience in Tesco

This report discusses the brand values, market position, and customer services of Tesco, one of the leading companies in the UK. It explores the attitude of individuals towards the Tesco brand and customer services. The report also provides recommendations to improve customer experience.

Customer Experience
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Brand values and market position of Tesco.................................................................................3
Range of customers......................................................................................................................4
Attitude of individual toward TESCO brand and customers services.........................................5
Brand value, customer services and organisational culture of TESCO.......................................7
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCE................................................................................................................................10
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INTRODUCTION
Most of the company pay higher attention to provide best customer experience in order to
earn maximum profitability and market share. Therefore it can be stated that it is most important
for any organisation to provide positive experience to its customers or end user for building
strong brand image in the industry. This report is about Tesco (B2C) which is one of the leading
companies in UK operating with main aim to provide better and qualitative experience to
customers through innovating technologies and training employees. It has cover point such as
brand value, market position, key customers and demographical structure of company. It
explains about Attitude and preferences of customers toward brand image and products of
TESCO.
Brand values and market position of Tesco
Tesco deals in varieties of products and services such as clothing, home care and
personal care products or financial services so that requirements of wide range of customers can
be meet. Company have started with a mission to provide select product to few customers so
that they can live their life better and easily. TESCO operates with main motive to provide great
products at great values to customers for long term growth and survival of enterprise (Pol,
Galetzka and Pruyn, 2018). Firm have strong brand image in the retail industry to provide
qualitative products and services to customers in order to provide better and qualitative
experience to end users. It continuously improves qualities of products and set appropriate prices
as per market condition for retention of customer’s loyalty and satisfaction. Market positioning
of TESCO can be understood through use of Porter five forces such as:
Level of competition: It can be stated that there is high competition level in retail industry as
there are number of large, small companies such as ALDI, ASDA that provide qualitative
products at reasonable rates (Koga, 2019). Therefore due to high competition level TESCO
always planned to differentiates its products and services and select affordable prices so that
maximum customers can be influenced to choose TESCO as compared to other brand in market.
Threats of new entrance: Lot of amount of capital, resources needed by new enterprise to enter
into retail industry thus it can be illustrated that threats of new entrance is medium. TESCO have
strong brand image, customer’s loyalty and satisfaction therefore it is difficult for new entrance
to cover large market area.
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Power of supplier: TESCO is huge organisation with number of employees, sales volume and
profitability therefore number of supplier are ready to give raw material at low cost. Thus,
company through building strong relationship with supplier helps to get input products timely so
that customers can be provided better services within limited time and cost. So, it can be stated
that low power of customers has helped TESCO to easily promote its market share and brand
image.
Power of buyers: There are number of buyers in UK with different taste and preference
therefore TESCO always understand their wants in order to get competitive positioning in the
market. Power of buyers is high as there are number of firm that are offering varieties of
products and services to attract maximum customers (Kim, Beckman and Agogino, 2018).
Therefore TESCO through proper market research able to find unsatisfied needs of end user and
planned strategies for better customer experience for long term growth and success of enterprise
in retail industry.
Threats of substitute products: Some of the small retail companies try to manufacture similar
products as TESCO in order to earn profit margin for better living. Company through patent,
copyrights its technology and products is able to protect products from imitating thus helps firm
in gaining competitive advantages.
Therefore it can be stated that TESCO have good brand image and market position that
helps company to easily expand its market share and sales volume (Benzarti and Mili, 2018).
Company through formulating innovative strategies and meeting customers’ needs within limited
time ranges able to gain differentiate positioning.
Range of customers
Every organisation work to earn maximum profit margin through satisfying needs and
wants of customers therefore it had to plan various strategies to attract target customers. TESCO
have wide range of customers from kids to elder generation so that company can grow its
operation. Company have effectively segmented, targeted and position its brand image in mind
of customers for smooth operation of business and achievement of goals. Therefore,
segmentation, targeting and positioning of TESCO is as follows:
Segmentation: Marketing manager of TESCO have segmented or classified people on basis of
age, gender, psychological, demographical and geographical location so that need of each
individual can be fulfilled. It have number of products for kids, adults and elder age so that they
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can easily come in TESCO stores and make various purchase to satisfy their needs (Supit and
Darma, 2018). Marketing manager formulates strategies as per segmentation of people like it
have provide high price and qualitative products for high class people so that they can fulfilled
their needs. TESCO also provide financial services to customers so that people can get capital at
reasonable interest rates thus qualitative services and products promote overall growth of
organisation.
Targeting: TESCO have target mostly young and adult people to offer its products and services
as there are large number of people between age of 25-54 years. Marketing manager through
setting medium to high prices of products is able to target people that belong to high, medium
class. Thus, effective targeting strategies such as innovative prices and qualities of products,
helps in providing better customers satisfaction.
Positioning: Company have position its brand image in the mind of customers through
innovating its products and method of delivering services. TESCO through offering its product
by use of social sites is able to maximum customer’s satisfaction and earn more profitability as
compared to stores sells. It has provided ease and comfort to customers as they can easily make
purchase while staying at home therefore promote people to select more and more TESCO
products.
Thus, it can be stated that people having different culture, preference and taste, income
level prefer TESCO products as it dedicated and committed to offer qualitative products to large
number of customer (Raina, Chahal and Dutta, 2019). Company through improving its qualities
of products and services is able to offer best customer experience and expand its business across
worldwide to earn more profitability. So, it can be stated that different products range for various
customers contribute towards growth and success of organisation.
Attitude of individual toward TESCO brand and customers services
Customer have positive attitude towards customer services and brand image of company
as TESCO always focus to fulfil its customers’ needs. Aaker brand equity model can be used to
measure brand value of TESCO and its products and services in mind and heart of customers that
helps company to achieve its goals. Aaker brand equity model describe about brand loyalty,
awareness and brand association that state company provide valuable and unique products and
services to customers (Sahu, Deng and Molla, 2018). The way TESCO have managed its brand
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image and retain maximum customer’s satisfaction can be illustrated through use of Aaker Brand
equity model such as:
Brand loyalty: It describe about the extent to which customers are loyal to particular brand thus
TESCO through improving its products quality, adding new feature or launch new products and
services to fulfil needs of customers get competitive advantages. Company has also offer loyalty
card and various discount offers to people that make purchase of TESCO products on continuous
basis. It can be stated that most of the individual in UK like to purchase its products through
TESCO thus company is able to retain its customers loyalty and expand its market share across
worldwide and UK.
Brand Awareness: Marketing manager has created strong awareness among existing customers
about various qualities of products and services in which TESCO deals. Company by
advertising through social media and bill boards, personal selling and home delivery of products
has helped in increasing brand awareness among customers (Jagodziński and Archer, 2018).
Social media has helped TESCO to easily create awareness about products and services among
various individual that are living in different countries at minimum time and cost. Therefore such
innovative technology in marketing of products helps in getting positive feedback from
customers about firm brand image and services.
Perceived Quality: Most of the people in UK think TESCO as one of the leading, innovative
brand that continuously focuses on providing maximum value to end user for growth and
sustainability of organisation in retail industry. Individual know about values of products and
services that TESCO give thus they are ready to pay competitive pricing to company. Therefore
company through offering products beyond customer expectancy is able to easily expand its
market share and profitability in retail industry.
Brand Association: Company through providing various products range from essential to non
essential is able to attract maximum number of customers. Large number of customers of
TESCO associated themselves with brand name of firm thus it helps in promotion of its products
and services (Li and et.al., 2016). Customers of TESCO are happy and satisfied with qualities of
products that are render by company to end user or customers thus mouth publicity helps in
attracting present as well as new customers within firm.
Other Proprietary: TESCO have patent, copyright its different products, method of delivering
products or services and technology so that other competitors cannot make similar products as
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TESCO. Thus use of such proprietary by company helps in building strong brand image and
gaining positive feedback from customers.
Therefore it can be illustrated from Aaker brand equity model that people have good and
positive attitude towards brand image and services of TESCO. They are highly motivated, happy
and satisfied with qualities of products company deliver to customers so it promote firm to gain
competitive advantages.
Brand value, customer services and organisational culture of TESCO
It can be illustrated that TESCO have strong brand image in the market as it deliver
qualities products thus able to fulfil customers’ needs. Several of customers visit TESCO online
sites and stores to make purchase so that their wants can be fulfilled. Company have more than
6500 stores and 475000 employees that are working together to provide better services to end
user so that organisation can achieve its objectives. Employees of TESCO are highly determined,
dedicated and motivated to work hard so that company can grow its operation through provide
best customers experiences (Leninkumar, 2017). Positive feedback of customers on social sites
and effective personal selling of employees state that TESCO have good brand image in the
market. 24 hours customer care services and resolve of grievance within limited time promote
more individual to prefer TESCO products over other competitors in the market. Strong brand
image of company motivates every individual that are working in the organisation to enhance
their performance to get numerous opportunities within firm. Home delivery of products, strong
supply chain, warehouse and standard procedure helps deliver of products within limited time
period. TESCO have always plans various method and strategy to improve its organisational
culture so that employees can be easily works for attainment of common goals and objectives.
Top management formulate standard policies and procedure that need to be followed by each
employee while working in TESCO so that best experience can be provided to customers at each
stores working at different location (Sahu, Deng and Molla, 2018). Managers of TESCO provide
supportive and friendly environment to employees so that they can more concentrate on
enhancing their level of performance and productivity. Strong interrelationship and clearly
explained roles and responsibilities that need to be performed by each individual helps in overall
growth of organisation. Employees of company promote brand image and services to many
customers as they are happy with organisational culture of TESCO. Therefore it can be stated
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that organisation culture, brand image and better customer’s services contributed towards
achievement of final goals.
Recommendation
Customer experience is defined as the interaction between the organisation and the
individuals in society who has utilised the products offer by company. Customer experience
plays an important role in improving the growth potential of the organisation. Tesco Company
can take the customer feedbacks to improve the service level and its product quality. Customer
experience immensely depends upon how the customers are getting treated in the organisation
(Chauvenet and et.al., 2019). Taking feedbacks from customers will enable company to
understand the positive aspects of the company that are contributing in improvement of the
customer satisfaction and also about the negative side of the customer experience. This is an
important approach that can be channelizes to achieve the best level of customer experience in
favour of the Tesco Company. Management of Tesco Company can also channelize a proper
communication channels with the support of Public Relation department in the organisation
hierarchy. With the support of public relation department Tesco Company can approach its
customers directly to interact about the customer experiences in respect to company’s products
and services. The interaction with customers will drive company about all the key areas that
needs to be developed as a part of improving the customer experience.
Tesco Company can also channelize the policies of giving effective give always to
customers. Give away like coupons, vouchers and other benefits can provide to improve the
customer experience. Company can offer potential discounts over all top brands to attract the
customers. Giving discounts is an important strategy that can be channelizes to improve the
customer experience (Brun and et.al., 2017). It will directly improve teh purchasing capacity of
the customers. Company can also set the policy of fixing problems even before they emerge in
company. This is an important approach that can be used by the Tesco Company to improve its
level of customer satisfaction. Company can observe the issues involved in functional activities
and take suitable decisions to remove such problems.
It is recommended that company can make the people famous. This is also an important
approach used to improve the level of customer experience in respect to company’s services and
products. Company can use the loyal customers in its marketing and different promotional
videos. This will provide two benefits to company one is to make the customer famous and their
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other one is this will improve the marketing of the company. This is an effective strategy that can
be utilises to improve the level of customer experience in company.
CONCLUSION
This report has summarised about the customer experiences in respect to the Tesco
Company. The brand Tesco is among the leading brand associated with the etail sector in the
business environment. Positive customer experience is among the key strength behind the
organisation achieved such an effective growth in the market. Company give huge emphasis to
solve issues of customers in order to improve the customer experience in company. This report
ha also recommended approaches like making people famous, solving timely issues of customers
and other approaches that can be channelizes to improve the customer experience in the
company.
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REFERENCE
Book and journals
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Customer Experience Management Applications. In 2018 JCCO Joint International
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GECO) (pp. 1-8). IEEE.
Brun, I. and et.al., 2017. Impact of customer experience on loyalty: a multichannel
examination. The Service Industries Journal. 37(5-6). pp.317-340.
Chauvenet, C. and et.al., 2019. WIC Recipients in the Retail Environment: A Qualitative Study
Assessing Customer Experience and Satisfaction. Journal of the Academy of Nutrition
and Dietetics. 119(3). pp.416-424.
Jagodziński, P. and Archer, D., 2018. Co-creating customer experience through call centre
interaction: Interactional achievement and professional face. Journal of Politeness
Research, 14(2). pp.257-277.
Kim, E., Beckman, S. L. and Agogino, A., 2018. Design roadmapping in an uncertain world:
Implementing a customer-experience-focused strategy. California Management
Review, 61(1). pp.43-70.
Koga, H., 2019. An Essay on the Taxonomy and Trajectory of Social Media Marketing: From
Customer Information to Customer Experience. The Review of Socionetwork
Strategies, 13(1). pp.19-31.
Leninkumar, V., 2017. The relationship between customer satisfaction and customer trust on
customer loyalty. International Journal of Academic Research in Business and Social
Sciences, 7(4). pp.450-465.
Li, G., Bie, Z., Xie, H. and Lin, Y., 2016. Customer satisfaction based reliability evaluation of
active distribution networks. Applied Energy, 162. pp.1571-1578.
Pol, H., Galetzka, M. and Pruyn, A. T., 2018, June. Influencing Customer Experience by
Activating Relationship Norms. In Academy of Marketing Science World Marketing
Congress (pp. 211-225). Springer, Cham.
Raina, S., Chahal, H. and Dutta, K., 2019. Correction to: Customer Experience and Its Marketing
Outcomes in Financial Services: A Multivariate Approach. In Understanding the Role
of Business Analytics (pp. E1-E1). Springer, Singapore.
Sahu, N., Deng, H. and Molla, A., 2018. A capability based framework for customer experience
focused digital transformation. In ACIS2018 (pp. 1-10). ACIS.
Supit, H. A. M. and Darma, G. S., 2018. Enhancing User Experience in Forex Mobile Trading
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Bisnis, 15(3). pp.51-63.
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