Tesco Plc Customer Relationship Management

This assignment analyzes the role of customer relationship management (CRM) in the success of Tesco Plc. It explores how Tesco manages customer relationships through various strategies such as high-quality goods, discount offers, and customer information. The assignment also investigates the importance of customer satisfaction for global business expansion and examines the measures adopted by firms to achieve high market share and expand their operations internationally. Furthermore, it delves into customer expectations regarding service quality and provides recommendations on enhancing customer relationships within organizations.

RESEARCH
PROJECT

Table of Contents
TITLE: ............................................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
1.1 Overview of the research .................................................................................................1
1.2 Back Ground of the Research...........................................................................................1
1.3 Significance of the Research............................................................................................1
1.4 Research Aim ..................................................................................................................2
1.5 Research Objective...........................................................................................................2
1.6 Research Questions .........................................................................................................2
CHAPTER 2: LITERATURE REVIEW ........................................................................................3
2.1 The importance of customer relationship within Organization.......................................3
2.2 The impact of customer relationship on developing organizational performance and
Productivity............................................................................................................................3
2.3 The Relationship between customer relationship management and Profitability if the firm4
2.4 Various ways through which Tesco plc can attain effective customer relationship in the
market.....................................................................................................................................5
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................5
3.1 Types of investigation......................................................................................................5
3.2 Research Design...............................................................................................................6
3.3 Research approach............................................................................................................6
3.4 Data sampling...................................................................................................................6
3.5 Ethical Consideration.......................................................................................................6
CHAPTER 4: DATA ANALYSIS .................................................................................................6
CHAPTER 5: RECOMMENDATION AND CONCLUSION ....................................................16
5.1 Conclusion......................................................................................................................16
5.2 Recommendations..........................................................................................................16
REFERENCES .............................................................................................................................17
APPENDIX ...................................................................................................................................18

TITLE:
To analyse the importance of customers relationship management and its influence on
enhancing organisational sales or performance. A case study on Tesco Plc.
CHAPTER 1: INTRODUCTION
1.1 Overview of the research
In this modern scenario each individual is concern on satisfying their needs and wants
through various products and services which are offered by organisation. The basic purpose of
each small as well as large business firm is to gaining attention of large number of customers
towards their offered products and services in terms of attaining high productivity and
profitability (Barrow and Mosley, 2011). In this competitive market organisations are focused on
establishing effective relationship with customers as to attaining higher competitive edge at
market place. Effective customers relationship plays a vast role in developing organisational
performance at market area. Tesco Plc is a most popular British multinational retailer company
and they deals in variety of products and services. The major motive of firm is to establish an
effective and healthy relationship with their customers as to implement its business operations at
wide scale.
1.2 Back Ground of the Research
Customers relations management is an essential concept of an organisation as it is an
important element in which firms are concern on implementing good and healthy relationship
customers who are helpful in developing organisational performance and productivity at market
place. Tesco Plc is a famous grocery and general merchandise multinational retailer company.
The headquarter of company is in Welwyn Garden City, Hertfordshire, England, United
Kingdom. The company has various stores and outlets all over the world and deals in high
quality products and services (Styles, Schoenberger and Galvez-Martos, 2012). Tesco Plc is a
public limited company which is widely concern on satisfying the needs and wants of customers
through offering them variety of goods and services.
1.3 Significance of the Research
The present research is based on the importance of customers relationship and its impact
on developing organisational performance and sales. Customer relationship has a huge influence
on improving firms performance, productivity, sales and operations (Bruce and Daly, 2011).
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With the helps of effective customers relationship people are very much attracted towards the
offered products and services as to satisfying their own needs and wants. The major reason for
conducting the research is to enhancing the skills an ability of learner about the importance of
customers relationship management and its impact on firms performance.
1.4 Research Aim
This is the primary component of any research project as it helps in defining the variable
that are include in the research project. The research aim for this particular research is to analyse
the importance of customers relationship management and its influence on enhancing
organisational sales or performance. A case study on Tesco Plc.
1.5 Research Objective
 To identify the importance of customers relationship within organisation.
 To determine the impact of customers relationship on developing organisational
performance and productivity.
 To ascertain the relationship between customers relationship management and
profitability of firm.
 To recommend various ways by which Tesco Plc can attain effective customer
relationship at market place.
1.6 Research Questions
 What is the importance of customers relationship within firm?
 What is the impact of customers relationship on developing organisational performance
and productivity?
 How to ascertain the relationship between customers relationship management and
profitability of firm?
 What are the essential ways by which Tesco Plc can attain effective customer
relationship at market place?
CHAPTER 2: LITERATURE REVIEW
2.1 The importance of customer relationship within Organization
As views expressed by Emma Newbury, 2016, Customer relationship Management plays
a vital role in success of an organization operating in any sector. The better a business
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organization can manage its relationship with customer more likely it is that it will succeed in the
business. Its about understanding customer needs and behaviours so that a stronger relationship
with them can be developed. Extensive application of information technology is taking place to
build a strong relationship with customers (Chung, Du, and Choi, 2014). In this world of
commercialization the importance of retaining and expanding customer base to fuel business
growth by way of an increase in revenue and profitability. The concept behind customer
relationship management is that each and every customer is important for the business and
therefore proper planning should be done to serve them better. An effective customer
relationship management policy would make changes in the business operations to mould
according to customers needs and desires (Varley, 2014). Every customer would want that he
should be given special treatment from the company and to maintain this expectations of
customers, companies should come up with policies and procedure which would full fill their
expectations. Customer relationship can be achieved by analysing customer's habits of
purchasing, opinions and preferences etc. The various benefits of customer relationship
management for the organizations are increased sales, brand reputation and customer loyalty.
2.2 The impact of customer relationship on developing organizational performance and
Productivity.
An organization's performance is directly related with management of customer and their
needs and wants. According to Devendre Shetye, 2015, There are various benefits of customer
relationship management on company's performance these benefits can be enumerated as follows
:-
 An increment in sales can be achieved via better timing because customer needs can be
anticipated which are based on historic trends.
 Customer needs are identified and are served more effectively by understanding their
requirements and wants.
 Other products of the company can also be sold to customers also called cross selling,
who are loyal with brand and have a effective relationship with the company.
 Through this it can be identified which of the customer is a profit generated source for the
company and which one is a loss generating source (Keller, Parameswaran and Jacob,
2011).
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 Enhanced customer satisfaction can be achieved by effective customer relationship
management. It ensures good reputation in the market place and growth of company and
its brand.
 It increases overall efficiency and reduces cost of sales which in turn impact profitability
of the firm in the long run.
 The other benefits of Customer relationship management is that Customers can be
segmented based on their needs and wants and different policies can be framed for each
segment differently to enhance efficiency and to serve customers.
2.3 The Relationship between customer relationship management and Profitability if the firm
As per the views expressed by Jason Nash, 2018, Relationship of customer with company
can directly impact a company's profitability. According to him a happy customers is a profitable
customers. It is not a rocket science to understands what is going on inside the brain of customers
to serve them well and better. Understanding customer needs through analysis of historical
trends of purchases and payment history and based on that adding value in goods and services
which are being offered to the company. The impact on profitability can be seen in the following
way :-
 Customers becomes loyal to the brand and company and are ready to pay even higher for
goods and services which impact revenue and enhances profits.
 Another benefit is reduced cost, The company would require less marketing and
advertising cost as customer is ready to retain with the company as the services offered
here and relationship managed by the company can not be easily found with any other
brand. This also leads to increase in profits of the company (Lirn, Lin and Shang, 2014).
 Better relationship management with customers increases customer base of the company
because of mouth publicity of existing customers which increases overall revenue for the
firm and hence, profits of the company.
2.4 Various ways through which Tesco plc can attain effective customer relationship in the
market.
Tesco plc is a giant multinational supermarket chain company it has to deal with retail
customers on a huge scale and on a daily basis therefore the company should come up with some
new ideas and policies to manage relationships with its customers that will enhance growth and
profitability of the company. According to the views of Jennifer Lonoff Schiff, 2014, These are
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some of the ways through which company can enhance customer relationship with its
customers :-
 Effective implementation of CRM software and make it easy to understand for internal
employees and customers.
 Training and skill development of employees to effectively treat customers for better
management and better overall results in terms of growth and profitability of the
company.
 Customer's behaviour needs to be tracked throughout the sales cycle so as to analyse their
needs and wants. This will help the company in amending its procedures and policies
which will suit customer's needs and demands.
 The Data of customers needs to be maintained in a proper form and should be up to date
as it is the primary source of information for the company to better manage customers
and their needs and wants (Lowe, George and Alexy, 2012).
 There is always a room of improvement in the company's processes and the behaviour of
company should be positive towards these issues.
CHAPTER 3: RESEARCH METHODOLOGY
A research method is a systematic plan for performing research. It is a very important
element of any research project. Efficiency is obtained by researcher through this project.
Different tools and techniques are also used by researcher for performing such research work.
This research is divided into different parts which aids researcher to arrive at conclusion.
3.1 Types of investigation
There are different types of research. Which type of research to be selected depends on
the researcher. Research can be qualitative or quantitative. Under qualitative research quality of
the data is looked into (Payne and Frow, 2013). Under this research qualitative method is used to
arrive at conclusion.
3.2 Research Design
It is a framework which is selected for conducting a research. It specifies objectives, Data
collection, time,cost, responsibility,probable outcome etc. There are three types of research
design, Exploratory, Descriptive, and casual research design. Under this project Exploratory
research design is selected under this, research is based on qualitative data.
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Descriptive research is basically concerned with explaining a problem and its solution. It
can be regarded as more specific and purposive study.
3.3 Research approach
It is an effective tool of research which helps in performing the activities of research in
the most efficient way possible. There two basic research approach Inductive and Deductive.
Inductive approach is selected because it considers the quality of data (Peck, Christopher, Clark
and Payne, 2013).
3.4 Data sampling
Data sampling means a sample is selected from a population base and that sample is
treated as a representative of the whole population. The sample size here is taken from 40
respondents. There are two types of data sampling techniques probabilistic and non-probabilistic.
For this research non probabilistic technique has been taken (Wood and et. al., 2016).
3.5 Ethical Consideration
It is a very crucial aspect of research. While undergoing research a researcher faces many
problems which he needs to address . These issues are, research should be conducted in proper
time frame, and in the budget allocated. While performing research the research is able to get
data of individuals which is personal in nature and it should be kept confidential and should
ensure that it is not misused, the data should be used only for the specific purpose for which it is
obtained.
CHAPTER 4: DATA ANALYSIS
This considered to be an essential part of research project as it helps in analysing the
accumulated data and information in effective manner as to reaching at final result and outcome.
This section of research has to be done through preparing themes that are based on questions that
are filled by respondents (Pettinger, 2013). This section has to be completed through thematic
analysis as various themes are prepared that helps in analysing the data in appropriate way.
Questionnaire
Q1) Healthy customer relationship is effective in developing organisational
performance and sales?
Frequency
 Strongly Agree 32
6

 Agree 6
 Strongly Disagree 1
 Disagree 1
Q2) How does Tesco Plc manage effective customers relationship? Frequency
 High quality Goods 26
 Discount Offers 8
 Inform customers about new stock 6
Q3) Customers satisfaction are important for firms in order to expand
business operations globally?
Frequency
 Satisfied 36
 Not Satisfied 4
Q4) What are the different ways by which Tesco Plc can attract customers? Frequency
 Wide Variety of products 10
 Discount offers 12
 Gift Voucher 8
 Polite nature of employees 10
Q5) What are the measures adopted by firms as to attain high market share? Frequency
 Managing customers relationship 18
 Adopting new and innovative technology 10
 Recruiting talented and skilled people 12
Q6) What are the methods adopted by firm in order to expand their business
activities globally?
Frequency
 High sales 9
 Attaining satisfied customers 15
 Higher return on investment 8
7

 Higher productivity 8
Q7) What are the expectations of customers in terms of service that are
offered by company?
Frequency
 Responsiveness 17
 Quality 10
 After Sales services 13
Q8) Recommend ways by which organisation can attain good customer
relationship?
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Theme 1: Healthy customer relationship is effective in developing organisational performance
and sales.
Q1) Healthy customer relationship is effective in developing organisational
performance and sales?
Frequency
 Strongly Agree 32
 Agree 6
 Strongly Disagree 1
 Disagree 1
Interpretation:
As per the above mentioned graph it has been concluded that Healthy customer
relationship is effective in developing organisational performance and sales at market place. 32
out of 40 respondents are strongly agree with this statement that organisations are widely
concern on establishing effective relationship with their customers. 6 people are simply agree
9
32
6
11
Strongly Agree
Agree
Strongly Disagree
Disagree

with this and remaining people are not agree with the same as according to them customers
relationship is not effective for organisational growth and success.
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Theme 2: Tesco Plc manage effective customers relationship through various elements.
Q2) How does Tesco Plc manage effective customers relationship? Frequency
 High quality Goods 26
 Discount Offers 8
 Inform customers about new stock 6
Interpretation:
According to the above mentioned discussion it has been analysed that as a large public
limited company Tesco Plc is concern on managing effective relationship with customers who
are very much willing to taking benefits of offered products and services of firm. Good and
healthy relationship helps in enhancing organisational sales and operations. Majority of
respondents are attracted towards high quality goods and services as in this competitive era each
business firm is concern on satisfying the needs and wants of customers through high quality
goods and services. 8 out of 40 respondents are go with the option of discount offers and
remaining people select inform customers about new stocks.
11
26
8
6
High quality Goods
Discount Offers
Inform customers about new
stock

Theme 3: Customers satisfaction are important for firms in order to expand business
operations globally.
Q3) Customers satisfaction are important for firms in order to expand
business operations globally?
Frequency
 Satisfied 36
 Not Satisfied 4
Interpretation:
As per the description of above mentioned graph it has been determined that consumer
satisfaction is essential for firms in respect to expand business operations globally. Business
expansion considered to be an effective part of each business firm as each small as well large
business firms are contributing their vast efforts in developing their organisational performance
at wide scale. 36 out of 40 respondents are agree with this statement and remaining people are
not agree with the same.
12
36
4
Satisfied
Not Satisfied

Theme 4: There are various ways by which Tesco Plc can attract buyers towards the firm and
its offered goods or services.
Q4) What are the different ways by which Tesco Plc can attract customers? Frequency
 Wide Variety of products 10
 Discount offers 12
 Gift Voucher 8
 Polite nature of employees 10
Interpretation:
As per the above mentioned report it has been concluded that as a large business
organisations Tesco Plc apply various measures as to gaining attention of buyers towards their
firm and its offered goods and services. 10 out of 40 respondents are go with the option of wide
variety of products, 12 people select the option of discount offers, 8 respondents select the option
of gift vouchers and remaining people go with the option of polite nature of employees.
13
10
12 8
10
Wide Variety of products
Discount offers
Gift Voucher
Polite nature of employees

Theme 5: Different measures are adopted by firm as to attain high market share.
Q5) What are the measures adopted by firms as to attain high market share? Frequency
 Managing customers relationship 18
 Adopting new and innovative technology 10
 Recruiting talented and skilled people 12
Interpretation:
According the given report it has been analysed that Tesco Plc use various ways as to
reaching at higher market position and attain high market share. Majority of respondents go with
the option of managing customers relationship as it is more effective in increasing sales and
revenue of firm. Remaining people are go with the other options like adoption of new and
innovative tools or technologies and recruiting talented and skilled people at work place.
14
18
10
12
Managing customers
relationship
Adopting new and innovative
technology
Recruiting talented and skilled
people

Theme 6: Different methods adopted by firm in order to expand their business activities world
wide.
Q6) What are the methods adopted by firm in order to expand their business
activities globally?
Frequency
 High sales 9
 Attaining satisfied customers 15
 Higher return on investment 8
 Higher productivity 8
Interpretation:
As per the above given report it has been analysed that different tools and method are
adopted by firm as to expand their business operations at world wide. 9 out of 40 respondents go
with high sales, 15 people select attaining satisfied customers, 8 people choose higher return on
15
9
15
8
8
High sales
Attaining satisfied customers
Higher return on investment
Higher productivity

investment and 8 people go with higher productivity. These all elements are effective in
expansion of business at wide level.
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Theme 7: Customers has various expectations from organisations.
Q7) What are the expectations of customers in terms of service that are
offered by company?
Frequency
 Responsiveness 17
 Quality 10
 After Sales services 13
Interpretation:
As per the above mentioned graph it has been determined that customers can be
considered as an most essential element for each business organisation as they are responsible for
companies growth and success. Buyers are having various expectation from organisation as they
are taking benefits of products in terms of money. 17 out of 40 respondents are go with
responsiveness, 10 people select the option of quality and remaining people go with after sales
services.
17
17
10
13
Responsiveness
Quality
After Sales services

CHAPTER 5: RECOMMENDATION AND CONCLUSION
5.1 Conclusion
As per the discussion of over all report it has been concluded that now a days each small
as well as large business enterprises are concern on establishing effectiveness relationship with
their customers as to sustain them for long time with firm. Healthy customer relation helps in
enhancing organisational performance and productivity through attracting large number of
buyers towards the firm or its offered goods and services. Organisations are focused on
recruiting high skilled and educated people at work place as to attracting customers through
providing proper details of goods in effective and efficient way. Positive relationship helps in
improving organisational performance through taking feedbacks for customers who are regularly
taking benefits of products. Small and large business firms are adopting new and innovative tools
as to increasing productivity of firm thus new technologies are effective in enhancing the
performance of firm.
5.2 Recommendations
After analysis of the data, The researcher has came to a conclusion that Tesco plc should
focus on implementing better customer relationship management procedure and policies within
company. Training and skills development of employees should be a major focus of the company
to reap the most possible benefits of the human resource available with the company. The
company should focus on managing its wide base of customers by following proper CRM
techniques. It involves giving training to employees and officials of the organization to
understand the needs and wants of the customers and modify the operations of the company if
needed for serving customers effectively. Company should aim at efficient utilization of its
resources for building effective relationship with consumers. It will give the company an edge
over other competitors and will help to fuel its growth for future.
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