Value Proposition and Customer Experience of Tesco: A Study

This report examines the value proposition and customer experience of Tesco, a UK-based multinational company. It highlights the six pillars of customer experience model and the implication of digital disruption to deliver customer experiences. The report also provides recommendations for improving customer experiences.

MG526 Customer experience

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Value proposition of Tesco company:.....................................................................................3
2)How value proposition magnifies itself and delivers customers experience:...........................4
3) Using key demographics to know customers:.........................................................................5
4)The six pillars of customer experience model .........................................................................6
5)Digital disruption in context of customer experience ..............................................................7
6)Recommendation for improving customer experiences...........................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Customer experiences refers to the process of interaction and the experience of the buyer at the
time of buying and selling the product and services of the organization in effective as well as
efficient manner (Bagdare, and Jain, 2013). The present report is based on the Tesco plc UK
based organization in which value proposition of the organization will be examined. Along with
that the study will elaborate the customer experiences with Tesco. In context to that the report
will highlight six pillars of customer experiences model and implication of digital disruption to
deliver the customer experiences for organization.
Tesco is the British multinational company and largest grocery retailer industry which is
established by Jack Cohen located at London, united kingdom. Tesco has expanded globally with
operations of 11 countries in the world. It is diversified in the areas which are electronics, toys,
clothing, books, software, financial service and internet services. Tesco introduced a club card as
well as internet shopping services. Tesco brand are specified as Makro, booker, F&F, one stop,
premier and Jack's. Tesco also took over the Sainsbury as UK largest supermarket ((Yusof,
2019)). Cohen was responsible for the several resolutions in retailing which led to the increase of
the supermarket nowadays.
MAIN BODY
1) Value proposition of Tesco company:
The main objectives of this report is evaluated the value of proposition of Tesco to its
customers. Value proposition is defined as the promise that has been done by organization to
their customers those can be applied for different situations. The value's preposition seen as two
viewpoints which are internal value and external value. The internal value seen as their
organization shareholder profits and external values regarded from the customers perspectives
(Taqatqa, 2021). In order to gain better value preposition at moment the combination of two
values are important. Tesco developed certain values which are:
 Cutting down the price: Price is the most important factor which attract the customers
to them. Tesco decided to maintain the quality as the price cuts. Tesco represent
themselves that no one can beat them in the price. Tesco promise to its customers that
price must be lowest and no one can beat the price. Customers can easy afford the

products and it can change the customer buying behaviour and attitudes toward the
organization.
 Use the clubcards: Clubcards is used for frequent shopping for the customers as well as
company maintain the customer's information with the help of customers clubcard. Using
clubcards is the best strategies for the Tesco to understand their customers and with the
help of clubcards company stolen the customers from the supermarkets.
 Internet service: Tesco also used the values through internet because many customers
were shopping online and internet shopping are rapidly grown in the global market that's
why Tesco provide internet service to their customers and delivering their order products
to the customer's door. Customers visit the online websites and order product which they
want like furniture, books, groceries,etc.
 Private labels: Tesco started using private label success values which helps to sustain the
existing customers in the existing stores. The purpose of started using prate label is to sell
products with same quality of clothes with low price which helps in customer retention
and getting new customers. Tesco sells many products with using private labels which are
meals, dairy, clothes,non-food and may others items.
 Understand customers: Understanding customer is most important for the organization
which helps to achieve the key of success. Tesco using these values helps to gain the
strong customer relationship and new sales. Understanding customers is not easy, but
understand their preferences and expectations are essential for the growth of organization.
2)How value proposition magnifies itself and delivers customers experience:
Tesco companies investing to improve the customers experience which must be clear
about what is actually worth because it improves the generating values. Company values
proposition is illustrate the overall value which should deliver to the customers and it helps to
enhance their experiences and growth of the organization. Tesco should build values proposition
which are required as company to focus on the business and its operation as well as experience
of their customers (Mohd Satar and Dastane, 2019).
 Commitment: Customers are high priority for the business so company must committed
to make customer experience priority. Company ensures that employees are truly
committed with their customers and focus on delivering the right experience.

 Customer feedbacks: It is important for the organization to tie customer feedbacks
which helps to analyse a customer experience and in order to gain customers feedback is
more helpful in organization growth.
 Discounts: Discount helps in organization growth to enhance the new customers,
increasing sales and retain a customer retention as well as build customer experience
because customers loving discounts and exclusive discounts. Tesco can offer discounts
on online stores which helps to gain new customers and boost their sales.
 Rewards: Reward and recognitions are not only driver for customer loyalty bus also
helps to organization to gain the new customers and their existing customers. Customer
likes the rewards like offer reward, cash etc. it helps to enhance the customer experience
with the company. Tesco can provide reward on buying some products like buy one get
one which helps to attract the many customers to the stores.
 Trust: Tesco can win trust of customer's through better service, loyalty, better sales
process, price cut-off etc. There are various ways to gain customer's trust which helps to
generate the goodwill of the company and their customers experience.
3) Using key demographics to know customers:
Demographic segment is a market segment techniques. It helps organization to target the
market segment based on demographic variables such as age, area, education, income etc.Tesco
can use the demographic segment to focus on their time on those segments that have customers
who are most likely to make buying, and most valuable for them. companies should identify the
key demographics (Khan, 2020).
 Age: Most in the middle age group prefers the online shopping so, provide most of the
products range which are 15-40 age products must e available on websites and groceries
which mostly prefer by the adult age groups, it can be on stores.
 Areas: Tesco should prefer the cities' area because many numbers of customers and
buyers are related in cities.
 Income: It was found that income and frequency of purchase are interrelated to each
other. Lower income of group are shopping more frequently than the higher income of
group for groceries.

 Family type: Majority of joint family prefers shopping twice in a month and nuclear
family prefers shopping once in a month so, Tesco should have big focused point on the
joint family types than the nuclear family.
4)The six pillars of customer experience model
The six pillars of customer experiences model refers to the farmworker which is founded or
developed by the KPMG Nunwood who belong to the UK. The six pillar indicate the excellences
of the organization which suppose to deliver to the potential customers in order to provide better
experiences with the company. With the assistance of this model the company can accomplish
the goal in the effective as well as efficient manner. According to this model the company can
attract and connect with the peoples by delivering emotional experiences in the effective as well
as efficient manner (Briedis, and et.al 2020) . The six pillars of the models are integrity,
resolution, expectations, empathy, personalization, time and efforts which are briefly elaborated
as follows:
Integrity (Honesty Trust and Build Trust)
A consistently credible organization like Tesco is the foundation of integrity. Organizations and
their employees create trust-building moments and events that help increase integrity. From the
buyer's perspective, an organization that can fulfil its commitment is essential to integrity. Trust
and integrity lies in the spirit of the organization in context to that the Tesco serves its purpose
socially, morally and ethically.
Resolution (Turning in better experience)
No matter how good some steps or processes are, something won't work. The lading
organization Tesco have a process that allows them to attract their customers toward the
productivity of the organization. The better resolution and recovery provide the assistance in
fixing the problem of the buyers and provide satisfaction to them (Bueno, and et.al 2019).
furthermore, it helps the organization in improving the values in the domestic as well as
international marketplace. In context to that the Tesco apologias with the customer and take
effective action to deliver the satisfied resolution to the customers due to that the organization is
able to build relationship.
Expectations (Meet, manage and exceed customer expectations)
As the Tesco is having high brand value it set high standards in order to deliver values.
Therefore, customers usually having high expectations that the company will offer the

productivity as per their taste and preferences which is based on the market trends. Trending
companies know that brand promises and interactions create expectations that customers must
meet or even exceed.
Empathy (Understand the client's situation to build a relationship)
Emotional understanding of the experience of customers, suppliers, and employees are strongly
associated with empathy. By acting to foster empathy, the Tesco can build strong relationships
with potential customers (Esmaeilpour, and Mohseni, 2019) . With the assistance of the empathy
the company provide values to customers and develop the brand image among them. Due to
that the customer acquire the felling of being asset. The organization determines the condition as
well as taste and preferences of the buyers that also enhance the value of the brand.
Personalize (Use individual attention to create emotional connections)
One of the most valuable elements of the experience is personalization. Being able to understand
a customer's specific situation and show that they adapt to their experience accordingly is an
essential part of personalization. Knowing the potential customers' preferences, past interactions,
personal attention, and name usage can create a personal experience. Good personalization gives
customers more control, value, and importance after interacting with the organization. In order to
increase the connectivity with the clients the tesco collect the feedback from each and every
individual and focus on their emotion in effective manner.
Time and effort (Minimize customer effort to create a smooth process)
Customers are short of time these days and are looking for something that is immediately
satisfying. Removing obstacles that slow down the customer's decision-making process and
making it easier for them to reach their goals is key to increasing loyalty. Companies can use
their time as a competitive advantage because they can save money as long as other pillars are
not sacrificed. In order to that the Tesco provide quick services to the customer that make the
better experience of customer in domestic as well as international marketplace (Hoyer, and et.al
2020) .
5)Digital disruption in context of customer experience
Digital disruption refers to the certain changes which the origination bring in order to deliver the
values to the customers basically it is transformation in the technology and services the company
is offering to the customers. With the assistance of digital disruption the company is able to
deliver the competitive advantages in domestic as well as international marketplace. In the

multinational organization like Tesco the digital disruption is the essential element to considered.
With the assistance of this the company is able to interact with the customers as it includes
various platforms that connect the customers with the association. In the modern era where the
large numbers of the people are depended on the digital devices, it is essential to bring digital
innovation and creativity in the organization. Due to adopting the digital transformation in the
organization, the needs and wants of customer are constantly shifting. Moreover, the company is
able to allow the satisfaction to the customer and deliver the better experience to the people. In
context of digital disruption the organization is utilizing the social media platforms, loyalty
program, e-commerce, email, search engine optimization etc (Lundaeva,2018 )
In context to that the company promotes the business on the online platform such as Facebook,
Instagram, chrome, Pinterest etc. which allow the organization to compare the product and
services at the time of decision-making. Moreover, it provides the comfortability and flexibility
to the customers. Along with that the company collect feedbacks form the potential customers
through digital platform due to that the organization is able to fulfil the taste and preferences of
the customers. For the success of the establishment it is important to addresses the problems and
requirements of the customers and that should be the priority of the organization. Due to the
availability of the resources on the online sites the organization can select and view wide range
of product that also encourage them to buy the product of the company. Along with that the
Tesco offers the quick resolution to the people who are facing any issue associate with the
product or services of the organization. Apart from that because of the digital disruption the
organization provide transparency to the customers and allow the buyers to build trust in the
establishment (Vidili, 2021). The company is continuously investing in the digital programmes
that enhancing the experiences of the customer in effective as well as efficient manner.
6)Recommendation for improving customer experiences
The customer experiences is the essential part to address by the organization in order to survive
in the domestic as well as international marketplace. Due to that the company has the opportunity
to increase the value and generate higher revenue. In context to that the company should focus
on the values and programmes of the company. For instance the organization can provide
training and development programme to the employees for building the trust of the customer
and deliver more time to the buyers. With the assistance of providing time to the customer the

employees of the organization is able to deliver proper information to the people. Along with that
the company should clarify the vision of the consumer to the workers, so they are able to perform
the job role and responsibility as per the demand of people (GI Global.Bolton, and et.al 2018).
In context to that the organization should communicate the consumer on the regular bases. Along
with that the company should provide ethical values to the customer with the assistance of
technology. Moreover, the company should build emotional connection with the consumer that
increase the image of the company in the customers mind. Moreover, the company should over
the quality product and services.
CONCLUSION
From the above report it will be concluded that the customer experiences is the thing which
attract the customer toward the organization. Basically, it is the business relationship with the
business and the potential buyers of the company. In general the customer satisfaction or the
experiences increase the sales of the product and services the company is offering to the people.
The report highlighted the values which the company is offering to the customer for raising the
scale of customer satisfaction. The value proposition helping the company Tesco in obtaining the
advantages from the marketplace. Along with that the report mention the six pillar of customers
experiences in context of the organization with the adequate recommendation.

REFERENCES
Books and journals
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Briedis, and et.al 2020. Adapting to the next normal in retail: The customer experience
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Service Industries Journal. 39(11-12). pp.779-798.
Esmaeilpour, M. and Mohseni, Z., 2019. Effect of Customer Experiences on Consumer Purchase
Intention. Romanian Economic Journal, (73).
GI Global.Bolton, and et.al 2018. Customer experience challenges: bringing together digital,
physical and social realms. Journal of Service Management.
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of Interactive Marketing.5. pp.57-71.
Khan, I., and et.al., 2020. Customer experience and commitment in retailing: Does customer age
matter?. Journal of Retailing and Consumer Services.57.p.102219.
Lundaeva, E., 2018. Customer Experience Management: an essential factor in building customer
loyalty.
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Commerce: A case study approach. International Journal of Advanced Computer
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Donalds, Google, Tesco, Apple, COCA COLA, PSA Group, Mercedes, Tesla, Toyota,
Beximco, KFC, LBC Lao Brewery Company, p.97.
Vidili, I., 2021. Customer Experience: The New Competitive Advantage for Companies That
Want Their Customer at the Center of Their Business. In Handbook of Research on
User Experience in Web 2.0 Technologies and Its Impact on Universities and
Businesses (pp. 183-209).
Yusof, A., 2019. Tesco Plc likely to exit Asia business, focus on home country, EU. New Straits
Times, pp.1-1.
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