The Impact of Customer Satisfaction of Food on Tesco's Profitability

This project investigates the impact of customer satisfaction, particularly regarding food products, on the profitability and productivity of Tesco. It begins with an overview of the research project, including the aim, hypothesis, and research questions. A literature review explores the relationship between customer satisfaction and organizational profitability, specifically within Tesco's context. The methodology section outlines the research methods employed, including secondary research and quantitative analysis, and the resources utilized. The results and discussion section examines the relationship between customer satisfaction and productivity, the impact of food product satisfaction on Tesco's profitability, and potential strategies for improvement. The conclusion summarizes the findings, and recommendations are provided to enhance Tesco's operations and customer satisfaction. The project underscores the importance of customer satisfaction for business success and offers insights into strategies for Tesco to enhance its profitability.

Inquiry Based Project
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Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of Research project................................................................................................3
Aim of project.........................................................................................................................3
Hypothesis and main objectives.............................................................................................3
Motivation and rationale for selected topic............................................................................4
Main findings or research questions.......................................................................................4
Evaluation of steps.................................................................................................................4
LITERATURE REVIEW................................................................................................................4
To study the relation between customer satisfaction and profitability of an organisation.....4
To evaluate the impact led by customers satisfaction of food products on overall profitability
and productivity of Tesco.......................................................................................................5
To determine the strategies that can be put in use by Tesco to ensure higher level of
customer’s satisfaction of food in order to improve its profitability......................................5
RESEARCH METHODOLOGY.....................................................................................................6
Research methods used to collect data...................................................................................6
Resources used in to collect the data......................................................................................6
RESULT/DISCUSSION..................................................................................................................7
What is the relation between customer satisfaction and productivity of an organisation?....7
What impact is led by customer’s satisfaction of food products on overall profitability and
productivity of Tesco?............................................................................................................7
What are the best possible strategies that can be put in use by Tesco to ensure higher level of
customer’s satisfaction of food in order to improve its profitability?....................................8
CONCLUSION................................................................................................................................8
RECOMMEDATION......................................................................................................................8
REFERENCES..............................................................................................................................10
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Research Topic: The impact of customer satisfaction of food on profitability
of Tesco
INTRODUCTION
Overview of Research project
The main objective or core purpose of any organisation is to satisfy its customers in a best
possible way in order to earn their lifetime loyalty and retain them for a longer period of time.
Thus, it can be said that success and profit level of all organisation are directly depend on the
level of satisfaction it provide to its customers as they are the ends consumer of product in which
its success and overall productivity and profitability depends (Armstrong and et. al., 2018).
Tesco is a well known multinational groceries and general merchandise retailer situated at
Hertfordshire, England, United Kingdom and having its branches at various location of world.
Tesco is among those organisation which keeps satisfaction level of there customers at top
priority and its brand equity is its greatest strength thus, the current the inquiry based learning is
conducted on this organisation in order to get better understanding about the impact of customer
satisfaction of food on profitability of Tesco company.
Aim of project
The main aim of this inquiry based on TESO is, “To evaluate the impact lead by
customer’s satisfaction of food on overall profitability and productivity of Tesco.”
Hypothesis and main objectives
The main hypothesis or idea that is testified or proved through current inquiry is based on
analysis of impact lead by customer’s satisfaction of food on profitability of Tesco. The other
main purpose and objectives of conducting this leaning based inquiry on Tesco are stated as
follows:
 To study the relation between customer satisfaction and profitability of an organisation.
 To evaluate the impact led by customers satisfaction of food products on overall
profitability and productivity of Tesco (Kumar and Reinartz, 2018).
 To determine the strategies that can be put in use by Tesco to ensure higher level of
customer’s satisfaction of food in order to improve its profitability.
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Motivation and rationale for selected topic
The main motivation behind selecting current topic is that it yields better information about
the importance of customer’s satisfaction for an organisation and its profitability along with
knowledge about suitable strategies that can be put in use by an organisation to enhance level of
customers satisfaction in order to achieve higher profitability. Further, the current inquiry based
learning on the also ensures betterment in managerial skills and other competencies thus, rational
and justifiable from both personal and professional view point of investigator.
Main findings or research questions
The main findings and potential outcomes of current investigation would include the
evaluation and answers of following inquiry questions:
 What is the relation between customer satisfaction and productivity of an organisation?
 What impact is led by customer’s satisfaction of food products on overall profitability
and productivity of Tesco?
 What are the best possible strategies that can be put in use by Tesco to ensure higher
level of customer’s satisfaction of food in order to improve its profitability?
Evaluation of steps
The report covers a evaluation and presents a literature review of the objectives of this research
project. Literature review the points and aspects of different authors and writers is given. Moving
further different research methods which are used for conducting the research and collection of
data are highlighted. Moreover, a thorough evaluation of the results of the research is conducted
where the main findings are discussed. At the end a conclusion is provided on the overall
research project according to the findings off the research and few recommendations are will be
suggested to the organisation for improvement and Management of their operations and
productivity.
LITERATURE REVIEW
To study the relation between customer satisfaction and profitability of an organisation.
According to Linton. I. 2020, maximizing customer satisfaction makes an important contribution
to maximizing profitability of the company. Although there are various other factors which also
impacts the productivity and profitability of the organisation but customer satisfaction is one of
the most essential and important element out of all others. therefore it is very obvious that
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customer satisfaction and profitability of the company are interrelated as customer satisfaction
will move towards increasing customer loyalty towards the brand reducing the need for entity to
invest more and more amount in aggressive marketing so that they can acquire reach to
maximum people (Shin, Kim and Kim, 2020). Satisfied customers recommend and perform
mouth publicity for the organisation and the brand that increases the customer base of the entity
along with reduces its risk of losing customers therefore it is very obvious that customer
satisfaction and profitability of the company are interrelated and interlinked concepts.
To evaluate the impact led by customers satisfaction of food products on overall profitability and
productivity of Tesco.
In view of Haaften. R. 2017, customer satisfaction from the company and its products leads to
the repetitive purchase and customer loyalty towards the brand. Satisfied customers are most
likely to share their experiences and purchasing benefits with others which increases the sales
and revenue units of the organisation and more importantly the risk of complaints about the
products and services will also reduce. The Impact of satisfied customers food products produced
by Tesco will be very beneficial and productive for the company increasing its profitability.
To determine the strategies that can be put in use by Tesco to ensure higher level of customer’s
satisfaction of food in order to improve its profitability.
According to Hague. P. 2020, in all small and large companies it is very evident that its
customers are dissatisfied the organisation have to face multiple problems. Tesco can use of
multiple touch points for any single customer for improving and enhancing their satisfaction
level which the food products offered by the organisation. The organisation can use different
strategies and steps to improve customer satisfaction level in which the first step is to
identify the the needs and satisfaction level of targeted audience. The second step is to
determine strategies and tactics for developing and improving the satisfaction level of
individuals then the strategies need to be communicated and approved by sea use another
top level managers where we can make suggestions for improvements within a respective
Time scale (Pham, 2018). And at the end very simple measures should be taken by the
organisation to check that the programs which are developed delivers improvement and
better satisfaction to the customers.
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RESEARCH METHODOLOGY
Research methods used to collect data
Research is one of the most important activity which is performed by investigators while
conducting and completing a enquiry project. The research will enable the researcher to collect
all data and knowledge about the organisation and the respective objectives of the research in
order to produce and provide appropriate results and fulfill the objectives of the research project.
There are several ways and methods available for conducting and complete in the research
related to the research topics and motives. Different methods used for conducting research for
this project are as follows:
 Secondary research method specifically refers to those tools and data which is already
existing in the marketplace and used by investigators. The researcher do not need to
extract for search for new data, other hand they can use the existing data available in the
external environment for conducting the research by sorting the information according to
their needs and the motive of the research (Fernie and Sparks, 2018).
 Quantitative research is defined as a systematic investigation of phenomena by
gathering all quantifiable information and data by performing different statistical
mathematical or computational technical activities. The quantitative research enables the
researcher to conduct secondary research in a very effective and efficient manner by
providing them all information with different means and for this research computational
techniques are used.
Resources used in to collect the data.
The natural resources which helps the researcher to collect secondary and quantitative data.
Resources used in this research to collect the information as follows:
 Social media and internet are the biggest and the most potential data sources from
which all different kind of information can be collected by the researchers. Social media
and Internet is a pool of data where all different types of information are available. For
this research in order to collect secondary data internet is used.
 Financial accounts of organisation also one of the most potential data resource from
where research and collected their quantitative data for the report and the research topic
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related to the company and for completing the motors of the research (Michelini,
Principato and Iasevoli, 2018).
RESULT/DISCUSSION
What is the relation between customer satisfaction and productivity of an organisation?
According to the research conducted in relation with customer satisfaction and productivity of an
organisation it seems to support the argument that the force elements are interrelated and
interlinked with one another and dependent (Mohanty, Stapleton and Brokaw, 2019). Customer
satisfaction refers to meeting the needs of customers in the best possible manner so that they
repeatedly by the products of the organisation and keep the loyalty towards the organisation.
This is related to the profitability and productivity of the company because customer loyalty will
bring better profits towards the organisation and also enhances its customer base by regularly
increasing number of customers.
What impact is led by customer’s satisfaction of food products on overall profitability and
productivity of Tesco?
Song the research conducted in relation with the impact of customer satisfaction by the food
products produced by Tesco it appears that the people are not what are entirely happy and
satisfied with the products and offerings of the organisation. This dissatisfaction of customers
impacted the profitability and productivity of Tesco along with its brand image in the
marketplace and in the eyes of consumers (Kim, Kim and Hwang, 2020). Tesco deals in retail
sector by it supermarkets but increasing competition and business opportunity is the organisation
exploited manufacturing industry also for improving their operations and increasing their
competitive advantage in the marketplace amongst other competitors. Therefore Tesco
introduced a new product line in its operations by producing its own food trucks and selling them
through it super stores with other brands products. It seems from the research conducted that the
customers are not satisfied with the food offerings of the organisations and basically some mixed
results are being collected by the research. This may be due to this song Goodwill of the
organisation that the loyal customers are still sticking to the offerings and food products
delivered by Tesco with their brand name but most of the customers are not happy and the
organisation does not seem any increase in food product consumption and revenue.
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What are the best possible strategies that can be put in use by Tesco to ensure higher level of
customer’s satisfaction of food in order to improve its profitability?
The research also suggested important steps which can used by Tesco as possible strategies that
can help them and insurance higher level of customer satisfaction of food products in order to
improve the profitability of the entity. The strategies and the four steps appears like ok in the
very beginning the organisation should conduct appropriative market research in order to
potentially identifying the exact needs and preferences of people so that they can render to best
products to them according to their desires. The second step is of developing and taking tactical
actions which involves the efforts of Management staff and other ground level managers who
knows and well aware with the buying behaviour and needs of the people. The third stage is of
approval by the top management and receiving their guidance in relation with the time frame so
that better strategies can be implemented and executed for increasing and improving customer
satisfaction by the food products of Tesco (Tirawatnapong and Fernando, 2019). The last step
seems to support other three sets performed above there the improvements and modified plants
and strategies are implemented for increasing the satisfaction level of people and potential
customers by the offerings of the food products produced by Tesco.
CONCLUSION
The above report concludes that customer satisfaction productivity and profitability of
organisations are interlinked and interrelated with one another as the main benefit of customer
satisfaction is increasing customer loyalty towards the brand along with improvement revenue
units as new customers are there in the attracted towards the offerings of the company. customer
satisfaction brings various benefits towards the organisation and therefore it is an essential task
which is needed to be performed by the entity. The given organisation is dealing with some
problems in managing and keeping their customers satisfied with their food offerings and
therefore they have conducted a market research and implemented few steps to improve
customer satisfaction.
RECOMMEDATION
According to the conclusion made it is recommended to Tesco that organisation should
undertake a thorough market research and develop appropriate tactical plans and strategies to
perform better in the marketplace and search good quality food products and services to the
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customers in order to increase their satisfaction level. It is suggested to the management of Tesco
that they should consider the factor of customer satisfaction in order to increase the productivity
and profitability. For this company should make potential use of suggested strategies and plan
which can help them to understand the marketplace and their potential buyers with reference to
their needs and requirements and make appropriate changes in their operations and offering so
that the customer satisfaction levels can be met by the offerings and the productivity and
profitability of the entity can be increased (de Visser-Amundson and Kleijnen, 2020).
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REFERENCES
Books and Journals
Armstrong, G. M. and et. al., 2018. Marketing: an introduction. Pearson UK.
de Visser-Amundson, A. and Kleijnen, M., 2020. Nudging in food waste management: Where
sustainability meets cost-effectiveness. In Food Waste Management (pp. 57-87).
Palgrave Macmillan, Cham.
Fernie, J. and Sparks, L. eds., 2018. Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Kim, W., Kim, H. and Hwang, J., 2020. Sustainable growth for the self-employed in the retail
industry based on customer equity, customer satisfaction, and loyalty. Journal of
Retailing and Consumer Services. 53. p.101963.
Kumar, V. and Reinartz, W., 2018. Loyalty programs: design and effectiveness. In Customer
Relationship Management (pp. 179-205). Springer, Berlin, Heidelberg.
Michelini, L., Principato, L. and Iasevoli, G., 2018. Understanding food sharing models to tackle
sustainability challenges. Ecological Economics. 145. pp.205-217.
Mohanty, S. K., Stapleton, A. and Brokaw, S., 2019. Staple Food Purchase in Small Cities in
India: A Managerial Implication. Staple Food Purchase in Small Cities in India: A
Managerial Implication (October 1, 2019).
Pham, H., 2018. The impact of Blockchain Technology on the improvement of Food Supply
Chain Management: Transparency and Traceability: A case study of Walmart and Atria.
Shin, S., Kim, H. and Kim, W., 2020. Transnational corporations’ localization strategies via
retail attributes: Focus on Chinese market. Journal of Retailing and Consumer
Services. 55. p.102088.
Tirawatnapong, R. and Fernando, M., 2019. Factors Influencing Bangkok People Purchase
Intention towards Tesco Lotus House Brand Products. International Research E-
Journal on Business and Economics. 4(2). pp.15-29.
Online:
Maximizing Customer Satisfaction Maximize Profitability, 2020. Available Through: <
https://smallbusiness.chron.com/maximizing-customer-satisfaction-maximize-
profitability-35724.html/>
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Customer Satisfaction models, 2017. Available Through: <
https://www.van-haaften.nl/customer-satisfaction/customer-satisfaction-models/83-
effect-of-customer-satisfaction-on-profitability/>
A Practical 4-Step Guide to Improving Customer Satisfaction, 2020. Available Through: <
https://www.b2binternational.com/publications/improving-customer-satisfaction/>
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