Tesco Customer Engagement: Strategies for Retention and Advantage

This report examines Tesco's customer engagement strategy, aiming to identify ways to improve it for customer retention and sustained competitive advantage. The introduction provides a brief history of Tesco and the industry, outlining the study's purpose, aims, objectives, and research questions. A literature review explores theoretical perspectives, strategic models, and previous research findings on customer engagement and competitive advantage. The methodology section details the research design, data collection methods, and analysis techniques, including both qualitative and quantitative approaches. Findings from the analysis, based on primary and secondary data, are discussed, followed by recommendations for Tesco to enhance its customer engagement strategies. The report concludes with a summary of key insights and suggestions for future improvements. The study also considers ethical aspects of the research process.

To examine ways of improving Tesco's existing
customer engagement strategy to retain
customers and sustain competitive advantage

Executive Summary
Issues of Customer engagement and strategy are so many that affect the business policies
and functions. Accounting have got a lot of attention this past year for TESCO. Present study has
been based on issues or problems that company facing in Customer engagement, it is the term
that helps to described the balance among participants in the corporate structure who have an
interest in the way in which the corporation is run, such as executive staff, shareholders, and
members of the community. On the other hand, customer engagement is the most essential duty
that company needs to adopt by engage audience attraction, make customers more
knowledgeable, etc. Present study has been based on the customer engagement and long term
goals.

TABLE OF CONTENTS
1.0 INTRODUCTION.....................................................................................................................1
Brief history of the company and industry analysis....................................................................1
Purpose of the study aims and objectives...................................................................................2
Research Question ......................................................................................................................3
‘Brief Methods for the Study’.....................................................................................................3
2.0 LITERATURE REVIEW .........................................................................................................8
Theme 1: Theoretical perspectives/theories on customer engagement.......................................8
Theme 2: Strategic models on how customer engagement could be used to maintain or
achieve competitive advantage...................................................................................................9
Theme 3: Previous research findings on outcome of customer engagement and competitive
advantage..................................................................................................................................11
3.0 METHODOLOGY..................................................................................................................13
3.1 Discussing detail types of methodologies used in research Quantitative and Qualitative..13
3.2 Explaining the types of research techniques/Approaches...................................................13
3.3 Discussing the mean of data collection to cover sampling techniques, target population,
sample and so on.......................................................................................................................13
3.4 Data analysis and interpretation..........................................................................................14
4.0 Discussion and findings...........................................................................................................23
5.0 RECOMMENDATION ..........................................................................................................24
CONCLUSION..............................................................................................................................27
REFERENCES..............................................................................................................................28
APPENDIX ...................................................................................................................................31

Final Report
1.0 INTRODUCTION
Brief history of the company and industry analysis.
Brief History of Tesco
Tesco is one of the British best multinational retail store that deals with different grocery
items such as supermarket, hypermarket and convenience products or services. Tesco is the third
largest retailer company in across the world. The food retailer Tesco has been stated that it had
overstated its half-year profits by £ 250m which has been raised question that company has used
inappropriate accounting policies (Governance issues at Tesco, 2018). This one issue that they
facing regarding Customer engagement and strategy (Rees and Smith, eds., 2017). Present study
will be focused on the issue of customer engagement and their strategies to overcome.
Customer engagement is the biggest issue these days in the corporations and business
firms. It is the issue of corporate strategy which consists of a set of decisions that define a
company’s basic orientation in order to achieve corporate strategies and goals. This also helps to
ensure the correct balance in between interests of all its stakeholders and organisation itself.
Present report will be based on Customer engagement issues that occur in TESCO. Study
considering customer engagement issues throughout the study and also collected some new
growth full strategies for maturation. In order to overcome from the issue of customer
engagement. As per the Tesco Annual report company adopts some strategies to get overcome
from the issues such as brand differentiated, reduce operating costs, maximize the mix to achiv a
3.5%-4.0% margin, innovation etc.
Tesco has been facing issues is customer engagement which is required to get solved by
the company by providing some essential strategical planning or new product development plan.
Overall, this issues affect the stability of the company in long time period which is not good for
the company reputation. For this present report get into the action to resolve those company
issues.
Customer engagement constantly increasing the to have a high profile in the UK.
Government provides best and effective services or policies to provides the best future
development. The main purpose of this study is to provide the wide range of effective policies to
make the best and leading source full policies for customer engagement. It is the most important
term in corporate world which develops the concept of customer retention or a strategic plan for
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operations. It includes functions such as structure authority, balance responsibility and provide
accountability to stakeholders at all levels. It is essential to keep Customer engagement or
maintained the profitability with sustainability.
Purpose of the study aims and objectives
Major challenges that Tesco had faced into their career is customer complained
about the small portions sizes and short expiry dates products in 2009. In traditional conservative
customers failed to warm to the idea of self service checkouts. This is the another issue that
company faced during their business career. In that time, customer was expectation s from Tesco
would be like that company would focus on essential food and grocery items and low prices. As
per the author, good Customer engagement policy helps to make successful business that helps
business to sustained over the longer term. Moreover, Tesco provides the most prominent
services to their customer at best possible rate foe getting the good customer feedbacks. Apart
from that, it helps to discover the better services growth and best leading performing task.
Present study main purpose is to provide the effective Customer engagement policies for
Tesco to develop effective environment, fast services, innovation in brand products, fast
customer service etc. Organisation needs to maintained their relationship with external
stakeholders to get a high value for a business. Besides, importance of this Customer
engagement and strategy is also needs to take care of potential buyers, Tesco structure must be
incorporate a focus on its internal environment. Build a strategic relationship important for the
company to ensure long term success of the business including profitability.
So the main issue that Tesco has facing is customer engagement that needs to be resolved
by the company. The present study will help to reduced the issue of Tesco by providing solution
techniques and approaches. Due to avoiding the issues of customer engagement, company might
be facing long term customer dissatisfaction.
Aim: “To examine ways of improving Tesco's existing customer engagement strategy to retain
customers and sustain competitive advantage” Case study based on Tesco.
Research Objectives
 To identify the ways of improving Tesco existing customer engagement strategies.
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 To ascertain the issues to examine the ways of improving customer engagement within
TESCO
 To recommend strategies to overcome from barriers of customer engagement and
governance issues.
Research Question
Q1. What are the ways of improving Tesco existing customer engagement strategies
Q2. How can Tesco improve its engagement with customers to improve customer retention?
Q3. What are the recommended strategies to overcome from the barriers of customer
engagement?
‘Brief Methods for the Study’
Research Philosophy here will talk about managing people in
Research philosophy is a vast concept that describes the topic in a detailed manner. It has
two types i.e. Interpretivism and Positivism. Interpretivism philosophy interprets elements of the
study and get involvement of human interest. On the contrary, positivism philosophy is based on
factual knowledge that comes from observation, measurements, etc. Present study will be based
on Interpretivism philosophy that helps to know more about the customer engagement and
provides the strategies and tactics to develop customer satisfaction approach by applying social
media platform.
Research Approach
Research approach is another significant element of research methodology which are
mainly of two types i.e. inductive and deductive. Deductive approach tests the validity of
assumptions in hand. Besides, inductive approach design helps to determine the better decision
making approach. Basically, inductive approach helps to contribute to the emergence of new
theories and generalisation. Present study uses inductive research approach to take the best
possible result outcomes and growth.
Research Design
Research design is the process to design the sysyematic structure to perform the research
steps. Research design is divided into two groups i.e. exploratory and conclusive. Exploratory
helps to explore the research into deeper manner. On the contrary, conclusive design implies to
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generate findings that are practically useful in reaching at conclusion or decision making. Present
examination uses exploratory research design for making the study more realistic.
Data Collection
Data collection is the process of collecting information from all relevant sources. It helps
to find the answers, search about problem and gain research outcomes. This has been divided
into two types i.e. primary and secondary data methods. Primary method is again divided into
two techniques which are qualitative and quantitative. Quantitative technique is based on the
mathematical calculations in various formats. Quantitative method helps to measure data into
mathematical form with the help of mean, median and mode.
Secondary data collection method is closely related with the sources like internet, books
and journals that has been exit already by other researchers. Present study will use both primary
and secondary techniques to determine the facts of Customer engagement strategies. Through
company can make customer approachable strategies or development goals.
Data Sampling
Sampling is another research method that is helpful to select population members for
conducting the study. Due to high ratio of population, sampling method helps to resolve that
issue and matter of fact. Here, two types of data sampling methods are there i.e. probability and
non-probability. Probability sampling method is the process that helps to give equal chance to
everyone to participate in the study which includes, simple, stratified systematic methods.
Besides, Non probability includes quota method, purposive, snowball, etc. Present study uses
simple random sampling by taking 30 customers randomly of Tesco to undertake the data
regarding usefulness of Customer engagement.
Data Analysis
Data analysis is the method or methods that helps to analyse all data and the overall
process of analysing it. According to matter of fact, the main purpose of data analysis is to look
at what the data is trying to tell us. It helps to observe data by watching or observing collected
data properly. Besides, there are two types of data analysis methods i.e. qualitative and
quantitative. In qualitative research using interviews, focus groups and experiments etc. On the
other hand, quantitative method use mean, median, mode etc method to analyse data in
mathematical manner. Present study uses qualitative method to perform the whole study.
Ethical Considerations
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Ethical consideration is one of the most essential elements of research methodology that
contains the method to protect research data or activities against uncertainties and goals. Ethical
considerations in research are critical, ethic norms or standards for conduct that distinguish
between right and wrong. It helps to know the difference between acceptable and unacceptable
behaviours. Ethical consideration protects the research from unethical implications. There are
some ethical principles which are mandatory for researcher to adopt while conducting research
such as researcher should not give any harm to participants in any ways whatsoever such data
protection, illegal source etc. Investigator also needs to give respect to the dignity of research
associates and take consent from all the participants prior to the study. Adequate level of
confidentiality of the research has to be ensured.
Time Scale
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Activities Week
1
Week 2 Week
3
Week 4 Week
5
Week
6
Week
7
Week
8
Week
9
Wee
k 10
Research
proposal
Aims and
objectives
Literature
review
Research
methodolo
gies
Data
collection
Data
analysis
Data
interpretati
on
Finding
and
conclusion
Recommen
dations
Execute
the plan
Submissio
n

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2.0 LITERATURE REVIEW
Theme 1: Theoretical perspectives/theories on customer engagement
Concept of customer engagement
Social media platform
Every organisation recently has been organised new launching Social media platform as
a theories programs to engage customers and measuring levels for customer performing. There
are several concepts which has been organised by company for their potential customers such as
new product development, new offers and discounts, provides the best customer services etc.
Customer loyalty
According to Pansari and Kumar, (2017) there are many roles of Customer loyalty is the
another form of engagement policy that helps in decision making company brand image, growth
in sales and long term customer satisfaction. Customer Policies includes all code of conduct
related to buying, selling, ethical rights towards, customers, vendors, employees and
shareholders. On the contrary, due to fails to adopt all ethical implications is getting affected the
reputation of Tesco.
As per the Jaakkola and Alexander, (2014) Establishing corporate strategy is the another
perspective of Customer engagement and strategy. Corporate structure of the company must be
clearly define the purpose or object of the company. If the Tesco aiming to get the customer
satisfaction and earn profit revenue. For that, Tesco needs to make strategic business plan,
strategic plans, financial allocations and proper input variables top get that goal. Besides, due to
negligence and improper functioning performances might be giving wrong impact on the
objectives or goals. Tesco has to acquire sufficient policies and ethical consideration to protect
future uncertainties situations.
As per the suggested So and et.al., (2016) monitoring investment decisions and capital
investments is the another role of Customer engagement and strategy which plays an important
role to measure the brand image of the company and to guide the prudent investment of funds to
maximize that income and returns. Investment decision making approach is more helpful to
develop the better leading performance goals.
In order to governance perspective, accountability while often focused on stock. The
main purpose of Customer engagement is to get the interest of buyers towards the company
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