MSc Supply Chain: Consumer Behaviour and Tesco Demand

This MSc dissertation proposal focuses on the impacts of consumer behavior on demand management and forecasting, using Tesco Plc as a case study. The research aims to explore the importance of customer loyalty, identify the effectiveness of customer satisfaction, determine ways to create emotional attachments with consumers, and examine the significance of customer knowledge management. The proposal includes a literature review that examines the concepts of customer loyalty, customer satisfaction, emotional attachment, and customer knowledge management, and their impact on demand management and forecasting within Tesco. It discusses the benefits and challenges of each concept and how they influence the company's production and market position. The proposal also outlines the research objectives, questions, and the methodology to be employed in the dissertation. The study will explore how Tesco can leverage customer insights to improve its demand forecasting, enhance customer relationships, and optimize its supply chain operations. This research aims to provide valuable insights for Tesco to improve its operational efficiency and customer satisfaction.

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MSc Dissertation Proposal Template
MSc Dissertation Proposal Template
MSc in Supply Chain Management
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Dublin: ☐ Ireland (not Dublin): ☐ Outside Ireland: ☐

MSc Dissertation Proposal Template
This template aims to guide your focus on the purpose and structure of your
dissertation. At this stage, this is a working document but one which reflects the
intent and outlook of your dissertation. It is likely and permissible that as you
progress with your dissertation, several aspects of content, direction or emphasis of
the dissertation.
1. Research Aim or Purpose:
An exploratory study of the impacts of consumer behaviour on demand
management and forecasting. A Case on Tesco Plc.
2. Research Objectives and/or Questions
In present investigating research, investigator is going to work on an aim i.e.
“An exploratory study of the impacts of consumer behaviour on demand
management and forecasting. A Case on Tesco Plc.”. Along with this, based on the
aim, researcher has developed a range of objectives and these are:
 To explore the importance of Customer loyalty on demand management and
forecasting.
 To identify the effectiveness of customer satisfaction in improving demand
management.
 To determine the different ways through which Tesco Plc can easily create an
emotional attachment with consumers.
 To examine the significance of customer knowledge management in
increasing production of Tesco Plc.
Research questions can be:
 What is the importance of Customer loyalty on demand management and
forecasting?
 Explain the effectiveness of customer satisfaction in improving demand
management?
 Evaluate the different ways through which Tesco Plc can easily create an
emotional attachment with consumers?
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MSc Dissertation Proposal Template
 What is the significance of customer knowledge management in increasing
production of Tesco Plc?
3. Literature review
Literature review is a type of scholarly paper which includes current
knowledge related to substantive findings as well as methodological and theoretical
contributions to a specific topic. This section of research is essential because it will
help a researcher to explore particular issue and area of study through different
sources such as scholarly articles, books etc. Along with this, main purpose of
literature review is to identify conflicts and gaps in previous research (Agus and
Shukri Hajinoor, 2012). With the help of this section, researcher is able to address all
objectives and questions of research in systematic and effective manner.
The importance of Customer loyalty on demand management and forecasting.
According to Brandon Carter, (2018), customer loyalty is when an individual
transacts with a brand or buy a particular product on an ongoing basis. It introduce
to an effective situation where a customer creates a long standing loyalty or
preferences towards a specific service or products. It is the important objectives of
customer relationship management and defines the loyalty which is develop
between a clients and organisations, products or brands. Along with this, demand
management and forecasting is recognizing entire demand for products and services
to assist the marketplace. Demand of product is prioritized when its supply is lacking.
Proper management of demand facilitates the use of resources and planning
for profitable and positive outputs and may consist marketing programs designed to
maximise or decrease demand in a relatively short period of time. Therefore long
lasting and strong customer loyalty is highly support in managing and forecasting
demand systematically. It will help a Tesco by reducing its marketing cost, minimizing
service cost, improving brand image etc. Thus with the help of better customer
loyalty company can easily forecast and manage demand (Ahi and Searcy, 2013).
There are another benefits of customer loyalty which will help an organisation to
forecast and manage demand systematically. It includes; loyal customers can act as a
brand ambassadors, they protect their business from competitions, offer constrictive

MSc Dissertation Proposal Template
feedback and help a company to retain strong position at market. On the other
hand, it has been critically analyse that customer loyalty plays a crucial role for
demand management and forecasting. If companies will directly keep their focus on
improving customers experience it will directly impact positively upon loyalty.
Through this, demand management and forecasting could easily be developed are
managed at work station for a longer period of time in Tesco. Along with this, it can
also be said that customer loyalty always do not impact positively because in order
to fulfill all the needs and to give hi experience to customer, it will require a huge
investment every single time and this could affect profit margins of a company like
Tesco.
The effectiveness of customer satisfaction in improving demand management.
According to the Sophia Bernazzani, (2019), customer satisfaction is a metric
followed to quantify degree to which a buyer is happy with a service, product or
experience. It is a effective term used to define a scenario when an exchange meets
the expectations and needs of its user. Along with this, it captures the provision of
services and goods that fulfil expectation level of customers in terms of services and
quality in relation to price paid.
Customer satisfaction in an organisation also be used in order to measure
how supply of services and goods surpasses customer expectations. Beside this,
demand management is refer as a planning methodology applied to manage and
forecast the demand of services and products of Tesco. High level of customer's
satisfaction is essential for the growth and success of an organisation within
predetermined time period (Barney, 2012). In demand forecasting and management,
customer satisfaction is number one goal for an organisation because it will help
them in increasing profitability. It will also support Tesco by minimizing its inventory
costs and improving brand awareness at marketplace. When company accurately
forecast demand, they only require people or place to manage the inventory their
customers need in the short term. It will help company to increase their profit and
market share within given time duration. Therefore, customer satisfaction is more
significant and beneficial for the development and success of company at
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MSc Dissertation Proposal Template
marketplace (Monczka and et. al., 2015). Therefore, it is the duty of an organisation
to maintain customer's satisfaction and retain them long term relation.
Thus, it will be more significant and essential for an enterprise to achieve
better results or outputs within given time duration (Beske and Seuring, 2014). Apart
from this, demand forecasting is useful process which uses analytics and data to
predict as exactly as possible the purchaser demand for a particular time in order to
fulfil customer's need, optimize cash flow and minimize inventory costs. On the
other hand if it is critically analysed, it can easily be said that customer satisfaction
always do not impact positively on an organisation because offering them the best in
order to reach to the satisfactory. It requires huge amount and also an organisation
like Tesco would require to make alterations in every single quarter due to rapid
changes in human needs and technology. Along with this, if it is examined in a
different way where satisfaction of a customer could help an organisation like Tesco
to sustain at international market for a longer period of time but this requires time,
patience and a lot of investment. With the help of this Tesco could easily reach to its
break even point.
The different ways through which Tesco Plc can easily create an emotional
attachment with consumers.
According to the Remez Sasson, (2019), emotional attachment is refer
clinging and attachment to people, habits, beliefs, circumstances and possessions.
There are different ways should use by Tesco in order to develop emotional
attachment or connection with customers. Some ways are determined as under:
Give them a sense of comfort and order: Customers fell more safe and
secure when they are treated more emotionally and are given more importance
regarding their skin care and beauty. When there is any query in the minds of
customers it need to be resolved quickly so, that they can be satisfied for the
product (Chicksand and et. al., 2012). If in case the customer is well aware about the
product durability, methods to use, when to use the product, product side-effects
above all, the product guider should advice the products advantages and dis-
advantages to the consumer as this create a influence on the customers mind to
purchase it and be loyal for it.

MSc Dissertation Proposal Template
Give them a delightful customer experience: In the era of 21st century the
greatest challenge in economic climate is to have an amazing , memorable,
thoughtful customer experience. Company should use various tricks to impress the
customer or to please them accordingly it can be done by over delivering the
product beyond their expectations (Christopher, 2016). Suppose : Company TISCO is
over delivering the product of food to a customer. The order was for happy meal but
the company gave a small token of voucher to the customer which is valid for 3 days
only and can be applicable on the store of TISCO.
Don't be afraid to get personal and use humor: In business world everyone
need to be professional,and respectful and use appropriate language on the floor
but it does not mean that the real human attire is lost in the working area. To create
a healthy relation with the customers seller should talk about the interest field of the
customer (Ellram and Cooper, 2014). It helps to create a new level of connection
with buyer and the seller. Customer are more attracted to be realistic in nature
rather than being fake.
Keep your promises: Promises means to be on words at any cost and does
not change due to any circumstances. Product guider should keep its trust and
response timely to the customers regarding any query (Fredendall and Hill, 2016). It
helps to build a trust for the company for long term.
Considering the above information keeping a promise or going to get personal
to individuals at workplace basically helps in developing emotional attachments with
customers but if it is critically analyse then, it can be said that it may lead Tesco
strategies to a negative level because sharing personal information of customers
pulls up different opportunities for unethical members of Tesco. They can use the
personal information of consumers for their own benefits and may harm them
molest them. If it is thought in a different way emotional attachments break up
positive environment not only at workplace but in life of a person. A proper
attachment with consumers not only benefit Tesco but it could also help individuals
to make friends with others where they can get to know about other cultures as
well.
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MSc Dissertation Proposal Template
The significance of customer knowledge management in increasing production of
Tesco Plc.
Customer knowledge management introduce to the processes and tools that
an organisation uses to store, capture, access, analyse and organise data related to
its customers for the aim of increasing its retention, sales and engagement efforts
(Hoejmose Brammer and Millington, 2012). This data often includes, personal
information, purchase history, loyalty program membership, customer feedback,
past customers service interactions, demographic and psychographic data. In
addition, it is a strategic initiative which is employed by organisations to get
intelligence from their clients as it links to their clients as it relates to their company.
Tesco using customer knowledge management which will effect behavioural and
organisational changes based on knowledge get from their clients. Customer
knowledge management is essential and significant for Tesco Plc to maximise
production level and increase sales within predetermined time period. According to
the Matteo Colombi, (2016), there are some importance and significance of
customer knowledge management which are define as under:
Improve decision making processes: Workers of an organisation can enhance the
speed and quality of decision making by approaching the knowledge of the whole
enterprise when they require it (Hugos, 2018). When making effective decisions,
Tesco can easily improve production and gain better results within predetermined
time duration.
Increase customer satisfaction: The cross-collaboration and sharing of knowledge
support to maximise the values offered to business customers. Tesco Plc is able to
provide faster answer or take minimum time to improve a service or product
(Kannan and et. al., 2013). High level of customer satisfaction will support an
organisation to improve their production and make strong position at marketplace.
If it is talked about above information and with the help of critical analysis it can
easily be said that customer knowledge regarding management of Tesco or related
to Tesco could help company in developing effective plans not only for themselves
but for customers and employees as well. Developing effective policies, heavy
discounts, different campaigns, CSR activities, and more are some of factors that will

MSc Dissertation Proposal Template
help Tesco in gaining ample number of opportunities like improvement in
production, enhancement in competitive advantages and many more. Alongside this,
if it is thought in a different way or in a negative way, customer knowledge not all
the time helps in making decisions regarding Strategies and policies to improve profit
margins and more because it requires a lot of money or investment in order to make
changes in the management system of customer knowledge so that right decisions
can be taken.
4. Overview of Company/Sector/Research Context:
Tesco Plc which is a famous British multinational grocery brand and a general
merchandise which is performing across the countries. Founder Jack Cohen, found
Tesco Plc in the year of 1919. Currently company has head quartered in England, UK.
On the other hand, Tesco Plc specifically dealing in different sectors like retail, food,
manufacturing and many other industries as well with a good range of hypermarket
supermarket, superstore, including a few convenience shops as well. Along with this,
it can be said that due to quality that this company offers, customers has liked them
and this helped them in improving overall existence in more than 11 countries. Tesco
Plc in present time is having more than 7,000 stores. Along with this, Supply chain
management of Tesco mainly coordinates with its suppliers that are having different
kind of transportations like trains, planes, ships and others (Miemczyk, Johnsen and
Macquet, 2012). Over the years, Tesco has kept its focus on improving the overall
performance level through developing strategies related to improving customer
loyalty at different working conditions. In order to improve the demand of Tesco's
products at supermarket it is specifically required to focus on consumer behaviour
because their needs and requirements gets changes on a regular basis. Considering
that, an all new product for its customers has been developed which is Sugar Free
Juice so that to expand business at United Kingdom in order to improve market
share. Since, citizens of United Kingdom and of developed countries that has kept
their focus on improving health. Due to this new trend of health consciousness.
Tesco's action which was taken was taken for doing business at international level
are regularly performing well at marketplace. Since the company is having a good
range of products and services, which has made the company a business leader in
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MSc Dissertation Proposal Template
various countries like Germany, United Kingdom, and so on. In order to expand
business with a new product in United Kingdom itself, it will be required for Tesco to
keep an eye on trends and needs of targeted customers.
Supermarkets of Tesco is specifically improving its supply chain management
day by day which means organisation has a really very strong relations with its
suppliers. But, this led Tesco to develop the overall supply chain management much
more complex in nature. Since a decade, company has decided to expand its
business which led them to work in almost every industry. In present context, there
are a range of activities that Tesco is doing and these are given beneath:
Estate agency: In 2007, this company was launched online property whose
name is “tesco property market. As many complaints arise project god suspended
and later on company developed new comprehensive property selling services.
Restaurants, cafes and takeaways: In 2013, TESCO bought 49% ownership
from Harris+Hoole which makes a coffee chop chain. Whereas in march 2013, tesco
launched family friendly restaurant chain, named Giraffe for$50m for promotion of
small chain supermarkets.
Electricity, gas, phone and internet: TESCO also buy and sell their own
software at cheapest rate. It also offers world wide communication services, and
provides benefits on phones and tariffs, landlines phone, home internet access and
directory of electricity, gas and online switching service.
Financial services: In 1997 TESCO launched a financial services. In Europe, it
became a fastest service provider. TESCO company bank proffer around 28 products
like car & home insurance, saving accounts and loans. In April 2010, British financial
market made estimations that they will gain 10% share which is half of Barclays
share. In February 2012, they introduced mortgage loan for customers. Even they
have their own exchange rate for transforming overseas into sterling pound.
On the other hand, Tesco Supermarket has also consists with a range of
strategic issues and these are given below:
Investigating the customers behavioural patterns in supply chain – Since
Tesco, has kept its focus on business expansion in different countries of Asia, it is
essential for the company to analyse the consumer's attitude and behaviour related

MSc Dissertation Proposal Template
to Sugar Free Juice that the company is offering. Since the needs and wants of
targeted customers of Asia country is different from the existing customers of Tesco
in nations where company is already doing business like United Kingdom, Germany
and more.
Does not know which shoppers to target of UK's different states- Tesco's
supply chain is specifically really very complex which puts the company in a state
where strategic problems linked with the target market are basically being evaluated
and which came in front. Supermarket is caught between upmarket offers provided
by Waitrose, Sainbury's and discounts given by ALDI and LIDL. This discounts have
put pressure on UK supermarket due to which company have to face issues.
5. Research Justification
The basic reason behind conducting the investigation is that, Tesco has done
research to know about how consumer behaviour may impact upon demand
management and forecasting. Supermarket of Tesco is consists of supply chain
management required in businesses but specifically it gets disturb because of the
issues or factors like change in needs of customers, current trends and more. Along
with this, it has also been analysed that data which is being carried would basically
lead Tesco in hitting their targets.
6. Methodology:
Research approach: Research approach divided into two parts such as
inductive research and deductive research. Deductive theory is used for hypothesis
testing which is based on existing theory and helps in finding solution. Whereas
inductive theory is used for making of new theory from availability of data.
Research methods: Research method is used for data collection and data
analysis. There are three types of research methods such as quantitative research,
qualitative research and mixed research. In this research, quantitative research is
used for interpretation of data from charts and graph.
Purpose of study: The purpose of study of this research is very clear and
accurate. It involves many types of study that is explorative, explanatory and
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MSc Dissertation Proposal Template
descriptive. In this research descriptive study is used because it provides detailed
information for analysing the data.
Research strategy: research strategy is a general plan which says how the
researcher get answer of research problem. Research strategy involves various
categories such as case study, questionnaire, surveys, experiments, action research
and so on. Researcher is used questionnaire method for analysing an overall report.
Research sample: In this report sample size of respondent is 40. Perspective
of every 40 respondents are noted on their product and services provided by the
company.
Questionnaire
Q 1) Do you think that, customer loyalty impacts upon demand management of a
company?
a) Yes
b) No
Q 2) What are the ways through which customer loyalty could be enhanced toward
Tesco?
a) Make customer service a priority
b) Make the relationship more than just business like
c) Be caring and expressive
Q 3) What are the factors, that need proper attention while managing the demand?
a) Reduce lead times
b) Implement a demand-driven supply chain
c) Smooth demand variability.
Q 4) As per your point of view, consumer behaviour towards a company gets
changes regularly or not?
a) Yes
b) No
THEMATIC ANALYSIS:
Theme 1: Customer loyalty impacts upon demand management.

MSc Dissertation Proposal Template
Q 1) Do you think that, customer loyalty impacts upon demand
management of a company?
Frequency
a) Yes 30
b) No 10
Interpretation: From the above given graph, it can be concluded impact of customer
loyalty on demand management. Out of 40 respondents, 30 are say yes whereas 10
are say no. It is essential and important for growth and success of organisation
within predetermined time period.
Theme 2: Ways through which customer loyalty could be enhanced toward Tesco
Q 2) What are the ways through which customer loyalty could be
enhanced toward Tesco?
Frequency
a) Make customer service a priority 20
b) Make the relationship more than just business like 8
c) Be caring and expressive 12
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