A CASE STUDY ON

TESCO STEERING WHEEL STRATEGY

PRESENTED BY- GROUP No 3

DATE: JULY 15th 2013

GROUP MEMBERS

NAME Enrollment No.

AAKASH BAFNA 12BSP2458

ASHISH BALDI 12BSP

ANKUSH GOYAL 12BSP

CHINMAY CHATURVEDHI 12BSP

AMIT KUKREJA 12BSP

DEEPAK SHEKAR 12BSP

DARSH MEHTA 12BSP

INTRODUCTION

1. Jack Cohen (1919)- Grocery stall

2. 1st product- Tea

3. TESCO= TE Stockwell (Tea supplier)+ Cohen

4. 1929- 1st store in UK following American Supermarket

culture

5. “Pile it high and sell it cheap”

6. 1948- Self service stores

7. 1956- Self service supermarket

8. 1960s- Acquired several store chains

PRICING OF PRODUCTS

1. “Pile it high and sell it cheap”; selling products at

cheaper prices

2. 1960s- RPM (Retail Price Maintenance) Act

3. Trading stamps introduced to offer discounts

4. 1970s- Policy backfired

5. Imperial Tobacco Company cancelled acquisition of

TISCO fear of image damage

6. 1990s- Saturation in retail market

OVERHAUL OF STRATEGIES

1. Greater priority to Superstores- small stores closed

down

2. Stores made customer friendly

3. Trading stamps discontinued

4. Checkout at TISCO introduced- offered price

discounts

5. 1974- diversified into Petrol pumps

6. Ian MacLaurin (1985)-large stores in Suburbs

7. Centralized distribution system introduced

8. TESCO labels on food products in store proved

successful

9. Customer centric programmes

‘One front’

Loyalty card

10. Grocery home shopping

11. 1995- Club card

TESCO’S BUSINESS OPERATIONS

1) Tesco focus on core UK business:

• International Operations

• Non Food Sector

• Retailing Services

• Tesco.com

2) Focus on Innovation of new products

3) Entering International Markets

4)Expanding of Business

FORMATS –FOUR TESCO STORE FORMATSTesco segments its store portfolio into four different store formats

Tesco’s Steering Wheel Strategy

1) Tesco’s implemented Balance Scorecard

2) Four Business Perspectives

Financial Performance

Internal Processes

Customer Knowledge

Learning & Growth

3) Renaming it to Steering Wheel

4) Tesco Steering Wheel- Four Quadrants

5) Core Values

Tesco Steering Wheel

CUSTOMER LOYALTY

1. To make shopping experience better

• Price reduction

• Improved product quality

• Well trained staff

• Information through in-store handouts

• Information through website www.tesco.com

2. Used term ‘inclusivity’ for customers

3. Different offers for different group of customers

4. Special attention to expectant mothers

5. Promote loyalty through club cards

• Design products according to customer recommendations

6. In house magazine every quarter

7. In 1998, launched ‘Every Customer Offered Help’

• Greeting customers

• Offering them help

• Wishing them good day

8. In Feb 2003, targeted at its women customers by scheme

named ‘Me Time’

9. Offered free session at leading health spa, luxury gym, beauty

salons and other discounts

10.TWIST(Tesco Week in Store Together), in this managers carry

different activities from stacking to attending customers

11.Constantly in touch with customers

FOCUS ON EMPLOYEES

1. Earlier focus more on revenue generation

2. High employee turnover

3. Under Leahy leadership employees were

considered as integral part of organisation

4. Greater employee empowerment

5. The Tesco Way Approach

6. Effective system of Communication

6. People Matters Group and Ideas Capture

7. Implementation of Personal Development Program

8. Informal and Friendly employee atmosphere

9. Rewards employees on its merits

10.Special Tesco cards were given to its employees

11. Led to high motivation and high productivity

MAKING OPERATIONS EFFICIENT

1. Electronic Shelf Edge Labelling

2. Primary Distribution

3. Continuous Replenishment Program(1999)

4. Project Refresh(2001)

5. Handheld Computers(2003)

6. Tesco Scales

7. International Sourcing

8. Corporate Responsiblity

FINANCE

CONCLUSION

THANK YOU

VIDEO LINK: