Tesco Case Study

Tescos financial services was set up around three years ago and comprises of House and car insurance policies, offering competitive rates against the insurance company leaders of the likes of AA and RAC.

Tesco also have a club card scheme which overtook the stamp savers, now for spending a certain amount or buying certain products you are allocated with so many points and every month are sent vouchers entitling you for money off your shopping and is an amazing advertising ploy, but Sainsburys have been sending tescos customers letters telling them that they can use theses vouchers in their stores, a threat from such a major runner against tesco could be very expensive for tesco, instead we are now accepting sainsburys vouchers.

Another ploy on tescos behalf to win the customers loyalty it that of vouchers for schools a scheme where one voucher I given for every five pounds that is spent in store, not only does this encourage adults to help their children but will make the children encourage the adults to shop at tescos to help their school.

Tesco Direct, the dot.com company, enables customers to shop from the comfort of their own home and they have left no stone unturned, setting up a site for blind shoppers and forging a deal that will segue into digital television when its adoption becomes a little more widespread.

A new strength that has been adopted among the staff at tesco stores is called future, instead of having criteria to meet every store, the strengthÐ"*Ð"*, weaknesses, opportunities and threats are discussed with staff in each store and problem are sorted out, making each stores swot that little bit different, although the main goals are not ignored.

The development of Sainsburys local will have a big impact on many of the city centre tesco stores, as many sainsburys store are superstores and not situated in built up areas, which is why tesco snapped up the opportunity to put very small Metro shops in high streets, the result was a success and Sainsburys are soon to up the competition.

This is how the current major retailers stood from 1998 up to 2001

Rank 2000 Company & Operations Sectors Sales 00/01 Sales 99/00 Sales 98/99 Tesco Plc Grocers 16,958,000 15,835,000 14,971,000 J Sainsbury Plc Grocers; DIY; mixed goods 13,570,000 13,184,500 12,682,000 ASDA Group Plc Grocers 9,204,000