Tesco Increases Product Range and Uses Griggered Communication to Support Crm

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Summary

This case analysis focuses on Tesco’s e-business strategy and e-CRM approach. Tesco expanded its product offerings and introduced DVD rentals and broadband internet through its online channel. The company also differentiated itself by reducing delivery time and eliminating unnecessary processes. Tesco acquired i-village website for purchasing but decided to position itself better through its website instead of acquiring similar websites. Tesco’s e-CRM approach involves acquisition, conversion, and retention of customers through cross-selling, discounts, surveys, and personalized emails. The I’s of interactivity, intelligence, individualization, and integration are used in Tesco’s e-business strategy. Lastly, Tesco’s website is location-independent, but the company is regional.

Table of Content

First, we are going to analyze this case according to the key e-business strategic decisions Market and product development strategies e Tesco entered new product such as the broad band internet through the help of its e-business Also it couldn’t do the e-diet business without its online channel (the website) Also Tesco introduced a new product through its online channel that is DVD rental

Positioning Tesco previously bough a website called i-village which is for purchasing like women fashion and others. However, Tesco decided to position itself better through its website rather than acquiring similar websites that can be competing indirectly with its own business  – Differentiation Tesco was differentiating itself through its service quality.

Tesco eliminated some un-useful processes in the whole delivery time of any product and was able to reduce the delivery time from 60 to 36 minutes which completely differentiated it from others in the market. – Marketplace Restructuring: Use same example of i-village website being sold by Tesco.

Second, we are going to analyze this case according to e-CRM e Trigger Events of Tesco are very much similar to e-CRM steps:

  • Trigger 1 e People are attracted (ACQUISITION).
  • Trigger 2 e A customer makes the first purchase e start offering him discounts, coupons, and send him a survey e-mail about his satisfaction e This technique is called cross-selling e Motivating this customer to do a second purchase (CONVERSION).
  • Trigger 3 e Keep in touch with the customer and follow him if he is not doing another purchase e send e-mails, offers, coupons, etc… (RETENTION).

Third, we are going to analyze this case according to the I’s e Interactivity e Tesco’s customers can give feedback about whether he is satisfied with the purchased product, the quality of service, etc… Intelligence e All segmentation by which Tesco has adopted is done with great intelligence. Individualization e It is like customization. Each customer is sent an e-mail according to his status. Integration e Tesco has successfully integrated e-mail marketing with traditional mail Industry Restructuring e i-village example Independence of Location e The website is completely independent of the location. But there is a limitation which is that Tesco is regional.

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Tesco Increases Product Range and Uses Griggered Communication to Support Crm. (2016, Sep 30). Retrieved from

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