National university of modern languages

Assignment no 1
Submitted by usama yousaf
Submitted to sir Rao yawar
Roll # L-212226
Class MBA 3.5 (morning 6th semester)
Subject customer relationship management
Answer of question no 1
The objective of Tesco with its customer is to
collect points and save money. Because these card have magnetic strip card
allowed customer to for every pound they spent they earn more points. Because
these cards used by loyal customers and with the help of these customers Tesco
becomes the leading grocery store and according to the owner of the Tesco without
these club card customers they would be like flying blinds.

Answer of question no 2
A simple way to differentiate between customers that
Tesco is using that who is their club card holder and who is not and it differentiate who spend
more money and earn more points. Tesco club card magazine was introduced for fun and
information because they think that there is a need to change because they cannot run in heavy
competition without new strategy. After introducing this five life stages were identified. In the
magazine latest products range and services are introduced. Club card magazine are introduced
in spring and over 7.5 million peoples were makes purchase and earn 250 points in a period of 3
months.

Answer of question no 3
The card collects all types of information from
shopping frequency to shopper’s basket contents. It also allows Tesco to target
specific award more accurately. Through these information Tesco it direct Tesco to
direct high rating saving scheme to family’s discounts on holidays etc. these cards
include personal information related to customer families and many more. Within
keeping in mind five stages of database marketing development Tesco able to uses
its club card databases step 1 is
Get smart get strategic
The smart and strategic way of Tesco is its
club cards and magazines and important thing is they don’t skip their vision.
Tear down to silos
The main point is Tesco has started their campaign
with their marketing department.
Untangle the data hairball
It means that to interact with their customer
your vision and mission must be clear and that exactly Tesco does.
Make matrices your mantra
Tesco has to deliver exactly what they promise and not out the data of their
customers.
Process is the new black
It means what makes you different and unique from others and the club card and
magazine of Tesco make different from others companies.

Answer of question no 4
Tesco club card data enhance Tesco to efficiency and effectiveness in
communicating with its customers. For the key to success and to work with
effectiveness and efficiencies you must know the region culture and every tehwar
of your customers and to give them discounts and loyalty rewards is a key way to
communicate with your customers and that exactly Tesco does. Tesco gives
discounts on their holidays at elderly people and free me time pampering session to
women’s. this targeted approach helps company to save up to 300 million pounds a
year. Direct marketing is a key approach for effectiveness and efficiencies.

Answer of question no 5
Nestle Purina is one of the uk biggest pet food manufacturer and it was the only
one to take this opportunity to join hand with Tesco and in 2003 launched a co-
branded direct marketing campaign and the purpose of this is to build loyalty with
customers and located the food of pets at Tesco super market. They targeted the
club cards holders of Tesco and mailing thousands of customers and their entire
vision and mission is to stay the cats healthy and comfortable. Their direct
marketing campaign include a series of discounts on flexi banded products as well
as promotional material. It also includes customized coupons and by the use of
these coupons shopper can buy and it prints on their sale receipts. These coupons
are based on accrual of customer’s sale history and it’s a scheme for club card
holders.
Answer of question no 6
In my opinion Tesco customer card is a good
way of creating loyalty. Because company kept all the record of customer
information. And through the use of these cards customers purchased from Tesco
and it earns more points to customers and they do more purchases and company
give them discounts and other offers and through these things loyalty of customers
chucked.

Answer of question no 7
Tesco are the first company to introduced the club card and is been successfully
run in many past years. But in this time of competition Tesco facing problem is
that many company adapt their club card strategy and loyalty programs. To stay
ahead in the war Tesco has to come up with their new strategy with the help of all
departments of the store and is must be leaded by marketing team. Knowing the
needs and demands of customers and problems they faced and made alternative
against this problem.