Marketing Management Tesco&Asda Case Study Example | Topics and Well Written Essays - 3000 words

Marketing Management Tesco&Asda - Case Study Example It considers all the future cash flows of that customer arising from him consuming in the future. Customer relationship management should lead to increased CLV. When one thinks of maximizing CLV, one has to take a long term perspective and hence focus on customer retention rather than just making a sale. This, coupled with the concept of the Pareto principle - that 80% of a company's sales come from 20% of their customers - has made firms have realized that retaining that 20% is integral to their increased profitability (Jobber, Lancastor, 2006) Tesco is the UK's biggest retiler chin who sells everything to stisfy customers' needs such s books, grocery, household equipment, flowers, wine etc. (yhoo finnce 2003) Tesco hve stores in UK, republic of Irelnd, Frnce, Hungry, Polnd, Czech Republic, Thilnd, South Kore nd Tiwn. Through these stores they employ 260 000 people which 65,000 of these re employed overses tht giving them ccess to popultion of 280m cross 10 mrkets. Their gol is to crete 21 000 new jobs in the coming yer. Their min mrket is in the UK where 55 new Tesco stores where opened in 2002, which results in 729 stores now. Their profit in 2002 ws 1,221m before tx compred to previous yer when the result 1,070m. The Tesco group re lso offering non-food division nd retiling services. The non-food division consists of their own opticins. In order to mke it esier for customers for tht reson they cn buy both their grocery nd medicine t the sme time. Tesco re lso the owner of gs sttions. The retil services re offering personl finnce such s life insurnce nd generl insurnce (home, cr, pet, trvel), credit crds nd lons nd sving schemes nd their own webpge (yhoo finnce 2003). s of its 2006 yer end Tesco ws the fourth lrgest retiler in the world. The three lrgest re Wl-Mrt, Crrefour nd Home Depot. METRO ws only just behind nd might move hed gin if the euro strengthens ginst the pound, but METRO's sles include mny billions of wholesle turnover, nd its retil turnover is much less thn Tesco's. t 25 Februry 2006 Tesco operted 1,897 stores in the UK (25.9 million squre feet, 2.395 million m) nd 814 outside the UK (32.8 million squre feet, 3.02 million m). In the UK, there re 83 Tesco Extr stores; 447 Tesco superstores; 161 Tesco Metro stores; 277 Tesco Express stores nd 910 recently-cquired T&S stores still to be converted (see 'Moving in on the convenience ("c-store") sector', below. Tesco's mrket cpitlistion on 31 December 2005 ws 26.035 billion ($44.8 billion), which ws the lrgest of ny retiler bsed outside the United Sttes. Tesco is incresingly trget for people in the UK who dispprove of the effects supermrket chins cn hve on frmers, suppliers nd smller competitors. sd SD ws founded in 1965 when group of Yorkshire frmers decided to go together. SD's successes led to prtnership with the Wl-Mrt fmily from U.S. in 1999. The mission SD hs is to be "Britin's best vlue retiler, exceeding customers needs", (SD 2003) offering prices 10% lower thn min competitors on product such s fresh food, clothing, home, leisure nd entertinment goods etc. The compny lso offers hll lmb nd chicken to meet the demnd of Muslim customers, this long with rnge of ethnic foods, found in Hong Kong nd Jmic. SD ssures tht the "slughter process re crefully set nd monitored by SD's Product Development Tem". (SD 2003) SD hs currently 255 stores nd 19 storehouses throughout the UK nd is plnning to open 10 new stores