A CASE STUDY ON

TESCO STEERING WHEEL STRATEGY

PRESENTED BY- GROUP No 3

DATE: JULY 15th 2013

GROUP MEMBERS
NAME
AAKASH BAFNA ASHISH BALDI

Enrollment No.
12BSP2458 12BSP

ANKUSH GOYAL
CHINMAY CHATURVEDHI AMIT KUKREJA

12BSP
12BSP 12BSP

DEEPAK SHEKAR
DARSH MEHTA

12BSP
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

TESCOS 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 FORMATS

Tesco segments its store portfolio into four different store formats

Tescos Steering Wheel Strategy

1) Tescos 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
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