read through all materials uploaded and the case study(tesco ) before you writting, I am looking forward to have 60%+ grade about this report. please try hard.thank you so much.could you please give me a specific topic about this reprot.
You are required to produce a formal 2,500 word-processed report
NOTE!!The report should include the following: front sheet, abstract, contents page, introduction, main findings, conclusion, recommendations, and bibliography (in line with School policy). You may include an appendix section if required.
Details of the task
Loyalty is an old fashion word to describe association to a place or a person. Recently, loyalty has become integral subject matter in marketing context. Ideally, it is to do with customers’ willingness to continue to use an organisation over a long period of time. This could lead to a customer recommending a particular product or service to friends and family. This customer loyalty may contribute significantly to a firm’s profitability and business growth.
Using the attached case study: A little Extra (Tesco) as a background reading, you are to produce a report which addressesthe following areas.
1.A discussion of why are some customers loyal to an organisation and why is customer loyalty important in driving profitability and business growth ofa service firm. You could support your discussion by using a personal experience as an example for being loyal to a service firm. The reason for being loyal must be justifiable and should be linked to theory. (30%)
2.A critical evaluation of the key strategies that could be used to create customer bonds and encourage long-term relationships with customers. Should include the costs and benefits of keeping existing customers loyal to service firms. (40%)
3.An evaluation and discussion of the term “tiering of services”. What are the potential implications for service firms and their customers? Provide industry examples to support the discussion (15%)
4. An assessment and discussion of the potential impact of social media in services and relationship marketing in respect of customer perceived loyalty to service firms. Provide industry examples (15%)
ASSIGNMENT 2 CASE STUDY
TESCO-A LITTLE EXTRA
Tesco is a UK-based international grocery and other merchandise retail chain. It is the third largest global retailer after Wal-Mart and Carrefour. With annual profits of some $4.95 billion, it is ahead of Carrefour. Tesco launched its Clubcard customer loyalty card in 1995 after two years of research. Customers receive one Clubcard point for every $1.65 they spend in-store.
The points generate vouchers, which are worth 1 percent of the spending when spent in-store and 4 percent when spent on special deals such as holidays. Since 1995, the loyalty scheme has rewarded Tesco customers with nearly $5billion in vouchers.
In 2007, the Clubcard was introduced to Malaysia on similar a basis. The proved so popular that there were more than 800,000 applications in the first two weeks after the launch. In the UL alone, there are 17 million Clubcard members, compared with11.7 million Barclaycard holders. Tesco has recently launched Clubcard in Poland, Thailand, and Slovakia. This added 3 million new Clubcard holders in just seven weeks, bringing the total number ofClubcard members outside the UK to 12.5 million.
When Tesco launched the Clubcard 2 in the UK in May 2009, it managed to add another 1 million members, with with customers signing up at a rate of six per minute. The key to the success of the card is its personalisation and infinite variability. There are 9 million variations of the Clubcard statement to ensure that customers get extra rewards that are relevant to them. According to Tesco, no no more than three customers ever get exactly the same statement. The net effect of the relaunch was to increase spending by 5 percent.
In the early 1990s, Tesco was considered to be down market. The middle class shopped at Sainsbury or at Waitrose. As the British have come to perceive themselves as being more middle class, Tesco has followed them upmarket. The Clubcard is a prime example of how technology was used to find out what their customers want. The customer loyalty scheme allows Tesco to record what people are buying. In 2005, when there were some 12 million Clubcard users each buying on average 20 items per week, this created 12 billion pieces of data every year. It allows Tesco to explore the links between purchases of different products. Tesco located in an immigrant area can focus on products such as plantains favoured by those of Afro-Caribbean origin. A store in the centre of a city can sell office workers sandwiches at lunch time and ready-made meals for the evening.
On a truly vast scale, Tesco has been able to use the Clubcard to combine the local knowledge of a small corner shop, where the owner has intimate knowledge of the purchases of every single customer, and to enjoy the economies of scale and logistical advantages of a multinational. The information loop means that Tesco can respond to immediate changes in buying habits. Tesco has also expanded to sell financial services and clothes, giving it an even broader information base upon which to monitor customer buying behaviour and shape future habits.
Source: The Economist ( August 4, 2005) in Lovelock and Wirtz (2011)