These loyalty cards provided with the consumers with an opportunity to share their personal data with the company and at the same time enjoy financial benefits against the points they earned by shopping at TESCO. However, this sharing of information is being seen as a nuisance by the customers nowadays. This, along with the lack of enough funding is leading to major loss of revenue for the company. For this matter, there need to be strategic interventions as far as the future of TESCO loyalty cards is concerned. Section 1 Introduction of TESCO: TESCO is a Britain based multinational merchandise retailer which cover a wide berth on the product spectrum, ranging from groceries to general merchandise. It was founded by Jack Cohen in 1919 with an aim to do business on a small scale (Clark 2008). However soon the business spread and is now established in over 14 countries. The word TESCO takes its origin from an incident in 1924 when Mr. Cohen bought a shipment of tea from T.E. Stockwell, thus combining their initials to formulate a brand name Tes-Co (Clark 2008). With headquarters based in Chestnut, United Kingdom, TESCO has outlets and stores spread over a wide area on the globe. Coming next to Wal-Mart and Carrefour, TESCO ranks third in the world of retail industry (tescoplc.com 2012). History of TESCO loyalty card: TESCO has been running a number of programs in order to increase their consumer market and to make their business interactions more consumer-friendly. In 1993, the management at TESCO set out to explore a new area that led to the development of their loyalty card. Based on the idea put forward by Terry Leahy, a team of researchers was formulated who conducted a research regarding the potential of this new venture. Although a similar project had been going on by the name of Green Shield Stamps, TESCO did not enjoy much information regarding the customers. Therefore, in order to improve the state of affairs and take it up by a notch, the company introduced the loyalty cards a year later in 1994 which aimed to pay the customers back for their loyalty while at the same time having more insight into customer details (clubcardlocal.co.uk 2011). With the aid of such magnetic-stripe club cards, the organization could gain access to customer behavior. Over the course of time, the loyalty cards faced some setbacks as a result of blackmail. As the market increased, a few changes were made in the card design and the working of the card after which the cards were re-launched in 2005 by the creative team working at TESCO headed by Evans Hunt Scott. These new cards were sent to the customers all over the area through mail. They had key fobs and could be scanned at a checkout (clubcardlocal.co.uk 2011). Deemed correct by the organization, another change was made with a re-launch of these personalized cards yet again in 2008, this time to over a customer range of seven million members (clubcardlocal.co.uk 2011). Section 2 How a Loyalty Card Works: Over 10 million people benefit from the loyalty cards in United Kingdom alone. The first loyalty card was lunched in Malaysia and later the market grew to incorporate stores all over the involved countries. The management at T
Individual Written Assignment Author’s name Institution Contents Introduction Section 1 1. Introduction of TESCO 2. History of TESCO loyalty card Section 2 1. How a loyalty card works 2. Problems faced by the launch of loyalty cards Section 3 1. Strategic Marketing Response Conclusion Reference list Introduction This case report provides an insight about the TESCO loyalty card venture of TESCO that started in 1993…
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