Tesco and Walmart

1)Wal-Mart’s Asda executives observe that Tesco’s databases have little to do with its strong performance.  Discuss.

Tesco’s database have little to do with its success instead they say Asda fell behind because it failed to reach out to the higher end shoppers with products such as better produce and gourmet ready to eat meals. It also lost its crown as the lower price leader. Tesco had started matching to Asda’s price

• Critically evaluate Tesco’s targeting and strategy of appealing to affluent and bargain shoppers.

With the help of several private labels ranging from the Tesco Finest to Tesco Value, it tries to encompass every type of consumer i.e. the affluent and bargain shoppers. This was only possible after they got an insight from the database of the shoppers from the club cards that was used to map the profiles of the consumers by asking those details like household size, ages of children’s and dietary preferences. Database led Tesco’s strategy was useful in generating insights that lead to an expansion of the market share.

• Discuss the logic (and disadvantages) of providing Tesco’s suppliers with access to Club Card information.

For the suppliers for Tesco, the information generated from the Tesco loyalty card helps them evaluate that the products that are launched by the suppliers are purchased by what kind of customers. The companies also get the profiles of the buyers who actually buy the product and thus help them evaluate and communicate those specific customers where the chances of repeat buyers are more. The only disadvantage that is present in this scenario is that in cases of impulsive purchases of such products by the suppliers, the insight obtained cannot stand true.

• Describe and evaluate Tesco’s strategy for its ethnic food line, World Foods.

The strategy of adaptation to the ethnic culture of the city in terms of its store layout and the maintenance of the sku’s were the result of the data that was generated by the shoppers. It clearly showed that the nonwhite population were demotivated from the product offerings and the packaging, thus with the change in the planning with the help of data, Tesco was able to tap the entire nonwhite population.

• Critically evaluate Tesco’s quarterly coupon distribution.  What options are possible for using Internet contact with customers and/or check-out coupons to cardholders?
  
  The coupon distribution was purely done on the basis of the products that were frequently brought by the customers and a mix of the products that Tesco would like the customers to try. This enabled them to contact customers through the internet and enable them to revisit the store to buy the items on a discounted price and thus ensure repeat business. Also the cardholders were offered with redemption points which were more frequently given off on the basis of the last purchase.