Use of ICT in marketing and sales
The use of the internet has now become a vital part to Tesco staying at the top, without the internet and ICT Tesco would be able to communicate with other international stores and suppliers as quickly as they can with the usage of the internet. If for example Tesco were to rely on other means of communication then if they needed a certain product urgently then they may not be able to process the request as quickly over the phone than they could by using the internet. Tesco also use the internet to both publicise their products and services, it lets customers shop online and save time as well as get their yearly car insurance with the click of a button. This shows the world that Tesco will use any means to meet their customer’s needs and make the lives of their customers as easy as possible.
This was the greatest scheme that Tesco came up to retain their customers; it has attracted over 10 million customers to Tesco, it gives customers a point for each pound they spend it store these points build up and are then when enough are accumulated converted into money off vouchers. This ensures that customers stay loyal because everyone likes money off and by shopping at Tesco they, the customers can have this. This on Tesco part was a great marketing ploy because to get a card Tesco requirements include the customer to give his/her address, e-mail and phone details which allows Tesco to send vouchers, discount sand other various perks if that particular customer hasn’t been shopping regularly, this guarantees Tesco customer loyalty and allows them to meet their main aim of retaining loyal customers.
It also helps Tesco is another way, it tells them what products sell and which ones don’t so that they can remove product which are non- profitable; this saves Tesco money and is a source of market research. This scheme allows Tesco to know everything about their customers shopping habits so they can act to meet all of their customers needs after accessing the data collected by the club card system. Tesco give the money off vouchers as well as air miles and other numerous discounts to show their appreciation to their customers. This scheme has helped Tesco to become number 1. and meet their aim of retaining loyal customers.
Everything under one roof Tesco offers everything under one roof; this makes their customer lives more convenient. They don’t have to go around the entire high street just to complete their weekly shopping, they can do it all at Tesco and still get the same great quality products as well as Tesco elite service. To do this Tesco had to diversify which they did properly and now they can offer an immense variety of products to their customers, this was another way of how Tesco retain their loyal customers.
Great customer service is one of the reasons that Tesco is the success it is today, out of every ï¿½10 spent in the U.K. today ï¿½3 will be spent in Tesco this is a remarkable figure and superb customer service is one the reason for this. Tesco have know set themselves even higher targets and the only way that they are going to meet them is for one to make sure that they continue providing the same if not better customer service.
How Tesco is suited to being a Plc Sole trader and Partnership. If Tesco were a sole trader or a partnership then it would mean that no one could invest in them other then its owners. This would have devastating affects on the stores profits, as it would mean that they owners have a much smaller financial budget and this would simply mean less variety, less products and low turnover. On of the biggest disadvantage of being a sole trader or partnership is that you limited liability. This is when a company goes bankrupt and has some unpaid debts, which are paid for by taking the personal positions and any assets away from the owners and selling them.
Private Limited Company: If Tesco were a private limited company then it would only have one real advantage and that is that it would have limited liability. This means that if the company went bankrupt then only the owners and any shareholders would loose the money that they have invested. Apart from the point above it doesn’t suit Tesco to be a private limited company because being a LTD means that you cannot sell shares on the stock exchange. So it would be very hard to raise large amount of money in order to make adequate investments to help the business expand and maximise sales.
Public Limited Company It suits Tesco to be a plc because they can then sell shares on the stock exchange were vast amounts of money can be raised, and this is why Tesco are the U.K’s number one retailer which in return encourages more people to invest with them. Selling shares on the stock exchange also helps them to expand their business not just in the U.K but internationally as well, and with these investments Tesco is able to offer low prices and constantly improve its services and the number of stores in the UK and abroad Shareholders have the advantage of limited liability which means their possessions will not be at risk and therefore this encourages people to invest in the company however people know Tesco are very successfully and are unlikely to go bankrupt.