（TESCO）乐购的CRM分析作业

（TESCO）乐购的CRM分析作业
 

我被任命为新上任的乐购营销经理。我被要求向董事会报告如下：在一个组织里关系营销的主要驱动力和主要流程，科学技术在关系营销的意义,在不同类型的市场类型中，乐购怎样才能获益。

乐购是英国一家国际性食品和一般商品零售商店，总部位于切斯纳特,赫特福德郡。这是英国最大的连锁超市。
 

这条产业链是由杰克科恩于1919年创立的，乐购这个名字来自于他的原料供应商 T.E Stockwell 和他的名字 Cohen 的前两个字 母) 。第一个乐购商店于1929年在Burnt Oak, Edgware, Middlesex开张，在1950年代和1960年代，乐购快速发展，并通过收购等一系列行为达到一家拥有超过800家门店的连锁商店，从最初专门从事食品和饮料,到如今涉及多元化的领域,如服装、电子产品、金融服务、电信、家里,健康,汽车和牙科保险,零售和出租dvd,[5]cd、音乐下载、网络服务和软件等等。
 

乐购成为英国最大的零售商，不论是在全球的销售量上，还是国内市场份额上，利润超过￡30亿。一举成为全球第三大零售商，第一第二分别是沃尔玛和家乐福。而且在收益上，打败家乐福成为全球第二的零售商，第一仍然是沃尔玛。
 

Significance Of Technology In Relationship Marketing Marketing assignment
 

INTRODUCTION
 

I have been appointed as the new marketing manager of TESCO. And I have asked to report to the board of Directors on the following:- Main drivers of relationship marketing within the organisation and the strategies as well as processes that would have to be adopted in order to succeed. Significance of technology in relationship marketing, and relate it to the different marketing types and how Tesco would benefit.

 

TESCO is a British international grocery and general merchandising retail chain headquartered in the Tesco House in Chesnutt, Hertfordshire.[4] It is the UK's largest supermarket chain.

 

The chain was founded by Jack Cohen in 1919. The brand first appeared after Cohen bought a shipment of tea from T.E. Stockwell and he used those initials and added the first two letters of his own surname. The first Tesco store was opened in 1929 in Burnt Oak, Edgware, Middlesex. During the 1950s and the 1960s Tesco grew organically, and also through acquisitions, until it owned more than 800 stores. Originally specialising in food and drink, it has diversified into areas such as clothing, electronics, financial services, telecoms, home, health, car and dental insurance, retailing and renting DVDs,[5] CDs, music downloads, Internet services and software.

 

It is the largest British retailer by both global sales and domestic market share, with profits exceeding ￡3 billion, and the third largest global retailer based on revenue, after Wal-Mart and Carrefour and second largest in profit behind Wal-Mart.

 

Jack Cohen's business motto was "pile it high and sell it cheap", although this was quickly replaced with the saying "YouCan’t Do Business Sitting on Your Arse" (or variously "Ass"). He was known to distribute items bearing the acronym "YCDBSOYA" to his sales force.

 

AIMS and OBJECTIVES---目标
 

The main aim of the study is to investigate what is the impact of Customer Relationship Management (CRM) on TESCO and why it (CRM) is important for the business prospect.

 

The main objective of the study is to understand the CRM technologies in depth. How several giant Indian retail firms are making use of Customer Relationship Technologies?

 

Q1.Evaluate the main drivers of relationship marketing within the organisation and the strategies as well as processes that would have to be adopted in order to succeed.

The main drivers of relationship marketing within the organisation are following below:

 

The very first and foremost important is to develop new customers or maintain a healthy relationship with the existing ones.

 

Change in development of the inputs in a company and their transformation into desired consumer’s output and

 

To maintain a relationship with external market place such as entities mainly channels as well as end users. This will help a lot in customer value drivers.

 

Indian economy has become more liberalized.

 

The second driver is increase in spending of consumer’s per capita income.

 

The customer’s income also rises in all the sectors and infrastructure is also improving day by day.

 

As the market shift also plays a vital role like now customers are now demanding global brands instead of local brands like Addidas, McDonalds, Sony, Toshiba and many others.

 

One of the very genuine point for increasing the growth of retail sector is by this survey- About 47% of the India’s population is under 20 and it will become 55% by 2015 and this age group watch about 50 TV satellite channels and they always suggest or we can say promote the retail sector business.

 

The most effective way of executing a twenty first century business is online. Indian customers are now being aware of online shopping.

 

In India one more driver of retail sector is the best accessibility of real estate and also a proper mall management system.

 

Many of the foreign Multinational Companies are coming to execute their business in India because of very basic reason and that is dense population.

 

In the present era a new way of marketing comes forward and that is Relationship Marketing. In any of a business sector a quite successful Customer Relationship Management (CRM) plays a vital role. Companies are becoming more concern for their customers, firms are planning and managing and every time trying to find new ways for generating value for their customers. According to Peppers and Rogers, 1995 – “Organization will be more successful if they concentrate on obtaining and maintaining a share of each customer rather than a share of entire market. Also several marketing specialist and writers already explained that it has been more easy work to retain the existing customers rather than obtaining a new one by Reichheld and Sasser, 1990.

 

As we all are in a technical as well as competitive generation in business, so we have to use some of the specific tools in moving ahead or for sustaining in a market. There are some magical tools like for maintaining better communication with the customers we have to be in touch with them through emails, we can access the employ hidden cameras for knowing how customers make their decisions and also analyze a proper data that how people react during special offers and manage inventory. According to Leonard L. Berry –“Today’s shoppers want the total customer experience: superior solutions to their needs, respect, an emotional connection, fair prices and convenience. Offering four out of the five strategies isn’t enough; a retailer must offer all of them.” Let’s discuss all the Berry’s five strategies as well as processes that would have to be adopted in order to succeed in a nut shell:

 

STRATEGY 1: Solve Your Customer’s Problem:
 

In the present scenario every time all the firms are talking about selling solutions to the customers rather than providing them products or services. But what is the meaning of this solution for retailers practically. This is very simple customers frequently shop because of some very common reason they are- When they have some problem- a need and in this scene retailers need to provide them solutions according to their problem. It’s not the only solution that retailers sell their expensive products and their duty is finished. After Sales Services is also one of a key in successful retailing industry.
 

STRATEGY 2: Treat Customers with R-e-s-p-e-c-t:
 

This is also a very basic and common technique in the retail industry. Most of the retail giants claim that they treat customers with full of respect but it is not so. Practically there are some basic live and very common examples which can tells us clearly that all the retailers need to pay attention on this point. For example if a customer is in an Electronic shop and he is looking for a DVD player and he is not getting a player so customer just called a customer assistants and the two agents are busy in talking to each other and they simply ignored the call. Definitely a customer will leave the shop and he will never come back. According to Berry- “Disrespectful retailing isn’t just about bored, rude and unmotivated service workers. Cluttered, poorly organized stores, lack of signage and confusion prices all show lack of respect for customers.”

 

STRATEGY 3: Connect With Your Customer’s Emotion:
 

Some of the retailers never respect the emotions of their customers. The retailers always put their principles ahead into practice. The retailers should try to build up a firm emotional bonding which will be definitely fruitful for them in the near future. It is a very famous saying in a retail industry that if you are keeping your product cheap then it can appeal to the customers but this never shows your passion.#p#分页标题#e#

 

One of the best examples which clearly explain that sometimes retailers never respect the customer’s emotions is- Many of the furniture retailers of United States of America are clearly found responsible of ignoring customer’s emotions. As some figures clearly explain that since 1980 the homes price in a country has already grown up by twenty five per cent, but spending on furniture is lowered from 1.2% to 1% from 1980 to present date. One of the basic reasons which comes out for this lowering in per cent is because of that customers have to wait approximately for two months for their delivery. So how can we imagine that customers can get emotionally connected with the retailers? So this is a wise suggestion for retailers that they must try their level best for caring the emotions of the customers.

 

STRATEGY 4: Set the Fairest (Not the Lowest Prices):
 

The main factor here comes and that is cost. Product price setting is the most crucial factor for customers as well as for the retailers. Prices play a psychological affect on the customer’s mind which will impact a vital role on their mindset and helps them to decide that whether they should purchase a product or not. Some of the potential shopper may sometime feel uncomfortable if they got some fear that a product which they are buying today may reduce by 30% by next week. Some of the giant retailers set their own prices according to their profit margins which is not fair. So retailers must set their fair prices it is not necessary that prices must be lower. This is one of the most important stategies of the retail industry.

 

STRATEGY 5: Save your Customers’ Time:
 

Several customers got one problem in this busy time period and i.e. Time for shopping. Because of this reason everyone prefers online shopping now days. In the present scenario retailers gave several sorts of problems to the customers during the shopping. One of the best examples which creates problems to the customers is several and different check outs. Several times it is seen that there occurs a big queue on check outs due to which many customers faced lot of problems. Practically managers saved so much money by closing several check out points but actually they never understand that how many customers they are losing. According to America’s Research Group, round about 83% of women as well as 91% of men have ceased shopping due to one very common reason and that is because of long checkout lines.

 

These are some of the very basic five strategies as well as processes that would have to be adopted in order to succeed of retail industry according to Leonard L.Berry. All these stategies are also applicable everywhere whether the retail business is established in developed nation or in a developing nation like India. These are the basic ways of Customer Relationship management which retailers should always try to follow for meeting the satisfaction level of their loyal customers.

Q2.Discuss the significance of technology in relationship marketing,and relate it to the different marketing types and how Tesco would benefit.

Now the technology is so advanced that without implementation of high technology it becomes a big challenge for any company to compete globally. Customer Relationship Management is a complete combination of technology and business processes. There are several definitions of Customer Relationship Management by different writers, but a definition inclusive of almost all the features is:

 

“CRM is an information industry term of methodologies, software and usually internet capabilities that help an enterprise manage customer relationships in an organized way.”

 

The importance of CRM can be clearly analyzed by this research work also. According to Gruen, 1997-

 

“On an average, a business’s investing six times more wealth in acquiring new customers than they do to keep them.” In this way CRM plays some crucial role in every business in this society.

 

Although as we already know that interest in Customer Relationship develop majorly from the year 1990s. As we already know that such a fast growth in the internet as well as latest technologies has effectively increased the major opportunities in all the sector of business like in marketing and has completely changed the way of relationship between the firms and a their way of management of customers.

 

There are various approaches for establishing a firm and quite stable business, for example matter related with the financial purpose always deal by fund management department or we can say by financial department, labor cost or management related with the labour are handled by Human Resource(HR) department. And one more thing like operation of production cost is managed by new and innovative technologies like Just in Time Inventory, TQM i.e. Total Quality Management, Flexible Manufacturing System and all the process of Supply Chain Management. There is lot of research work done on some issues like after a research work when a manufacturing cost of any product is turn down by fifty five to thirty per cent and cost of management from twenty five to fifty five per cent then the cost in marketing a product is gradually increased by twenty to fifty five per cent (Seth, 1998)

 

CHANGING RETAIL SCENE IN INDIA:

 

Organized retailing in developing nation like India has shown drastic changes. As we are seeing everywhere in the Indian market that so many retail stores are opening day by day. According to the report which is prepared by McKinsey& Co. and the CII( confederation of Indian Industry), By the year 2010 India’s retailing business has a potential of producing 300 billion per year. Research also clearly disclose that only a food retail industry is approximately expected to grow by $ 1.6 billion in the coming next five years. This clearly explains that there is a big opportunity in the retail sector for the giant retail groups.

 

SOURCE

 

The above diagram is derived from the TESCO Source about the retail industry. The figure clearly explains that how the graph is rising year by year from first phase to fourth phase. As it shows that in the first phase that is in the year 2002 new retailers are entered in the market and by 2004 it starts rising after that from the year 2004-06 consumers demand for variety in organized formats and from this period graph starts rising in a proper propos.

 

Different writers give their different opinions on CRM. Some of the opinions are as follows- According to Swift (2001, p.12) defined as “a firm every time trying to understand consumer behavior through meaningful communications in order to improve consumer retention, consumer’s loyalty and profitability.” According to Kincaid about CRM “the strategic use of processes, technology, information and also people to manage the consumer’s relationship with your firm across the whole consumer’s life cycle.”

 

According to Tanner et al., 2005 basically there are three types of marketing and how Tesco would benefit. Those are strategic, analytical and operational marketing. The definitions of all the three are as:

 

Marketing as a strategic as- “the model which is made by managerial level employees for decision making processes which involved a customer-oriented business strategy, process and culture and as well as supporting technological models.”

 

Marketing as a analytical – “ it is a firm level process which involved in analyzing consumers and market-level information in order to provide intelligence and insights that guide the company’s strategic marketing, and market choice”

 

Marketing as a operational- “ CRM is as a specification of suitable and replicable business process which designed to implement a company’s desired relationship model in terms of customer activities , customer interaction, sales and channel choices , and customer learning at one –on-one level.”

 

There are many hurdles yet to be faced by Indian retailers like TESCO. Some of the hurdles are as follows:

 

The very first biggest challenge which Indian retail sector have to face is to manage a tough competition with the unorganized or we can say that local Kiraana stores. Because as we have already discussed that about most of the Indian population still prefer shopping from these stores.

 

The second problem is that if any foreign company wants to invest in India then there is no automatic approval for doing the business for that firm. Automatic approval means a company has to fulfill so many government formalities.

 

The other issue is taxation. Indian government always favor the small scale unorganized retailers in respect of taxes.

 

The main hurdle which we are going to analyze is the lack of technical support in supply chain as well as in logistics operation in retail sector.

 

The last but not the least hurdle which we are going to discuss is in India cost of running a business operation is quite expensive.

 

As we already discussed that there are some hurdles like lack of technical support. So because of all these specific reasons the need of some new CRM techniques are necessary like Enterprise Resource Planning (ERP) solutions, Radio Frequency Identifications ( RFID) technology and many more. Some of the giant retail companies are using best ERP solutions now days in India. By implementing all these technologies in a proper manner and trained the staff in using these technologies can make the retail business profitable.#p#分页标题#e#

 

Expected Business Benefits of TESCO of Using Customer Relationship Management (CRM):

There are some expected benefits by any firm if any company is implementing or using CRM in their company. Some of the potential benefits involve:

 

No doubt the very first and foremost important benefit is to maintain a better relationship with existing and loyal customers. Some of the points are as:

 

By using the CRM, the sales get increased with much better timings with respect to delivery that means company provide the most demanding product in the store by analyzing the customers survey. This is very necessary for satisfying customers because in the present competitive scenario if customer needs a product urgently then he/she will get the same quality product from anywhere.

 

Cross Selling Of Other Products: In this Customer Relationship Management also suggest the company that if any product is in lack in stores then we need to promote the alternative products on behalf of that particular product. It is essential to promote the alternative commodity so that retailers never get a lack of any particular item in their stock.

 

Building a better Customer Support: By using CRM, a firm can get a better perfection in their customer support by building a proper accessible website for customers instead of using telephone. Customers can ask frequent questions and post their problems on the website and they can get a better solution without facing any complexities.

 

As we have already discussed so many benefits of latest technology CRM. But still several firms are avoiding in India from implementing. Some of the major issues why these firms are avoiding are as follows. According to NRF notes in its survey reports, “For many firms transformation is under way, towards a more customer –centered, knowledge –based, and integrated way of doing business, but it is still far from completed.” http://www.crmbuyer.com/story/69013.html

 

The reasons of these firms are not implementing the CRM in their retail businesses are:

 

According to President of Ogden Associates, Janet Murphy, “One issue is short and long-term tension.” As it is completely clear that implementing a CRM anywhere is a bit lengthy process and retailers need profit in a short-term. So this is a bit issue in implementation of any new technology in their business.

 

The other problem is establishment of new set up or involvement of new staff. For some of the retailers this is also a problem, if they need to implement any new technology then they have to first establish a new set up in their companies and also in some companies they have to appoint a new staff for understanding a latest things. This is also one more issue.

 

One more problem in implementation of CRM is, when initially CRM technology was invented for retail operations then it consists of only marketing tactics but sometimes the customers of CRM need something more than that in the same package. So they don’t want to choose Customer Relationship Management tool in their business model. The last but not the least problem is issue of ‘AWARENESS’. Most of the Indian retailers even don’t know about the latest technologies which are present in the market for competing in a global environment.

 

Conclusion and Recommendation
 

Firstly we will discuss about the future recommendations on the current research work. As we have discussed that research work is limited only on Indian market. So there are some more latest and advanced technologies used in European markets in the retail sector. So in future any other researcher can easily modify the same research work on any other market. The second recommendation is as the industry chosen in this project is only retail industry, so in other research work we can choose other industry like automobile, electronics, computers etc. for better understanding that how they are managing their operations with using Customer Relationship Management.

 

Now after discussing all in a very proper manner the result of the research project is concluded that there is a big impact of Customer Relationship Management on TESCO. Not only has the CRM affected the sales or marketing of the retail company but also plays a vital role in several more operations.

 

Analyzing most of the replies and analyzing the data which I received clearly shows that Customer Relationship Management impacts a lot on TESCO. If India is planning to become a developed nation in next coming years then it is compulsory to adopt advanced and latest technologies and new techniques for improvement. It is also necessary because customer retention is a backbone of retail sector.