Know-How Exchange : Branding

Tesco has been very innovative in the Customer Loyalty field. The loyalty programs they have devised have drawn and kept customers hooked on their brand(s). It is a different, but in my opinion, a vital part of Tesco's total operations. Do a little research on Tesco Loyalty Marketing and I think you'll find a fresh direction to augment what you've already found.

Darcy Moen
Customer Loyalty Network

Price and service. Most important thing is that they are an extremely slick logistics organisation which means they can reduce costs or, where necessary, reduce prices. They have tremendous purchasing power and procurement nous which they use extensively so brands and manufacturers fund in-store promotions, create new products and deliver to their terms. They are very smart about the in-store environment in terms of service - good service is good for the customer and reduces costs/increases capacity and revenue turn. They do a lot of data crunching - not just the loyalty scheme, but store use and shopper journeys and product placement on shelves to optimise the shopper experience. They invest hugely in new stores and new store formats to increase their potential catchment area. They have extended the range of products sold to compete with other, more complacent, market sectors such as clothing. They turn all this back in favour of the customer with aggressive pricing and innovative quality own-label products, a reputation for promotions on big brands and service innovations like 24 hour opening.