A Case Study On

Business Context

– In 1992,Tesco was 2nd biggest supermarket chain but struggling

– New Marketing director(Future CEO),Terry Leahy was appointed
– His recovery strategy was to develop customer centric approach.
Transforming The Customer
Experience
– “Every Little Help” – New marketing tagline
– “Clubcard”-Customer Loyalty scheme
– “ONE in front”- Check out system
Customer Insight Unit (CIU)

– In 1992,CIU represent first the first retail department of its type in UK

– Analysing the sources of customer information
– Ex: “Clubcard”
– Analysing Attitudes, Behaviours, Needs and aspirations of its customers.
First Value Program

– In 1997,Terry Leahy was appointed as CEO.

– He Defined 5 core value statements and 8 People statements
– The launch was supported by posters and cards
– “Viewpoint” survey was done
– 84% -respecting customers
– 82%-Delivering the best value
– 75%- Taking chances to exceed customer needs
Re-adressing The Values

– Result form the latest Viewpoint survey stated that ”Employees felt less values
than customers”
– Recognised the link between customer satisfaction and employee perception
– Developing two core values
1) No one tries harder for customer
2)Treat people as we like to be treated
Embedding The Values

– 360 degree feedback process

– Covering- living the values, delivering for customers,taking people with them
– Award scheme for living the values
The Employer Brand Proposition

– Along with CIU, Tesco established a PIU, People Insight Unit

– New survey called ”Your life..Your Future”
– Resulted in 4 leading factors that drove commitment to Tesco:
1. Trust and respect
2. An interesting job
3. The opportunity to get on
4. A boss who supports me
The Steering Wheel
– My manager supports me to do a good job
– The opportunity to get on
– Trust and respect
– Employee segmentation and Flexible Offerings
– Combining data from “Viewpoint” & “Your life…Your Future” surveys
– Most common segments are
– Work life balancers
– Want it all
– Pleasure seeker
Measure of Success

– Most recent “Viewpoint” survey recorded all time high 81% staff satisfaction
– Best employee retention rate
o 18 % Store employees
o 7% Distribution
o 8 % Head office
– “Tesco = Great customer brand + Great people brand+ Tight operational &
financial management”
– In Feb-2004 resulting a record of 16.3 % increase in sales and full year profit of
$1.6 billion
Words of Terry Leahy, CEO-

“It takes a generation. We have had to change completely the way we manage.
Change at Tesco has been across the board, but internally coherent….What's imp is
that you live the values. They have to be central to the way you manage in order to
affect processes and projects, and how people work….Its been evolution not
revolution. Rapid evolution”
Thank you.