In this report, the Informatics and Financial Applications of UK based groceries and general merchandise retailer named ‘Tesco’. In this report, use of social media in retail business and the way it is improving performance of a retail business will be discussed. In addition to this, opportunities that proper use of data can bring to a retail business will be discussed. In the end, a conclusion of the report will be given. Retailers engage in selling of products and services through a specified supply chain to earn profit and satisfy customer needs.
Tesco is global groceries and general merchandise retailer whose headquarter is situated in Welwyn Garden City of England. In term of revenue, it is the ninth largest retailer in the world. It is currently operating in seven countries that are situated in Asia and Europe. Its main market is in UK where it is considered market leader (Mason & Lang, 2017).
· Tesco’s human resource department is engaged their customers effectively by using Tesco-themed Twitter feeds and Pinterest posts to increase awareness of their product line or to give customer advice about different shopping matter which will enhance customer overall experience with Tesco.
· Tesco also use social event as birth of royal baby to invent new product will increase engagement with their customers and boost their sale (Dahl, 2018).
· Tesco use Facebook to encourage their customer to tell their shopping story or give likes to their post and offer incentive like clubcard points. In this way, increase their social media presence and indirectly increase their sales.
· Tesco cross sell their product by giving seasonal recipe which include their product and after watching these recipe on their ‘real food’, people buy those product increasing these product sale (Ryan, 2016).
· Tesco Customer Care operates through Twitter in very efficient way responding to hundreds of customer queries daily. Therefore, increase the customer satisfaction with the brand.
These are some of the purpose for which Tesco use social media in different ways. Although, Tesco has successfully used social media to meet their business goal for some past year but it is currently facing some issue in social media like significant decrease in their twitter and Facebook followers which means Tesco is losing touch with its online customers which is hampering their business overall performance.
Effective and efficient use of data can improve a retail business performance significantly and bring new opportunities to the business. Tesco also use data from different sources in various ways for meeting different business goal, which are listed below.
· Increase their revenue by better understanding of customer needs and demands using customer feedback and other customer data available to them. Understanding of the customers’ needs and preferences provide organization opportunity to produce customized products and services that are trendy as well as able to mitigate different preferences of their core customer base. This way, organizations in the retail industry including Tesco become able to increase their revenue and sales volume effectively.
· Increase their productivity by using internal data of different work process performance to analyze, which working process is performing ineffectively and modifying that work process to increase overall productivity (Ross, 2017).
· Tesco also use data to formulate their long-term strategic planning about different matters like in which new market they should introduce themselves, what should be their pricing strategy, what should be their distribution channels and many more. Therefore, identifying new strategies and opportunities for this business (McDonald & Wilson, 2016).
· Tesco use monthly statement of expense data to make different managerial decisions that will facilitate new opportunities for the business (Marr, 2015).
· Cross selling of product by analyzing customer preferences through customer data, which increased the overall sale of the company.
· Tesco use interactive content or data in their website to increase their customer engagement and increase their customer base. Therefore, bringing new opportunities in form of new customers for the business (Peppers & Rogers, 2016).
· Information system called ‘G.O.L.D, had been implemented by Tesco in 1998, which helped them monitor stock level of goods in their warehouses, quality of their goods, supply chain management process and many other factors. This has helped the production department in managing stock and supplying them to customers in a better way.
Therefore, it can be seen that Tesco used data in improving their work process and achieving different business goals that ultimately help them increasing their sales. The figure about their yearly sale in given below to validate the above-mentioned point regarding proper use of data can increase the performance of the company.
Dahl, S. (2018). Social media marketing: Theories and applications. Sage.
Dobrin, D., & Dobrin, D. (2018). YouGov | Tesco profits fall has big impact on social media. Retrieved from https://yougov.co.uk/news/2013/04/19/tesco-profits-fall-it-pulls-out-us/
Marr, B. (2015). Big Data: Using SMART big data, analytics and metrics to make better decisions and improve performance. John Wiley & Sons.
Mason, P., & Lang, T. (2017). Sustainable diets. Abgindon, UK: Earthscan.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.
Peppers, D., & Rogers, M. (2016). Managing customer experience and relationships: A strategic framework. John Wiley & Sons.
Ross, J. E. (2017). Total quality management: Text, cases, and readings. Routledge.
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.
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