Tesco.com
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Transcript of Tesco.com
![Page 1: Tesco.com](https://reader033.fdocuments.us/reader033/viewer/2022052522/554937b1b4c905194d8b4896/html5/thumbnails/1.jpg)
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INTRODUCTION
Tesco:A Major Retail Grocery selling store
Setup by Jack Cohen First to Introduce Self-
Service mode Growth by Acquisitions Introduced Trading
Stamps Businesses include
financial services, online grocery retailing ,Petrol filling Stations
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TESCO.COM-A RARE PROFITABLE.COM
1996: Decided to tap the Internet for Business.
Accepted phone, fax, and Internet orders.
First retailing company that was an Internet Service Provider.
Proved Online Grocery selling as a viable Business.
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REASONS FOR PROFIT GENERATION
Online customers tended to order costly Merchandise in large quantities
Opportunities for cross selling (Pop-up windows)
Customers ordered in bulk to justify delivery charges of $ 5
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A UNIQUE BUSINESS MODEL
“The Pick-In-The-Stores System”
Rejected warehousing Model : As demand was low and it was a huge investment.
Opted for Positioning Information System in Existing Stores.
Used Shopping cart equipped with Online Displays.
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Divided Outlets into six Major zones – Bakery, Groceries, Frozen Foods, Chilled-Foods, Liquor, Produce.
Electronic Scanning of Ordered Items
Suggested Substitute Products for Out of Stock Items.
Continued…
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FLOWCHART
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THE INGREDIENTS OF SUCCESS
Delivering Excellence: Problem: Complex
Delivery Procedure
What Tesco.com did? Optimal use of Time
and Resources Predetermined route
maps for Delivery Generated $27 million
through delivery Fees
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INVENTORY MANAGEMENT
Inventory monitoring and replenishment
How these conditions were fulfilled?
Used a wheel with light of various colors
Customer profile Database generated through loyalty card scheme
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CUSTOMER SERVICE
Differential pricingVariety of merchandise
availability on Tesco.com
Text to speech conversion technique was introduced for Blind people
Timeliness of deliveries and accuracy with orders served
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WEBSITE MAINTENANCE
Tie up with knowledge management consultants - Intervowen
Website updated on regular basis
CD version of website for dial up mode customers
System checks were carried out
MyWeb Software adopted
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Low fixed cost but high variable cost
Intensifying competition
Increasing Internet Traffic
Entry in U.S. Market
REASONS TO WORRY
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Presented By:
AshimaPragyandipta PatnaikMayur KansalNeetika PanwarMegha Yadav
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Queries???
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Sales increased from $19.2Million to $264 million
Online venture sustained due toSmart-small business
The Safeway alliance-The biggest testimony
UNIQUE BUSINESS MODEL-THE OUTCOME