Open heart surgery in p ublic Brand cardiology Disclaimer The - PowerPoint PPT Presentation

“ Open heart surgery in p ublic”

“Brand cardiology”

Disclaimer

The success story Operating Property model strategy Customer proposition

Customer Proposition Service, Quality, Availability, Range, Price FUNCTIONAL: EMOTIONAL:

Customer champion

Self-service shopping

Resale Price Maintenance Source: http://www.herberthistory.co.uk/

Value proposition

First online shop

Helping communities

TESCO Clubcard Source: Telegraph

Helping families

Baby changing

24 hour shopping

Personal finance

Own brand ranges

New customer needs

tesco.com deliveries

Some numbers…

Penetration 87% of UK Delivered to customers shop 16m active Tesco 99.6% of UK with Tesco each Clubcard users postcodes year

Frequency Average shopper 42m transactions 66 transactions visits 76 times per per week per second year

Strength of Brand 65% 40% 31% Tesco “Britain’s most admired company” three times in four 17% Competitor B years 15% 35% 1995 2005 32 26 Year Source: Management Source: YouGov Source: BrandZ Today 2006 Grocery Market Share Recognised Brand Brand Power

UK Psyche Like Respect

UK Psyche Like Challenger Respect

UK Psyche Cheeky underdog Like Challenger Respect

UK Psyche Cheeky Leader underdog Like Challenger Respect

UK Psyche Cheeky Leader underdog Like Challenger Tolerated Respect

Erosion of Brand Power Tesco Brand Index Score Source: YouGov

Rebuilding

Archaeology

Listening Colleagues

Listening Colleagues Customers

Listening Colleagues Customers Partners – Our suppliers

Listening Colleagues Customers Partners – Stakeholders Our suppliers

We invested in our customer offer 65% 75% 80% 65% -15% 35% 35% 55% 40% 32 26 32 26 32 26 32 26 weeks weeks weeks weeks Service Availability Range Price

Communication partners

We articulated our purpose

From running shops… …to serving people

Serving

Britain’s

shoppers

a little

better

every day

Serving Britain’s shoppers a little better every day The right Humble, Continual effort to Colleagues Customer first, 2,500 local mix of price, but heroic: always be better knowing the Attitude stores within quality, always The personal customer minutes of the range and trying touch better than nation. Serving service. harder anyone else each and every Uniquely one of Britain’s Tesco communities. products & Local up not services. National down. (desirable / affordable)

Helpful advertising

Helpful advertising

Party food Ad Tracking

Community Food Collections Bags of Help Farm to Fork 30 million meals 1.2 million children

Partnerships FareShare Food Cloud Small suppliers Sustainable agriculture All surplus food to charity by 2017

Product Treats for all 4.5bn calories Innovation

Propositions Foregone interest 4G at no extra cost Brand Guarantee

Giving back Local community Race for Life Charity partnership £7.5m

Christmas Customer Spotlight Customer waiting Colleague festive How festive the store looked time spirit & felt % Change % Change % Change YoY YoY YoY Tesco +1 87 Tesco 74 +2 Tesco +11 86 +3 A -3 B 86 74 +4 B 81 E 86 +3 B 72 +1 E 81 +7 C -4 -2 +2 C C 85 68 81 A D A 85 0 +3 63 80 -2 D D 72 +2 E 63 -3 67 +5 F F -12 -3 F +5 64 50 63 60 70 80 90 50 60 70 80 60 70 80 90

Tesco…can you feel a pulse? Tesco Brand Index Score Source: YouGov

Still crucial Operating Property model strategy Customer proposition

But purpose driven

“Brand cardiology”