Axa Assurance Maroc - Insurer Innovation Award 2024
Tesco.com
1.
2. 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
3. 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.
4. 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
5. 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.
6. 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…
8. 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
9. 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
10. CUSTOMER SERVICE
Differential pricing
Variety of merchandise
availability on
Tesco.com
Text to speech
conversion technique
was introduced for
Blind people
Timeliness of deliveries
and accuracy with
orders served
11. 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
12. Low fixed cost but high
variable cost
Intensifying
competition
Increasing Internet Traffic
Entry in U.S. Market
REASONS TO WORRY
15. Sales increased from
$19.2Million to
$264 million
Online venture sustained due
to
Smart-small business
The Safeway alliance-The
biggest testimony
UNIQUE BUSINESS MODEL-
THE OUTCOME