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Customer Perspective of Tesco PLC- 2013

posted 5 Feb 2013, 08:36 by Manish Abraham   [ updated 11 Feb 2013, 06:09 ]

Tesco logo 2013

“In customer perspective of Balanced Scorecard, managers identify the customer and market segments in which the business unit will compete and the measures of the business unit’s performance in these segments” (Kaplan and Norton 1996, p.26). According to Kaplan and Norton (1996) the customer and community perspectives, if it’s applied correctly, should gain successful results such as customer satisfaction, customer profitability, market share in targeted parts, customer conservation and new customer attainment. This can empower companies to identify and measure the value proportions (price, relationship, functionality, service, availability etc.) that they already offered and will offer to targeted customers and market segments (Kaplan and Norton 1996). For this goal, companies should define their market targets in their existing and possible performance and then they should identify which segment they will go for.

According to Tesco Corporate Responsibility Review 2012 Tesco has built its strategy as a global business based on seven main aspects: to grow the UK core, to be an outstanding international retailer in stores and online, to be as strong in everything they sell as they are in food, to grow retail services in all their markets, to put their responsibilities to the communities they serve at the heart of what they do, to be a creator of highly valued brands, to build their team so that they create more value. (Tesco Corporate Responsibility Review 2012,p.1) Tesco manage their business using the “Steering Wheel” which helps them to appeal to all targeted segments instead of focusing on certain market segments. 

“We always want to provide our customers with the best shopping experience and set the standard in the UK. Focusing on food first, we are making £ 1 billion commitment in the things that matter for customers – service, range, quality, price, availability and the store environment” (Tesco annual Report-2012, p. 11). According to this strategy Tesco implemented following ideas:

·         more staff, better service

One of the largest elements of company’s investment (over £ 200 million), which provides the idea with trainings and equipment for key departments in existing stores;

·         creating more jobs and careers

Creation of 20 000 new jobs to deliver new levels of excellence in customer service;

·         the fruit and Veg team

With the additional investment in staffing, training and equipment, it can focus on fresh produce, improving product availability and presentation for customers;

 ·         quality and innovation

Reviewing and refreshing the entire range of over 8000 Tesco brand products, the pace of innovation with the new Venture Brand exclusive products – such as chokoblok ice cream, Parioli authentic Italian ranges and the Latham’s range of premium pet food;

·         the Big Price Drop

it was launched in September 2011, investing more than £ 500 million to reduce the prices of over 3 000 everyday products, the main current goal is to get blend right on price, promotions, couponing and loyalty.

Another one of the Tesco strategic priorities is the growing online businesses in all their markets that show how the company is adapting to its customers’ changing needs. Stores are still play the most significant role, but the main current aim for the company is to become a multi-channel retailer in all market segments.  Online grocery, Tesco direct website, click & collect system ( the connection  between stores and distribution networks which helps customers to pick up their products whenever it is more comfortable for them from over 770 stores), social media and international online groceries are the main lines of development which help Tesco to “win locally, applying their skills globally”. (Tesco annual report -2012, p.12)

Since the mid-1990s, Tesco has built an international business of more than 3200 stores, which delivered more than £ 1 billion trading profit for the first time of 2012. As the company strives to become an outstanding international retailer, they are drawing on Tesco’s skill and scale to move into the next phase of growth. (Tesco annual report-2012, p.13).


Kaplan, R.S., Norton, D.P. (1996) The Balanced Scorecard: Translating Strategy into Action, Harvard Business School Press, Boston, MA,.

Tesco Annual Report (2012) available at: [accessed 07/01/2013]