Free Marketing Dissertations - World Of Wine Club: This Club Provides Information To Members Who Like
World of Wine Club: This club provides information to members who like drinking wine about the different range of wines available all over the world as well as information such as which wine goes with what kind of food etc. Members also get price-off coupons for purchasing wine at Tesco. This club also helps Tesco in promoting the new range of wines available at their stores.
AirMiles Travel Company: Tesco also entered into relationship with AirMiles Travel Company in 2002 and so customers can also convert their Clubcard vouchers into AirMiles for their flight trips. For example £2.50 of Clubcard vouchers can be exchanged for 60 AirMiles. The fact that AirMiles Travel Company switched over from Sainsbury’s with which they were since 1996 to Tesco also reflects on the supremacy of Tesco in the UK retail market-place.
However it hasn’t been success all the way for Tesco and some of their initiatives such as the Student Card and the Clubcard Plus Payment Card failed. It can also be argued that Clubcard has not been a success in the student customer segment. Also even though Clubcard has contributed a lot in helping Tesco set up a successful financial services company, it has not been able to properly integrate the financial products and services in its loyalty program. Another weakness of the Clubcard as compared to other loyalty cards is related to the redemption of vouchers. The system is slow and lacks flexibility with customers getting their statements after every three months along with their price-off coupons. To redeem the deals, customers have to send the Clubcard vouchers by post to the Clubcard Deals Department which then does the formalities and sends back the vouchers entitling the customers to the deals they have chosen. Customers cannot redeem their vouchers online or at stores which if was possible would have made the whole process much simpler and faster.
Can Tesco have been as successful without Clubcard?
The change in fortune for Tesco started with the introduction of its Clubcard but does that justify that all the success for Tesco has come with this single loyalty scheme. If the answer is yes then why similar loyalty programs have failed for other retailers. Thus definitely there has been some element of luck involved that has favoured Tesco. Still the credit cannot be taken away from Tesco for being able to run the program so effectively. Customers using other loyalty cards have often faced problems such as points not appearing in the Nectar account when using the card at BP but Tesco has managed to run the scheme in a more reliable and user friendly way then any other retailer. Also the reason why Tesco has been so successful is because it was able to use the Clubcard and the information provided by it, not only for developing new products and services for their existing stores but also to diversify in other new businesses.
