Ladies and Gentlemen. Thank you for inviting me here today; it is a great pleasure. My name is Frederikke and I work as a PR assistant at Tesco. I have prepared a speech for you business students today, focusing on Tesco. I will start by telling you something about the company and then account for some of Tesco’s current problems. And in the end I will comment on Tesco’s efforts to solve the problems, taking the changing consumer behaviour into consideration.
Tesco is a British company, which has its headquarters in Hertfordshire in England and was established in 1919. The company is a multinational grocery and merchandise retailer. It is the largest grocery chain in the United Kingdom and the second largest one in the world after Wal-Mart from the US. In the United Kingdom the company holds about the third of the grocery market.
For Tesco it has been 12 terrible months economically. Our shares have fallen by 20 per cent. The company was compelled to change its executive and find a new one, who is now Phillip Clark. He has been criticised for the big price job and needs to reconnect with the company’s customers and change our corporate culture. Experts also think that the company should drop the ‘Fresh & Easy’ chain, because it has not been that one of a succes.
The company also has made its standard slip, if you need help, it is not sure you get the help you want, because there is not enough staff in the Tesco stores. You may also become exposed to empty shelves around the stores, because of the fact that the quality in Tesco has fallen.
Luckily, there have also been some good spots the last year. Tesco has gone through a good development in countries like Thailand, in which the company raised $600 million and the employees showed a good work effort. The shares in Thailand have also risen by 10 per cent. A last good spot is that one out of seven pounds in the United Kingdom is spent in one of Tesco’s stores.
Tesco knows about the economic problems, therefore the company has made different efforts to solve the problems. Philip Clark group CEO has done something for the online sale by making a smartphone application, in which you can find the nearest Tesco store, order and amend your grocery and shop for 1000s of products. Tesco is a very modern company and knows that it needs to keep up with the modern industry in the world, which includes online sale. Today money is time and therefore customers need to save time and by that I think this smartphone application is a very good idea. The fact that you can order grocery and pick it up quickly in your Tesco store is amazing in my world. The fact that my grocery is ready for me, when I want it to be, is brilliant and that you can shop directly from the app, too. I think this application will be used in all countries with Tesco stores in the future.
In continuation of online sale, the company has also tried to catch customers in the airports of the United Kingdom, when the consumers for instance arrive back from a vacation or the like. In many airports Tesco has placed stands with different pages showing all the products we offer, which you can turn over and order directly from, and then on your way back home you can pick up, your ordered goods in a Tesco store. I think it is a very good service by Tesco and a good way to catch several customers and by that higher market share.
The company has also tried to do something about the quality in the stores. Especially in the bakery Tesco tries to sell products of a very high quality to the consumers, which again includes the company in the modern industry, given that there in the last couple of years has been this craze about bake-off in the retail market.
Tesco has introduced the brand ‘Everyday Value’. It is products produced well, but which can nevertheless be bought for low prices, which I think increases the quality in Tesco.
One of the others things Tesco has done to increase the quality in the stores and the bottom line figures is listening to our customers by using their data on customers’ profiles on club cards, which makes it easy to approach the customers’ wishes and needs.
All things considered, I think Tesco is doing a great job trying to become the same retail chain with the quality in stores as it used to have.
To sum up some of my points, I would like telling you that it has been 12 terrible months for Tesco. The shareholders in Tesco have felt a fall given that the shares have fallen by 20 per cent. Some other factors have also induced the very bad year in Tesco; one of them is that the company has been compelled to hire a new head of the firm. Fortunately, there have also been positive spots in the company; especially, the development in Thailand has been a success.
Tesco has realised that the last year has not been a success and therefore the company has done something about the problem. The company has introduced a smartphone app on the online market, which makes it easy for the customers to shop and order goods.
The company has also done something for the quality in the stores. It has introduced the brand ‘Everyday Value’, which is a brand with high quality products at low prices.
Last but not least, the company will also try to listen to customers’ wishes and needs by looking at their profile data.
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