Table of ContentsIntroductionGoal/Objective: Make shopping cheaper for the average householdGoal/Objective: Build our team so that we create more valueGoal/Objective: Act responsibly for our communitiesThe effectiveness of Tesco relationship marketing strategiesPositive effectsNegative effectsConclusionIntroductionIn this essay I will discuss how Tesco uses relationship marketing to achieve its strategic goals and objectives and how this can be applied to a company such as Range which although has many stores in the UK was Tesco is a much larger company which has the money to invest in research and therefore has a much clearer view of how it uses its relationship marketing. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Aim/Objective: To make shopping cheaper for the average householdTo make shopping cheaper for a company like Tesco, they were one of the first to introduce a loyalty car scheme called a Club card which allows customers to earn cash back on their purchases as well as receive free family days as a reward for shopping with them. The Tesco's have all done an advertising campaign showing that they offer better value for money than their competitors, for example saying "At Tesco this pint of milk cost 50p but at Asda it costs 65p", these kinds of adverts has littered TV channels for long periods of time, so that now it has become synonymous with Tesco being one of the cheapest places to shop in the UK, whilst remaining that it has the same quality than anywhere else because it is the same product they are selling. Goal/Objective: Build our team so that we create more value. Staff training is extremely important for any business as it means the customer sees what the business is about as the staff reflect the business. This means that at Tesco they want to make sure that the staff are polite and informed about the products and how the customer should be treated. However, due to the size and training infrastructure in place, this is harder said than done for Tesco as they have built. their brand aims to provide a decent service but the employees probably don't owe much about the products, compared to another supermarket such as Waitrose which has much higher prices for each product but the employees know everything about the product and provide huge amounts of customer service, for a company like The Range it has to find a happy medium between the two. They need to provide a higher level of customer service than Tesco, but do not need to train staff in Waitrose quality as they will not have customers requiring the knowledge required of Waitrose staff. Goal/Objective: act responsibly for our communities. Tesco has stated that their main aim is to sponsor and help local communities and that is why they give store managers independence when it comes to giving out free food and sponsoring events. This means they can build an image around helping local people so that they are more likely to shop there, but also so that if they wanted to open another one nearby, the less risk they would have to get as many refusals and challenges as they usually do, because most people don't want a supermarket to open near them because of the they bring a big footprint,especially with traffic, but if that supermarket has already contributed a lot to local events and funded local charities, it is more likely that they will be accepted and allowed to open more stores locally. The effectiveness of Tesco's relationship marketingPositive effectsThe first The positive effect of relationship marketing for Tesco is that they have to offer something that no one else can really compete with and that is the Club card, this is because she is the first of its kind and therefore it is she who has it is the one who has the most members the same thing with technology because Apple had the first real smartphone and therefore they control the entire market and with card subscriptions , there have been scams such as Nectar which actually offer more features, but because Tesco was the first to release it, it still has the most members as people are loyal to the brands and don't want to no need to register and change cards either. The club card was emotionally what led Tesco to make it known to everyone, according to the Telegraph, because they could compete with other supermarkets because they were a small company and therefore could not get the same prices from the suppliers they needed to offer the customers something so that they would be more willing to shop in their stores, so they made deals with other companies to offer Tesco customers discounts in Tesco stores. offers that bring business to other businesses, meaning they are willing to offer bigger discounts the more results they see from the promotion. Another benefit of relationship marketing deployed by Tesco is the way they collect data on their customers, for example using the club card to see what the customer usually buys and then offering the coupons on the things they are likely to purchase in the future or like and this means they can add it to their regular shopping list after using the coupon, which means they made a lot more sales of products that would otherwise wouldn't sell as well. It also means that customers feel that the brand cares about what they are interested in and that Tesco knows them well so they can trust them with their money and that all their purchases don't go unnoticed, even if some customers would . I don't like the feeling of being watched with every purchase and I feel uncomfortable. The majority will realize that this is a huge benefit to them and worth the money they save. Negative effectsOne of the negative effects of the club card system is that it is so successful that there is no longer any competition and because Tesco wants to continue to increase their profit margins they are slowly bringing back the majority of card points of club cards that are distributed and therefore people receive less even though there are prices have not changed and therefore people are now looking for other alternatives to the club card system and that is why many people are are turning to the nectar card scheme because they know they will spend the same amount at Sainsbury's as at Tesco. but they will receive more money than they would from the Tesco scheme and this has been demonstrated by chose.co.uk saying that the Tesco scheme is not what it used to be and therefore people should look for alternatives and that Nectar was better value for money as it can be used on Ebay, as well as many other sites and stores, where the Tesco scheme cannot. Another negative effect is that Tesco only allows people to get money back on their purchases and also receive tailor-made coupons where some people like.