Tesco’s Facebook Double Points App Swot
Tesco’s Facebook double points app
SWOT
STRENGTH * TESCO have secured commercial standing within the global market place winning Retailer of the Year 2008 at the “World Retail Awards”. This can be used for marketing campaigns to drive advantage towards the demographic base for future growth and sustainability. * In an environment where global retail sales has for sometime shown significant decline or level performance on a like for like basis TESCO has continued to dominate the larger proportion of the market. * By developing an app that rewards social behaviour, Tesco can increase its number of followers and reach while also directly using existing fans to drive sales. * Tesco already has over a million households nationwide using its online services; the company will therefore have a stronger platform in its Facebook app marketing campaign and this can further develop its on-line sales stream. * Customers who like the products they buy online from Tesco supermarket will at the same time share the details of the products to their friends in other words recommending this to their friends. This will help the supermarket enlarge its customer base and market share. * The use of Information Technology is a good and innovative way of improving the customer shopping experience and can help increase sales. * Tesco has a very strong brand image and is associated with good quality and trustworthy products that represent excellent value. * There is a maximum reward limit of 7500 club-points per customer for participating customers
WEAKNESS
* Over reliance on the Facebook app will mean customers who do not use the Facebook or buy their products online are ignored and discriminated against. * Customers may not see a clear reason to connect with Tesco on Facebook which already has over 850,000 Facebook likes before the launch of this marketing campaign app. * Some customers may complain that this is an example of getting
SWOT
STRENGTH * TESCO have secured commercial standing within the global market place winning Retailer of the Year 2008 at the “World Retail Awards”. This can be used for marketing campaigns to drive advantage towards the demographic base for future growth and sustainability. * In an environment where global retail sales has for sometime shown significant decline or level performance on a like for like basis TESCO has continued to dominate the larger proportion of the market. * By developing an app that rewards social behaviour, Tesco can increase its number of followers and reach while also directly using existing fans to drive sales. * Tesco already has over a million households nationwide using its online services; the company will therefore have a stronger platform in its Facebook app marketing campaign and this can further develop its on-line sales stream. * Customers who like the products they buy online from Tesco supermarket will at the same time share the details of the products to their friends in other words recommending this to their friends. This will help the supermarket enlarge its customer base and market share. * The use of Information Technology is a good and innovative way of improving the customer shopping experience and can help increase sales. * Tesco has a very strong brand image and is associated with good quality and trustworthy products that represent excellent value. * There is a maximum reward limit of 7500 club-points per customer for participating customers
WEAKNESS
* Over reliance on the Facebook app will mean customers who do not use the Facebook or buy their products online are ignored and discriminated against. * Customers may not see a clear reason to connect with Tesco on Facebook which already has over 850,000 Facebook likes before the launch of this marketing campaign app. * Some customers may complain that this is an example of getting
Bibliography: http://www.tescoplc.com/index.asp?pageid=188&newsid=654 http://money.aol.co.uk/2012/07/05/facebook-can-earn-you-tesco-clubcard-points/ http://forums.moneysavingexpert.com/showthread.php?t=4244915 http://www.marketingmagazine.co.uk/news/1139811/Tesco-offers-Clubcard-points-Facebook-users-promote-products/ http://www.retail-week.com/technology/technology-blog/tesco-offers-facebook-fans-double-clubcard-points/5038558.blog http://people.exeter.ac.uk/wl203/BEAM011/Materials/Lecture%204/TESCO%20Company%20Profile.pdf http://internetretailing.net/2012/07/tesco-links-clubcard-points-to-facebook-likes-shares-and-buys/