Tesco.com

INTRODUCTION

Tesco:A Major Retail Grocery selling store

Setup by Jack Cohen First to Introduce Self-

Service mode Growth by Acquisitions Introduced Trading

Stamps Businesses include

financial services, online grocery retailing ,Petrol filling Stations

TESCO.COM-A RARE PROFITABLE.COM

1996: Decided to tap the Internet for Business.

Accepted phone, fax, and Internet orders.

First retailing company that was an Internet Service Provider.

Proved Online Grocery selling as a viable Business.

REASONS FOR PROFIT GENERATION

Online customers tended to order costly Merchandise in large quantities

Opportunities for cross selling (Pop-up windows)

Customers ordered in bulk to justify delivery charges of $ 5

A UNIQUE BUSINESS MODEL

“The Pick-In-The-Stores System”

Rejected warehousing Model : As demand was low and it was a huge investment.

Opted for Positioning Information System in Existing Stores.

Used Shopping cart equipped with Online Displays.

Divided Outlets into six Major zones – Bakery, Groceries, Frozen Foods, Chilled-Foods, Liquor, Produce.

Electronic Scanning of Ordered Items

Suggested Substitute Products for Out of Stock Items.

Continued…

FLOWCHART

THE INGREDIENTS OF SUCCESS

Delivering Excellence: Problem: Complex

Delivery Procedure

What Tesco.com did? Optimal use of Time

and Resources Predetermined route

maps for Delivery Generated $27 million

through delivery Fees

INVENTORY MANAGEMENT

Inventory monitoring and replenishment

How these conditions were fulfilled?

Used a wheel with light of various colors

Customer profile Database generated through loyalty card scheme

CUSTOMER SERVICE

Differential pricingVariety of merchandise

availability on Tesco.com

Text to speech conversion technique was introduced for Blind people

Timeliness of deliveries and accuracy with orders served

WEBSITE MAINTENANCE

Tie up with knowledge management consultants - Intervowen

Website updated on regular basis

CD version of website for dial up mode customers

System checks were carried out

MyWeb Software adopted

Low fixed cost but high variable cost

Intensifying competition

Increasing Internet Traffic

Entry in U.S. Market

REASONS TO WORRY

Presented By:

AshimaPragyandipta PatnaikMayur KansalNeetika PanwarMegha Yadav

Queries???

Sales increased from $19.2Million to $264 million

Online venture sustained due toSmart-small business

The Safeway alliance-The biggest testimony

UNIQUE BUSINESS MODEL-THE OUTCOME