38
PESHWA ACHARYA MARKETING CHIEF RELIANCE RETAIL We modelled the Reliance Retail Marketing Department on TESCO lines .. How to Set up a robust Retail Marketing Department

Retail Marketing

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Page 1: Retail Marketing

PESHWA ACHARYA

MARKETING CHIEF

RELIANCE RETAIL

We modelled the Reliance Retail Marketing Department on TESCO lines

How to Set up a robust Retail Marketing Department

bullTesco UK core business (Extras

Superstores Metro Express)

bullTesco International

bullNon Food (clothing)

bullRetailing Services (Dotcom

Tesco Personal Finance

Telecoms)

Tesco has a 4 point strategy

Core Purpose

To create value for customers

to earn their lifetime loyalty

Our Values

No-one tries harder for customers

Treat people how we like to be

treated

Every Little Helps is customer speak for our values and is a

broad summation of Tesco at itrsquos best

The expression of our Values

An Every Little Helps Shopping Trip

and

A Great Place To Work

Through

Which are

No one tries harder for customers

Treat people how we like to be treated

The way we work

and

The way we behave

Which means we deliver

is

Shopping Trip

bullThe aisles are clear

bullI can get what I want

bullThe prices are good

bullI donrsquot queue

bullThe staff are great

No one tries harder

for customers

The way we work

bullWe deliver consistently everyday

bullWe aim to get it right first time

bullWe make our jobs easier to do

bullWe know how vital our jobs are

bullWe always save time and money

Better for customers Simpler

for staff and cheaper for Tesco

A Great Place To

Work

bullTo be treated with respect

bullA manager who helps me

bullAn interesting job

bullAn Opportunity to get on

Treat people how we like to

be treated

The way we behave

Living Service Expressions

What part does the Marketing Department play

Drive trade

through

Every Little Helps

The Tesco Marketing Philosophy

Understand customers better than anyone

Delivering the

Every Little

Helps

shopping trip

Drive trade

through

Every Little

Helps

Saying

lsquoThank

yoursquo

Marketing

Making

Tesco

available

Insight Unit - the role of Customer Understanding

Anticipating customer needs

Championing the customer

voice in the business

Guide and measure the

business

Insight Unit - Who we are what what we do

Meet customer needs by matching store format to

location Site Research

Market Research

Insight Analysis

Strategic Insight

Customer

Question Time

Monitor and track the health of the business identify

changing customer needs understand current customer

issues and ensure our initiatives are right for customers

Guide business strategy through our insight on

customers property and our people

Analyse how customers are behaving and how we

are performing as a business

Research customer lifestyles and the shopping

experiences in our stores to ensure the business

reflects customer needs

Combined analytical experience = the full story = competitive advantage

The Power of Joined Up Thinking

Insight Unit - Our Key Outputs

A small selection of Insight reports that illustrate the power of

joined up thinking

World class insight is at the heart of the business

UK Business

Expansion

Report

Customer

Spotlight Blue Books

Brand Review

Customer

Question Times

People

Spotlight and

People

Review

Express and

Non Food Brand

Reviews

Switching

Analysis

Sales Forecasts

for new stores

New space

development

strategy

Trade Reports

Competitor

Analysis

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 2: Retail Marketing

bullTesco UK core business (Extras

Superstores Metro Express)

bullTesco International

bullNon Food (clothing)

bullRetailing Services (Dotcom

Tesco Personal Finance

Telecoms)

Tesco has a 4 point strategy

Core Purpose

To create value for customers

to earn their lifetime loyalty

Our Values

No-one tries harder for customers

Treat people how we like to be

treated

Every Little Helps is customer speak for our values and is a

broad summation of Tesco at itrsquos best

The expression of our Values

An Every Little Helps Shopping Trip

and

A Great Place To Work

Through

Which are

No one tries harder for customers

Treat people how we like to be treated

The way we work

and

The way we behave

Which means we deliver

is

Shopping Trip

bullThe aisles are clear

bullI can get what I want

bullThe prices are good

bullI donrsquot queue

bullThe staff are great

No one tries harder

for customers

The way we work

bullWe deliver consistently everyday

bullWe aim to get it right first time

bullWe make our jobs easier to do

bullWe know how vital our jobs are

bullWe always save time and money

Better for customers Simpler

for staff and cheaper for Tesco

A Great Place To

Work

bullTo be treated with respect

bullA manager who helps me

bullAn interesting job

bullAn Opportunity to get on

Treat people how we like to

be treated

The way we behave

Living Service Expressions

What part does the Marketing Department play

Drive trade

through

Every Little Helps

The Tesco Marketing Philosophy

Understand customers better than anyone

Delivering the

Every Little

Helps

shopping trip

Drive trade

through

Every Little

Helps

Saying

lsquoThank

yoursquo

Marketing

Making

Tesco

available

Insight Unit - the role of Customer Understanding

Anticipating customer needs

Championing the customer

voice in the business

Guide and measure the

business

Insight Unit - Who we are what what we do

Meet customer needs by matching store format to

location Site Research

Market Research

Insight Analysis

Strategic Insight

Customer

Question Time

Monitor and track the health of the business identify

changing customer needs understand current customer

issues and ensure our initiatives are right for customers

Guide business strategy through our insight on

customers property and our people

Analyse how customers are behaving and how we

are performing as a business

Research customer lifestyles and the shopping

experiences in our stores to ensure the business

reflects customer needs

Combined analytical experience = the full story = competitive advantage

The Power of Joined Up Thinking

Insight Unit - Our Key Outputs

A small selection of Insight reports that illustrate the power of

joined up thinking

World class insight is at the heart of the business

UK Business

Expansion

Report

Customer

Spotlight Blue Books

Brand Review

Customer

Question Times

People

Spotlight and

People

Review

Express and

Non Food Brand

Reviews

Switching

Analysis

Sales Forecasts

for new stores

New space

development

strategy

Trade Reports

Competitor

Analysis

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 3: Retail Marketing

Core Purpose

To create value for customers

to earn their lifetime loyalty

Our Values

No-one tries harder for customers

Treat people how we like to be

treated

Every Little Helps is customer speak for our values and is a

broad summation of Tesco at itrsquos best

The expression of our Values

An Every Little Helps Shopping Trip

and

A Great Place To Work

Through

Which are

No one tries harder for customers

Treat people how we like to be treated

The way we work

and

The way we behave

Which means we deliver

is

Shopping Trip

bullThe aisles are clear

bullI can get what I want

bullThe prices are good

bullI donrsquot queue

bullThe staff are great

No one tries harder

for customers

The way we work

bullWe deliver consistently everyday

bullWe aim to get it right first time

bullWe make our jobs easier to do

bullWe know how vital our jobs are

bullWe always save time and money

Better for customers Simpler

for staff and cheaper for Tesco

A Great Place To

Work

bullTo be treated with respect

bullA manager who helps me

bullAn interesting job

bullAn Opportunity to get on

Treat people how we like to

be treated

The way we behave

Living Service Expressions

What part does the Marketing Department play

Drive trade

through

Every Little Helps

The Tesco Marketing Philosophy

Understand customers better than anyone

Delivering the

Every Little

Helps

shopping trip

Drive trade

through

Every Little

Helps

Saying

lsquoThank

yoursquo

Marketing

Making

Tesco

available

Insight Unit - the role of Customer Understanding

Anticipating customer needs

Championing the customer

voice in the business

Guide and measure the

business

Insight Unit - Who we are what what we do

Meet customer needs by matching store format to

location Site Research

Market Research

Insight Analysis

Strategic Insight

Customer

Question Time

Monitor and track the health of the business identify

changing customer needs understand current customer

issues and ensure our initiatives are right for customers

Guide business strategy through our insight on

customers property and our people

Analyse how customers are behaving and how we

are performing as a business

Research customer lifestyles and the shopping

experiences in our stores to ensure the business

reflects customer needs

Combined analytical experience = the full story = competitive advantage

The Power of Joined Up Thinking

Insight Unit - Our Key Outputs

A small selection of Insight reports that illustrate the power of

joined up thinking

World class insight is at the heart of the business

UK Business

Expansion

Report

Customer

Spotlight Blue Books

Brand Review

Customer

Question Times

People

Spotlight and

People

Review

Express and

Non Food Brand

Reviews

Switching

Analysis

Sales Forecasts

for new stores

New space

development

strategy

Trade Reports

Competitor

Analysis

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 4: Retail Marketing

Every Little Helps is customer speak for our values and is a

broad summation of Tesco at itrsquos best

The expression of our Values

An Every Little Helps Shopping Trip

and

A Great Place To Work

Through

Which are

No one tries harder for customers

Treat people how we like to be treated

The way we work

and

The way we behave

Which means we deliver

is

Shopping Trip

bullThe aisles are clear

bullI can get what I want

bullThe prices are good

bullI donrsquot queue

bullThe staff are great

No one tries harder

for customers

The way we work

bullWe deliver consistently everyday

bullWe aim to get it right first time

bullWe make our jobs easier to do

bullWe know how vital our jobs are

bullWe always save time and money

Better for customers Simpler

for staff and cheaper for Tesco

A Great Place To

Work

bullTo be treated with respect

bullA manager who helps me

bullAn interesting job

bullAn Opportunity to get on

Treat people how we like to

be treated

The way we behave

Living Service Expressions

What part does the Marketing Department play

Drive trade

through

Every Little Helps

The Tesco Marketing Philosophy

Understand customers better than anyone

Delivering the

Every Little

Helps

shopping trip

Drive trade

through

Every Little

Helps

Saying

lsquoThank

yoursquo

Marketing

Making

Tesco

available

Insight Unit - the role of Customer Understanding

Anticipating customer needs

Championing the customer

voice in the business

Guide and measure the

business

Insight Unit - Who we are what what we do

Meet customer needs by matching store format to

location Site Research

Market Research

Insight Analysis

Strategic Insight

Customer

Question Time

Monitor and track the health of the business identify

changing customer needs understand current customer

issues and ensure our initiatives are right for customers

Guide business strategy through our insight on

customers property and our people

Analyse how customers are behaving and how we

are performing as a business

Research customer lifestyles and the shopping

experiences in our stores to ensure the business

reflects customer needs

Combined analytical experience = the full story = competitive advantage

The Power of Joined Up Thinking

Insight Unit - Our Key Outputs

A small selection of Insight reports that illustrate the power of

joined up thinking

World class insight is at the heart of the business

UK Business

Expansion

Report

Customer

Spotlight Blue Books

Brand Review

Customer

Question Times

People

Spotlight and

People

Review

Express and

Non Food Brand

Reviews

Switching

Analysis

Sales Forecasts

for new stores

New space

development

strategy

Trade Reports

Competitor

Analysis

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 5: Retail Marketing

Drive trade

through

Every Little Helps

The Tesco Marketing Philosophy

Understand customers better than anyone

Delivering the

Every Little

Helps

shopping trip

Drive trade

through

Every Little

Helps

Saying

lsquoThank

yoursquo

Marketing

Making

Tesco

available

Insight Unit - the role of Customer Understanding

Anticipating customer needs

Championing the customer

voice in the business

Guide and measure the

business

Insight Unit - Who we are what what we do

Meet customer needs by matching store format to

location Site Research

Market Research

Insight Analysis

Strategic Insight

Customer

Question Time

Monitor and track the health of the business identify

changing customer needs understand current customer

issues and ensure our initiatives are right for customers

Guide business strategy through our insight on

customers property and our people

Analyse how customers are behaving and how we

are performing as a business

Research customer lifestyles and the shopping

experiences in our stores to ensure the business

reflects customer needs

Combined analytical experience = the full story = competitive advantage

The Power of Joined Up Thinking

Insight Unit - Our Key Outputs

A small selection of Insight reports that illustrate the power of

joined up thinking

World class insight is at the heart of the business

UK Business

Expansion

Report

Customer

Spotlight Blue Books

Brand Review

Customer

Question Times

People

Spotlight and

People

Review

Express and

Non Food Brand

Reviews

Switching

Analysis

Sales Forecasts

for new stores

New space

development

strategy

Trade Reports

Competitor

Analysis

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 6: Retail Marketing

Insight Unit - the role of Customer Understanding

Anticipating customer needs

Championing the customer

voice in the business

Guide and measure the

business

Insight Unit - Who we are what what we do

Meet customer needs by matching store format to

location Site Research

Market Research

Insight Analysis

Strategic Insight

Customer

Question Time

Monitor and track the health of the business identify

changing customer needs understand current customer

issues and ensure our initiatives are right for customers

Guide business strategy through our insight on

customers property and our people

Analyse how customers are behaving and how we

are performing as a business

Research customer lifestyles and the shopping

experiences in our stores to ensure the business

reflects customer needs

Combined analytical experience = the full story = competitive advantage

The Power of Joined Up Thinking

Insight Unit - Our Key Outputs

A small selection of Insight reports that illustrate the power of

joined up thinking

World class insight is at the heart of the business

UK Business

Expansion

Report

Customer

Spotlight Blue Books

Brand Review

Customer

Question Times

People

Spotlight and

People

Review

Express and

Non Food Brand

Reviews

Switching

Analysis

Sales Forecasts

for new stores

New space

development

strategy

Trade Reports

Competitor

Analysis

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 7: Retail Marketing

Insight Unit - Who we are what what we do

Meet customer needs by matching store format to

location Site Research

Market Research

Insight Analysis

Strategic Insight

Customer

Question Time

Monitor and track the health of the business identify

changing customer needs understand current customer

issues and ensure our initiatives are right for customers

Guide business strategy through our insight on

customers property and our people

Analyse how customers are behaving and how we

are performing as a business

Research customer lifestyles and the shopping

experiences in our stores to ensure the business

reflects customer needs

Combined analytical experience = the full story = competitive advantage

The Power of Joined Up Thinking

Insight Unit - Our Key Outputs

A small selection of Insight reports that illustrate the power of

joined up thinking

World class insight is at the heart of the business

UK Business

Expansion

Report

Customer

Spotlight Blue Books

Brand Review

Customer

Question Times

People

Spotlight and

People

Review

Express and

Non Food Brand

Reviews

Switching

Analysis

Sales Forecasts

for new stores

New space

development

strategy

Trade Reports

Competitor

Analysis

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 8: Retail Marketing

Insight Unit - Our Key Outputs

A small selection of Insight reports that illustrate the power of

joined up thinking

World class insight is at the heart of the business

UK Business

Expansion

Report

Customer

Spotlight Blue Books

Brand Review

Customer

Question Times

People

Spotlight and

People

Review

Express and

Non Food Brand

Reviews

Switching

Analysis

Sales Forecasts

for new stores

New space

development

strategy

Trade Reports

Competitor

Analysis

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 9: Retail Marketing

Insight Unit

Understanding customers better than anyone is the basis of the

Marketing Department

There are 3 broad reasons why we seek to understand

customers

Anticipating customer needs

Championing the customer voice in the business

Guiding and measuring the business

The Insight Unit is made up of five key teams - Site Research

Market Research Strategic Insight Insight Analysis and

Customer Question Times (CQT)

Joined up thinking across Insight enables us to understand the

full story and gain competitive advantage

Our key outputs ensure world class insight is at the heart of the

business

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 10: Retail Marketing

Stores Marketing

Core Purpose

To preview amp review all stores on the development programme to

ensure the best offer for the local customer is delivered in the

individual stores

To flex the existing levers to tailor the store for the local customers amp

continue to develop new levers with the relevant owners

To work with local marketing to turn around under-performing stores

amp assist in the understanding of reasons for poor performance

To help the business to prioritise which elements of the functional

Every Little Helps shopping trip needs to be addressed for

customers

To bring customer understanding amp shape cross functional projects

which are focused on the agreed business priorities that will make

the shopping trip easier for customers (or impact on it)

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 11: Retail Marketing

Stores Marketing

Key Outputs

Stores Marketing Group review papers which ensure the customer is

considered in the property planning process The papers cover-

Agreement to Food Non Food Square Footage

Solutions to key Customer issues highlighted from

quantitative (Oxford Research) amp qualitative (CQT) research

Agreement to include food counters amp cafe ndash Deli Fish Meat

Salad Pizza Chicken Olives Takeaway

Agreement to include non food services ndash Photolab Pharmacy

Opticians Jewellery Counter

Agreement to include other Services ndash Car Park Controls Bus

Service

Agreement to include additional range requirements eg Ethnic

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 12: Retail Marketing

Local Marketing

Core Purpose

To launch new stores in all formats to achieve sales targets

To market our refitted and extended stores

To defend against competitor new stores extensions conversions

that are forecast to impact sales at any of our stores

To turn round sales in under-performing stores and assist in the

understanding of reasons for poor performance

To test trade driving tactics at a local level before they get

implemented by the national team eg trial of various petrol promotions

To champion trade initiatives and brand building across specific

groups of stores - eg London advertising campaign in 2004

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 13: Retail Marketing

Local Marketing

Key Outputs

Highly targeted marketing campaigns that are made local by use of customer

insight Clubcard data and local knowledge Local will use the same tactics as

national but on a micro level - these include -

bull Mailings to Clubcard non -Clubcard customers

bull Coupons at till

bull Advertising - press radio outdoor other media (eg adbikes blimps)

bull Petrol promotions Clubcard points promotions

bull PR and events (eg launch events celebrity chef events community

sponsorship donations)

bull In store Clubcard sign up

bull Store specific non-food offers

bull POS to communicate store changes

bull Leafleting campaigns

Local deliver over 350 bespoke marketing campaigns per year

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 14: Retail Marketing

Local Marketing - Key Takeouts

Local marketing plan and deliver campaigns for all store launches

from new stores amp extensions to impacts and underperformers

All campaigns are are highly targeted and relevant to the local

population They are built using a wide range of customer insight

Clubcard data and local knowledge

Local use the full tool box of national marketing tactics at a local level

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 15: Retail Marketing

Price Team - Core Purpose

The role of the Price Team is as follows -

Set strategy and direction for company on price

Monitor and report against price policy

Help to communicate our great price position to customers

Deliver price insight to the business

The Price Team has several key activities -

Price Basket

Internal hierarchies

Comparatives

Ad-hoc checks

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 16: Retail Marketing

Price Key processes

Price Basket

Weekly checks on over 20000 lines against Asda JS Morrisons

Reporting to Commercial and wider business

Price Checker and Price Claims

Internal Hierarchies

Ensuring bigger packs give better value and Tesco own label is

cheaper than branded equivalent

Comparatives

Shopping 100s of products to make in-store claims highlighting that

we (a) match Asda and (b) are cheaper than other competitors

Pricing have the accountability for maintaining our price position versus

competitors and ensuring the business gets cheaper for customers

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 17: Retail Marketing

Promotions Team - Core Purpose

The role of the Promotions Team is to

Set strategy and direction for company on promotions

Monitor and report on Tesco promotions against promotion

policy

Monitor and report on competitor promotional activity

Respond to short term competitor activity as required

The promotions policy is driven by the Helping You Spend Less

customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 18: Retail Marketing

Promotions Key processes

Internal tracking and reporting Monitor Tesco promotional activity against

agreed KPIs and key measures

Feature space conformance tracking Track Tesco store conformance with

communicated feature space plans

Competitor tracking and reporting Monitor competitor promotional activity

through store audits

Lidl half price Track Lidl half price activity and mobilise business to respond

Seasonal event tracking Event specific promotions reporting on major events

eg Christmas and Easter

The promotions team are responsible for setting promotional strategy

and tracking Tesco promotions relative to this

Promotional strategy is driven by the customer plan objectives

Even fewer even better promotions

Neutralise Morrisons on feature space promotions

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 19: Retail Marketing

Trade Planning - Core Purpose

Trade Planningrsquos core purpose is to set the trading priorities for the

business which means

Right for Customers

Simple for stores

Delivers lsquolike for likersquo growth

Supports the Every Little Helps Shopping trip

Trade planning does 3 interrelated things

Manage the

52 wk Trade Plan

Review Trade Forecast Sales

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 20: Retail Marketing

Trade Planning Key Processes

TPG (Trade Planning Group) - periodic

WL5 directors from Marketing Supply Chain Retail and Commercial

facilitated by trade planning who meet every period to

Review trade and learnings for the period just completed

Agree the trade plan going forward and resolve any issues

TPO (Trade Planning Operations) - weekly

Cross functional group (trade planning retail supply chain) and managers

of small events (less than pound10m) eg Pancake Day St Patrickrsquos Day

Ramadan

Brand Comms - weekly

Plan the alignment of TV Press Tesco TV Publishing Price News and

Point of Sale

Non Food Trade Planning and Great Seasonal Events

Manage Seasonal space (power aisle 1 and grocery seasonal aisle)

Great Seasonal Event Managers manage the events gt pound10m eg Mothersrsquo

Day Halloween

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 21: Retail Marketing

Feature Space Management - what is it

Feature Space and Seasonal Space is the most prominent space in the

store with the highest customer footfall

Feature Space = Promotional ends and OFDs (Off Fixture

Displays) Usually promotions

Seasonal Space = Power aisle 1 and grocery seasonal aisle

Usually seasonal ranges

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 22: Retail Marketing

Feature Space Core Purpose

Core purpose is to make best use of feature space which

means

Right for Customers

Seasonally relevant

Supports Trade Plan activity

A good mix of product types for customers

Fit promotion policy (eg minimum discount 20)

Simple for stores

Simple to put on sale and exit

Products fit space efficiently

Delivers lsquolike for likersquo growth

Each end has a hurdle rate depending on its location

and distribution

Supports Every Little Helps Shopping trip

Especially ldquoAisles are clearrdquo and ldquoI can get what I wantrdquo

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 23: Retail Marketing

Advertising - Core Purpose

Primary Objectives

To project our brand values through an emotional connection with

our customers

To build brand trust and loyalty

Secondary Objectives

To communicate our strongest trade drivers and promotions to

encourage customers to come into our stores

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 24: Retail Marketing

Advertising - Key Outputs

TV amp Press Every Little Helps Brand Campaign

The Every Little Helps campaign is used to make people like their Tesco

more

The campaign revels in the small things that Tesco does eg bag

packing 24 hour opening low prices as evidence of our philosophy

The advertising is a direct down to earth conversation between Tesco

and the customer (instead of an advertising mechanic that sits apart

from the brand)

Cherokee TV Campaign

Bi annual TV campaign that supports the Cherokee range of clothing at

Tesco

Gives Tesco clothing credibility versus the likes of Next and Gap

lsquoDesign by Cherokee Price by Tescorsquo caption (strap line) emphasises

the strengths of the two brands

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 25: Retail Marketing

Advertising - Key Outputs continued

Trade Driving TV amp Press

Supports the key trade drivers highlighted by the trade plan

The ads are simple straightforward visual of featured product and lets

the offer speak for itself whilst being clearly branded as Tesco

Press is used to support offers when a quick turnaround is needed ndash

can be done in days versus weeks for TV

Supplier Funded Advertising

Paid for by the supplier but we ensure that they are simple honest

transparent and are clearly branded Tesco amp the media selected targets

our relevant customers

Strict criteria ensure only the strongest prices and promotions are

advertised

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 26: Retail Marketing

Every Little Helps TV Campaign

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 27: Retail Marketing

Cherokee Advertising (Autumn Winter 05)

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 28: Retail Marketing

Publishing - Core Purpose

The role of Publishing is to support and build a positive image of

the company with customers

We do this in Two principle ways

Development of an emotional connection with our customers

showing them that we understand them and are on their side

Communicating our product ranges and great prices

to-

Drive our price image with price sensitive customers

Increase and drive footfall into non-food

Generate awareness in upmarket customers that we have great

quality and range at market leading prices

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 29: Retail Marketing

Publishing - Key Outputs

Magazine

Written to compete with new-stand publications

4m readers 3rd largest circulation magazine in the UK- bigger than

all the leading womenrsquos glossies added together

Average retention time 14 days average reading time 42 minutes -

both highest in the industry compared to the average of 28

minutes for other publications Although the magazine is not used

as a hard marketing tool research tells us that 50 of readers will

buy a food item 29 a non-food item and 27 a clothing item - if

it is featured

Price News - leafleting

Protects existing customer base and encourages defection from

competitors

Standard version influences price image covers mainly food and

household aimed at competitor conflict areas - 4m circulation

Non-food version aims to drive footfall and price image - aimed at

extra store catchment areas - 4m circulation

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 30: Retail Marketing

Publishing - Key Outputs

Tesco TV

Provides ldquoTalking Tescordquo content to the revenue generation inspired

In-store TV service Every Little Helps information recipes hints

tips and product information

Store Finder

Map booklet showing all of the stores in the UK with accurate

directions how to find them - 1m circulation

Internet

Price check - compares our prices with our leading competitors

Today at Tesco whatrsquos key in store this week

Store locator services- Search for the right store for you get

directions to your local store and see what ranges services and

opening hours it has

Internet magazine proposition being developed

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 31: Retail Marketing

ldquoTesco send me a

Thank yourdquo

ldquoI spend my

Vouchersrdquo

5 Club

Mailings Statement CaT

ldquoTesco give me coupons for

things I already buy or they think

Irsquod like to buyrdquo

ldquoI collect Clubcard points as

I spend in Tescordquo

Extended Brand - TPF

Telecoms Non Food

Shopping in store or

on dotcom

Points

Partners

eg

Powergen

CLUBCARD

The Virtuous Circle

Clubcard

Statement

Deals x4 In Store

Extended

Brand Deals

Online for

shopping and

deals

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 32: Retail Marketing

Trade Driving

Club Mailings

CLUBCARD

Who we are what what we do

Direct Mail

Operations

Customer

Management

Targeted mailing - touching over 12m

customers with over 8m variations

Introducing customers to Clubcard

and helping them get the most from it

Permission based mailings -

including specialist advice and

relevant coupons

Timely targeted offers to Clubcard

customers

Making Clubcard more rewarding

through the extended brand

Measuring and supporting Clubcard

use in the business

Clubcard Statement

Managing Penetration

Retail Services

Coupon at Till

Welcome Pack

A new system which will offer better data and business

processes to help the business to grow customer loyalty

Freetime Deals Service where customers can get x4

value from their Clubcard Vouchers

Slippage and Gone Aways

Strategic Mailings to boost trade

Timely mailing to retain customers

with declining loyalty

Thank youbrand builders

Raising the profile of CC

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 33: Retail Marketing

CLUBCARD - Key Take Outs

Clubcard continues to have fantastic success in the UK

Over 12 million customers currently receive a Clubcard Statement

With approximately 8 million unique variations - each time

Clubcard penetration is currently 73

Saying lsquoThank yoursquo drives trade

Most customers see points as more valuable than money

Club mailings grow the breadth and depth of customer loyalty

Coupons are tightly targeted

You buy a lot of sausages You get a sausage coupon

Coupons at till target a new set of customers every two weeks

It acts as an incentive - but secondary to reward

Clubcard rewards customers across the entire Tesco brand

From your groceries to broadband connection

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 34: Retail Marketing

Customer Plan - Core Purpose

The Customer Plan is a group of year-long projects which must

Drive our lsquolike for likersquo sales

Deliver a step change in the Every Little Helps shopping trip

Need more than one function + dedicated resource to deliver them

They are the Number 1 priority for the business each year and

feed into the Customer quadrant of the Corporate Steering

Wheel

Each project has board-level support

The Customer Plan embodies our philosophy that customers will

tell us our direction for the year ahead

It supports our core purpose of creating value for customers to

earn their lifetime loyalty

This keeps us ahead of the competition

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 35: Retail Marketing

Customer Plan - Key processes

Phase One

Identify and agree key

customer

opportunities

Phase Two

Develop solutions to

key opportunities

Phase Three

Implement Monitor

Review

BRAND REVIEW

ResearchReport

February - September

Planning

October - February

Launch Customer Plan

March

Project brief Writing

October - December

Project Solutions

December - February

Examples of projects

bullFresh amp Full Meat amp Poultry

bullStrengthening our appeal to ethnic customers

bullHelping you live more healthily

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 36: Retail Marketing

Who we are

Vacancy

Insight amp Site Research

Acting Director of Marketing - UK

Ian Crook (also Trade Planning Advertising amp Customer Plan)

clubcard amp Services

Stores amp Non Food

Price Promotions amp

PublishingPOS

Clubcard Scheme Mailings Clubcard Deals

Service Initiatives

New Stores Local Marketing Store Marketing Express Marketing Non

Food Marketing

Price News (Tabs) Price Basket PricePromotions Planning

Process Management

Site Research Customer amp People Insight Market Research CQTs

Customer Plan Development

Marketing Finance

Personnel Manager

Marketing

Personnel

Finance

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038

Page 37: Retail Marketing

Peshwa Acharya

peshwathinkasconsumercom

+91 9867641038