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The case describes the customer relationship management (CRM) initiatives undertaken by
Tesco, the number one retailing company in the United Kingdom (UK), since the mid-1990s. The
company's growth and its numerous customer service efforts are discussed. The case then
studies the loyalty card scheme launched by the company in 1995. It examines how the data
generated through this scheme was used to modify the company's marketing strategies and
explores the role played by the scheme in making Tesco the market leader. The case also takes
a look at the various other ways in which Tesco tried to offer its customers the best possible
service. Finally, the company's future prospects are commented on in light of changing market
dynamics, the company's new strategic game plan, and criticism of loyalty card schemes.


£ Examine how the information gathered through CRM tools can be used to modify marketing
strategies and the benefits that can be reaped through them.

Customer relationship management, CRM, Tesco, retailing company, United Kingdom, UK, mid-
1990, customer service efforts, loyalty card scheme, 1995, data generated, scheme, marketing
strategies, possible service, changing market dynamics, game plan, loyalty card, schemes


1. Examine the customer service efforts undertaken by Tesco prior to the loyalty card scheme's
launch. Why do you think the company felt the need to launch Clubcards?

2. Analyze Tesco's Clubcard scheme in depth and comment on the various customer
segmentation models the company developed after studying the data gathered.

3. How did Tesco use the information collected to modify its marketing strategies? What sort of
benefits was the company able to derive as a result of such modifications?

4. What measures did Tesco adopt to support the CRM initiatives on the operational and strategic
front? Is it enough for a company to implement loyalty card schemes (and CRM tools in general)
in isolation? Why?

5. With Tesco moving away from its core business of grocery retailing and focusing on
globalization, what do you think the future has in store for the company? What do you think the
company should do to retain its growth pace and leadership status?

The caselet describes how JetBlue, a low-cost airline in the United States, effectively utilized its
customer service to increase word-of-mouth referrals among airline passengers. Customers
found the JetBlue experience to be much better than their experiences with other airline
companies. The caselet points out how airline passengers, who were dissatisfied with the service
offered by other airline companies, low-cost carriers in particular, appreciated the high quality
service offered by JetBlue, and became loyal to the airline.


» Role of customer service in making customers loyal to a company

» Role played by word-of-mouth referrals in attracting customers
» The factors that should be taken care of to provide high quality
service to customers

jetBlue Airways (jetBlue), a New York-based low-cost airline flying
to 32 cities in the US in 2005, started operating in 2000.

The airline had to differentiate itself from others in an industry

which had a number of low-cost airlines. Therefore, the company
began a brand building exercise right from inception.
jetBlue manifested its culture credo of 'Bringing humanity back to the airline industry' through its
customer-friendly attitudes and actions. Putting its credo into practice helped jetBlue in evolving
its branding strategy. In April 2005, jetBlue was named the top carrier in the 2005 Airline Quality
Rating ranking, released by the University of Nebraska and Wichita State University...


1. "Michael Boyd, an analyst, said that JetBlue had a cult following." How did JetBlue become the
primary choice for passengers opting for low-cost air travel?

2. Assess the marketing strategies followed by JetBlue.


r r ?
JetBlue which was begun by Brazilian born and Seattle raised David Neeleman who studied
accounting at the University of Utah for 3 years before dropping out to start his own Traveling
Agency business partnering with Pineapple Express to sell Hawaiian packages including airfare and
time-share vacation residence. He had to shutdown his Travel Agency business when his partner
Pineapple express went out of business in 1983 when it run out operating cash.?
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100% ticket less boarding

ͻ JetBlue was the first U.S. Airline to install security cameras in passenger cabin for customer crew
and safety
ͻ JetBlue was the first U.S. Airline to install bulletproof cockpit doors across the fleet.