Buy an essay: TESCO CLUB CARD: IDENTIFY RELATIONSHIP BETWEEN CUSTOMER LOYALTY AND CUSTOMER SATISFACTION

This paper presents a research proposal and the effect of Tesco clubcard, analysing & identifying the relationship between customer satisfactions and customer loyalty.
The aim of this work was to study the management techniques of customers’ loyalty of supermarket Tesco, using analysis, as well as devising ways to optimize the management of customer loyalty to the company and the creation of loyalty programs. The focus was made on the Tesco clubcard scheme as a loyalty program, that enabled Tesco to achieved a great height in this competitive industry
This research studies and analyses the concepts of ‘loyalty’ and “customer relationship management”, The aim of these studies is to understand relation between customer loyalty program of Tesco Club card and customer satisfaction; and to understand does this program achieves satisfaction of customers need and wants.
In this study the methods of marketing, economic and statistical analysis, quantitative and qualitative research, as well as the principles of system and development were applied. It consists of primary research method on the basis of survey questionnaire and collects the data from secondary resources. After that the concrete conclusions and recommendation on the topic of the research were made.

I. Introduction
The problem of creating loyal customers today is in the focus of marketers. Managers of companies and marketers realize that the long-term approach aimed at obtaining single maximum possible gain is not the best one, and much more substantial is investment in improving product quality and level of customer service, maintaining a sense of buyer satisfaction.
Satisfied consumers of goods, who for many years are faithful to certain companies, are generally more profitable than new ones: first, the company minimizes the costs associated with obtaining them, and the second, satisfied customers recommend it to friends and are less sensitive to price.
A key objective of the concept of marketing relationships is to achieve and strengthen customer loyalty.
One of the examples of the successful introduction of customers loyalty programs was Supermarket giant Tesco, and its loyalty card scheme.
If to study the history of the Tesco company, it will be evident that the philosophy of Tesco was always to sell a wide range of quality products at reasonable prices. There was an added convenience factor for consumers by ensuring that a Tesco store was located within easy reach of the majority of customers. Stores were opened in many urban and suburban areas throughout the UK. The company proved profitable because of the economies of scale associated with buying in bulk and selling at high volume; this also meant that costs were kept low.
As Tesco continue to grow and expand its products and services, the greater emphasis was placed on the physical environment of the stores and the management of Tesco sought out knowledge on the psychology of shopping from experts around the globe. The nonfood element of the business took on more importance as the company sought to bolster the brand image and build on the already significant brand loyalty it enjoyed.
It is important to point out that Tesco was a first-mover in providing loyalty cards in the UK. Launched in 1995, the loyalty cards rewarded customers for shopping with Tesco. By 2000 there were nearly ten million Tesco Clubcard members throughout the UK. The company has built on its success and has been Britain’s biggest retailer since the mid 1990s. (Raj 2009)
The main idea of the program is to encourage customers to make purchases at Tesco more often, as being the company’s regular customer brings favourable conditions of purchases. In the four years since starting Clubcard, Tesco has raised its market share from 13 percent to more than 17 percent, and about 75 percent of its sales now come through the program. (Tesco.com)