Unit 36 D1
Tesco has developed its online growth by investing heavily in the ease for customers to do this on their pc tablet or smart phone, they have made apps for it and have put a lot into the advertising of it to get people into online shopping, they managed to increase the sales by 30% alone last year which is a huge jump from the 2% just only 6 years ago, as the technology is more widely available now people are becoming more involved with how to do shopping online for the ease of doing so. They originally started out by making a loss on it as it was not thought highly of and only a small percentage of the population did so but now that number has risen dramatically.
The growth of the amount of people use online shopping has grown from 1.8% of the UK population doing it when it first started to almost 10% today. This is a big number of people (around 6 million) that do online food shopping and tesco cover the most of it at 2.9%. Tesco has managed to do this because their online presence is huge anyway and as the biggest supermarket giant in the UK they control the market anyway so people would feel inclined to use it anyway. Majority of people use it for convenience in today’s society it also helps the elderly and disabled if they are unable to travel somewhere to get it. Tesco itself has developed themselves by ploughing money into the advertisement of doing online shopping to be able to get them involved with it on their site. His is what has helped them the most to be able to gain the majority share over all from the many different ones who offer the service not to mention the 4 other main rivals (Sainsbury’s, Asda, Morrison’s and Waitrose)
Tesco’s development of new product and service ideas online has been massive for their online purchasing customers, they have come up with different promotional offers to keep people shopping online this includes things such as double clubcard points when spending more than £40 online which is basically a family’s shop for a week easily done. They also have only online deals on certain products that are not in store this is what they call exclusive offers. This is also done to keep people coming back and shopping online with then as oppose to going in store or shopping with a different supermarket altogether. Tesco have also recently started to do something called click and collect, this allows the customer to purchase their stuff online and then allows them to have someone else go around the store and shop for them, it is them taken to a pickup point where it is just loaded into their car and they drive off, this is another idea that tesco has also came up with to develop their online presence even more along with all the offers they give to people just for purchasing online with them. These are all innovative ideas that keep tesco ahead of the competition to make sure they hold the leading spot for online grocery shopping.
The online market share that tesco has is the most out of the 14 different companies that offer this service including the 4 high street supermarkets that rival tesco (Asda, Sainsbury’s, Waitrose and Morrison’s) there current share of the online market share stands at 2.9% which has been said above is 30% more over the last 6 years. The reason tesco has developed themselves better than the rest is due to their TV adverts mainly that show how simple it is to actually buy online, they also are used the most due to the fact they are the biggest chain in the uk and a lot of people trust them over others maybe it’s because they have many things in their name like tesco banking and fuel.
Customer satisfaction for tesco’s online shopping is extremely important as it could really make or break their reputation for the online shopping experience the reason that they are still the leading marketer in the online shopping market is due to the amount of good feedback they have from customers. But don’t be drawn in by this as there are also bad feedbacks too.
