Unit 18 M3

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D1 Evaluate the market research method used by a selected organisation Tesco have been very clever with the way that they are able to gather market research about their customers. Using information from Clubcard's they are able to access a wealth of information that their competitors may find difficult to obtain. When customers sign up to the Clubcard they are asked various questions about where they live, how old they are, if they are single or married, their income, and if they have children. This information helps to see what category each person falls in, for example using the MOSAIC system. MOSAIC is a system that classifies households in the UK into 12 MOSIAC groups and 52 sub-groups called Mosaic types. These groups and types are formed on the basis that the households comprising them share certain characteristics. Tesco worked with a small company who worked as market analysis to develop the Clubcard and to use the information provided from the Clubcard to monitor the spending habits of shoppers. For the first time, bosses at Tesco could see what was being bought by which customer. Assumptions about the way people shopped- notably that they bought everything from the same store - were shattered. What became clear was a more complex picture of modern-day retail habits and the Clubcard, with its offer of personalized incentives to persuade people to fill these troubling gaps in their shopping baskets, proved both an eye-opener and a massive money-spinner.14 Consumer data has helped shape the products they offer, Tesco have a better understanding of consumer segments and shopping profiles which has helped them to market themselves and form relationships with customers and build loyalty in customers and target particular groups with their marketing. This level of sophistication has made sure that Tesco remain the leaders within the market.15
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