Tesco uses the multichannel marketing, which allows a variety of marketing channels to reach its consumers and each channel may target a different selection of buyers or different needs that each buyer wants. This is a big advantage for Tesco as they cater for all types of people and every persons different needs and wants meaning more people are likely to go there to get the products they want meaning they’ll get a larger profit. As well as this it allows Tesco to deliver the right products in the correct places in the best possible way and in the most cost effective way this is a big advantage as delivering the products cost effectively will allow Tesco to spend money on more essential things rather than on deliveries. In conclusion the multichannel marketing has been a great success to the distribution channel.
Customer relationship management and responsiveness to consumers needs’ play a big role in Tescos distribution system and there services as without their consumers they wouldn’t even have an effective business but as Tesco value their loyal customers it benefits them massively. Tesco have a club card system that allows consumers collect points on there purchases and the consumers who are more loyal and frequent have higher expenditures and consumers who collect more points get discount vouchers which they can further use in store to purchase products this also benefits Tesco and is a big advantage as is it keep the consumers wanting to come back as they know the more points they get the more money they get off. Another advantage of having the club cards is that a lot of data is collected of them which includes seeing what products are most frequently by their consumers and Tesco can use club card data to see what products are the most popular over every month and can further use this to see how much stock of a certain product they need to order so that they can supply the products on demand of the consumers needs and by doing this they are responding to their consumers needs because if the sales of a product go up so will their supply of that product. However a disadvantage to this is that everyone who shops at Tesco may not have a club card and therefore the products brought by all consumers wont be collected on that database but only by loyal consumers who have a club card.