Ge#ng

closer to Tescos
Strategic Customers
Mar6n Dlouhy

Tesco CE vision for our customers

We will become THE place to shop for mid-

market and slightly upmarket modern families

Strategic customers will help us

achieve our vision
What are Strategic customers?

Why do they maFer to us?

What are Strategic Customers?

The share of top 20% strategic customers on revenue is at 56-60% on all categories
except for soMlines

Size of the prize for CE?

7,5m strategic customers live in CE
1,4m already shop with us
6,1m is the opportunity out of which around 3m we can reach
Value of strategic customers is double to their volume

Value of the segment?

3Y plan to grow by 2,4 billion GBP
Share on strategic customer growing from 18% towards 30% within 3 years
Similar opportunity for CR/SR/HUN whilst biggest growth expected from
Poland
Data calculated based on strategic customer penetration/opportunity

Why do they maFer?

Lower costs for message

Higher eect of marke6ng investment

Higher prot

What are our Strategic Customers

needs?

Marta is 35 years old. She lives in the city with her husband and 5 year old
daughter. Shes well educated and is enjoying a promising career again having
recently been on maternity leave.
Her family enjoys a rela6vely comfortable standard of life given that her husband
has a good job. Quality food plays an important role in her family life: not only
does Marta want her family to stay t and healthy; but she also values the social
element of food bringing her family together.
However the hec6c pace of modern day life is pu#ng pressure on her and keeping
balance is one of her big challenges: between being a Mother and Wife, managing
work, running the household and having some free 6me for herself.
Shes not a big fan of cooking but she likes to prepare dishes she learnt from her
mother and grandmother.
She shops at Tesco and also at Kauand, Lidl, Biedronka. She is quite discerning
when she goes shopping she is willing to pay for higher quality and premium
products but at the same 6me she s6ll appreciates special oers and discounts.
Food freshness and quality and price drive her shopping behaviour. She
increasingly uses online shopping services as is it more convenient and save her
valuable 6me.

How do we answer these needs?

Quality food plays an important role in her family life
Balance is one of her big challenges

She is willing to pay for higher quality

She s6ll appreciates special oers and discounts

Food freshness and quality and price drive her shopping behaviour

Through dieren6a6on, focus and

leveraging our whole business
We have to be DISTINCTIVE

We have to be crystal CLEAR &
FOCUSED

We have to focus on the
direc6on of the WHOLE
BUSINESS, not just image
wrapper branding

This means a more integrated approach to Price,

Promo6on and Fresh
Price: giving strategic customers a price they
dont have to think about and fully trust

Promo6on: building las6ng rela6onships with
customers through rewarding loyalty

Fresh: oering a unique exci6ng range
anchored in amazing fresh food and with an
innova6ve edge across categories

What does this look like in prac6ce?

PPF are crucial but thats not enough

AMAZING FRESH
FOOD

When
Tesco is at
its best for
our
strategic
customers
HELPFUL

ACCESSIBLE
(PRICE AND LOCATION)