(a category which had only previously been seen in the northern super-
market chains, Morrisons and Asda, offer value lines), resulting in a sig-
nificant increase in customer volume. Pricing initiatives culminated in the
launch in September 1996 of the ‘Unbeatable Value’ scheme in which the
prices of over 600 core products were reduced, together with a promise
that if the price can be beaten then Tesco will refund twice the difference.
Improved stores
The research had shown that shoppers found it difficult to find products in
existing stores and that they perceived the shops as sterile, grey and indus-
trial in style. As a response to that, and also to forthcoming government
curbs on superstore development, new, more flexible, store formats were
introduced. The first were called ‘Compacts’, slightly smaller than super-
stores and more suitable for market towns, while ‘Metro’ marked a return
to the high street and served the sophisticated urban shopper. Finally,
development of the ‘Express’ format saw the Tesco brand enter the petrol
station/convenience store sector. Existing stores were also improved and
many stores were upgraded and extended with the customer in mind. The
next three years saw the introduction of many new product ranges: meat
counters, pharmacies, textiles, hot chicken counters, delicatessens and
fresh fish counters, all of which were very popular and well received by
staff and customers alike.
Customer service
Research had also shown that service was an important component of the
shopping experience. In 1993 Tesco began a series of Customer Panels in
which they recruited shoppers for half-day sessions with local managers
and head office staff, to ask them exactly what they wanted from their
shopping trip and encourage them to suggest improvements. Issues and
tasks which arose from the panels were then allocated to either corporate
or local personnel, whichever was more appropriate.
In order to manage the changes, Customer Service strategy was then
broken down into three areas: Facilities, Standards and Culture. Facilities
were upgraded with the launch of the ‘New Look’ initiative in 1993, which
introduced tangible innovations to improve the shopping experience. For
example, hand towels were placed in the meat aisle for wiping hands that
were sticky after handling meat packs, barriers were removed at the
entrance to the store as a result of customer requests, despite their obvious
security advantages. More checkouts and customer service desks were
installed and all signage was changed to blue and white and made much
82 Relationship Marketing