Online Learning CentrePrinciples & Practice of Marketing, 3/e by David Jobber
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In The News

Tesco poised to offer WAP home shopping

Primary Topic: E-Marketing

Title: Tesco poised to offer WAP home shopping

Source: From Precision Marketing, 13 November 2000, News, by Clive Walker

Summary:

Tesco is raising the stakes in the battle to dominate UK online grocery sales, by positioning itself as the only major supermarket to offer WAP home shopping.

The service, scheduled to launch late next summer, will enable consumers to buy groceries and household goods, order flowers and request advance daily bulletins alerting them to special deals.

The service will also supply news headlines, weather forecasts and share prices as mobile phone text messages.

In the interim, Tesco is offering customers bespoke handsets with speed-dial links to its customer services department and the home shopping website, www.tesco direct.com, but shopping is restricted to homewares.

"Running our own network will give Tesco the freedom to create a service that is, for the first time, precisely tailored to customers," says Tesco chief executive, Terry Leahy. "Tesco wants to become the first point of contact for customers' daily needs - we believe that in the future, the phone will be a popular way to shop."

Tesco Direct, which embraces catalogue, web and phone channels, boasts 750,000 registered users, and is open to 90 per cent of UK shoppers.

Questions:

  1. The advent of WAP technology opens a new marketing channel for e-marketers. What are the perceived benefits and limitations of this service for the customer?
  2. What types of consumers do you think Tesco is targeting with this service?
  3. Tesco has invested heavily in its direct services such as catalogues, online shopping site, customer call centres and WAP. What advantages does this variety of channels offer the high street retailer?

To read similar stories and to keep up-to-date with new developments, visit mad.co.uk for breaking news in marketing.

 

 

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