Shop Online

1
Shop Online Shopping Experiences

• Nick Lansley
• IT Manager, Tesco.com

2
Agenda

• Background to Tesco Tesco.com
• Business data
• History
• Vision and Strategies
• Market Channels
• Building on existing strengths
• Grocery E-commerce
• Very different from any other form of e-commerce
• Success in e-commerce
• 10 Top tips!

3
Tesco - Business Data

• Tesco is the UKs biggest food retailer and now
  in 9 other countries too.
• Half year sales up 12.7 to 22.7bn
• Profit (before tax) up 12.5 to 1.134bn
• Margin 5.5
• 250,000 staff
• 1 in every 8 pounds spent in the UK is spent at
  Tesco

4
Tesco.com - Business Data

• Tesco.com is the worlds biggest online food
  retailer.
• In the first 24 weeks of 2006/07 trading year
• Sales up 28.7 to 554 million
• Profit up 43.1 to 33.8 million
• Grocery order rate now in excess of 220,000 per
  week

5
History

• Launched Wine/Flowers service 1995
• Grocery service launched 1996 (1 store)
• Grew to 7 London 1 Leeds store 1997
• Massive expansion to 100 stores 1998
• and to 270 stores 1999
• Accessible Grocery Service launches 2001
• Extensive Extra sites launched

6
History

• Extensive extra sites launched (1999-2004)
• Books
• Contact Lenses
• DVD Rental
• Electricals
• Entertainment (DVD, Music CD, Games)
• Flowers
• Tesco Telecoms Mobile Phones
• Music Download
• Photo Processing
• Travel
• Wine
• Tesco Personal Finance (banking, credit cards)

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History

• More services in 2005 - 2006
• Tesco Home Phone
• Tesco Internet Phone
• Tesco Broadband
• Tesco Triple Play
• Home Phone
• Broadband Internet
• Digital TV
• Tesco Direct (Catalogue / Online)
• 8,000 non-food products

8
Tesco Vision

• Use our strengths to deliver unbeatable value to
  our customers to earn their lifetime loyalty.

9
Tesco.com Strategies

• Better for customers
• Any product
• Any device
• Anytime
• Anywhere
• Simpler for staff
• Technology focuses and eases tasks
• Cheaper for Tesco
• Technology drives efficiency
• Computers do the hard stuff

10
Multi-channels

• Web
• Interactive TV
• WAP
• PDA
• Consider emerging channels
• 3G / iMode
• Set-top boxes (digital tv switchover)
• Internet appliances

11
Business NOT Technology

• The start in 1996 was a business drive
• IT was not involved fully until 1998
• No just-technology releases
• Every system update is measured in business value
• Incremental updates
• No big bang approach
• Organic growth

12
Building on Existing Strengths

• Online is simply another channel
• Brand values already established
• Offline stores to backup customer service
  activities

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Building on Existing Strengths

• Existing infrastructure
• Mainframe data sources
• Payment system as used in-store
• In-house software development
• Leverages expertise and experience
• Emotional involvement in success
• Issues fixed quickly

14
Online Grocery is DIFFERENTto ANY other
e-commerce offer

• Ordering 405060... Items
• Not just one book, video or CD
• Ordering every week / two weeks
• Need food to live!
• Not much aspirational purchasing
• Cant get that excited about it!
• A book, video or CD Yes!
• A tin of baked beans? No!

15
Online Grocery is DIFFERENTto ANY other
e-commerce offer

• So the Tesco.com grocery service is designed to
  allow you to get on and off it having placed a
  decent order . In 15 minutes!
• Many people do this quickly in their lunch hour
  or in the evening.
• The site must work fast and efficiently EVERY
  time.

16
Online Grocery is DIFFERENTto ANY other
e-commerce offer

• Customers trust us to deliver
• A convenient service
• A time saving compared to visiting a store
• Quality, fresh products
• ..and we dare risk that trust at our peril.
• My moment of pride Customers trust us with
  their Christmas Day meal.

17
One Site Two Skins

• GroceryMax
• Full Tesco branding
• Many visual cues
• Immersive interface
• AccessAll
• Fully accessible alternative skin
• Easy for vision-impaired technologies
• Gives independence to blind people
• Two skins allows everyone to shop within 15
  minutes

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GroceryMax
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GroceryMax
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GroceryMax
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GroceryMax