2022 MMR Competitor Analysis
Competitor analysis of current consumer reward schemes, t better understand what drives positive consumer experiences and loyalty.
2022 McDonalds Competitor Analysis Competitor Reward Scheme Analysis
Content Index i. Introduction 10. KFC 01. Competitor Overview 12. Taco Bell 03. Costa 14. PureGym 16. Tesco 04. Starbucks 06. Burger King 18. Overall Consumer Experience 08. Nando's 18. References 2022 MMR Competitor Analysis
Introduction With the current state of the world post pandemic, reward & loyalty schemes are becoming increasingly more valuable to consumers and to businesses, whether they're maintaining current consumer bases or expanding them. Starbucks attributes 40% of its total sales to the Rewards Program and has seen store sales rise by 7% (H, 2020). This report intends to analyse and evaluate existing loyalty schemes within the fast service industry. It will analyse indirect competitors for contrast purposes. These comparisons will include Pure Gym and Tescos Club Card. Though main comparisons will be Burger King, Subway, KFC UK, Nando's, Taco bell, Costa & Pizza Hut. By cross-analysing these competitors, the report will identify current types of Loyalty schemes available and the various advantages and limitations associated. To identify and suggest progressive steps MMR (My McDonalds Rewards) could take to further consumer experience and digital adoption, improving the ROI for the over all business. By contrasting McDonalds competitors against one another, the report aims to devise potential opportunity spaces for MMR. These opportunities spaces can further develop or deepen Customer Lifetime Value & relationships with McDonalds, with support from digital technologies and consumer led strategies Tanaka Bofu Graduate Creative & Strategist 2022 MMR Competitor Analysis i
Competitor Overview Reward Competitor Brand Industry Channels Scheme type Web Social Media Coffee Costa Club Indirect Email Mobile Web Starbucks Social Media Coffee indirect Rewards Email Mobile Web Quick Service Social Media BK Rewards Direct Industry Email Mobile Web Quick Service Social Media PERi Perks Potential Industry Email Mobile Web Quick Service The Colonel's Social Media Direct Industry Club Email Mobile Web Quick Service Taco Bell Social Media Direct Industry Rewards Email Mobile Web PureGym Social Media Health Club Non-Competitor Together Email Mobile Web Social Media Retail Tesco Club Card Replacement Email Mobile 2022 MMR Competitor Analysis 01
Costa Coffee Costa Club Brand Summary The Costa Club loyalty scheme is relaunched in Website: Costa.co.uk Founded: 1971 Autumn 2021, It gives customers a simple and rewarding way to earn coffee Beans(tokens). HQ: Dunstable, U.K Industry: Coffee From October 2021 (ongoing), customer earned a Size: 10000+ Employees Company: Private Bean for every hot or cold crafted drink they bought. Collecting eight Beans lead to the Revenue: $500 million to $1 billion (USD) consumers next barista made drink for free. Other incentives included - buying four drinks in a reusable Parent Company: The Coco-Cola Company cup and get a fifth for free (Costa, 2021). Loyalty Scheme Aim - To offer a simplified, frictionless and easy-to-understand digital-first experience. Mission - “To save the world from mediocre coffee” Value - Environmentally & Socially responsible Coffee Brand, Earn more for less Benefits - Free cake on your Birthday, Buy 4 drinks to get 1 free. Each time you use a reusable cup in store, you'll get an extra bean. Personalised exclusive rewards based on local tore or spending habits Competitor - Costa can be viewed as an indirect competitor to McDonalds McCafe product range or direct competitor to Starbucks. As both competitor brands roam the consumer coffee industry. Communication Channels - Mobile, Web, Social Media & Email Costa communicate their offerings through Mobile, Web, Social Media and Email. More emphasis is placed on the mobile App, replacing the need of costa cards. The App does allow users to place kiosk/machine orders through the app for express orders using QR codes. Costa encourages social sharing and engagement through channels like instagram, where consumers can share their costa experience. The post can be then reposted by the account admin, allowing a system where by consumers sell the brand experience for Costa without direct consumer advertising. Platforms - Apple , Android & Web Consumer Experience, Innovation & Limitations Exploring the app from a consumer perspective, your are required to sign up using email and password. There are opt in or out options for receiving exclusive offers specific to store availability and spending habits. Costa's digital media platforms and channels do work in tandem with delivery services such as Uber Eats, Just Eat and Deliveroo. Allowing for a broader audience range to be accessible from their homes and not just in store. The Loyalty scheme could do better in communicating, the social and environmental successes of Costa or the direct Impact consumers have had, either through gamification or some form of updated progress bar. Further more it could do better to tie into the brand other campaigns such as 'Drink Aware'. 2022 MMR Competitor Analysis 02
Costa App Customer Journey Map Positive Experience Negative Experience 5 4 3 2 1 2 3 4 5 Finding & downloading the app Sign up, personalised through birthday & email Maybe link user sign up to social media accounts Opt in/Opt out comms option Registration User Cant do anything with the bonus 'bean'' registration 'bean' to encourage purchase of costa products Not much of a guide through app features Order Feature discovery Apple wallet Order @ Machine Large menu option range click & collect, Delivery or Machine Delivery option takes Select nearest store user out of the app through geo-location experience. Could give user a Select beverage based recommendation for ideal on store availability with order option based on location full menu options Payment through apple pay or setup new payment method Complete payment confirmation & bean earned 2022 MMR Competitor Analysis 03
Starbucks Starbucks Rewards UK Brand Summary Brand Summary April 2019 Starbucks revamped their reward scheme Website: Starbucks.co.uk Founded: 1971 to no longer base rewards on customer visits, but rather on customer spending. This involved using a HQ: Amsterdam, Europe Industry: Coffee tier system in which every 150 stars customers could redeem a free drink. Size: 10000+ Employees Company: Public (SBUX) Upon sign up customers are green tier with 450 stars Revenue: $10+ billion (USD) and require 150 stars to redeem a drink to reach gold tier. Customers collect 3 stars for every £1 spent, the stars are valid for 2 years and can be redeem instantly or redeemed later (Starbucks, 2019). Loyalty Scheme Aim - ''With Starbucks Rewards, members can get more Stars for what they buy, no matter how often they visit, meaning free drinks fast.'' Mission - Our mission to inspire and nurture the human spirit, one person, one cup, and one neighbourhood at a time. Value - Brand transparency, Affective brand experience, Company appointed coffee buyers (Latin America, Africa & Asia), premium coffee. Socially, Ethically & Environmentally responsible coffee. Benefits - Birthday Reward, Free refills on hot or iced brewed coffee or tea. exclusive member offers by email and in app. Balance protection for your Starbucks Card if it is lost or stolen. Rewards starting at 25 stars, Double Star Days choose days where you can earn twice as many Stars. Competitor - Similarly to Costa coffee; a direct competitor to Starbucks, Starbucks are an indirect competitor due to the McDonalds McCafe product range. Communication Channels - Mobile, Web, Social Media, Spotify & Email Starbucks use of digital platforms to build and connect a Starbucks community, is accomplished through platforms such as Instagram, YouTube and The Starbucks app. Starbucks use campaigns such as 'Starbuck Stories' launched in early 2019, to convey the brand’s social impact, also seen on instagram @starbucks.stories. Platforms - Apple & Android Consumer Experience, Innovation & Limitations October 2021, Starbucks rewards nearly hit 25 million members and Starbucks Rewards now roughly represents 53% of the in-store spend (PYMNTS, 2022). A further 48% of consumers use the app for purchases and orders, boasting a larger percentage than competitors such as McDonalds (Panko, 2018). On the innovation front Starbucks initiated its first location that utilises a cashier-less approach powered by Amazon Go (Hilary Russ, Reuters report, 2021). Though there are limitations within the Starbucks app it currently does not cohesively attach to the brands other social channels, limiting the social nature of the consumer experience on the app. 2022 MMR Competitor Analysis 04
Starbucks UK App Customer Journey Map Positive Experience Negative Experience 5 4 3 2 1 2 3 4 5 Finding & downloading the app Sign up, personalised through birthday, email & user name Maybe link user sign up to social media accounts Password security lock & touch ID Registration bonus limited guide 250 stars through app features Automatically through geo-location suggest nearest user store User cant use sign up bonus stars to claim small rewards Order Feature discovery Apple wallet Setup card top up Order @ Machine Good range of user Order only for customisation options collection Select nearest store given prep time estimation & Travel time User could receive first time purchase recommendations or early adopter offers etc. Select beverage based on store availability with full menu options Payment through apple pay or new payment method Complete payment confirmation & stars earned 2022 MMR Competitor Analysis 05
Burger King UK Burger King Rewards Brand Summary While Burger King Rewards UK is launching later in Website: Burgerking.co.uk Founded: 1974 2022, we can analyse Burger King Rewards US for reference. Burger King rewards members 10 crowns HQ: London, U.K Industry: Quick Service for every $1.00 spent in similar fashion to Starbucks Restaurant Rewards programme. This can be through the app, Size: 1001 to 5000 website or in-store. This can include delivery orders Company: Private made through participating delivery services such Revenue: $100 million+ as deliveroo (Burger King, 2022). Loyalty Scheme Aim - “To be the most profitable QSR business, through a strong franchise system and great people, serving the best burgers in the world.” Mission - Offering reasonably priced quality food, served quickly, in attractive, clean surroundings. Value - BK's core values include “teamwork and family, excellence and respect.” Since BK's 2021 rebrand they have injected new life in to the brand, through retro rebranding. Bringing back an old feel into a digitally modern environment. BK is dedicated to supporting and investing in its own people – employees, franchisees, suppliers and restaurant guests, one way is through the BURGER KING McLAMORE Foundation. Benefits - Members can 2X Crowns through the full month of their birthday. Members can upsize any side or drink free once per day. Exclusive Offers and Challenges allows members to earn earn extra Crowns and exclusive rewards by participating in challenges and completing steps and qualifying actions. Competitor - BK are McDonalds direct competitor as they both operate in the quick service restaurant industry. McDonalds focuses on quality of service while BK is more focused on speed of service and showing more (BK Mission Statement Analysis, 2021). An example being kiosk service at McDonalds, which BK UK is a customer, employee interaction. Communication Channels - Mobile, Web, Social Media & Email The channels BK uses for marketing include traditional and modern channels such as digital advertising, websites, blogs and social media. BK's UK instagram activity in inconsistent with some posts daily and other after 4 days, this depreciates the level of user engagement and the effectiveness of marketing campaigns (Pratap, 2019). Platforms - Apple, Android & Web Consumer Experience, Innovation & Limitations BK's innovation has been exemplified through their sponsorship of Stevenage FC(Test, 2021). This meant their logo would appear in FIFA one of the best selling video games across multiple platforms having access to over 9million players. During the 'Stevenage Challenge' Players would select Stevenage as their team and for every goal they shared on Twitter, Burger King sent them rewards. 24,000 goals were shared (Test, 2021). BK are still limited in exploiting opportunities in the world of gaming through platforms such as twitch streaming or VR experiences. 2022 MMR Competitor Analysis 06
(loyalty scheme late 2022) Burger King UK App Customer Journey Map Positive Experience Negative Experience 5 4 3 2 1 2 3 4 5 Finding & downloading the app Sign up, personalised through birthday, email & number Could link user sign up to social media accounts have campaigns directly lead to appengagement Opt in/Opt out comms option User Receives nothing directly for sign up Home page shows visually engaging in app surveys though available offers and GMA can seem invasive for user as the pop ups specific offers interrupt flow of journey No user guide through app features frictionless offer claim as offers takes user to order page smoothly Large menu option range click & collect, Delivery Order completed in app £10 minimum for delivery Recieve ETA on order. Payment through apple pay or setup new payment method Complete payment confirmation 2022 MMR Competitor Analysis 07
Nando's UK PERi Perks Brand Summary Nando's PERi Perks loyalty programme encourages Website: Nandos.co.uk Founded: 1992 customer to order either for restaurant dining to delivery through deliveroo. Earning 10 points per £7 HQ: London, U.K Industry: Quick Service spent in UK restaurants, it then incorporates a tier Restaurant based system with green, orange and red tier Size: 10000+ rewards split into 3 segments for each reward Company: Private segment (Nando's, About Us, 2022). Revenue: $500 million+ Loyalty Scheme Aim - Introduce first NFC-enabled mobile loyalty card in the UK. Create a new digital channel for both customer acquisition and engagement. Design and build an end-to-end digital loyalty experience validated for customer desirability and business viability. Build a bespoke tech infrastructure to enable the loyalty scheme across the Nando’s digital ecosystem (Foreman, 2021). Mission - Our main aim is to simply create memorable experiences for everyone who has a bit (or a lot) of Nando’s in their life – our customers, communities, founders and suppliers. Value - Nando's value as a brand sits as a quick restaurant service breaking into restaurant service, meaning it can stand with companies such as McDonald's while mostly competing with Wagamamas or TGI Fridays (Entry Strategy, 2014). This is due to Nando's target market being generation Y 18-30 overlapping with generation X leaning towards middle class audiences (Myers MBA, 2020). Meaning their consumers find value in the affordable restaurant experience Nando's offers towards this generation. Benefits - Green Reward: 3 Chilli Points - 1/4 Chicken or any Fire Starter Orange Reward: 6 Chilli Points - 1/2 Chicken or any single wrap/burger/pitta Red Reward: 10 Chilli Points - Whole Chicken or any single combo meal, up to 2 regular sides Competitor - Nando's are a potential competitor to McDonalds, as they both operate in the quick service restaurant industry. Though Nando's while offering delivery services, emphasises more on the dining experience a restaurant offers. They offer higher price point products with a promise of a chargrill food experience, which McDonalds does not offer. Communication Channels - Mobile, Web, Social Media, Spotify & Email Nando's use channels such as youtube to explore the Nando's culture, while using celebrities such as Maya Jama and Allan 'Seapa' Mustafa to draw their target audience into engaging with the brand. Emphasis is seemingly placed more on the web platform than the in-app experience. Platforms - Apple & Android Consumer Experience, Innovation & Limitations Nando's on the ion the consumer experience front were leaders in innovation for digital consumer loyalty programmes with their app. The same innovation is applied for restaurant orders as customers are encouraged to order through the app, limiting friction between employee and consumer interactions. Though the Nando's UK app has few innovations in maintaining consumer engagement whether it is through gamification or user specific recommendations. 2022 MMR Competitor Analysis 08
Nando's App Customer Journey Map Positive Experience Negative Experience 5 4 3 2 1 2 3 4 5 Finding & downloading the app Sign up, personalised through name, email & number Could encourage user to Opt in/Opt out follow Nando's another comms option socials for extra chilli rewards Registration sign up chilli doesn't lead to bonus 'Chilli'' usable reward for user. limited guide through app features Order Feature discovery Apple wallet Adding Nando's card to Apple wallet removes user from in-app experience Large menu option range click & collect, Delivery Delivery option takes Select nearest store user out of the app through geo-location experience. Gives user a recommendation for cant cater for dietary ideal order option specific order for based on location delivery users Shows rewards user can apply Payment through apple pay or new payment method Complete payment confirmation & chilli earned 2022 MMR Competitor Analysis 09
KFC UK/Ireland The Colonel Club Brand Summary KFC's loyalty programme is designed to rewards Website: KFC.co.uk Founded: 1952 customers for their purchases with exclusive and personalised rewards. Every time a customer visits HQ: Woking, U.K Industry: Quick Service a participating KFC restaurant and spend over £5 in Restaurant the UK or €7 in Ireland they receive another stamp. Size: 10000+ When customers spend over £15 in the UK or €22 in Company: Private Ireland on a single purchase they receive an Revenue: $1 billion+ additional stamp (Loop Trinidad & Tobago, 2021). Parent Company: Yum! Brands Loyalty Scheme Aim - increasingly, we’re offering customers full autonomy and control over their order (Stewart, 2020). Mission - To sell food on a fast, friendly environment that appeals to pride conscious and health minded consumers (Edrawsoft, 2022). Value - KFC's 11 herb and spice recipe along side their tagline “Nobody does chicken like KFC” adds USP's to KFC's brand for consumers. KFC have always found a way to add variety to their menu despite the main ingredient being chicken (Shastri, 2020). Benefits - The Colonel’s Club has three simple levels of rewards; 3, 7, and 11. When customers earn 3 Chicken stamps The Colonel will give them a choice from selected side items. When customers reach 7 Chicken stamps The Colonel will give them a choice from select snack items. 11 stamps will earn customers £5 off their order in the UK or €7 off your order in Ireland(THE COLONEL'S CLUB, 2022). Competitor - KFC are a direct competitor to McDonalds, providing similar products in the same market space. though KFC specialise in fried chicken goods compared to McDonalds more diverse menu. Communication Channels - Mobile, Web, Social Media & Email KFC have quickly adapted to the new digital media age with it is through their own app or social media platforms such instagram. Currently their instagram @kfc_uki runs more like a 'meme' page within an admin who utilises relevant social media content to promote KFC products. KFC UK/Ireland diversifies its communication through YouTube content supported by collaborations with other content creators to bring a form of gamification, to get audiences to engage with the brand. Platforms - Apple & Android Consumer Experience, Innovation & Limitations Consumer reviews and app experience, reveal there are many technical issues with app transactions. Some consumer orders are not processed in their selected restaurant causing CX friction, as the app developers & restaurant employees don't seem to have a clear communication channel to have a frictionless CX. During the pandemic KFC innovated through, order pick up lockers in similar fashion to Amazon lockers in Japan. They launched a 100% robotic store in Moscow managed by the one store manager. These innovations sought to better utilise app orders and limit customer and employee interactions during the pandemic (DRAFTING, 2020). 2022 MMR Competitor Analysis 10
KFC UK/Ireland App Customer Journey Map Positive Experience Negative Experience 5 4 3 2 1 2 3 4 5 Finding & downloading the app Sign up, personalised through name, email & post code Upon sign up or app opening Opt in/Opt out User could be directed to the comms option latest offerings or campaigns Registration bonus 'stamp' sign up stamp leads to redeemable reward limited guide through app features No Apple wallet Large menu functionality option range & offers outside of loyalty click & collect, Delivery options Delivery option takes Select nearest store user out of the app through geo-location experience. not clear for user how delivery stamps are redeemed through Deliveroo/Just Eat or Uber eats No estimation for user for order prep time Payment through apple pay or setup new payment method Complete payment confirmation & stamp earned 2022 MMR Competitor Analysis 11
Taco Bell UK Taco Bell Rewards Brand Summary Consumers earn points every time they order. Website: Tacobell.co.uk Founded: 1968 Earning 200 points unlocks their first reward. Consumers can save points to unlock more rewards HQ: Woking, U.K Industry: Quick Service at 300 points and 500 points. Upon sign up Restaurant consumers receive a free Crunchy Taco reward. Size: 10000+ Company: Private Revenue: $10 million+ Parent Company: Yum! Brands Loyalty Scheme Aim - A New restaurant format to enhance the digital and drive-thru experience for guests through additional access points like curb-side pickup and order for pickup. Mission - ''We take pride in making the best Mexican style fast food providing fast, friendly, & accurate service. We are the employer of choice offering team members’ opportunities for growth, advancement, & rewarding careers in a fun, safe working environment.'' - Taco Bell Value - feeding people quickly and cheaply is Taco Bells tag line. With the accelerated digital revolution post pandemic, Taco Bell expects 50% of its sales to come from digital order service like their app in the near future (Kelso, 2020). Benefits - 10 points for every £1 spent either on the app or in-store or through delivery services like Deliveroo. Consumers move from levels 1 - 2 at each stage receiving more exclusive and AI suggested personalised offers based on previous orders and app use. 200 points redeems churros or cinnamon twists, 300 points redeems a free cravings menu item and 500 points any menu item up to £6. Competitor - Taco Bell are a direct competitor to McDonalds with overlapping markets as Taco Bell draws audiences between 18-34 yrs while McDonalds draws audiences 8-45 yrs. Main differences are Taco Bells emphasis on Mexican Cuisine with vegan options and McDonalds leans more towards burger type meals. Communication Channels - Mobile, Web, Social Media & Email Taco Bell UK content is mostly pushed through social media and app in comparison to other brand like McDonalds or Burger King who seemingly are active across all viable channels. In terms of drawing the right audience Taco Bell U.K do collaborate with U.K based content creators such as Liv Reed or Chunkz who engage effectively with their target audience. Platforms - Apple & Android Consumer Experience, Innovation & Limitations Taco Bell are a highly adaptable brand when it comes to consumer engagement. This adaptability is shown across their communication channels such as Instagram and Twitter. They engage millennials through the use of salience in their messaging and building a social identity relevant to millennials. Currently 12% of Taco Bell sales come from their digital services which is relatively low compared to Starbucks 50% (Coley, 2021). To Improve app engagement collaborations U.K events for post event meals during later hours. 2022 MMR Competitor Analysis 12
Taco Bell App Customer Journey Map Positive Experience Negative Experience 5 4 3 2 1 2 3 4 5 Finding & downloading the app Sign up, personalised through Upon sign up or app opening name, email, post code, photo User could be directed to the & number latest campaigns Opt in/Opt out comms option Registration bonus '200 points' sign up leads to limited user guide redeemable taco through app features supreme reward No Apple wallet Large menu functionality option range & offers outside of loyalty click & collect, Delivery options Select nearest store through geo-location Uber eats option takes user out of the Delivery app experience. purchase process remains in app using Deliveroo & Just Eat Complicated process to find Payment through restaurant that delivers to apple pay or setup user location despite new payment method geo-location Complete payment confirmation & points earned 2022 MMR Competitor Analysis 13
PureGym PureGym Together Brand Summary PureGym Together was a member charged loyalty Website: Puregym.co.uk Founded: 2009 plan, designed to support members during the pandemic. It gave members a range of loyalty HQ: Leeds, U.K Industry: Health Club benefits when gyms reopened, which included a price guarantee for 12 months and ability to re-join for free if Size: 201 to 500 Company: Private members needed to leave and come back within 12 months and it included a further free upgrade to Revenue: $100-$500 million+ PureGym's premium Plus membership for 6 months (What's PureGym Together?, 2022). Loyalty Scheme Aim - To re-engage and bring back their members post-pandemic. Offer incentive for new members to join the PureGym community. Offered a more flexible membership for more uncertain or anxious members being able to join and leave at their request. Mission - Inspiring a healthier world by providing members with 'AFFORDABLE' access to the benefits that being active can offer. Focusing investment on what most people want and use in gyms. Utilising innovative technology that makes the process of being a member and the experience of activity as easy and straightforward as possible (Pure Gym Mission, 2022). Value - Pure gym members find value in the flexible plans available with pure gym whether they are looking for financial flexibility or flexible times they have access digital classes and training in app for home workouts or the 24/7 Gyms. As brand PureGym pursue franchising, digital and new market entry where attractive to do so. They Deliver full performance potential of all existing estates in the UK, Denmark & Switzerland (Pure Gym, Business Model & Strategy, 2022). Benefits - Members could receive 30% off home workout kits, including branded PureGym gym sets. PureGym Together members had 48 hour priority delivery and a 5% saving with Musclefood products. Competitor - PureGym are Non-competitor to McDonalds as they operate in different industries with PureGym focused on health and lifestyle. though PureGym can draw audiences away McDonalds frequenters through offerings of healthier lifestyle options which QSR providers cannot provide consistently. Communication Channels - Mobile, Web, Social Media & Email Platforms - Apple & Android Consumer Experience, Innovation & Limitations - PureGyms app has many offerings from training programmes to gym activity trackers and extended rewards for members. They aim to engage their members both from a physical fitness and healthy diet perspective. This being through digital classes or discounts on healthy food providers. There is a gamification element where members are rewarded through achievement badges for their gym visits. These elements could be better inter-grated with their digital studio to link achievements with class completion or rewards upon completing a series of classes. 2022 MMR Competitor Analysis 14
PureGym App Customer Journey Map Positive Experience Negative Experience 5 4 3 2 1 2 3 4 5 Finding & downloading the app Sign up, personalised through name, email, post code, D.O.B & number Opt in/Opt out comms option No supportive reward(s) for signing up App asks users goals & experience to deliver relevant content limited direct guide to full display of member benefits view multiple member Could be more supportive to types based on frequency go in-depth regarding user weight goals or fitness goals Payment through apple pay or new payment method Complete payment confirmation no rewards earned Large range of access to doesn't offer a user digital classes customisable workout & work outs User can view gym activity to plan workout around gym activity Contactless or pin gym access - Achievement for 1st visit 2022 MMR Competitor Analysis 15
Tesco Tesco Club Card Brand Summary As Tesco are one of the U.K's largest retailers it has meant and lead to them providing and supporting Website: Tesco.com Founded: 1919 their loyal customers through a loyalty program which allows their customers to earn points on HQ: Welwyn Garden, U.K Industry: Retail purchases which included groceries, petrol and online purchases. The Tesco club card discounts Size: 10000+ Company: Private and offers apply towards partners in the scheme such as Disney+, Alton towers or Fitbit. Customers Revenue: 40-50 billion+ are able to donate their club card points to select charities partnered with Tesco. Parent Company: Yum! Brands Loyalty Scheme Aim - Reduce weekly grocery and petrol costs through loyalty points gained through Tesco purchases which sits with their brand aim to serve customers, communities and the planet a little better. Mission - 'We make what matters better, together.' Tescos mission statement acknowledges every aspect of the business and customers as part of the business & process (Tesco Mission & Vision Analysis, 2022). Value - Tesco have launched initiatives designed to compete on low prices with grocers such as Aldi, as they aim to “leverage the strength” of its Finest range, as part of a renewed focus on premium products. According to CEO Ken Murphy, the strategic shift has come as a result of elevated demand for products in the Finest range at certain times of the week. - Offering low cost for the finest items seen in their 2020 Aldi price match campaign (Jefferson, 2021). Benefits - Customers collect 1 point for every £1 spent in-store and online. On fuel, it's 1 point for every £2 spent. Points are converted into vouchers to help save on other purchases, e.g. 150 points gets you a £1.50 voucher. Competitor - Tesco are a replacement competitor to McDonalds, as customers while considering a QSR meal may consider to buy value groceries due to budget constraints or seeing more value in long term grocery shopping than a near instant meal through QSR's. Communication Channels - Mobile, Web, Social Media & Email Tesco have been continuously evolving their consumer base through their Tesco club card loyalty scheme since 1995 and revamped with contactless features in 2017. They have further implemented the use of social media to engage the more tech savvy audiences, through platforms such as instagram and utilising celebrity chefs such as Jamie Oliver to promote their finer products. Platforms - Apple & Android Consumer Experience, Innovation & Limitations - Tesco's app integrates their club card into the same platform making it easier to track online customer spending behaviours to better target and predict customer spending to promote and push the right content to each customer. Tesco have pushed a form of self service where by customers re able to scan and process their own shopping without the need of a cashier, improving the flow of the CX while shopping. Further improvements from Tesco could see a digital ecosystem with links all their digital platforms from social media, app to television. Through which customers can easily transition between the platforms to access the immediate offers and comms. 2022 MMR Competitor Analysis 16
Tesco App Customer Journey Map Positive Experience Negative Experience 5 4 3 2 1 2 3 4 5 Finding & downloading the app Sign up, personalised through name, email No Registration reward & number User In-app guide User created shopping list App shows club card User has to pre book discount items and slow no immediate point accumulation delivery option No suggestion on offers/value for points items Minimum £40 Large menu basket charge option range & offers outside of loyalty No Apple pay/wallet click & collect, functionality Delivery options Select nearest store through geo-location Delivery purchase process remains in app using Tesco Delivery Payment through card payment method Complete payment confirmation & points earned 2022 MMR Competitor Analysis 17
Overall Consumer Experience against User Number Brand 6 24 3.2 1.2 2 1.4 20+ 1.6 Users million million million million million million million million Rating 2.7 1.4 4.7 2.4 2.7 4.7 4.8 4.8 30 million 15 million s r e s u f o r e b m u N 0 App Experience Rating 5 2022 MMR Competitor Analysis 18
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Competitor Reward Scheme Analysis 2022 MMR Competitor Analysis