Tesco PLC is a British multinational supermarket chain headquartered in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK, Ireland, Hungary, Malaysia, and Thailand. The company currently offers products in nine different categories including Apparel, Bakery, Deli, Dairy, Fresh Produce, General Merchandise, Grocery, Liquor, and Meat. Tesco launched its customer loyalty scheme, the Tesco Clubcard, in 1995, with two levels (Silver and Gold). It has been cited as a pivotal development in Tesco's progress towards becoming the UK's largest supermarket chain and one that fundamentally changed the country's supermarket business. Cardholders can collect one Clubcard point for every $1 they spend in a Tesco store, or at Tesco.com. This enables the company to collect data on purchase behaviour of customers and utilize it to design customized offers and conduct targeted retention campaigns.

Data Transactional Data The transactional data of this assessment task relates to a random sample of 10,000 customers from Tesco Clubcard in a period from 1 January 2020 to 31 December 2021. The variables in the data table are described below: Variable Name Description ID Unique ID of customers AP.spent.2020 Total spending on Apparel category in 2020 BH.spent.2020 Total spending on Bakery category in 2020 DL.spent.2020 Total spending on Deli category in 2020 DY.spent.2020 Total spending on Dairy category in 2020 FV.spent.2020 Total spending on Fresh Produce in 2020 GM.spent.2020 Total spending on General Merchandise in 2020 GR.spent.2020 Total spending on Grocery category in 2020 LQ.spent.2020 Total spending on Liquor category in 2020 MT.spent.2020 Total spending on Meat category in 2020 AP.spent.2021 Total spending on Apparel category in 2021 BH.spent.2021 Total spending on Bakery category in 2021 DL.spent.2021 Total spending on Deli category in 2021 DY.spent.2021 Total spending on Dairy category in 2021 FV.spent.2021 Total spending on Fresh Produce in 2021 GM.spent.2021 Total spending on General Merchandise in 2021 GR.spent.2021 Total spending on Grocery category in 2021 LQ.spent.2021 Total spending on Liquor category in 2021 MT.spent.2021 Total spending on Meat category in 2021

Survey Data The data set also contains customers response to the following statements on a scale from 1 (completely disagree) to 4 (completely agree), collected via a survey: 1- When shopping, I always look at the price per ounce or price per unit information 2- When shopping, quality is the most important factor for me

Task 1 - Use the survey data to create four customer segments with average churn (retention) rate as your variable of interest. Hint 1: Here a churner is a customer who has a spending >$0 in 2020 and has no spending in 2021. Hint 2: In PivotTables by clicking on each cell (segment), you can see the customers who belong to the segment along with their associated data, in a separate sheet. Task 2 - Calculate CLV and Total Segment Value for each segment from Task 1 (discount rate = 3%) Task 3 - Analyze and interpret your findings from Tasks 1 and 2 Hint: Start by identifying appropriate labels for the four customer segments created in Task 1. Task 4 - Develop recommendations for TESCO using your findings from Tasks 1, 2, and 3.