Kudler Fine Foods SR-KF-013 Paper
Kudler Fine Foods SR-KF-013 Paper
Abstract
Kathy Kudler, and her company, Kudler Fine Foods, are attempting to initiate a customer loyalty program. According to Kudler (2007)This loyalty program, also called the frequent shopper program, is designed to award points for customer purchases which can then be redeemed for valuable gift items such as airline seat upgrades to first class or other specialty foods offered by Kudler. This program is designed to benefit Kudler by increasing customer loyalty and improving their profitability and bottom line. The ability to accomplish this goal in a manner that will produce the expected results efficiently and in a timely manner will be greatly enhanced through
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This decision was facilitated by the availability of a number of quality off-the-shelf solutions that would meet the company’s needs. Two vendors were identified as possible partners to develop this new frequent shopper program with Kudler. These systems were FXmedia and Incentivelogic. According to Incentivelogic’s website (www.incentivelogic.com), Incentive Logic’s points-based program utilizes software as a service (SAAS) platform backed by more than a decade of experience making incentive and recognition programs work online to help you achieve your business goals. The points-based platform meets enterprise demands for security, reliability and scalability. (Incentivelogic, 2007). In the loyalty program literature on the FXmedia’s website (http://www.fxmweb.com), FXMedia (2011) states “With intelligent customer segmentation and targeted campaigns, each member of your program can feel like they are customers of their own "personal company", where everything is designed around their lifestyle and purchase behaviour patterns.” (para. 2). Having selected the two vendors (FXMedia & Incentivelogic), it was incumbent upon Kudler to make an assessment of the individual capabilities of each company’s platforms in order to determine the overall project feasibility. Feasibility Analysis
A thorough feasibility analysis needs to include a number of dimensions to assure that the company accounts for all of its
The purpose is to assess the likelihood of a particular solution option's achieving the benefits outlined in the Business Case. The Feasibility Study will also investigate whether the forecast costs are reasonable, the solution is achievable, the risks are acceptable and/or any likely issues are avoidable.
4. Conduct a feasibility analysis on the company, being sure to consider its market potential, industry attractiveness, and
Loyalty programs include frequent flier miles or points systems associated with credit card offers that can be used only with the original company, creating a perceived loss or cost when switching to a competitor. Most programs are able to get consumers to spend more money just to get to free or bonus item.
Partners in the scheme can avail themselves of a much richer databank on their customers, analyzing their purchases across a cross section of different products, purchased in many different outlets.
By Kudler Fine Foods adding the frequent shopper program this can only be enhanced. Their employees have to be trained on all areas of the frequent shopper program. They will need to know this so that they can explain to customers how to use it, how they can sign up for it, and the benefits to the customers for being a part of this program. The employees will also need to let the customers know that their information will be kept safe and confidential from all outsiders. The frequent shopper program will be able to reward the customers that buy higher price items better. This will give Kudler a chance to target these items to be sold more and build better profits.
In order to succeed, it is fundamental that businesses satisfy consumers’ needs (and desires) for goods and services. Appropriate market research provides the data necessary to understand those needs and respond to them effectively and profitably. Kudler Fine Foods (KFF) has performed market research in the past. Some of that research has been helpful; some has not. Additional market research is needed for KFF to reach a larger share of the market and increase profitability.
Kudler Fine foods would like to enhance the clients shopping experience by developing a system in order to track the customer purchases which will be known as a Frequent Shopper Program. This will award loyalty points in order for the customer to have an opportunity to redeem these points for goods services. “Kudler Fine Foods is a Local upscale specialty food store committed to providing customers with the finest selection of specialty foods and wine.” Apollo Group Inc. (2010) this will keep track of the customers purchase habits in order to assist Kudler to offer their customers and valued
After reviewing the Kudler Fine Food network, a major network overhaul will need to bring the network up to par with the latest technology. If Kudler Fine Foods is not able to upgrade their systems then they will fall behind the technological curve and will not be able to compete with other companies. Kudler needs to do the upgrade not only to keep up with the advances with network systems but needs to install the proper systems to increase profits. If Kudler does not do constant upgrades then they will be forced to pay a larger amount for the larger upgrades in the future. It is vital to install the proper systems that will have the longevity and the capability for future network expansion without having to spend money on unnecessary upgrades.
This initial cost of the startup of this program will be a minimal impact on Kudler Fine Foods. The initial advertisement effort will be done via social media; the companies Facebook page and Twitter account, email and word of mouth. Allowing for a reward system for costumer referrals can be used for current and new customers as the programs is employed and continues to grow. Rajiv and bell argue “customer retention costs are generally lower than customer acquisition costs, companies are better of focusing attention on their more loyal customers especially since the top 20% of customers account for 80% of revenues and often more than 100% of profits” (p. 180, 2003). Kudler Foods could reduce their marketing expenses by using a customer loyalty system through the use of rewards. The sales increase from this program should be reflected by the increase of new customers and the increased returning customers increased spending. The use of seasonal promotions only available to costumers enrolled into the frequent buyers program could also help in increased sales profits.
This paper will discuss how an information system is critical to the business process of an organization and how the information has impacted the organization 's structure.
Kudler Fine Foods’ new Frequent Shopper Program is a loyalty point program, Point-of-Sale (POS), which
To inspire customer loyalty and respond to customer shopping preferences, the Sales and Marketing department of Kudler Fine Foods is initiating a Frequent Shopper Program to track customer purchase patterns and provide shopper incentives through a loyalty points program. (University of Phoenix [UoP], 2007). Specialty items are more important to Kudler customers than the price of items, so instead of providing everyday discounts for purchase frequency, Kudler has partnered with a loyalty points program to reward customers with redeemable points for high-value gift items, airline upgrades or other specialty foods. "Building unique rewards programs that differentiate the brand--along
Kudler Fine Foods is a local retailer of gourmet foods and ingredients. Through three store-front locations Kudler offers premium products to the local market and regional chefs or restaurants. Since their inception, Kudler Fine Foods has strived to provide the very best customer experience through quality products at reasonable prices and
* Customer loyalty program. The company secured a high level of customer loyalty due to its membership program and its general approach to customizing services to the needs of every customers.
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