Kudler Fine Foods Frequent Shopper Program

Topics: Credit card, Loyalty program, Incentive Pages: 6 (1871 words) Published: January 31, 2009
Kudler Fine Foods Frequent Shopper Program
Week 2 Assignment
Chiquella Rice
Bob Nugen
June 25, 2007

Kudler Fine Foods Frequent Shopper Program

Kudler Fine Foods is looking to implement a new marketing plan. The company is hoping to draw more customers to its stores, in addition to retaining the old customers. They want a system put in place that can keep track of customer purchases, and award points to customers to use on other products based upon this. After doing more research on other retailers, we noticed, “Nearly 75 percent of shoppers in the U.S. now belong to at least on loyalty program” (Stepanek, Young, 2003). The current stakeholders involved are the customers, employees of Kudler, management, technology department, and outside vendors from participating companies. The stakeholders each play a vital part in helping this program get off the ground. The customers play the most important role in the program, because they are the people who we will have to sell this idea and profit. Management must prep all employees to be able to answer questions and assist customers with any needs regarding the program. Outside vendors will also play a vital part in the program as well, since Kudler must rely on them to provide the gifts to customers based on contracts signed. Finally, we have the technology department who has to come up with a plan and build the product to the satisfaction of management and the customers. The goal of the project is to give the high-end shoppers at Kudler an incentive to frequent our store, which will increase our profits. In addition, the goal is to reward customers for their continued patronage. To get the ball rolling we have to implement the Information system development phases, which include Project-planning phase, Analysis phase, Design Phase, Implementation phase, Support phase (Burd, Jackson, & Satzinger, 2004). This will help us to better plan what steps we are going to take to ensure this project is a success.

First, a committee will be formed to come up with ideas. The committee will consist of Kudler management and management from the technology department. There will be a round table discussion of what direction the program should go in and what gift could be offered. It was decided that the new program would be called “The Smart Shopper Program”. Within the committee we decided we will make sure the program is easy for customers to understand and participate, ensure that the points can be redeemed for items that are important to a “high-end” customer, make sure that the point system is set to be reasonable for customers, heavily promote the program, continue to re-evaluate the program to see what is working for the customers and what is not working. Kudler is attempting to form there own version of programs already established at grocery store such as Kroger, Randalls, etc. Since this is a “high-end” store, most of our customers do not care about reduced gas prices. However, receiving free merchandise such as airline tickets and high-end gifts can be of most use.

Next, we provided questionnaires to customers asking them questions about stores they may have been to in the past that offered the frequent shopper programs and what there likes and dislikes were with the programs at those stores. Some of the question we placed on the questionnaire included: If a frequent shopper program was in place, would you utilize it? Do you think this program fits into the overall theme of the store? In addition to the questionnaires, the committee frequented a few stores that offered the program to get a general idea of how the program works and how the customers view it as well. Based on the findings of the questionnaires it was discovered that Kudler’s customers would be receptive of the program. In addition, the ideas we picked up from the stores were phenomenal and we choose to alter and implement them into our program to make it more of a success....

References: Burd, S, Jackson, R, & Satzinger, J Approaches to System Development. Systems Analysis and Design in a Changing World, Chapter 2, Retrieved June 21, 2007, from https://ecampus.phoenix.edu/content/eBookLibrary/content/eReader.h.
Stepanek, M, & Young, M (2003). Trends: Loyalty Programs. CIO Insight, Retrieved June 21, 2007, from http://www.cioinsight.com/article2/0,3959,1458960,00.asp.
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