Introduction Loyalty Scheme Case Study - McDonald's
Posted by on Wednesday, May 30, 2012 Under: Case Studies
McDonald’s uses a combination of marketing strategies to build loyalty and promote their products. They offer coffee loyalty cards and student discounts. The student offers are divided into two; those that use NUS Extra Card and those that present valid student ID. Many companies also use the NUS Extra card to offer discounts to fulltime, part-time and distance learning students. Coffee Loyalty Card & Student discounts
Coffee Loyalty Card: This scheme is simple and straightforward. Customers only have to buy six cups of McDonald’s coffee to get the seventh cup free. The offer applies to any regular size coffee and is redeemed by collecting transparent stickers which are found on scheme-cups and sticking them on the loyalty cards. Scheme-cups are the coffee cups that have the loyalty stickers attached to them. After purchase the customer peels off the stickers and pastes then on the loyalty card. This is unlike other loyalty schemes where a stamp is used to indicate a purchase. With student offer 1 free Hamburgers, Cheeseburgers or McFlurry Original are given with the purchase of an Extra Value Meal while free medium fries are given when purchased with Big Mac or McChicken Sandwich in student offer 2. Registration & membership
Coffee Loyalty Card: No formal registration or online activation is required. Customers are not required to register online or fill applications forms for membership and participation. They simply have to buy six cups of coffee to participate. Both student offers require no form of registration. However students must present either a valid student ID or NUS Extra card for redemption. Students are current members of universities. Redemption
Customers qualify for a free cup of coffee when they collect six stickers. This offer cannot be redeemed with other offers. Upon redemption the restaurant will collect and retain the loyalty card with stickers and present the customer with a free regular cup of coffee. Redemption can only be done once. If the customer wants another free cup of coffee they must get a new loyalty card and collect new stickers. Both student offers require the presentation of either a valid student ID card or a NUS Extra card before ordering to redeem the offer. Valid date
Like most loyalty cards it also has a valid date. The valid date is the duration in which redemptions can be made. McDonald’s loyalty cards last for one and the scheme does not allow redemption from the previous year. Therefore, customer must redeem their loyalty offers within a year. Both student offers are valid for one academic year. The dates are printed on both the student ID and NUS Extra card. Terms and conditions
Terms and conditions inform the participants of the legal conditions by which they can participate and redeem offers or invalid offers and redemptions. It also sets out the valid date for redemption. Both student offers stipulate conditions like: served after 10:30am at participating restaurants, products on sale may be restricted at different times, cannot be used in conjunction with any other offer and one offer per person, per card and per visit.
In this case study, we will look into the consumer behavior based on their loyalty in buying McDonald’s food product. McDonald’s has done a strategy whereby it targets the students so that their customer especially for the students will be loyal to their food product. What McDonald has done is that, they have offer coffee loyalty cards and student discounts. Students offers are divided into two which who uses NUS Extra Card and for those who present valid student ID.
For the coffee loyalty cards, it offers simple scheme whereby customers only have to buy six cups of McDonald’s coffee to get the seventh cup free. This is done by the customer buying any regular size coffee and is redeemed by...
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