Kudler Fine Foods Frequent Buyer Program James L. Lewellen BSA/310 June 17, 2013 Thomas Potts Kudler Fine Foods Frequent Buyer Program The intent behind the development of Kudler Fine Foods Frequent Buyer Program is to increase the level of customer loyalty. The system will be broken down into two different levels; the frequency of a buyers shopping with Kudler Fine Foods and the amount of money that the buyer spends with each purchase. A program like this is typically used as a marketing strategy that is “enabled by point-of-sale technology to record and store customer purchases in exchange for rewards’ (Appel, p. 156, 2006). A web-based shopping program will be used to enhance the Frequent Buyer Program for Kudler Fine Foods. …show more content…
Financial Analysis 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. Conclusion A frequent shopper program can be a successful tool is used correctly by a company. The difficult task will always be bringing in new costumers. This program should allow for the retention of existing customers with Kudler Fine Foods. A rewards points system should be used for the exchange of
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.
The objective of this project request is to track purchases of individual customer 's. The customer purchases will be tracked and accumulated as loyalty points for redemption by the customer for gift items, specialty foods and other products or services as made available through partnerships with other external companies. The strategic purpose of the Frequent Shopper Program is described on the Sales & Marketing page of the Kudler Fine Foods Intranet site.
Kudler Fine Foods is one of the preeminent destinations for the discerning shopper looking for all kinds of gourmet and specialty food items they are also one of the finest shopping destinations for anyone who just likes good food. At Kudler Fine Foods the company’s goal is to bring the very best value and quality to their customers and with this in mind Kudler Fine Foods seeks to create a rewards program for their fine customers. Team C
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
With up to date analysis of competitors marketing strategy and tactics Kudler can keep its own marketing strategy and tactics prepared to do whatever is necessary to market better quality and win the satisfaction of consumers over its competitors. Whether it is producing a larger selection of wines, expanding its bakery products, finding new ways to make its meats and seafood tastier than its competitors, or even lowering prices, Kudler can lower its prices to gain market advantage only if it has up to date information about competitor’s prices. Same with its products, Kudler can only differentiate its products if it knows sufficient information about competitor’s products (Business Marketing Plan.net, 2011).
The last external innovation of Kudler Fine Foods from other organizations is catering the organization provides (Apollo Group, Inc., 2011). The catering aspect has not been fully constructed into the business organizational structure, so their approach will stand out from other competitors. Their goal is to provide a link to customers on their website that will allow them to view and order specifics requirements for the event needed to be catered. The website will provide every aspect of what meals, desserts, amount needed, specific arrangements or design the customer desires for the event. With other competitors they require customers to come into the store location to make arrangements, whereas Kudler Fine Foods is providing options for the busy individual to make arrangements via Internet.
Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.
The food retail industry is a highly competitive market. Therefore, organisations need to offer customers value for money. Customers always want the best quality products at the lowest prices. With such strong competition, it is very important for organisations to analyse and understand the customers’ needs, wants and expectations.
Market players generally have a wide variety of potential customers, which considerably weakens buyer power. Although consumers in this industry may be loyal to particular brands or chains, loyalty to retailer brands is arguably less important than competitive pricing. Many supermarkets run rewards programs for frequent shoppers, such as Tesco’s ‘Clubcard’, and these schemes can help companies retain customers and reduce buyer power.
To owner, Rocky Aoki and his team, their understanding on consumer patterns became their advantage; the consumer’s distrust of exotic food and their enjoyment of eating in exotic surroundings, and the customer’s interest in watching their food cooked. Though unique, this system allows the business for greater control on the flow and options given to the customer.
Founded back in 1914 in Victoria by George James Coles, Coles Supermarkets Australia Pty Ltd has undoubtedly developed and expanded over the century since its humble beginning. Starting out its early days as an average retail store, Coles has now successfully become a common name in households throughout Australia. In recent years since its acquisition by Wesfarmers back in 2007, it has now grown even more and in April 2012, the Coles group announced the substantial relaunch of its loyalty program called “flybuys” which was originally launched in 1994 as a joint venture with other companies. The article entitiled “Coles ups loyalty ante” is being reviewed and analyzed in this paper discusses about the revamped loyalty program offered by Coles,
As seen in Figure 1 the benefit of not having competitors, gaining them valuable loyal customers since its birth, gaining around 100-200 loyal customers per week. They have employed 4 number of staff working around the clock from serving food to preparing food in the kitchen.
This Review Paper is aimed to explain the change in customer preferences and their demands. This paper will explain how company cater this particular situation to satisfy and retain its customers because as customer wasn’t happy from company marketing planning, which was effecting company sales in different segments. Oscar Mayer started business as sausages and Westphalian hams specialized retail market, in 1883. In 1911, business was incorporated as Oscar F. Mayer & Bro and further expanded its operations by acquiring other food companies. Oscar Mayer & Co. was most attractive medium sized food company and acquired by General Foods Corporation, which was then acquired by Kraft Foods (Parent
“Decision maker at loyalty New Zealand” is a real situation case study analysis for Fly buys. It describes the decision making by Chris Lamer for the continuous growth of Fly buys in New Zealand. It explained that Fly buys is the top fifth largest loyalty program all around the world. It was established by Bank of New Zealand, Food stuffs Ltd and Greenstone energy Ltd with some other companies to recognise and reward the new and existing consumers of New Zealand for their consuming. It is leading loyalty association in New Zealand and Australia where it peak its success. It further explains that Chris Lamer, a long prize winner in the various streams like Wellington “Love Affairs” joined the Fly buys in 2007 as a Head of customer engagement. Chris decided to relaunch the brand of Fly buys which resulted in best consumer services and marketing award for Fly buys in 2008. Chris was announced the marketer of the year. The case study provides a description about the spending habits of people in New Zealand by using Fly buys, benefits of using Fly buys and important decisions made by Chris Lamer and his team for the continuous growth of Fly buys. It also presents three options for the continuous growth of Fly buys and explains which was selected by Chris Lamer’s team and what the reasons for selecting that one are. Chris decided to focus on stretching the brand of Fly buys by creating new products and adding more partners which leads to less attention
Customers who were giving major share to the competitors were primarily targeted with the Loyalty program where as another programme known as retention programme was designed to attract the customers who were visiting less to Harrah’s