Nectar Case Study

Kudlers’s new initiative is tracking purchase behavior at the individual customer level and providing high value incentives through a

Since price is not a determining factor with most of Kudler’s customers, this is focused on finding specialized items. “Therefore, rather than providing everyday discounts to the customers for their purchase frequency like lower end markets, Kudler has partnered with a loyalty points program to provide customers with points which can be redeemed for high end gift items, airline first-class upgrades, or other specialty foods” (Kudler 's Fine Foods).

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.

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.

“The Customer Loyalty report clearly shows, membership in Classic Rewards is down nearly 20%” (UOP (A), 2012, p. 3). The same report also reflects members point redemption for flights down 20% from the previous year. Overall membership in the program fell by 10% between 2002 and 2004 with new membership falling nearly 75% in the same period. According to the monthly financials, operating expenses increased significantly from 2003 to 2004 reducing net income from $71 million in 2003 to $10 million in 2004. The review of these reports prompted the Board of Directors to set challenging goals to save the airline.

CanGo’s purchaser base and records base of clients offers them a competitive gain and an higher hand towards an ever-converting marketplace.

Kudler is intensifying their services by offering parties hosted by world renowned chefs for their existing clientele in which these chefs illustrate how to prepare and arrange gourmet foods. As well, Kudler’s puts forth a frequent shopper program for the consumers who pay for items regularly with the construction of a loyalty points program. Therefore, the plan will endow patrons with points in which the customer can trade in for high ticket items, airline upgrades, and specialty food products, Kudler Intranet Site, (2011). However, though Kudler has implemented the aforementioned initiatives in an effort to catch the attention of new patrons and stimulate or raise existing customers purchase habits questions come to mind.

Kudler Foods uses shared databases as a means to increase efficiency and to reduce costs. The use of shared databases creates opportunities for the company to view, manage, and analyze information simultaneously thus providing Kudler with the historical data and forecasting options to consider expanding and increasing profits. Tracking technology, groupware, and workflow software allow Kudler the opportunity to track customer tracking purchase behavior patterns to assist in process refining.

rewards program customers are able to enjoy a beverage and have a chance to win merchandise

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.

Easy visibility of the company and recognition of its brand name, due to unparalleled marketing strategies

Along with reducing the amount of middlemen customers have to deal with, added to his reduced expense structure which in turn proved to be cost effective.

• Relationship buyers – large companies with potential of repeat business, had a team of outside and inside sales rep to manage the relationship, having access to online info, about the customers entire purchase history.

This service provides you with the ability to give your customers cash back rewards for their purchases. You can also accept mobile payments via plastic to mobile card conversion. Additionally, they have automated and manual reloading of card balances based on your preferences. There is a Card Studio website where your customers can purchase personalized gift cards online. And there is a card registration process that protects cards against loss or theft. They also have a merchant-branded customer website with unique card management features.

Broad Differentiation because its products are in media networks, parks and resorts, studio entertainment, consumer products, and interactive media. Thus, it attracts a wide base of consumers through differentiating its products by superior dedication to creating high quality content, technological innovations in entertainment and international expansion.