5/2/13 BSA/310 Frequent Shopper Program Kudler Fine Foods created a frequent shopper program which gives customers incentives to continue shopping there. Their rewards are determined by how much is spent on groceries and how frequent purchases are made. “Frequent Shopper Program proves the ability to gather data for marketing programs and run promotions for the loyal customers.” (Frequent Shopper). Web based advertising would allow for major cost reduction and provide helpful and effective consumer awareness about said products. In order for Kudler Fine Foods to develop a functioning frequent shopper program, it must track and monitor consumers shopping behavior.
| ANALYSIS VIA PORTER’S FIVE FORCES MODEL The threat of new entrants in the online grocery business could lead to the company having to lower their prices and also, may have to lower their delivery fee just to compete with the newer companies that are trying to start out in the online business. They will also need to advance their technology within the company. The bargaining power of buyers allow for the customers that purchase loyalty from the company to pick and choose the products they need for the best price. This helps with the growth of the company; the company depends on customer loyalty to stay in business but this allows for the competitors to compete against one another. The bargaining power of suppliers hurts
Kudler Fine Foods Virtual Organization Kudler Fine Foods (KFF) is an established business that survived the initial period successfully and grown by adding two additional stores. Because of owner’s prudent management the business presence in the market is solid, although other competitors represent a threat. Additionally the threat of handling perishable goods is also present, but competitors have the same issue plus KFF can compete with reasonable prices to make it attractive to customers (Kudler Fine Foods, 2012, p. 10). KFF needs to initiate marketing research analysis to pinpoint the areas of opportunity and improvement. In this analysis a secret shopper should be part of the research to visit stores around the three KFF establishments
Samuel Moore Walton founded Walmart. Adopting JCPenny’s Penny Idea Walmart targeted, initially, small rural town. Later, Walmart had expanded to larger cities and eventually become one of main player in retail industries. This is achieved through sound strategies in winning the heart of consumers and local community through fast, friendly and cheap services. Apart of Walmart’s Way, Walmart also inculcate sense of belonging by offering profit sharing, incentive bonuses and stock options that promotes loyalty.
Kudler Fine Foods is in the process of developing a new frequent shopper program which will allow for these rewards for customers; however it could also bring problems and issues. The implementation will have an effect on the organizational structure such issues with cost, legal, ethical, and information security concerns. Although many retailers are deploying a frequent shopper program the question is still whether the program is actually
Comparison to other innovations mentioned at the end of the case. At the end of the case Ives mentions the way customer services have transformed due to customer convenient and cheaper fulfillment alternatives. Some of those technological innovations in those fields could be compared to web-based shopping and online grocery shopping and sometimes they cannot be. Banking: Banking could be compared to buying a commodity. Instead of going to the clerk, one can go to the ATM and withdraw money.
The first time I purchased groceries and household items from my own wallet, I learned that I needed to find a more economical store that could offer me “more bang for my buck”. So basically, this is when I said, “Good Bye Publix,” and, “Hello Walmart”. It was undeniable to me on my very first trip to Walmart that the choices, value, and convenience that Walmart offers is far superior to that of Publix. First of all, Walmart has more product options to choose from than Publix. Walmart usually has a minimum of four to five options to choose from per grocery item.
The goal is to get most loyal customers into Big Lots stores more often and develop new Big Lots’ fanatics. Also the company wants to add coolers and freezers and to
There are mainly three kinds of FDI: Greenfield investment (The main internationalisation strategy of Aldi and Lidl) Acquisition (Sometimes used by Aldi or Lidl, for instance the acquisition of Hofer) Joint-venture (not discussed in this case) The main advantage of greenfield investment against acquisition are: The flexibility: It gives them the maximum design flexibility of their stores and their warehouse; moreover, they can choose precisely the location of their business in order to optimize the rental cost and the catchment area of their stores. They are able to choose their own suppliers. Economically, it can be interesting. In effect, some countries have policies to encourage investment and creation of new jobs as reducing tax. So by creating new jobs, Aldi and Lidl can benefit from these policies.
In 1983 the first Sam’s club opened and in 1988 the first Wal-Mart supercenter opened. Wal-Mart went international fort he first time in 10991 with the first location in Mexico. As of today there are 9,759 stores in 28 countries that employ 2.1 million individuals and serves 176 million customers each year (Wal-Mart, 2011). Wal-Mart’s physical assets are set up so that even in a challenging economic and competitive environment the customers and company believe that Wal-Mart has the right strategy. The biggest factor Wal-Mart looks at is keeping low prices.