Case Study: Kudler Fine Foods Frequent Shopper Program
Kudler Fine Foods Frequent Shopper Program – Team Paper
Kudler Fine Foods (KFF), established in 1998, is a small chain of specialty food stores that offer both domestic and imported foods. Kudler Fine Foods is preparing to launch a new Frequent Shopper Program (FSP) for its customers. The purpose of this program is to increase customer satisfaction by tracking purchasing patterns and offering incentives through a partnership program – ultimately leading to an increase in revenue. This paper will discuss Kudler Fine Foods’ business objectives, projections, and processes in addition to functionality and design requirements in preparation of their new program.
Week 2
Stakeholders
According to BusinessDictionary.com a stakeholder is a person, …show more content…
group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization’s actions, objectives, and policies (stakeholder definition). Using the Stakeholder Analysis in KFF’s 2003 strategic plan – the primary stakeholders have been determined as the staff, customers, wholesale suppliers, banks, competition, and Kathy Kudler (the owner). A short summary of each is as follows:
• Staff – The backbone of the company.
These individuals have direct contact with and determine the atmospheric quality for the customer
• Customers – They determine the direction of the company through feedback. This may come in the form of verbal compliments or complaints to product requests
• Wholesale Suppliers – Products are provided through national and international wholesalers. Without these products the store could not exist. KFF is on good financial terms with these suppliers
• Banks – Besides having good credit these banks extend offers of additional purchasing ability for new stores or peak season produce
• Competition – These stores are considered based on location. While there are supermarkets, gourmet shops, and specialty shops in the area they are not specialized in the exact same area. Keeping awareness of any new development is important for current establishments and new potential locations
• Kathy Kudler – The owner determines the direction of the company through vision and hiring, firing, supplier relations, and overall analyzing store progress
Statement of Scope and …show more content…
Goals
The primary project goal is to track the purchases of each customer as well as create incentives to be a repeat customer. In addition to tracking customer purchases the program will introduce the use of loyalty points – a points system created out of partnership with other businesses. These loyalty points are used to redeem gift items, specialty foods and other products or services.
”The textbook Essentials of Systems Analysis and Design states that “once a potential project has been identified, an organization must determine the resources required for its completion by analyzing the scope of the project and determining the probability of successful completion” (Valacich, 2009, p.
51). While several departments will be involved in the production of the Frequent Shopper Program, the Sales and Marketing team will be doing the heavy lifting in the roll-out (Kudler Fine Foods - Intranet - Sales & Marketing: Sales Plan 2007, 2009). This roll-out includes:
• In-depth training on data analysis
• Direct mail and word-of-mouth promotions
• New software systems
• Reduction of costs from foods
• Reduction of the amount of food ordered and stored
• Creating a zero stock policy
Support Measures for Success
The KFF Frequent Shopper Program correlates with having better information management. This primarily comes in the form of the purchasing patterns of customers. The first measure of success will be through totaling customers who sign up for the program. Once a customer is in the program then purchasing patterns can begin to be
evaluated.
The result of this will be to better determine what products will be placed on the shelves. More desired products on the shelves should equal more revenue.
Summary of Project Feasibility
Given the success of the current three Kudler Fine Food stores it is likely there are some loyal customers. Offering the customer added value to their product purchases and store visitation may increase and shopping frequency and loyalty. In addition this allows for KFF to cater to these customers through tracking purchases. Balancing the cost of software and marketing with the savings created through focused wholesale purchasing – the budget should balance in the interim and increase revenue in the long-term. Bibliography
Kudler Fine Foods - Intranet - Sales & Marketing: Sales Plan 2007. (2009). Retrieved January 2011, from Kudler Fine Foods - Intranet: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/sm/salesPlan.htm stakeholder definition. (n.d.). Retrieved January 2011, from BusinessDictionary.com: http://www.businessdictionary.com/definition/stakeholder.html
Valacich, J. S. (2009). Essentials of Systems Analysis and Design, 4e. Upper Saddle River: Pearson Eductation, Inc.
Kudler Fine Foods (KFF), established in 1998, is a small chain of specialty food stores that offer both domestic and imported foods. Kudler Fine Foods is preparing to launch a new Frequent Shopper Program (FSP) for its customers. The purpose of this program is to increase customer satisfaction by tracking purchasing patterns and offering incentives through a partnership program – ultimately leading to an increase in revenue. This paper will discuss Kudler Fine Foods’ business objectives, projections, and processes in addition to functionality and design requirements in preparation of their new program.
Week 2
Stakeholders
According to BusinessDictionary.com a stakeholder is a person, …show more content…
group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization’s actions, objectives, and policies (stakeholder definition). Using the Stakeholder Analysis in KFF’s 2003 strategic plan – the primary stakeholders have been determined as the staff, customers, wholesale suppliers, banks, competition, and Kathy Kudler (the owner). A short summary of each is as follows:
• Staff – The backbone of the company.
These individuals have direct contact with and determine the atmospheric quality for the customer
• Customers – They determine the direction of the company through feedback. This may come in the form of verbal compliments or complaints to product requests
• Wholesale Suppliers – Products are provided through national and international wholesalers. Without these products the store could not exist. KFF is on good financial terms with these suppliers
• Banks – Besides having good credit these banks extend offers of additional purchasing ability for new stores or peak season produce
• Competition – These stores are considered based on location. While there are supermarkets, gourmet shops, and specialty shops in the area they are not specialized in the exact same area. Keeping awareness of any new development is important for current establishments and new potential locations
• Kathy Kudler – The owner determines the direction of the company through vision and hiring, firing, supplier relations, and overall analyzing store progress
Statement of Scope and …show more content…
Goals
The primary project goal is to track the purchases of each customer as well as create incentives to be a repeat customer. In addition to tracking customer purchases the program will introduce the use of loyalty points – a points system created out of partnership with other businesses. These loyalty points are used to redeem gift items, specialty foods and other products or services.
”The textbook Essentials of Systems Analysis and Design states that “once a potential project has been identified, an organization must determine the resources required for its completion by analyzing the scope of the project and determining the probability of successful completion” (Valacich, 2009, p.
51). While several departments will be involved in the production of the Frequent Shopper Program, the Sales and Marketing team will be doing the heavy lifting in the roll-out (Kudler Fine Foods - Intranet - Sales & Marketing: Sales Plan 2007, 2009). This roll-out includes:
• In-depth training on data analysis
• Direct mail and word-of-mouth promotions
• New software systems
• Reduction of costs from foods
• Reduction of the amount of food ordered and stored
• Creating a zero stock policy
Support Measures for Success
The KFF Frequent Shopper Program correlates with having better information management. This primarily comes in the form of the purchasing patterns of customers. The first measure of success will be through totaling customers who sign up for the program. Once a customer is in the program then purchasing patterns can begin to be
evaluated.
The result of this will be to better determine what products will be placed on the shelves. More desired products on the shelves should equal more revenue.
Summary of Project Feasibility
Given the success of the current three Kudler Fine Food stores it is likely there are some loyal customers. Offering the customer added value to their product purchases and store visitation may increase and shopping frequency and loyalty. In addition this allows for KFF to cater to these customers through tracking purchases. Balancing the cost of software and marketing with the savings created through focused wholesale purchasing – the budget should balance in the interim and increase revenue in the long-term. Bibliography
Kudler Fine Foods - Intranet - Sales & Marketing: Sales Plan 2007. (2009). Retrieved January 2011, from Kudler Fine Foods - Intranet: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/sm/salesPlan.htm stakeholder definition. (n.d.). Retrieved January 2011, from BusinessDictionary.com: http://www.businessdictionary.com/definition/stakeholder.html
Valacich, J. S. (2009). Essentials of Systems Analysis and Design, 4e. Upper Saddle River: Pearson Eductation, Inc.