Kmart and Sears, have been using a product used in many retail industries, a shopper loyalty card; this is a concept that has been in the industry for decades however it is new to this organization. This proposal will present the market structure for this program, price elasticity demand for the product, profit-maximizing quantity, price and non-price strategies, and production costs. Define the current global economic conditions and their effect on the local macroeconomic indicators. Define the local economies current stage in the business cycle. Describe how the current market conditions will affect the planning or operating decisions involving the product.…
Many companies use the strategy used by Macy’s, but, usually, consumers expect more discounts and promotions in the future. In general, once the customer receives a discount or some kind of reward for engaging in purchase behavior towards a company, their expectation for future rewards increases. So, in order to make this program effective, Macy’s needs to increase the value offered to consumers. This can be done by offering customers a reasonable reward for repeat purchases. This means that the reward program should offer any type of reward that would actually make a difference for the consumer. If the company offers a $10 dollar discount for every $500 dollar spent, then that is not a reasonable discount for the consumer. In contrast, if the company offers a 10% discount for every $500 spent, then that could be a reasonable reward for the consumer. In this case, Macy’s is offering 10% off which may not be a good deal for a person spending $10 to $15 dollars in the next two days. In addition, I believe that the current program is performing well when it comes to the timing in receiving rewards because, the longer it takes to receive the benefit or reward, the less benefit would be perceived by the consumer. Also, the company should develop a program that would deliver more benefits in the long-run. Currently, the company is offering only two days of rewards. Finally, the company should develop a long-term loyalty program to maintain customers involved in the program. A good example would be a reward program that would use points which could allow customers to earn points every time they make a purchase. And, after gathering a determined amount of points, the consumer would be able to exchange those points for rewards or…
Although New England and the Chesapeake region were both of English Origin, they evolved into two different colonies. Major points such as different motives for settling, religion, and the different geography led to contrasting views. As they continued to evolve, the colonies adapted to their own unique economic, geography, and social structures.…
Our idea is to expand on the REDcard and make it more worthwhile to their customers, by adding a points reward system. Offering a points program to customers will draw in more traffic and increase revenue for Target. The program is a great way to maximize the value customers get when shopping at Target. Among this enhancement it will increase revenue and profitability by understanding and identifying customer buying habits, as well as reward customers for increasing their purchases. Research has stated that customers are more likely to spend more money in the store knowing they will get rewarded back for doing so. The points system would give one point per dollar spent, and as these points accumulate, the customer would be able to use these points as…
Watch the video, How to Perform a SWOT Analysis, and then conduct a SWOT analysis using the Starbucks’ Global Quest 2006: Is the Best Yet to Come? Case provided in the Course Materials section.…
a. Since their creation in the 1990’s, problem-solving courts have become of much interest to the legal community. Not only are these courts revolutionary in their way of processing cases, but also they are proving to have great success rates. One of the most important aspects of the problem-solving courts is how much more involved a judge is with each case. In traditional courts, a judge will most likely read off the names of the people in the docket, and simply sentence an individual according to what the DA has already negotiated. During a problem-solving court, the judge has the opportunity to get to know each defendant on a more personal level, and be able to help the defendant succeed. While results have shown that the more involved judges are, the more likely it is for a program to succeed, there is much criticism regarding the judge’s attachment to each case.…
This loyalty program aimed at regaining lost revenue and customers by discounting products (Hughes, 2017). With 40% of sales at stake, Safeway needed a strategy to ensure that customers would maintain spending habits and continue to support the corporation. In as much, Safeway predetermined that they could invest only $2 per month to maintain customer. Moreover, Safeway needed a balance solution that would gain and attract potential customer through the loyalty club card as well as not run dangers of providing offers to already loyal customers, whereby, creating cannibalization of consumers who supports the business (Hughes, 2017). By apportioning customers into two groupings principal and subordinate, Safeway could create offers attractive to potentially new loyal customers as well as maintain current loyal customers. Through the identification of the 1.2 million and segmentation of each of the group, the corporation mail out a combination of roughly 451,000 different offers to primary and secondary customers, consequently, assembling offers equivocal to each need. Examples of primary offerings consist of receiving $1 off in the cookie department as well as a free for being a loyal customer. Whereas, conditioning behavior of the secondary customer receive coupons that one gave a $1 off to shop in the…
Many would venture to say it is undeniable that Presidential campaigns and elections is something that is never fun. The amount of money, time, effort, and hard work that goes into everything can make things very demanding. In addition, not knowing if you will be victorious makes things even worse. However, presidential elections can be very jaw-dropping; as is the case with our two candidates currently running against each other. Generally, I would venture to say that no one saw this coming. A presidential race between Trump, and Hilary—two individuals that don’t sit to well with the American People. Furthermore, I believe that it has gotten to a point where if Hilary wins, there will be an uproar; and if trump wins there will be an uproar.…
The story of Starbucks transformation from a small independent coffee shop tucked away in a corner of Seattle’s Pike Place Market to a cultural phenomenon spanning the globe is legendary. A number of factors have been attributed to the success - one being a keen understanding of its patrons. There are multiple methods used to obtain customer information and the value derived therein. Customer lifetime value is one.…
This is the finale of the research. It is object is to determine the ROI. Feed back is the important step to formulate the project success. I believe Starbucks is interested in selling more products .To facilitates the disposable cash from consumers it apply a credit card payment to insure their long term strategy. A further study most be implemented to capture those who did not apply, or perhaps the most intriguing question would be a special teaser offer for those who are stubborn to go to Starbucks.…
Customer loyalty programs are extremely popular among retail. The primary features in a customer loyalty program should be make it easy, make it meaningful, make it intelligent, and make it engaging. If the loyalty program is not easy, customers won’t use it. Customers need more than the occasional freebie to feel it’s worthwhile. Make it intelligent by gathering information to better serve the customer. Data-driven rewards allow company to determine and measure the effectiveness of loyalty programs. This allows the program to be altered or…
most important feature: room upgrades, airline miles, free hotel stays, a variety of on-property benefits and services…
A simple registration with one’s personal data should be the requirement to obtain a card. Beside of that customers have to agree to the business terms and therefore the acceptance of targeted advertising in the letterbox. A certain number of special offers for card owners would change periodically and should be announced in flyers and on the website. Daily consumer products should always be taken into account for the offer to target the largest number of customers possible and therefore directly influence them to use the card as often as possible. As a matter of fact this should guarantee, that people adapt to the new concept quickly. Beside the advantage of creating a stronger customer relationship and therefore a more loyal connection to the customers, the card system allows the analysis of the baskets bought by each individual. It…
Loyalty card refers to a plastic card which is given to a customer by a business and which is used to record information about what the customer buys and to reward them for buying goods or services from the business. A loyalty card is an incentive plan that allows a retail business to gather data about its customers. Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program. A secondary goal of a loyalty card is to build repeat business by offering participating customers something that is not available to non-participating customers.…
Loyalty marketing especially in the form of loyalty cards is the big in-thing these days in the marketing space. One is handed a ―plastic card‖ even by the smallest of retail stores these days. However, it is puzzling and one fails to understand how exactly these cards help one rather than help make one’s wallet feel a bit heavy and full.…