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Kudler Fine Foods Frequent Shopper Program

1008 words - 5 pages

Running Head: Kudler Fine Foods

Kudler Fine Foods
Frequent Shopper Program
University of Phoenix

Kudler Fine Foods is a gourmet food store with three locations through the San Diego area. Kathy Kudler is the founder of this gourmet food industry that one day envisions a fantastic future creating a food business that could delight the taste of many people in a healthy and unique way.

For the last decade E-Commerce has became a sensational way of shopping, but Kudler Fine Foods currently does not have any type of e-commerce technology that will allow Kathy to expand her business services. Kudler Fine Foods website lacks online products ordering. The website is very poor and only ...view middle of the document...

Frequent shopper programs allow consumers to earn points as part of a reward program, and such points can be redeemed for percentage discounts on future purchases, free gifts, and other rewards.

Frequent Shopper Program is a sales plan that will aid the store to succeed in increasing customer loyalty by offering added high-margin services and by tracking customer purchase behaviors (Apollo Group, 2008). The objective of Kudler Fine Foods is to increase revenue through the expansion of services.

The Kudler Fine Foods Frequent Shopper Program will work by giving incentives points to the customer through a partnership with a loyalty points program. Every time a customer buys anything at the store, they get incentives points that could later be redeem for high end gift items, airline first-class upgrades, or other specialty foods (Apollo Group, 2008). These points are accrued in direct proportion to the amount spent, and as such are equivalent to a percentage price reduction (ICLP, 2006)

But how exactly will the Kudler Fine Foods Frequent Shopper Program select their customers? The strategy is to target existing customers and also new customers by sending mailers to high-income zip codes since Kudler does not believe that customers are interested in discounts. Also this strategy includes the notion that word of mouth attracts customers.

In order to deliver increased value to customers, Kudler will benchmark Nordstrom department stores, it also will be necessary to upgrade technology and personal in order to bring down cost, labor, and increase productivity.

Then the marketing process will analyze how product, pricing, promotion, and place pertain to sales objectives.
• Product: During the first quarter the most important thing to do is determine what the consumers want. This is to be done by adjusting the prices of products that are on the store’s shelves.
• Pricing: Once Kudler Fine Foods has the result of the products it is going to offer it should concentrate in a pricing strategy, by analyzing prices of their competitors. Two considerations are to be noted. The prices for those products that are different between...

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