November 18, 2011
Karen G. Knox
Kudler Fine Foods was first established in 1998 by Kathy Kudler in the San Diego, California metropolitan area (Kudler’s Fine Foods (2004). Today there are three locations, the first location to open in 1998 was La Jolla, second to open in 2000 was Del Mar, and third to open in 2003 was Encinitas. Each 8,000 square foot store is stocked with the very best domestic and imported foods and wines. Kudler prides itself on using the finest and freshest organic ingredients, which they purchase from local organic farmers.
Kudler Fine Foods’ new Frequent Shopper Program is a loyalty point program, Point-of-Sale (POS), which tracks customer purchases awarding loyalty points to customers by providing valuable incentives that can be redeemed through the rewards program on products or services’.
Price is not the primary objective for Kudler’s customers, their main focus for shopping at Kudler Fine Foods is the quality and specialized products that are not found at other stores, which is why the new loyalty program does not provide daily discounts. The basis of the loyalty program is to use the rates of each customer who returns to shop at Kudler Fine Foods and how much money is spent at each visit on specific products. Kudler Fine Foods loyalty program points can be saved and redeemed for the high end incentives Kudler’s is providing such as first-class airline upgrades, specialty foods, etc.
The loyalty program is an electronic database that monitors, records, stores, and reports customer purchases that retain to the loyalty program. Kudler Fine Foods benefits in the ability to track customers frequently purchased products through the generation of reports showing new or seasonal product trends allowing for a prediction in future purchases throughout the year, which all increase revenue and sales.
The initial meeting with stakeholders and Team C Designs, the scope and goals of the project were discussed as well as outlined for the Frequent Shopper Program. The integration of the new program needs to be compatible with the current POS used at Kudler Fine Foods locations.
In the Frequent Shopper Program there will be individual reward cards issued to each participant (customer) and with each transaction the card will be presented in order to gain loyalty points.
Frequent Shopper Program Expectations * A focus on quality and specialized products customers purchase or are interested in. * New customers’ * Assurance that customer information being provided will remain private and confidential.
With the implementation of the new program it should yield a 3% investment of the 2006 annual profit, which is roughly $45,000 in capital expense as well as a $25,000 yearly maintenance cost and the redeemable reward products and services. The budget allows for Kudler Fine Foods to offer high-end incentives to the participating customers.
Measures for Success
Kudler Fine Foods uses numerous techniques to establish their competitiveness in showing off their current and future economic success by always providing customers with the finest quality foods as well as the best services possible. In providing customers a friendly atmosphere, and unique, specialty foods and products ensure customers satisfied return. Customers of Kudler, shop their location for the companies’ quality products and foods they offer and with the integration of the new Frequent Shopper Program furthers Kulder Fine Food customer appreciation.
Kathy Kudler will advertise specials within the local newspapers at each location and to make sure all advertised products are stocked Kathy coordinates with each locations manager weekly. By monitoring the local advertising specials allows for Kudler Fine Foods to track the volume of customers and the products that sell. If necessary, products can be traded between the stores in order to