Kudler Fine Foods Rewards Program
BSA375
April 16, 2014
Kudler Fine Foods Rewards Program
Kudler Fine Foods has been serving Southern California since 1998. Kudler offers a large array of foods, wines, and spirits. As this corporation grows Kudler would like to create a system that not only rewards the loyalty of the customer base, but also incentivizes the customer base to purchase more products and increasing sales. The system that decidedly, has been developed is one that provides customer rewards base on continuing purchase with the corporation. Kudler currently has only 3 locations in Southern California. This reward program will be implemented at all 3 stores. The system will also cost the corporation capital to develop and implement. This cost is believed to be recovered in the increase in sales over 5 years. The customer rewards system has 3 main objectives. The first is to increase sales revenue. The second is to increase customer service. The last an ultimately most important is to cut the bottom line cost expenditure.
Before the system was to be installed our analysts decided that the system that is currently in place should be analyzed. Currently Kudler Foods does not have a customer rewards system in place. Kudler Foods has weekly sales but does not offer much incentive to shop with them other than the shopping experience it guarantees. Kudler Foods does currently have a damaged container section offering discounted items with damaged packaging however those items are few. As more and more customers come in and out they regularly inquire about the wine and cooking classes that are offered by Kudler Foods. These customers often turn away when asking the price of each program. Although these programs are extremely useful and made fun by the instructors they are not bringing in enough capital to cover the cost of holding them.
Kudler has decided to put into place a system that offers customers rewards and incentivizes them to...