Kudler Fine Foods (KFF) is a gourmet food store that provides the finest baked goods, meats, cheese, produce, dairy, and wine. Kathy Kudler founded Kudler Fine Foods in 1998 after she discovered there was not a gourmet food store in her neighborhood. The company offers include a variety of quality fruits, vegetables, wines, and cheeses. Kudler Fine Foods has locations in La Jolla, Del Mar, and Encinitas.
Kudler Fine Foods is a specialty food store situated in San Diego. The owner has three store locations in San Diego's metropolitan region. With its fast growth, Ms. Kudler found that there are new ways and marketing strategies that can ensure the expansion and gain more consumers. Therefore, she came up with new marketing program that is frequent shopper program in order to focus more on customer loyalty. However, there are number of other issues involved including legal, ethical and information system security which are needed to be taken into consideration in order to fulfill company's social responsibilities. Furthermore, the financial analysis is also considered to be the most important in planning the program (Apollo Group, Inc., 2007).
Frequent Shopper Program
In consideration of sales and marketing strategies of Kudler Fine Foods, the main purpose of Frequent Shopper Program is to evaluate the purchasing behavior of customers and offer different incentives on a loyalty points program. Many stores focus on providing discounts to customers based on the number of purchases but Kudler Fine Food does not need to gain more customers as they already got large number of satisfied customers. In this consideration, it came up with new frequent shopper program. The store created partnership with existing loyalty points program that would be provided to customers and get high end gifts by redeeming those points.
In this way, Kudler would be able to improve its inventory and ordering processes by offering high quality customer service and also develop customer loyalty. The program will be run on web-based platform which is more beneficial for both customers and Kudler. Customers are supposed to provide their personal information in the system in order to let the Kudler to maintain customers' records in terms of individual purchase and also keep track of loyalty points redeemed by each customer. Incentives can include Gifts for example foods, and/other products or services from local businesses. Kudler is joined with other companies that provide expensive and high standard items for redeeming gifts like specialty food items and airline upgrade (Apollo Group, Inc., 2007).
Considerations for the Development of the Program
Legal Issues
The store may face legal issues concerning the privacy of personal information of customers. There is a legal contract or agreement between Kudler and its customers that the information will be kept confidential and signed by the store authority and customers. Fail to execute any contract term whether oral or written, without a legitimate legal excuse. Any breach of contract can lead to law suit for the store. In order to avoid these issues, Kudler should communicate proper ...