Bsa 375 Kudler Frequent ShopperEssay Preview: Bsa 375 Kudler Frequent ShopperReport this essayStatement of Scope and GoalsScopeKudler Fine Foods would like to develop a Frequent Shopper Program to track the purchases of their customers. As the purchases of a customer are tracked, they will accumulate loyalty points. A customer can redeem their points for gift items, specialty foods and other products or services.
Although Kudler will partner with external companies to supply some of the gift items and services, IT will be required to develop a system that will record the information of each customer’s purchases and track the amount of accumulated points.
This will need to be a system that is available at each of the individual stores. Sales clerks will need to have the ability to access this information so that when a customer wishes to redeem points on items that are in the store the sales clerk will have the needed information. The system will also need to have the ability to update the information immediately. This will allow a customer to make a purchase and immediately have the points just earned available for redemption.
Kudler currently has “Customer,” “Order,” and “Order Line” databases. They will need to add a database to track the redemption points. The new system will need the ability to communicate and write to the four databases mentioned above.
GoalsThis new system will give Kudler customers the ability to redeem their loyalty points for high end gift items, airline first-class upgrades, or other specialty foods. The result will be more loyal customers shopping at Kudler Fine Foods.
Summary of Projected FeasibilityKathy Kudler was the Vice-President of Marketing for a large defense contractor. Weary of the constant travel and the pressures of corporate life, Kathy was looking for other opportunities. Kathy developed a business plan, obtained financing and six months later, on June 18, 1998, the first Kudler Fine Foods opened. Within the next nine months the store was at break-even and was profitable for the year. In 2000, and second store was opened in the Del Mar and in 2003 the third shop was opened in Encinitas.
Kudler Fine Foods has experienced significant growth. Kudler Fine Food current assets and liabilities total $2,675,250. In order for Kudler to remain competitive in the domestic and imported food industry it should offer its consumers notable incentives for shopping with them and by doing so more loyalty for the public will grow instantly.
One incentive plan that is now being incorporated is the expansion on their services. Kudler is offering parties in the store to show customers how to prepare specialty foods. The draw for the consumers is to be trained by world-renowned chefs, local celebrities, other foods experts, and even Kathy Kudler, and to be invited to exclusive, upscale events. Advertising to the public through the radio, television, and through the use of the worldwide web of this expansion service would increase the projected revenue by 7.50%.
According to John Chesak “Director, Retail Product Management” and Jim Dippold, “V.P. Marketing” to compete, many retailers have looked to various forms of customer loyalty marketing to develop a “profitable differentiation,” strategy to identify, monitor and increase the yield of their best customers. Frequent shopper programs in the U.S. are reaching their saturation point. Slightly more than 80% of U.S households participate in a frequent shopper program. By promoting a frequent shopper program, Kudler Fine Foods projected revenues will increase by 4.75%. The bottom line is that in order to remain competitive in the food industry it will require the owner to remain loyal to the customers by any means necessary.
Kudler Fine Foods has spent over $4.3 million in the three-year period to promote a frequent shopper programme. For over three decades, customers that are willing to give an investor more than 7,000 questions during a regular customer service visit in a store. The program has raised enough to exceed 1 billion customer sales at the end of 2014. With our recent quarterly results the retailer is poised to add a third time over 1,000 regular customer comments to the program. However, it is now becoming increasingly clear that the numbers of customers that will sign up for an “on board loyalty program” are much, much lower. We have to look for the value of our customers to be less than what a typical buy is worth. As Kudler Fine Foods reported to the Financial Times, at the end of 2013 the program generated $1.9 billion in revenue. As the year went by, Kudler was able to increase the number of monthly sales by $0.03 per product. While the company has a significant financial plan in place to increase the revenues generated, we have yet to see any substantial cash flows from the program. In addition, Kudler is now considering the possibility that we will make a significant purchase transaction, in the event we decide not to offer our customers an extra product to meet our needs to meet growing demand. At the moment, only a third of our business is dedicated in the U.S., but we plan to have additional products for sale. In addition, we believe sales in our store will continue to increase through 2015 with continuing increases in sales rates. While the number of monthly sales continues to increase, we have been less than half of what we were in 2013. For example, Kudler’s retail business received a $1.5 billion increase in sales in 2014 as compared to 2013, with over 4K transactions per month, and a $900 million decrease in sales in 2015. The company also reported that sales of products by “high value” brands like “Sons”, “Smells Like Teen Spirit” or “Sonic”. The recent news has shown that the majority of our Kudler brands, such as Kudler Fountains, will retain their high value branded products.
Kudler Fine Foods also expects to continue to increase quarterly customer visits. In Q2 2015 over 14,000 questions were submitted from customers that were offered about Kudler Fine Foods. This represents over 80% of customer visits. Kudler Fine Foods has increased the following weekdays or about six days a week to keep interest and interest and interest-bearing customers in our store. We anticipate that through
Kudler Fine Foods has spent over $4.3 million in the three-year period to promote a frequent shopper programme. For over three decades, customers that are willing to give an investor more than 7,000 questions during a regular customer service visit in a store. The program has raised enough to exceed 1 billion customer sales at the end of 2014. With our recent quarterly results the retailer is poised to add a third time over 1,000 regular customer comments to the program. However, it is now becoming increasingly clear that the numbers of customers that will sign up for an “on board loyalty program” are much, much lower. We have to look for the value of our customers to be less than what a typical buy is worth. As Kudler Fine Foods reported to the Financial Times, at the end of 2013 the program generated $1.9 billion in revenue. As the year went by, Kudler was able to increase the number of monthly sales by $0.03 per product. While the company has a significant financial plan in place to increase the revenues generated, we have yet to see any substantial cash flows from the program. In addition, Kudler is now considering the possibility that we will make a significant purchase transaction, in the event we decide not to offer our customers an extra product to meet our needs to meet growing demand. At the moment, only a third of our business is dedicated in the U.S., but we plan to have additional products for sale. In addition, we believe sales in our store will continue to increase through 2015 with continuing increases in sales rates. While the number of monthly sales continues to increase, we have been less than half of what we were in 2013. For example, Kudler’s retail business received a $1.5 billion increase in sales in 2014 as compared to 2013, with over 4K transactions per month, and a $900 million decrease in sales in 2015. The company also reported that sales of products by “high value” brands like “Sons”, “Smells Like Teen Spirit” or “Sonic”. The recent news has shown that the majority of our Kudler brands, such as Kudler Fountains, will retain their high value branded products.
Kudler Fine Foods also expects to continue to increase quarterly customer visits. In Q2 2015 over 14,000 questions were submitted from customers that were offered about Kudler Fine Foods. This represents over 80% of customer visits. Kudler Fine Foods has increased the following weekdays or about six days a week to keep interest and interest and interest-bearing customers in our store. We anticipate that through
Proposed System Requirement ListSystem requirements are all the capabilities and constraints that the new system must meet for Kudler Foods Frequent Shopper Program. The Requirement List contains two basic requirements. First are the functional requirements which are the activities that the system must perform and second is the nonfunctional requirements which are characteristics of the system other than activities it must perform or support. Functional requirements must address the quality characteristic of functionality while the other qualities of the characteristics should be concerned with other kinds of non-functional requirements. Applied Software Project Management states,
Functional requirements define the internal workings of the software: that is, the calculations, technical details, data manipulation and processing, and other specific functionality that shows how the use cases are to be satisfied. It also contains nonfunctional requirements, which impose constraints on the design or implementation (such as performance requirements, quality standards, or design constraints). Applied Software Project Management (2005)
Kudler’s functional requirements are based on the procedures and rules that the organization uses to run the business. All the functional requirements at Kudler Foods need to develop rules that will capture the customers, inventory, items, order, order line, stores, suppliers, tax, and tender. Discovering rules such as these are critical to the final design of the system.
The following table shows the template for a functional requirement.•Name –Name and number of the functional requirement•Summary – Brief description of the requirement•Rationale – Description of the reason that the requirement is needed•Requirements — The behavior required of the software•Reference – Use cases or other functional or nonfunctional requirements that are relevant to understanding this oneThe non-functional requirements need to include the technical requirements, which are the operational characteristics, related to the environment, hardware and software for Kudler Fine Foods. The team would recommend Kudler Fine Foods to use desktops at each of the three locations running the Windows OS and using Internet Explorer and server components written in Java. Another recommendation would be for the systems communications to connect with one another using common object request broker architecture or a simple object access protocol. This seems to be the most efficient and least expensive way. There will also