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|Service Request SR-kf-013 |

|Develop Requirements for Kudler Fine Foods Frequent Shopper Program |

|Organization: Kudler Fine Foods |

|Locations: All |

|Requester: Manager |

|Description of Request: |

|Kudler Fine Foods is interested in developing a system to track customer purchases through a Frequent Shopper Program to award |

|loyalty points for redemption. |

|Background of Request: |

|The objective of this project request is to track purchases of individual customer's. The customer purchases will be tracked and |

|accumulated as loyalty points for redemption by the customer for gift items, specialty foods and other products or services as made |

|available through partnerships with other external companies. The strategic purpose of the Frequent Shopper Program is described on |

|the Sales & Marketing page of the Kudler Fine Foods Intranet site. |

|Expected Results/Impact when completed: PLEASE IGNORE |

|Create a business/systems requirements document for the development of the Frequent Shopper Program system to meet the objective of |

|this request.

Introduction

Kudler Fine Foods is a much renowned food store, established at the different locations of California. The main focus of the store is to have 'profit maximization' by providing quality products at appropriate prices, in comparison of the competitors. The firm also wants to satisfy its clientele. Through this objective, the store wants to acquire major expansion. It currently wishes to enlarge its services by attaining perfection in the operational activities. In addition, it also desires to increase the loyalty and profitability of its consumers by increasing the 'consumer purchase cycle'. The company's latest idea to increase its revenue is to implement a customer rewards program that will track customer purchases and help identify trends that will allow Kudler Fine Foods to tailor its offerings to better satisfy their customers. Prior to implementing the customer rewards program, the company will need to consider development issues while also performing a cost to benefit analysis for implementation of a successful ecommerce website.

Frequent Shopper Program

In regard to the electronic commerce, the Kudler Fine Foods Sales and Marketing Department is initiating a Frequent Shopper Program to track customer purchase patterns and offer shopper incentives through a loyalty point programs. The beginning of this program will assist the Kudler Fine Food in inspiring customer loyalty and react to customer shopping orientations. For the customers of Kudler Fine Foods, speciality items are more vital than the price of the items they are intended to purchase, so in this case rather than offering daily discounts for purchase frequency, the company has united with a loyalty points program to reward customers with redeemable points for high-value gift items, airline advances or other specialty foods.

By using a rewards program, Kudler Fine Foods will be able to track customer purchases and observe trends in those purchases. Customers will use a rewards membership card to identify themselves with the purchases they are making. After a few purchases, customers could be entitled to collect rewards like airline seating upgrades, expensive gift items, or free specialty foods. Currently, the Kudler database system includes a table for customers, but that database contains only demographic information. This database could be expanded by adding a table of transactions; this table can use a member identification number as a foreign key, which could be the primary key in the customer database.

Program Goals and Supporting Measures

The prominent goals of the Kudler Fine Foods Frequent Shopper program is to encourage customer loyalty, to better react to customer's buying demands and to augment food governing skilfulness. A successful implementation of the program should augment revenue over time by modifying loyalty and meeting customer needs and decrease costs by amending inventory procedures. The initiative should be implemented within specific time period along with the involvement of following stakeholder representatives as with their contribution the program will be implemented successfully:

Each location of Kudler Fine Food: The program needs to be initiated at each location of the Kudler Fine Food.

Purchasing Department: The Company's purchasing department is needed to use the data collected by the new program to forecast food orders.

Sales and Marketing Department: The representatives of sales and marketing department are needed to include as they will be the elementary customer of the program.

Information Technology Department: The Company's IT representatives must be concerned in development of requirements as they will help in ascertaining the feasibility of the requirement.

Loyalty points program: A representative from the loyalty point's program must be called for to describe new ideas or the experienced ideas.

Summary of Project Feasibility

Assessing the feasibility