Kudler Fine Foods uses a loyalty program which, as it currently stands, serves to “increase the consumer purchase cycle as a means to increase the loyalty and profitability of its consumers,” (p. 1, University of Phoenix, 2007); management is proposing the implementation of a new multi-media shopping cart that will appeal to the high-end clientele as well as track more customer data and improve sales. The Media cart gathers key information that will enable the marketing department to customize better the shopping experience, making use of in-store advertising, and collect data related to consumer activity (Media Cart, 2010). Although the initial investment in the carts may seem high, the return on investment will include increased customer sales, satisfaction, and loyalty. The Need for ChangeKudler Fine Foods currently has control of the market in this area for imported products; this has a high-end clientele who need exceptional product.
New technology and advertising have become commonplace in American society, these two factors can influence customers into taking advantage of sales and buying products they did not know they wanted through the use of Media Carts. According to the makers of Media Cart, approximately 70% of consumers make product brand decisions at the point of purchase in the store and the Media Cart allows advertising at the time of purchase, thus improving the chance of impulse buys and branding influence. The Media Cart system integrates with the loyalty program to track frequent purchases, interacting with the customer to ease the shopping experience (Media Cart, 2010). The collection of data for the marketing department includes what customers check the prices of, where they stop in the store and for what amount of time as well as what advertising influenced their purchases.
Kudler and the Four Dimensions of ChangeThe four dimensions of change include strategy, resources, systems, and culture (Leban & Stone, 2008); these four dimensions need to balance and align to create effective and lasting change. The strategy includes deciding on the amount of carts to purchase, how the implementation of the program will occur, the collection of data and its uses, and what the store’s goals are. The resources include the customers, the employees, the technology of the Media Carts, and the financial investments. The systems in place include the relationships between the different departments and the methods of communication that have already proven to work, including daily briefings and internal e-mail. This communication system will be important when the different managers communicate their needs to determine sales and the entry of those items for sale into the computer system. The culture that Kudler has in place is already consistent with a family, continued open communication and shared values regarding the customer will help to maintain this dimension of change (Leban & Stone, 2008).
Application of the Project Manager ApproachThe project manager approach for the implementation of the Media Cart use and data collection includes training of the customers, training of the employees, gathering of data, and organization of collected data. The marketing department managers will develop a schedule and program for implementation of the Media Carts and interpretation of the collected data. Managers will develop a plan for the training of employees regarding the proper use of the carts, care, and maintenance; the employees will assist customers and help to create a one-on-one training experience.During the customer implementation period there will be two customer trainers available to explain the use of the cart and encourage customers to try the new technology. The advertising will reflect the new technology and encourage customers to create their shopping lists online through the website using their customer loyalty cards.
Customers who take advantage of the new technology will receive a discount; this can be offset by premium advertising spots sponsored by the product manufacturers. Return on Investment for Media CartsAs mentioned in this report, the return on investment is not immediate but there are long-term advantages to using the Media Cart. The advertising and suggestions made to the consumer can cater to reducing excess inventory before spoilage occurs, improving the effectiveness of sales, and introduce consumers to brands which may interest him or her; these directives can increase sales and decrease loss. The on-board navigation system will help customers to find the products they are seeking; this allows the customer to find products without taking time from the customer service employees. Use of the navigation system also allows customer to find what products they are looking for; if they find the product at Kudler they are less likely to go to another store and give the sale to a competitor.
Long-term, the cart also can be part of an expedited check out system that decreases congestion during the check out process (Media Cart, 2010). Consumers scan items as they put them into their carts and directly into bags. At the end of their shopping experience, they move the cart onto the scale to check for accuracy and for additional items, before they pay and leave; this process could save money by reducing customer service personnel.The customer saves time through the use of the built-in navigation system, the system directs the customer through the store to the correct location of the product he or she is seeking. The customer also can perform price checks at the cart; he or she receives product suggestions as well as recipes and serving suggestions. Through interaction online or using a telephone-based application the customers can also upload their shopping list to the cart.
This cart allows the customer to believe he or she has control of his or her shopping, creating a positive shopping experience.Use of the Media Cart will help the operations department with ordering based on customer interaction with products. Understanding customer habits will assist in reducing waste; the operations department will focus on the products the store needs to sell through direct and focused advertising on the Media Cart at the time the customer is passing the product in question. ConclusionThe customer loyalty program run by Kudler Fine Foods has been satisfactory in creating customer loyalty and improving return customers and more sales; however, there is room for improvement.
The use of the Media Carts should help cater to the individual needs of the shopper while improving the loyalty program. The four dimensions of change are already in place, the store has the strategy, resources, systems, and culture to support the changes. The management teams will work together to implement the new system and train the employees as well as the customers. The return on investment will prove lucrative over time when the customers find the products they are looking for with the help of the Media Cart.
