BSA 375 KudlerShopper Learning Team Final PAPER ONLY 2015 version
1. BSA 375 KudlerShopper Learning Team Final PAPER ONLY
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Sample content
Kudler Fine Foods
Frequent Shopper Program
Business/Systems Requirements
4. 18
Business/Systems Requirements 1
19
Kudler Fine Foods
Frequent Shopper Program: Business/System Requirements
To fulfill Service Request: SR-kf-013, our design team from Team A Solutions has
come up with this proposal. This proposal sets the goals, scope, requirements,
feasibility, and data flow for the Frequent Shopper Rewards Program being
developed for Kudler Fine Foods (Kudler Fine Foods, Inc., 2008). We have
discussed schedule and budget, as well as training, implementation, and support.
This proposal also discusses the necessary upgrades of hardware and software for
the new program. When the stakeholders have been identified, it will be important
for them to approve and participate in this project, for it to succeed.
About Kudler
Kudler Fine Foods is a high-end chain of food stores from California. They have
outlets in shopping centers and upscale neighborhoods. Kudler aims to give their
“customers the finest in selected foodstuffs, wines, and related needs in an
unparalleled consumer environment….and (they) will go to extensive lengths
to assure that Kudler’s is the purveyor of choice for customers aspiring to purchase
the finest epicurean delights” (Kudler Fine Foods, Inc., 2008). Their 2007 Sales
Plan aims to raise “customer loyalty by offering added high-margin services, (new)
programs to increase loyalty and profitability of existing customers, and to gain new
high-margin customers” (Kudler Fine Foods, Inc., 2008).
Stakeholders
Correctly finding product stakeholders means that Kudler can be sure the product
includes the features that they need, so that the users and the customers are
satisfied. The people listed are stakeholders in the frequent shopper program. It
will be important to have approval and input from them throughout the project.
Company
5. Kathy Kudler – Owner/President
Harvey Stephens – Director of Finance & Accounting
Yvonne Reynolds – Director of Store Operations
Purchasing Manager – 1
Inventory Manager – 1
Store Managers – 3
Computer Support Specialists – 2
Customers
Daily Retail Shoppers - Current Customers
Solicited Customers: Part 1-C of 2007 Sales Plan - New/Future
Customers
Local – Small business and Commercial Shoppers - Revolving-
Account Customers
Third-Party
Semicron Systems: Unitech MS146 Barcode Slot Reader - Rewards POS
system vendor
SUSE Linux Enterprise Point of Service: POS system - Current POS system
vendor
Gift Card USA: Loyalty Card Program - Rewards Card vendor
Kudler Fine Foods: Product Give-a-ways/Redemption - Rewards vendor
Bon Appetite Culinary Masters: Cooking Classes - Rewards vendor
JetAir Airlines: Airline Rewards and Upgrades - Rewards vendor
6. Project Scope
This project aims to create an integrated, Point-of-Sale (POS), program for
frequent shoppers, tracking the purchases they make, and assigning awards based
on loyalty like products and services. It will help Kudler to track the items that are
often purchased, make reports, predict future trends, and gain sales and
customers.
Project Goals
After the first meeting with company stakeholders, the Team A Solutions designers
created the project’s scope, as well as the goals to make the frequent
shopper program work. The new program will need to work seamlessly with
Kudler’s POS systems. Each customer will receive a Reward Card, and
they will use these cards when they make a purchase at Kudler. The program
expects:
• more efficient focus on specialized products and quality food, thanks to
information about customers’ purchases
• new customers at Kudler stores
• safe and confidential customer information and records.
When this program is implemented, it should only require a 3% investment of
2006′s annual profits – this is about $45,000 for the initial investment, and
$25,000 a year to maintain the system and reward participants. Within this budget,
Kudler should be able to give its customers quality rewards, thereby encouraging
them to participate in the program.
Measures for Success
Kudler’s Fine Foods uses a number of techniques to help it compete, to
stay successful, and to give its customers the high quality that they expect. They
continue to give their customers a good environment and the highest selection and
value of upscale and specialty foods. This helps ensure that their customers are
satisfied and will come back. These customers want to shop in a nice place and
get quality products, and this loyalty program will help Kudler show its customers
that it appreciates them.
The local newspaper will advertise the specials that Kathy Kudler organizes,
prepares, and announces for each store. She manages the merchandise that will
7. be on sale through discussions with each location’s store managers, and
she makes sure the right merchandise is stocked. The response to these local
advertisements can be tracked, especially the number of customers and how many
products are sold. Sometimes locations will trade merchandise between stores. A
manager and assistant manager are responsible for dealing with day-to-day
matters, and different personnel work to stock and inventory their products and
make sure that they are fresh. Specialists work at each location to give customers
advice about food. This new frequent shopper database will create reports to help
forecast and buy new items, which lets Kudler be sure that the items their
customers are looking for are always in stock, to keep their customers satisfied.
Kudler also uses surveys. This feedback lets them create a database of customer
service, promotional, and product selection information about different stores and
the entire chain. Kudler uses the criticism of its customers to improve itself. They
consider a 95% customer satisfaction level to be success. Kathy will expect that
the frequent shopper program achieve the similar high level.
The company intranet tells us that Kudler Fine Foods already uses a Point of
Service module to gather and report their retail sales. This lets Kudler determine
which of their products are most profitable, as well as helping them analyze both
qualitative and quantitative data (Kudler Fine Foods, 2009). Integrating this new
program will not call for a lot of changes to the existing system, so not much
training will be necessary, as employees already know how to use the POS
system. Since not much change will occur, customers will still be satisfied, and
Kathy will want to check with her employees for feedback.
It is not easy to measure success, but it is important to do this so that the project
sustains itself and brings profit to the company. The next section discusses some
other measures of success that can be explored, and impact the feasibility of a
project.
Project Feasibility
Kudler Fine Foods aims to increase their annual revenue by 5% in the next 12
months, and in four broken-down categories. They expect to gain 1/4% during the
rollout of their project and the employee training period. They believe that the
evaluation and tweaking of the project will further increase revenue by 1/2%. This
increase will come about, in part, thanks to the promotion of this program. As
customers become more satisfied, the revenue increases, and their satisfaction will
create the expected increase of 4.75%.
8. Kathy is most concerned with the budget of the project. The frequent shopper
program will not cost much, and will ideally sustain itself. The cost of the project
should be very small, and it should create a signi
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