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Kudler Fine Food’s Frequent Shopper Program

1140 words - 5 pages

Kudler Fine Food’s Frequent Shopper Program
Steve Engelhart
BSA 310
July 29, 2010
Caleb Green

Kudler Fine Food’s Frequent Shopper Program
When customers go into their local grocery store, they will undoubtedly be invited to participate in some sort of shopper-benefit program. Some of these programs will give the consumer discounts on different items or allows them to accrue points that can be redeemed for discounts on other products offered. Kudler Find Foods is considering implementing an online Frequent Shopper Program that will rewards its customers with deals and discounts on many of their products. A Frequent Shopper program can go a long way to building customer loyalty ...view middle of the document...

So either Amazon or Open Market is not enforcing the patent, or all online retailers are paying these companies for the right to sell their products online. Many patents are so similar and convoluted that it will be necessary to involve a lawyer to decipher what they cover and the implications to the company. What this means is that Kudler Fine Foods needs to hire someone to research potential patents that relate to Frequent Shopper Programs to avoid infringing on another companies intellectual property. In doing some quick research Kudler Fine Foods will find that a patent related to this technology has been filed by International Business Machines Corp (IBM). IBM holds patent 6415261 which describes "A method for managing a frequent shopper program at a site providing both electronic commerce (e-commerce) shopping and in-store shopping" (Cybul, 2002). Kudler Fine Foods will need to work with its lawyers to ensure that the Frequent Shopper Program does not violate this or any other patents related to this technology.
With any online business venture security needs to be a top concern. There are many ways for information about Kudler Fine Foods clients to be stolen and later misused. These types of security breaches are not only bad for building customer trust; they can results in fines levied against Kudler Fine Foods. For instance, the company TJK was fined nearly $900,000 by Visa for a security breach in summer of 2006 (Schuman, 2007). Basically VISA declared that TJK did not take adequate steps to prevent credit information from being stolen. So when setting up a Frequent Shopper Program, Kudler Fine Foods needs to investigate any areas where sensitive information related to its customers is stored and accessed. Many companies hire outside contractors to evaluate the security of their information systems which maybe something that Kudler Fine Foods should investigate before implementing this new program to avoid security breaches resulting in fines.
The final step that Kudler Fine Foods needs to perform before creating a Frequent Shopper Program is to financially justify the cost for creating this system. To deploy a Frequent Shopper Program, Kudler Fine Foods will need to invest in new software development, update to information systems, marketing, sales research, and employee training. All of these steps will incur a sizable cost and should not be started until Kudler Fine Foods has proven that this program will have an economic benefit. A Frequent Shopper...

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