assignment refers to Service Request SR-kf-013, Develop Requirements for Kudler Fine Foods Frequent Shopper Program. Similar to the individual assignment, please ignore the “Expected Results/Impact when completed” section of the service request and focus your answer on addressing the items listed below. A link to the Virtual Organizations can be found on the course Materials page.
The Learning Team will prepare a 12-16 page paper for the complete project which will be turned in on Week 5; assume that the paper is to be delivered to an executive management committee. You will complete a draft section each week and you will receive feedback that you can incorporate into the final paper. Weekly draft papers will not be graded.
- Review the Service Request SR-kf-013 for Kudler Fine Foods.
- Draft the first 3-4 page section of the paper to include the following:
- Statement of Scope and Goals: Specify what functions will be included in the project. Identify the goals for the new system (accomplishments you want to meet and not solutions).
- Supporting Measures for Success: Specify tangible measures for determining the relative degree of success of the completed project. The measures must correlate with the goals specified in the first section of this deliverable and they are related to the success of the IT solution.
- Summary of Project Feasibility: Include specific operational, technical and economic feasibility analysis. Operational and technical issues should specify how each issue will be addressed. The economic analysis must include quantified specific benefit and cost areas (assume you have evaluated specific areas and provide your recommendation based on the results of the evaluation).
- Determination of Requirements: Identify the specific analysis methods which will be used to determine user needs.
Copy/Paste the Visio diagrams into your Word paper and also include the original Visio file as part of your assignment and not just the embedded chart.
Continue the draft development paper 4-6 pages to include the following item. Include descriptions to clarify your models:
- Proposed System Requirement List: List specific individual system and application requirements in verifiable and objective terms.
- List of Confirmed Requirements: Categorize each system and application requirement identified for the Week Two as “mandatory” or “optional.”
- Current Business Process Summary: Provide a high-level logical data flow diagram of the current process and explain the process. (Show who does what).
- Logical Model of the System: Provide a high-level logical data flow diagram of the proposed system. Explain how this flow is different than the one from the current process discussed on the bullet point above.
Draft the next 4-6 page section of the paper. This should include:
- Design Trade-off Approach: Specify the tradeoffs among cost, schedule and performance you evaluated and explain the logic for your final hardware & software solution. For example, a fast, inexpensive solution may not address performance requirements adequately. (chapter 8)
- Detailed Design Process and Design Specifications: Specify recommended decisions for software, hardware, network(s), and communications. Include resolution of HCI considerations.
- Physical Model of the System: Illustrate and explain the recommended proposed architecture diagram.
When saving this assignment, name it with the team name followed by the letters “wk4”. For example, if your group is Team A, this assignment should be saved as “TeamA wk4.doc”. Copy/Paste the Visio diagrams into your Word paper and also include the original Visio file as part of your assignment and not just the embedded chart.
|Service Request SR-kf-013
Develop Requirements for Kudler Fine Foods Frequent Shopper Program
Organization: Kudler Fine Foods
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 THIS***********
Create a business/systems requirements document for the development of the Frequent Shopper Program system to meet the objective of this request.
Kudler Fine Foods
Kudler Fine Foods is a local upscale specialty food store located in the San Diego metropolitan area. The company has three locations (La Jolla, Del Mar and Encinitas). Each store has approximately 16,000 s.f. of retail space located in a fashionable shopping center. The stores are stocked with the very best domestic and imported foodstuffs and divided into the following departments:
- Fresh Bakery and Pastries
- Fresh Produce
- Fresh Meat & Seafood
- Condiments and Packaged Foods
- Cheese’s and Specialty Dairy Products
- Our founder, Kathy 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. As it happened, Kathy relieved her stress through gourmet cooking and on a shopping trip for ingredients for a gourmet repast, she suddenly realized that there was an opportunity for an upscale epicurean food shop in La Jolla.
- Kathy developed a business plan, obtained financing and six months later, on June 18, 1998, the first Kudler Fine Foods opened. Within nine months the store was at break-even and was profitable for the year.
- In 2000, a second store was opened in Del Mar and in 2003 our third shop opened in Encinitas.
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Download Kudler Fine Foods Access Database
Sales & Marketing
|Home | Marketing Overview | Sales Plan – 2007 | Market Surveys | Communications
|Kudler Fine Foods has experienced significant growth and is now focused on expanding the services, improving the efficiency of its operations and increasing the consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers.
Strategic Objective: Increase Loyalty and Profitability of Consumers
Historical Sales Data and Financials
Historically, Kudler Fine Foods has tracked information such as dollar value and profit margin per transaction, dollar sales and profit levels by day, and dollar sales and profit margins by item. However, in an effort to leverage the information to create a more intimate relationship with their customers, the firm is integrating a system to track customer purchase behavior over time. The firm is in the process of developing this system now.
The marketing budget is primarily comprised of new initiatives, marketing communications, and marketing research.
Marketing Communications activities include:
Marketing Research expenditures include:
Within the next 12 months, Kudler plans to increase customer loyalty by offering added high-margin services, leveraging the firm’s better understanding of customer purchase patterns, and providing more efficient operations. Profitability will also be increased by cost reductions accomplished through supplier partnering programs. New customers will be acquired through social network marketing and word of mouth.
|Copyright 2004 © by Apollo Group, Inc.
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:
Summary of Project Feasibility
Assessing the feasibility of the Frequent Shopper Program enhancement is an important step for Kudler Fine Foods to determine the chance of success for the project. A “feasibility study focuses on helping answer the essential question of should we proceed with the proposed project idea?” (Hofstrand & Holz-Clause, 2009). Three specific types of analysis have been used to determine the project feasibility: operational, technical, and economic feasibility.
Operationally, the Frequent Shopper Program should integrate into the existing workflow without any significant problems to operations. The functionality of the new system will require only a small amount of user training so there is no issue with computer competency. There will also be no loss of control by the staff or management; in fact the change will bring an added level of customer interaction which could enhance customer attitude at the point of sale. This change will also not negate or change any existing workflows that are critical to the mission success of operations.
Though the design of the network infrastructure is aging, the addition of a Frequent Shopper Program will have little to no impact on existing capabilities. As long as all of the risks involved in developing the system are identified, the development team should have no problems in designing a successful program. The program will likely be developed as an enhancement to the current POS system so that it will easily integrate with existing key components. Kudler also utilized a POS server, which would be a good staging ground for the Frequent Shopper database.
The economic feasibility has been determined by performing a cost/benefit analysis. The cost /benefit analysis has helped the project team in determining whether or not the proposed program will be beneficial to the company. The project team identified the total expenses of the project by looking at available resources and estimated development costs. An analysis was also performed to determine the total benefit that the new program would be to the organization. It was determined that if the development and implementation of the program were a success, the organization would bring in at least a 16% return on investment.
System Requirements for Frequent Shopper Program
There are various types of proposed system requirements, which should be taken in consideration by the Kudler Fine Foods. A system requires to be developed in two sides or the areas i.e. hardware and software. Hardware is related to the development of the system; while software is related for the tracking and the information database. The following are the layers or the requirements to establish hardware system for the implementation of the ‘Frequent Shopper Program’ –
The company also necessitates some software to increase the effectiveness of the program. The software such as tracking software, data storage software can be used to heighten the efficaciousness of the program. The management of Kudler Fine Foods can also use the ‘Customer Relationship Management’ (CRM) software for its frequent shopper program because the main objective of the program is to increase the sales and the profit of the company.
The CRM software will help to reduce the cost of direct marketing and will increase the revenue for Kudler Fine Foods. With the help of this software, the customers can be identified easily, which will cause an increase in the profits of the company. It will also help to increase customer retention. The security software will help to protect the firm from the hacking of information, of the clientele (Tipton & Krause, 2006).
In this way, Kudler Fine Foods can implement its frequent shopper program in a more effective and efficient way.
In order to connect with the organizations customer base, Kudler Fine Foods has recognized the need to integrate a frequent shopper program to increase loyalty. With returning customers, Kudler will be able to develop long-term relationships that will both benefit the company and the customers who will receive perks and pricing advantages. The organization is also read to take on the task of designing and developing the system, the project team has completed the initial task of determining the requirements and feasibility, and will begin to come together to move the project forward. With a little bit of careful planning and a good management team, the new frequent shopper program will be a great success.
Tipton, H.F. & Krause, M. (2006). Information Security Management Handbook. CRC Press.
Hofstrand, D. & Holz-Clause, M. (2009, October). What is a Feasibility Study? Retrieved January 17, 2009, from http://www.extension.iastate.edu/agdm/wholefarm/html/c5-65.html
Reynolds, J. (2004). The complete E-Commerce Book: Design, Build & Maintain a Successful Web-Based Business (2nd Ed.). Focal Press.
Kudler Fine Foods Frequent Shopper Program
Kudler Fine Foods is a very popular food store located at different parts of California. The main objective of the store is to have profit maximization by providing quality products at appropriate prices in comparison to the other competitors. Through this objective, the store wants to have significant growth. The company now wants to expand its services by improving the efficiency of its operations. It also wants to increase the loyalty and profitability of its consumers by increasing the consumer purchase cycle. Now Kudler Fine Foods wants to expand its business through the utilization of a Frequent Shopper Program. The Frequent Shopper program is currently in design with a working high-level model up for proposal.
Proposed System Requirements List
Legal Considerations of Frequent Shopper Program
Doing the business through Electronic Commerce, Kudler Fine Foods has to consider several legal considerations in the development of its Frequent Shopper Program. Electronic contracts for online business transaction are legally bound all over the world. There are several Legal Considerations in the E-commerce which are as follow:
The mentioned Legal Considerations are required to be considered under the Frequent Shopper Program of Kudler Fine Foods Store.
Ethical Considerations of Frequent Shopper Program
In addition to the legal considerations, the business organizations have to implement several ethical considerations in their frequent shopper. Some of the important ethical considerations are as follow:
Thus, these are the major ethical considerations which Kudler Fine Food Store should include in the development of its frequent shopper program under electronic commerce.
Security Considerations of Frequent Shopper Program
In addition to the Legal and Ethical Considerations, Kudler Fine Foods Stores is required to implement the most important aspect of E-Commerce in its Frequent Shopper Program which is a security consideration. These considerations are a requirement to the project. The main Security Considerations are as follows:
Thus, the given Security Considerations are very important for Kudler Fine Foods Store for the development of its Frequent Shopper Program.
For the development of the Frequent Shopper Program, the store will have to make expenditures in different fields. The main expenditure fields will be related to marketing. Under this, the expenditure on advertising and market research will be major fields of expenditure. The store would have to make some expenditure on the online registration and website development. Some other expenditure would be the fulfillment of legal formalities.
The justification of all these expenditures can be done by the financial analysis of all the expenditures. The Financial Analysis of the expenditure can be done by making the budget of all the expenditures and revenues of the store. By the analysis of this budget, the store would be able to know that either the expenditures would increase the revenue of the store by comparing the revenues of the last years. If the revenues will be higher than the past year, the expenditures will be favorable for the store. The revenues can also be compared with the sales plan of the store.
Thus, with this Financial Analysis Kudler Fine Foods Store would be able to justify to all its expenditures for the development of Frequent Shopper Program.
Current Business Process Summary
Logical Model of the System
The inclusion of the Frequent Shopper module into the existing system will provide a few changes to functionality and workflow. In the new model, the transaction is initiated with the customer being asked about enrollment in the Frequent Shopper program. If the customer is not enrolled, they have the option to sign up and obtain a card immediately at the point of sale. If present, the card is swiped into the system to retrieve any existing Frequent Shopper points that the customer is able to utilize if they choose. At the end of the transaction, updates to the customers Frequent Shopper points will be printed on the receipt. The transaction information will eventually be trickled up to the POS server database which will have new canned reports used to help determine new rewards based upon customer purchasing habits.
Based upon the requirements, the logical flow of the system has been designed to provide the most minimal impact to the workflow. The new system will slightly increase the time that the customer spends at the check-out register, but the majority of this delay will occur only on the customer’s initial enrollment into the program. The delay to the workflow will eventually even out as more customers are enrolled in the program and the store staff becomes familiar with the process. The design will also give a few new reporting tools to management and they will be able to identify trends and adjust the program around the data collected to maximize the programs efficiency.
Here is the comments from the instructor about our week 2 assignment:
The paper includes very good sections on goal/scope as well as
Need your help getting week 2 week 3 revision and complete week 4 please APA style and provide