Kudler Fine Food frequent shopper program

Kudler Fine Foods has come a long way since they first opened their doors. The main goal of the company is to satisfy the customers' needs. Kudler Fine Foods has learned that by offering incentives for their frequent customers could increase the revenue of the company. Kudler Fine Foods must first take into consideration the legal, ethical and security issues for the frequent shopper program. Kudler Fine Foods will also need to take into consideration the financial concerns when it comes to the revenue and the cost to offer the frequent shopper program.

Kudler Fine Foods could increase the customer base through word of mouth of existing customers, which could bring in new customers along with supporting the growth of the existing customer's purchases. The frequent shopper program will offer their existing customers that shop frequently to earn points that they could redeem towards high end gift items, airline First-class upgrades, or other specialty foods (kudlerfinefoods.com, 2007). How many points each customer will earn will depend on their own specific purchasing pattern. One of several factors that Kudler Fine Foods will need to take into consideration is the legal aspect for the company to offer this type of program (Kudler Fine Foods, 2007).

In order for the Kudler Fine Foods to offer a frequent shopper program, they need research the best way to protect their customers' privacy rights. The frequent shopper program will store the customers' information into a database. The information will include the customers' personal information along with the history of their purchases. The collection and utilization of consumer data raises concerns that the privacy of the individual customers could be compromised. Kudler Fine Foods will need to follow specific guidelines, which is set up by the Food Marketing Institute (FMI). FMI is an organization that is committed to protecting the rights of consumers. Kudler Fine Foods will need to insure that the program to be offered will incorporate the fair information practices" (FMI, 2009). The practices incorporate widely accepted norms that are the basis for the U.S. privacy laws, industry, self-regulatory codes, privacy seal programs, and the privacy laws of the other countries (FMI, 200).

Kudler Fine Foods will need to inform the customers who are interested in participating in this program that the information history regarding past purchases will b collected and stored electronically. They will need o inform the customers' that the data will be used to create promotional offers, which will be tailored from their specific purchases. The most important thing that Kudler Fine Foods need to do is to make sure that the customers' involved are fully aware that the information may be shared with third party organizations. By doing this will ensure protect Kudler Fine Foods by confirming that all customers are aware of what to expect (University of Phoenix, 2009). Then the customers will have the choice on whether or not to participate in the program.

It is the responsibility of Kudler Fine Foods to prevent unauthorized access of the database, which contains the customers' personal information. Kudler Fine Foods is responsible for making sure that only those employees that need to know the information have the authority to access that information. They will need to establish a specific department that will monitor the customers' data. Kudler Fine Foods will also be required to answer any questions or concerns the customers' might have regarding the frequent shopper program. The department needs to understand and implement a business practice that will support and enforce the Kudler Fine Foods privacy policy. Any violation of the privacy policy by Kudler Fine Foods might require enforcement action under the Federal and State Protective Laws (FMI, 2000).

Even though Kudler Fine Foods has had growth, they should take into consideration of developing a financial analysis to consider the possible revenue and cost when implementing the frequent shopper program. They can input the necessary data into a balance sheet which will prepare a financial statement, which will aide in deciding if the program will be profitable for the company. They will need to have the financial analyst input the appropriate data, which is required for the marketing of the frequent shopper program. The balance sheet would compare the company assets, liabilities, and company's equity. The assets and liabilities are divided into short term and long term obligations, including cash accounts. The assets must equal the liabilities plus the company's equity. The financial analysis will be able to compare the financial strengths and capabilities of the business offering the program. The ratios of the balance sheet will show Kudler Fine Foods if the company will be able to handle the financial ebbs, the flow of revenue, and the expenses (Wikipedia, 2009). This will help the company to decide if the frequent shopper program will be beneficial.


  • (2000). Food Marketing Institute. Retrieved from www.fmi.org
  • Kudler Fine Foods (2007). . Retrieved November 7, 2009, from https://ecampus.phoenix.edu/secure/aapd/cist/uop/business/kudler/kudlerhome002.htm
  • Wikipedia. (n.d.). In (Ed.), Wikipedia, the free encyclopedia. Retrieved November 7, 2009, from http://en.wikipedia.org/wiki/balance-sheet

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