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Submitted byGroup 2:
Subba Reddy D040Shivam lakhanpal
Shreyansh Batia E005Venkatesh G E011
Sandhya Patil E042Nikita Sin
gla E055
Catalina Marketing Corporation
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Q1. How cost effective for manufacturers is Catalinascoupon system relative to FSIs? (Table B provides agood start.) What are other advantages tomanufacturers of this system?
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Sample FSI coupons
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Cost effectiveness for manufacturers due to Catalinascoupon system relative to FSIs
Avg Coupon redemption rates
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Advantages to manufacturers when using this system
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Continued
Lesser media cost for the manufacturer
Were exclusive to a category unlike the FSIs wherethe same category coupons were printed in the same
newspaper.Increased trials and brand switching which was the
main aim of the manufacturers
Fast, cheap and cost effective for the manufacturersas well as hassle free for the retailers
Easy for the customer and could be targetted at theright time according to the usage pattern of the
consumer when the consumer was likely to make the
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Q2. Are retailers and consumers better off
with this system?
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CUSTOMERS
Coupons score well on relevance and timeliness
Avoids clutter as not bombarded with multipleoffers
Instant gratification incase of Quick Cash,Shopping List (incentives for volumecustomers), etc.
Personalized attention and customization to
customers on the basis of past orders
Broader consideration owing to discounts andsamples
WHAT ELSE CAN BE DONE?
Redemption should be made easier; systemshould obviate the need for the customer to store
the coupon for redemption at a later stage
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RETAILERS
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Q3.What Should Catalina do next?
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Options Available
Expanding the Cycle or Product Capacity:
Opportunities:
Current network is running at 12% capacity room for growth
Challenges: Existing system is not able to cope up with increased capacity
Targeting National and Overseas Markets:
Opportunities :
About 25% of supermarkets are covered in existing Catalina Network
Opportunities in countries around the world
Challenges :
Most of Major super markets are covered under existing Network Technolo ical and o erational Challen es
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Continued
Additional Marketing Services & Expanding Services to newtype of retailers:
Opportunities:
Existing setup can be utilized for augmenting services it is providing to its
clients Could expand to other Industries i.e Non-grocery store retailers
CIR Venture:
Opportunities:
Program was well received by both retailers and manufacturers in Test Phase
Significant benefits for both manufacturers and retailers
Expanding Operations into Redemption Area of CouponBusiness:
Opportunities:
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Way Forward
Phase-1:
Implement additional marketing services to existing customers
Expand operations into Redemption of the Coupon Business
Advantages:
Can leverage on Existing Infrastructure and technology with out muchinvestment
Phase-2:
Implement CIR venture, a program which is having strong prospects
Focus on Tackling Technological and Operational Challenges
Advantages:
Tackling challenges helps in removing bottlenecks for expansion