Running head: SR-KF-013

SR-kf-013 BSA/375

SR-KF-013 SR-kf-013 Supporting Measures for Success----As with all endeavors, the only way to truly measure success is with projected and completed milestone markers. Kudler Fine Foods wishes to use the new frequent shopper program to increase revenue. Kudler has partnered with a loyalty points program to provide customer with points which can be redeemed for high end gift items, airline first-class upgrades or other specialty foods. The goal of the frequent shopper program is to track the purchase behavior at the individual customer level and provide high value incentives, the customer behavior patterns will help refine its processes and offerings to best satisfy their valued customers. To better react to customers buying demands and to augment revenue over time by modifying loyalty and meeting customer needs and decrease cost by amending inventory procedures. The initiative should be implemented within a specific time period along with involvement of the following stakeholder representatives as with their contribution the program will be implemented successfully: Each location of Kudler Fine Food: The program needs to be initiated at each location of the Kudler Fine Foods. Purchasing Department: The Companys purchasing department needs to use the data collected by the new program to forecast food orders. A timeline / timeframe expectations has been approved. Marketing to begin designing Customer Loyalty Cards (CLC).

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Information Technology Department: The Companys IT representatives must be concerned with the development requirements as they will help in ascertaining the feasibility of the system requirements. Potential partners have been identified for rewards

Summary of Project FeasibilityAssessing 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

SR-KF-013 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. Expense Project Team Salaries Training Support Implementation Total Cost Benefit/Cost Saving Increased Customer Loyalty Efficiency in Inventory Controls (Reporting) Total Benefits and Savings $5,000 $80,000 Amount $60,000 $5,000 $20,000 $15,000 $100,000 Amount $75,000

SR-KF-013 Current business process-

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.

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