Catalina Marketing Corporation

Click to edit Master subtitle style

Submitted by Group 2: Subba Reddy D040 Shivam lakhanpal Shreyansh Batia E005 Venkatesh G E011 Sandhya Patil E042 Nikita Singla E055 1/29/13

Q1. How cost effective for manufacturers is Catalinas coupon system relative to FSIs? (Table B provides a good start.) What are other advantages to manufacturers of this system?

1/29/13

Sample FSI coupons

1/29/13

Cost effectiveness for manufacturers due to Catalinas coupon system relative to FSIs

Avg Coupon redemption rates

1/29/13

Advantages to manufacturers when using this system

1/29/13

Continued
Lesser media cost for the manufacturer Were exclusive to a category unlike the FSIs where

the 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 manufacturers

as well as hassle free for the retailers

Easy for the customer and could be targetted at the

right time according to the usage pattern of the consumer when the consumer was 1/29/13 to make the likely

Q2. Are retailers and consumers better off Click to edit Master subtitle style with this system?

1/29/13

CUSTOMERS
Coupons score well on relevance and timeliness Avoids clutter as not bombarded with multiple

offers

Instant gratification incase of Quick Cash,

Shopping List (incentives for volume customers), etc. customers on BE DONE? WHAT ELSE CANthe basis of past orders
Personalized attention and customization to Broader consideration owing to discounts and

Redemption should be made easier; system samples should obviate the need for the customer to store the coupon for redemption at a later stage
1/29/13

RETAILERS

1/29/13

Q3.What Should Catalina do next?

Click to edit Master subtitle style

1/29/13

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 Technological and operational Challenges

1/29/13

Continued
Additional Marketing Services & Expanding Services to new type 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 Coupon Business:

Opportunities: 1/29/13

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 much

investment

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 1/29/13