Introduction
Kudler Fine Foods located at several parts of California and is very popular store. Like other
businesses Kudler wants to achieve their goals in maximizing their profit by providing high
quality products at low prices than their competitors. Kudler wants to move forward into ecommerce business to expand their business and attract more customers and increase their
purchase cycle. For this purpose they want to establish a Frequent Shopper Program. Kudler
operate as a retail store successfully. This paper will explain the Kudler Frequent Shopper
Program.
Kudler Fine Foods Frequent Shopper Program
Retail industry is very much in implementing frequent shopper program to reward their loyal
customers. Similarly, Kudler also interested in the implementation of this program for their ecommerce. Frequent Shopper program has several steps. It provides e-commerce and in store
shopping to the store. The store needs to develop a point of sale system, make history of online
shopping database, modify communication between POS system and provide discount on
frequent shopping. Frequent Shopper Program based on several considerations, so it is essential
to evaluate the consideration of the frequent shopper program under the legal, ethical and
security concerns.
Legal Considerations of Frequent Shopper Program
For the implementation of frequent shopper program needs to consider several legal
considerations. Considerations are follows:
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“According to the Privacy and Electronic Communication Regulations, an opt-in consent
procedure is required for making commercial emails and e-commerce” (Develop an emarketing Plan).
Business organizations need to specify their business information which it wants to
provide to the recipient to the e-commerce regulations.
Businesses need to develop their strategies according to the guidelines of the Ecommerce regulations.
There are also taxation laws for e-commerce of the native country.
“ To copy the business processes and the intellectual properties of the business
organizations is also important legal consideration of the E-Commerce” (Develop an emarketing Plan).
There are all the legal considerations that need to be consider for Shopper Frequent Program by
Kudler Fine Foods Store.
Ethical Considerations of Frequent Shopper Program
There are also few ethical considerations of frequent shopper program. For instance, customer
safety is the important ethical consideration in E-commerce (Merryweather, 2000). Another
important ethical consideration of the e-commerce is the protection of the sensitive and personal
data of the corporate and individuals. There should not be any access to violent and sexual
graphics for the customer and any type of intrusion would be unethical in the field of ecommerce. Information provided on the website should be authentic.
Security Considerations of Frequent Shopper Program
“ The business organizations operating E-Commerce have to secure their data. The customers,
who do transactions, ask the organizations to secure and save all the electronically sent
information about them, especially related to financial risks. Protection from the Cyber terrorism
is also an important security consideration in E-Commerce” (IP Infringements on the Internet Some Legal Considerations, 2007). On their websites technology should be safe that used by
different organizations. They need to make legal registration specifically in different physical
locations on the Internet.
Financial Analysis
For the growth of the Regular Shopper Program, the store will have to make expenditures in
different fields. The main expenditure fields will be connected 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 internet registration and website expansion. Some
other expenditure would be the completion 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 examination 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.
References
Develop an e-marketing Plan. Retrieved January 21, 2009,from
http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075385178
IP Infringements on the Internet - Some Legal Considerations (2007). Retrieved January 21,
2009,from http://www.wipo.int/wipo_magazine/en/2007/01/article_0005.html
Merryweather, J. (2000). Ethical Considerations and Electronic Commerce. Retrieved January
21, 2009,from http://www.ifac.org/library/Article.tmpl?NID=958022091266