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Case Analysis Nectar Making Loyalty Pay

In: Business and Management

Submitted By nankum
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MBA 437: MARKETING
CASE ANALYSIS
Group 5: Case 5: Promotion Decisions

MAKING LOYALTY PAY

NAME STUDENT ID
Nancy Kumari S11013306
Saher Buksh S01007626
Aditya Raniga S11052046

Table of Contents
CASE BACKGROUND 2
NECTAR 2
Nectar Promotions: 3
SAINSBURY 4
Therefore the aim of this case analysis is to find out: 4
CUSTOMER REGISTRATION 5
TWO METHODS OF REDEEMING POINTS 5
COMPETITION IN THE UK GROCERY RETAIL INDUSTRY 6
COMPARISION WITH COMPETITORS 7
SITUATIONAL ANALYSIS 8
CONSUMER PERCEPTION OF NECTAR PROGRAM 8
SPONSOR PERCEPTION OF NECTAR PROGRAM 9
SHOULD SAINSBURY CONTINUE WITH NECTAR? 10
SHOULD SAINSBURY HAVE ITS OWN LOYALTY PROGRAM? 12
SHOULD SAINSBURY DISCONTINUE WITH THE CURRENT LOYALTY PROGRAM & DIVERT FUNDS TO NON-LOYALTY PROGRAMS 14
CUSTOMER LOYALTY PROGRAM IN FIJI 16
RECOMMENDATION 17
CONCLUSION 20
BIBLIOGRAPHY 21

CASE BACKGROUND
NECTAR
• The Nectar loyalty program is the largest loyalty program in Britain.
• It was launched by Loyalty Management UK (LMUK and chaired by Air Miles co-founder Keith Mills).
• Nectar opened for business in 2002.
• With reference to various individual retail loyalty programs, Keith Mills,Gierkink, and further members of the LMUK team undertook the decision to search for an assembly of retailers who had their individual reward programs however were not content with their performance and could enhance their performance by combining with a multi partner loyalty scheme.
• The initial four sponsors of LMUK were Sainsbury, BP, Barclaycard and Debenhams. Out of these sponsors, Sainsbury had its own regular shopper program which it discarded to join Nectar. Likewise, BP and Barclaycard also stopped running its independent loyalty program in favor in Nectar.

Nectar Promotions: o The launch of this program was followed by a 6 weeks promotional…...

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