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Kudler Fine Foods Shopping Program

In: Business and Management

Submitted By csalmon1982
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Kudler Fine Foods Shopping Program
Charlie Salmon
BSA310
12/17/2012
Curtis Harris

Kudler Fine Foods Shopping Program
Located in many different cities throughout the state of California, Kudler Fine Foods is a very popular grocery store. At Kudler Fine Foods, their main objective is to obtain profit maximization. This is done by providing high quality products at prices that are very competitive with their competitors. By doing this, Kudler Fine Foods is expecting to have a substantial growth within the company. By enlightening the effectiveness of the company, Kudler Fine Foods desires to develop and expand its services. By increasing their customer purchase cycle, the company is seeking to increase its loyalty and profitability of their shoppers. Not only through Electronic Commerce, but through its Retail stores, Kudler Fine Foods is expecting to make the business larger. A Frequent Shopper Program is what the store wants to form for their Electronic Commerce Business.
In today’s retail business, the Frequent Shopper type of program is become ever more popular. For Kudler Fine Foods, they are planning to create this type of Frequent Shopper program for its Electronic Commerce Sector. Under this program, the store must follow several different steps.
A POS (point of sale) system and an online database to store shopping history are systems that will be a must to be set up by Kudler Fine Foods. Frequent shopping discounts will be provided by the point of sale system communicating with the database. Kudler Fine Foods must put to consideration many business considerations such as legal, ethical, security and many others in order to develop this type of program. Multiple different legal considerations must be considered by Kudler Fine foods for conducting business through Electronic Commerce in developing the Frequent Shopper Program. For example, the electronic contracts transactions that are done online are legally bound worldwide. Several legal considerations in the Electronic Commerce are in existing. These are as follows:
• According to the Privacy and Electronic Communication Regulations, an opt-in consent procedure is necessary for creating commercial e-mails as well as e-commerce.
• According to the Information Principle, all business organizations are required to verify particular information about their business, which it wants to provide to the receiver on the online service to the E-Commerce Regulations.
• The business organizations must make their advertising and promotion strategies to the format according to the regulations and guidelines of E-Commerce.
• Business organizations must acquire physical signatures in order to approve an online order.
• Taxation laws of the native country must be considered by the business for the E-Commerce.
• The function of printing and storing a copy of all the terms and conditions must be made available to all customers who want to create business contracts online.
Consequently, Kudler Fine Foods’ Frequent Shopper Program is bound to these Legal Considerations and must follow and conduct business accordingly.
All business organizations must implement many considerations that are ethical as well as those that are legal for their frequent shopper program for e-commerce. Some of these ethical considerations are for example:
• The protection of the sensitive and personal data of the company as well as the customers.
• The customer privacy is the most important ethical consideration in the electronic commerce (Merryweather, 2000).
• A breach of any kind of contract on e-commerce.
• Intrusions that are unwelcome.

Kudler Fine Foods must create disbursements in different fields in order to create its Frequent Shopper Program. Similar to marketing will be its main expense fields. The company’s expenses on advertising and market research will be major fields of expenditure. The store must also make some disbursements on the development of its website as well as its online registration. The fulfillments of legal formalities are some other expenses for Kudler Fine Foods. An explanation of all these expenses can be done by the financial examination of all the expenses. The Financial Analysis of the expenses can be achieved by meeting the budget of all the expenses and profits of the store. By the examination of this budget, the store will not be able to identify if the expenses would increase the profits of the store by comparing it to that of the prior years. Compared to the past years, if the profits will be higher, then the expenses will be to the store’s advantage. By having this, the store will be able to compare its profits to its sales plan. Kudler Fine Foods’ main focus of maximizing its profits will be met if the company does in fact create the Frequent Shopper Program. This program will boost the company’s customer loyalty by providing its quality products at prices that are very competitive. The company should not have any difficulties in carrying out its Frequent Shopper Program as long as it sticks to the legal, ethical and security considerations.

References
Develop an e-marketing Plan http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075385178
IP Infringements on the Internet - Some Legal Considerations (2007)http://www.wipo.int/wipo_magazine/en/2007/01/article_0005.html
Korper, S. & Ellis, J. (2001). The E-commerce Book: Building the E-empire. (2nd ed.). Morgan Kaufmann.
Merryweather, J. (2000). Ethical Considerations and Electronic Commerce. http://press.ifac.org/article/2000/05/ethics-in-a-cyber-world
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