MISSION STATEMENT

“TO PROVIDE CUSTOMERS WITH THE GREATEST CONVENIENCE THROUGH THE USE OF A

UNIVERSAL DISCOUNT CARD THAT CAN BE USED AT ALL THEIR FAVORITE STORES.”

Universal Savings Card

Universal savings card that can be used at all participating stores. Makes it easier and convenient for customers to obtain a single savings card for all

of their favorite stores and shopping activities.

Management and Operations

Supply Chain1

Suppliers Plastic, magnetic strip, rubber, and ink.

Manufacturers2

Just-in-time Manufacturing Distributors

Fed-Ex will transfer the cards from the manufacturers to the customers.

Customers Customers can order the card from any participating stores and

they will receive a receipt which can act as a temporary universal savings card. The official card will be processed and shipped within a week.

Cards can also be purchased online through the company’s website.

1Operations Management - Supply Chain Management - SCM" (2009). Recklies Management Project. Retrieved from: http://www.themanager.org/Knowledgebase/Operations/SCM.htm2McNamara, Carter (2009). Operations Management. Free Management Library. Retrieved from http://manage.menthelp.org/ops_mgnt/ops_mgnt.htm

Management and Operations, cont.

All information will be stored in the Discount Depot database and put into separate accounts.

Online transactions will be through credit cards and in person transactions will be through cash, check, and

credit card.

Management and Operations, cont.

Communication Technology3

USC Information Tracker A system tracker that records customer activity.

This is how participating stores will receive customer information and a way for Discount Depot to keep track of customer purchases, information, and card activity.

Customer Service Line Customers can call the Universal Savings Card private hotline

for any inquiries about the card. Internet

The internet will be used to hold customer’s information through a private company database.

3 McNamara, Carter (2009). Operations Management. Free Management Library. Retrieved from http://manage.menthelp.org/ops_mgnt/ops_mgnt.htm

Technology

Through the Internet

Cardholder’s account can be managed through the USC’s website “

Cardholder can customize the stores they would like to receive discounts/ coupons

Accounts details may be editedStores that are registered with USC, have

USC advertisements on their websites

Technology, cont.

How the USC works4

Eco-friendly material used for card? Appeal to the “go green” trend

Accessed with a swipe like a credit cardOnce swiped, user preferences are accessed to

show discounts/ coupons for the appropriate storeOnce a company is registered with a USC, the

company’s data is recorded into the system and card

4Graettinger, Tim (2009). "Digging Up Dollars with Data Mining- An Executive's Guide." Data Administration Newsletter. Retrieved from http://www.tdan.com/view-articles/5263/

Technology, cont.

Data Mining5

Used to benefit the cardholder and registered companies

Every purchase that the cardholder makes is recorded

Purchase history and information is used a reference to show cardholder’s habits and possible interests

Provides registered companies the cardholder’s purchase habits

5 Graettinger, Tim (2009). "Digging Up Dollars with Data Mining- An Executive's Guide." Data Administration Newsletter. Retrieved from http://www.tdan.com/view-articles/5263/

Marketing (U.S.)

Target Market

U.S. Grocery stores Convenient stores Retail Stores

Target Group: Women through the age of 25-50- shopping for

families Senior citizens

Marketing (Europe)

Target Market

Europe Families Senior citizens

We chose Europe because time and convenience are more important in Europe than in other countries.6

Both the target markets in Europe and the U.S. are very similar with minor differences.

Choosing Europe will allow us to adapt our product and marketing strategies more efficiently.6

6 Cohn, T. (2009). Marketing research, consulting, services, strategies and plans for generating more business direct over the web. Advanced Marketing Consultants. Retrieved from http://www.marketingprinciples.com/

Marketing, cont.

Competitors: Existing stores with Bonus /discount cards

Examples are : Giant, Safeway, Shoppers, Wegmans, Dicks Sporting Goods, CVS, Rite Aide, etc.

These can all be potential customers. By providing them with a discount card service which

will lower companies costs.7

Less worry and hassle within the organizations mentioned above.

We will provide them the data mining information that we get from card users. 7

7 Lake, L. (2009). Are You Interacting or Interrupting Potential Customers? [Msg 1]. Message posted to http://marketing.about.com/

Marketing, cont.

The Four P’s of marketing8

Product: Universal savings CardPrice: 50 dollars annually and free for card

activationPlace: retail stores, grocery stores, and

warehouses and internetPromotion: Internet ads, sales people at cashiers,

coupon books, magazines, store catalog and newspapers.

8 Grewal, D., & Levy, M. (2010). Marketing. New York, NY: McGraw-Hill/Irwin.

Marketing, cont.

SWOT Analysis

Strengths: Efficiency and convenience

Weaknesses: Market penetration within existing market for discount cards

Opportunities: People are more in a rush and use of technology will allow for faster transactions.

Threats: competition from existing bonus/discount cards.

Balance Sheet

Cost Projections

9“Budget Management” (2009). InsideTufts. Retrieved from http://finance.tufts.edu/budgetacc/?pid=8&c=25

Income Projections

0

10,000

20,000

30,000

40,000

50,000

60,000

2009 2010 2011 2012

4 Yr. Income Projection

Income from Corporations Income from Average Consumers

10 “2010 general ad rates” (2009). The Washington Post. Retrieved from http://www.washingtonpostads.com/adsite/_res/files/managed/2010%20General%20R ate%20Card.pdf

Invoice Example

Limitations

Culture Customers do not use our service because they are loyal to their

stores. Customers then do not need a product/service where it combines all the discounts from the different stores since they only shop at one.

Collected data can be misleading Consumers might find the discounts not worth service and the fee.

Economic Customers wait until items are on sale Customers do not prefer to pay for membership fees/services Not enough members Service/Product will fail Other companies have a competitive advantage which offer

rewards for a service that doesn’t have a fee.

Questions???

Reference List

Babbit, Tripp (2009). The Lean Evolution: From Factory Floor to Service Centers -- and Beyond. Knowledge@Wharton. Retrieved from http://knowledge.wharton.upenn.edu/article.cfm?articleid=2375

“Budget Management” (2009). InsideTufts. Retrieved from http://finance.tufts.edu/budgetacc/?pid=8&c=25

Cohn, T. (2009). Marketing research, consulting, services, strategies and plans for generating more business direct over the web. Advanced Marketing Consultants. Retrieved from http://www.marketingprinciples.com/

Graettinger, Tim (2009). "Digging Up Dollars with Data Mining- An Executive's Guide." Data Administration Newsletter. Retrieved from http://www.tdan.com/view-articles/5263/

Grewal, D., & Levy, M. (2010). Marketing. New York, NY: McGraw-Hill/Irwin. Heizer, Render (2008). Principles of Operations Management , 7th edition. Prentice-Hall."How Does a Magnetic Card Reader Work” (2009). techFAQ. Retrieved from

http://www.tech-faq.com/magnetic-card-reader.shtmlLake, L. (2009). Are You Interacting or Interrupting Potential Customers? [Msg 1]. Message posted to

http://marketing.about.com/McNamara, Carter (2009). Operations Management. Free Management Library. Retrieved from

http://manage.menthelp.org/ops_mgnt/ops_mgnt.htm"Operations Management - Supply Chain Management - SCM" (2009). Recklies Management Project.

Retrieved from: http://www.themanager.org/Knowledgebase/Operations/SCM.htm2010 general ad rates (2009). The Washington Post. Retrieved from

http://www.washingtonpostads.com/adsite/_res/files/managed/2010%20General%20R ate%20Card.pdf