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Submitted byGroup 2:

Subba Reddy D040Shivam lakhanpal

Shreyansh Batia E005Venkatesh G E011

Sandhya Patil E042Nikita Sin

gla E055

Catalina Marketing Corporation

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Q1. How cost effective for manufacturers is Catalinascoupon system relative to FSIs? (Table B provides agood start.) What are other advantages tomanufacturers of this system?

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Sample FSI coupons

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Cost effectiveness for manufacturers due to Catalinascoupon system relative to FSIs

Avg Coupon redemption rates

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Advantages to manufacturers when using this system

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Continued

Lesser media cost for the manufacturer

Were exclusive to a category unlike the FSIs wherethe 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 manufacturersas well as hassle free for the retailers

Easy for the customer and could be targetted at theright time according to the usage pattern of the

consumer when the consumer was likely to make the

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Q2. Are retailers and consumers better off

with this system?

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CUSTOMERS

Coupons score well on relevance and timeliness

Avoids clutter as not bombarded with multipleoffers

Instant gratification incase of Quick Cash,Shopping List (incentives for volumecustomers), etc.

Personalized attention and customization to

customers on the basis of past orders

Broader consideration owing to discounts andsamples

WHAT ELSE CAN BE DONE?

Redemption should be made easier; systemshould obviate the need for the customer to store

the coupon for redemption at a later stage

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RETAILERS

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Q3.What Should Catalina do next?

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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 Technolo ical and o erational Challen es

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Continued

Additional Marketing Services & Expanding Services to newtype 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 CouponBusiness:

Opportunities:

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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 muchinvestment

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