Customer loyalty programs have become very popular with retailers especially in the past 10 years.  Airlines have done this for a long time with frequent flier miles. Now most supermarkets have a membership program that entitles members to exclusive offers, special promotions and cash discounts. Behind the scenes, many of these promotions are funded by suppliers who are using this newer tool to do more micro-targeted promotion in an effort to get certain groups of consumers “converted” to their brands or products.
For this assignment:  
Read the presentation on Schnucks Loyalty program.  Assume you have a budget of $25,000 to promote your assigned product through the Schnucks Loyalty program.  
1. Which parts of the program will you use?   Explain your plans.   
2. How much return on investment do you expect? (show me your calculations).  
3.  How much sales lift will you get?    
Your answer should include both text (word or PowerPoint) and financials  (excel).
FYI: for the students outside of St. Louis Schnucks is the largest mainstream supermarket chain in the St. Louis area.  You can visit their website to see more.  
Schnucks Loyalty Rewards Program.pdf
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