Case Study Of Nectar

Register to read the introduction… One has to be very creative and innovative to have a state-of-the-art loyalty programme in place. The key lies in the fact that the retailers need to ensure that their customer do not defect to the competitors, by offering a unique and an exciting loyalty programme. First and foremost, a clear objective needs to be in place. The objective needs to be in quantifiable terms. By defining an objective, a retailer identifies a path to take to make a loyalty program a success. Progress can be tracked against objectives. Customer also gets to understand the reasoning behind the program. Nectar has a clear objective and their scheme differentiates the market. Research and analysis of the consumer expectations is vital to understand if the program will be a success when introduced into the market. However, proper implementation is crucial for the success. Nectar has fallen short in implementing the program and the customer’s expectations took a beating due to shortfalls in website management. The website could not handle the high volume and personal details of the customers were compromised, forcing the website to shutdown, causing inconvenience to …show more content…
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STRATEGIC ALLIANCE WITH COMPETITORS
A Strategic Alliance is a formal relationship formed between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations. The alliance is a Cooperation or Collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts.
The Aim of strategic alliance is to create a long term competitive advantage on a global scale. Collaboration can be done by the means of a joint venture, licensing agreement, joint research and development programs etc.
Strategic allowancing leads to marketing benefits like access to new markets distribution channels can be achieved, product gaps are filled and product line are widened.
➢ Air Miles a airline loyalty program and nectar is diversified loyalty program spanning different businesses.
➢ Nectar does not pose a direct threat to Air Mile’s, however, nectar might take away some Air Miles’ market