Ukrop's Savings Spot

15 Pages Posted: 16 Jun 2009

See all articles by Paul Farris

Paul Farris

University of Virginia - Darden School of Business

Rajkumar Venkatesan

University of Virginia - Darden School of Business

Abstract

Ukrop's has developed a unique coupon dispenser that is placed in front of the store. Customers with Ukrop's loyalty card can use this system to obtain coupons that are customized for them. The case explores the impact of this system on customer loyalty and store profitability. The case presents an opportunity to discuss the process of establishing the return on investment from such a loyalty program.

Excerpt

UVA-M-0753

Ukrop's Savings Spot

Company Background

Ukrop's was a family-owned and -operated supermarket chain located primarily in the Richmond, Virginia, area. “We have an advantage [of] being local,” said Jim Ukrop. “We live here; we have our friends here. We talk to our neighbors [and] hear what they like and what they don't like. We're able to put our arms around our business. We can do a lot of things that companies with branches can't do.”

But the Ukrop's name and its reputation had spread far beyond southern Virginia. “The stores [Ukrop's] have a national reputation for excellence,” said Bill Bishop, a food retailing analyst with Willard Bishop Consulting in Barrington, Illinois. For more details on Ukrop's history, current competitive situation, and marketing strategy, see these links:

· www.ukrops.com

· http://www.timesdispatch.com/cva/ric/news/business.apx.-content-articles-RTD-2007-06-13-0048.html

Supermarket Industry

. . .

Keywords: Customer Loyalty, Return on Investment, Price Promotions, ROI

Suggested Citation

Farris, Paul and Venkatesan, Rajkumar, Ukrop's Savings Spot. Darden Case No. UVA-M-0753. Available at SSRN: https://ssrn.com/abstract=1420586

Paul Farris (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-0524 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/farris.htm

Rajkumar Venkatesan

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/html/direc_detail.aspx?styleid=2&id=5808

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