Loyalty Program for Lifestyle Limited Assignment

Assignment Task

ABC Lifestyle Limited has four businesses

• A QSR chain (Quik Burgers) of 20 stores that sells burgers & fries. The SKU mix is 20, with unit prices ranging from 25 Rs. to 100 Rs. ATV ranges from Rs. 150-300. It is a youth brand, with some young couple segment. Quik is present in 5 cities. The business sees sales of Rs. 50L per month. There is no Billing system here, only ECRs.
• An MBO chain (ABC Fashions) on 10 stores dealing with Apparels, Home Décor & Accessories that has a SKU mix of 1000+, with unit prices ranging from 500 Rs. 5000 Rs. ATV ranges from Rs. 1300 -Rs. 5000, ABC Fashions is present in 7 cities. The business sees sales of Rs. 20CR per month. The Billing system here is LSRetail.
• Three multi-speciality hospitals in 2 cities (ABC Living). Registrations & admissions in the hospital -50K per month with Rs. 1K per registration. The hospital has in-house pharmacy, which has a 35% overlap The Billing system here is Wipro HIS
• A wellness chain ABC SPA of 35 SPA centres in 7 cities. There are 6 types of SPA & 4 types of packages. SPA costs between SK-7K but are offered at a discount of 30-35%. Packages are around Rs. 15K-25K & discount offered is -50% on rack rate. Each package offers 6 or 8 or 10 SPA sessions, to be used within 3/4/6 months. Each SPA does about Rs. 25L of sale per month, with packages contributing to around 30%, There is no Billing system here, only ECRs. The cities overlap.

ABC Lifestyle wants to explore a Loyalty Program & engage a loyalty program partner for the same.

• The Marketing team in ABC is not sure if each business should have a different loyalty program or a single loyalty program.
• The Sales team wants the Loyalty Program to acquire new customers by tie-ups with Credit Cards & Airlines etc.
• The strategy team wants the Loyalty program to consolidate customer data across the businesses to create a unified understanding of the customer for future marketing & sales strategies.
• ABC's CFO has outlined a budget of 2.5% investment from margins overall towards this Program to cover all costs. The Marketing team has committed that an ROI of 3-5X will be easily achieved.

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