Professional Documents
Culture Documents
Nectar Group
Nectar Group
Nectar Group
program
Wide reach due to large number of retail outlets Ambiguity in establishing specific loyalties
collecting points
Coalition with big brands making it a trusted & Customers collecting from Sainsbury but
most subscribed Loyalty Program redeeming points at other stores
Large number of customers collecting points Not having complete control over Nectar’s
activities
Benefit from economies of scale Nectar aiding the sale of competitor’s products
Taking into account past purchases to see that no LMUK wanting for redemption to take place from
sponsor is short-changed (Customizing multiple sponsors even though 50% of their
Household Purchase Behaviour) collection is from Sainsbury’s
Collectors are less likely to defect than single
sponsor collectors
TESCO POSITIVES TESCO NEGATIVES
Loyalty is better defined Need to manage day-to-day details & recover the
cost of a stand-alone program
Effective brand building device & relationship tool Lesser number of outlets resulting in tapered
reach
Concentration purely on Tesco customers Tesco not co-operative with other partners
Being the boss of their own program Collating with other partners on their own terms
Q2. Should Sainsbury Buy Nectar?
YES
Q1. What should Justin King of Sainsbury do with Nectar
Loyalty Programme for the coming year?
Sainsbury should buy Nectar in the coming year and then bring the given
below changes in the loyalty programme