Question

BUSA 270/ACCT 470Case Study: Skechers

Revised Due Date: Tuesday, September 29

Instructions

Read the case below and respond to the questions following? !ormat your paper ina question and answer format? "lease remember to include your name and a pagenumber on each sheet?

Case

S#echers $S%, &nc?, is a '2(billion(a(year company, describes itself as )an award(winning global leader in the lifestyle footwear industry, *and+ designs, develops andmar#ets lifestyle footwear that appeals to men, women and children of all ages ? ? ? ??ith more than -,... styles, S#echers meets the needs of male and femalecustomers across every age and demographic?/%ny shoe company could say something similar? ?hat separates one from another?&ncreasingly, it isn0t the shoes? &t is the information?&nformation systems are woven into every part of S#echer0s business? &ts recentinvestment in 1racle applications, including cloud computing demonstrates thecompany0s commitment to information systems? ?ar# 3ravo, S#echers0 Senior 4ice"resident of !inance, says, )%s we manage growth, we are establishing a businessstructure that lowers costs and creates more value and 5e6ibility across thebusiness? The ? ? ? cloud services helps us to lighten our &T overhead and enable usto respond more quic#ly to mar#et opportunities?/ Therefore, it was natural thatS#echers would turn to information systems to help with customer retention?&n a fast(moving consumer product category li#e shoes, using information tounderstand, attract, and retain customers is even more important than having thelatest technology? ?any companies use loyalty programs to help retain customers?% pi77a shop might give its customers a card that is punched every time they buy api77a? ?hen the card has ten punches, the customer can order a free medium pi77awith two toppings? 8oyalty programs reduce the chances of a regular customerswitching suppliers even if another shop sells pi77a for less during a promotion oro?ers a di?erent advantage?%fter S#echers decided to o?er a loyalty program, their challenge was this: ?ow todesign the program for greatest sales impact; The company had to balance ease of earning rewards, the value of the rewards, and other factors so they gave away aslittle as possible while retaining as many loyal customers as possible? &n the pi77ashop, a free pi77a after twenty might put the rewards too far out in the future to beattractive? Ten is a good middle ground? The loyalty program that S#echers designed, planned <ointly by their mar#eting andinformation systems departments, is called S#echers =lite? >Seehttp:??www?s#echers?com?elite?@ ?embers earn free merchandise >'A. credit forevery 'A.. spent@, get free shipping and en<oy special promotions? &n addition,Bold members >who spend at least '-.. on S#echer shoes in a calendar year@ gethigher merchandise credits, snea# pee#s at future products and earn other higherbeneCts?S#echers couldn0t operate S#echers =lite without information systems? The systemthat supports this loyalty program records information about members, theirpurchases, and the rewards they0re entitled to, so members can trac# theirparticipation online? &n addition, the system provides S#echers0 management withinformation about the purchase patterns of regular customers, such as shoe designsthat appeal to them? The system also lets S#echers send targeted promotionalmaterials to its best customers?Does this information technology pay(o?; %ccording to industry analyst, "eter ?hu,it does? ?e found on Eovember 2, 2.AA, that S#echers >SFG@ stoc# performanceoutpaced that of the other shoe manufacturers he trac#ed? ?e considers thatperformance )a bullish sign of underlying fundamental and technical strength?/

Question

1)How did sketchers achieve success by looking at what other companies outside its industry were doing with technology?

2)what kind of information do the sketchers Elite program use?Aside from its direct benefit in increasing customer loyalty, what other benefits might the program have?How could sketchers use the information in its planning and sales activity?

Answer 1

1) From the case study we can know that Sketchers, a lifestyle footwear company meets the need of every customer of all ages. Bt what helps Sketchers to achieve success is the information and the information system which are woven in every part of the business. Its recent investment in 1racle application includes cloud computing demonstrates the company's commitment towards information system. The cloud services helps the company to grow and enables them to respond more quickly to the market opportunities.

2) Sketcher Elite program uses the information system to retain loyal customers simultaneously giving as low as possible to balance the earning rewards. The loyalty program for example,is set to give card to the customer and which is punched whenever they buy pizza from the shop. When there will be ten punches, customers can order a free medium pizza with two toppings which helps the company to reduce the chances for regular customer switching.

Sketchers planned the programe for the members to earn free merchandise, credit for every spent they make, free shipping and enjoy special promotion on addition. For bold members who spends atleast some amount on buying Sketcher shoes in a calander year gets higher merchandise, sneak peek at the future products and earn other benefits. This loyalty programme is designed by the marketing and infirmation system department which Sketchers called as the Sketchers Elite programme.

3) The other benefits including keeping information about the members, their purchases and the rewards they are entitled to, so they can track their participation online. Also the system keeps information about the purchase pattern of the regular customers such as shoe design that appeal to them as well as the company sends promotional materials to its best customers.

4) Sketchers use the information of their customers, and gets to know about their particular needs and choices they prefered. By keeping every customer's information seperately in the system they can easily know about their preferences, and by this way they can sale shoes more easily without any hussle. The loyalty programme attracts the regular customers as well as random customers to look through the design of the products and then buy them.