CATALINA MARKETING CORPORATION

CASE STUDY ANALYSIS

Submitted By:-
Ankur Bhardwaj
Vibhav Upadhyay
Harsh Mehta
Vishal Arora
Visha Chauhan
Hitesh Thapar

TEAM 4
 OVERVIEW

Catalina Marketing is a very successful behaviour

based marketing service firm. Their current
customers include major supermarket retailers
and consumer products manufacturers nation-
wide. Catalina provides a unique way for these
clients to distribute coupons for their products via
point-of-sale technology at the supermarket
register. Catalina is currently trying to decide
where and how to expand its operations
 Question 1

How cost effective for manufacturers is Catalina’s

coupon system relative to FSIs? What are other
advantages to manufacturers of this system?
 Cost effective, targeted promotions delivery system
 Direct connection to purchasing behavior and the ability to respond
immediately
 Less than 3 seconds to print
 Redemption rate was higher at 11.2% as compared to FSIs at 2.5%
 Cost per competitive user trial $2.22 vs $6.58 for FSI
 Enabled manufacturers to achieve a variety of objectives such as
switching from competitors products, increased brand loyalty,
purchase of more quantity, etc.
 Real time cumulative data with customized reports about coupon
distribution for that promotion were provided
 Has lead to cooperative advertising
 Comparison with other Media
Medium How is the current system better?
Magazine or Newspaper No media costs
Coupons
On/In Product Campaigns Did not deem it necessary for the person to have
already purchased the product
FSI Lesser time to complete the redemption cycle –
Expedited the entire process

At the point of store so no difficulties in terms of

availing the offer

Less chances of promotion getting lost in the clutter.

Guaranteed exclusivity

Captured more detailed information

Less wastage and misredemption

 Question 2

Are retailers and consumers better off with this

system?
 RETAILERS
 Efficient as well as effective
 Better targeting of customer group
 Higher flexibility of promotions
 Coupon hand delivered and reaches customer, hence, no duplication in same
family
 No wastage as coupon printed only when needed
 Higher redemption rates vis-à-vis other promotions
 Happy manufacturers: customer data can be managed, promotions tailored to
fit client goals, no category overlap, brand switches can be induced, etc.
 Increased footfall and retention as coupon given at the end of purchase for
next purchase
 Increased loyalty as can be redeemed only at store
 Information captured can be used for further analysis and planning
 Ease of use (automated) as tied to main billing system
 Low clutter and ease of display and management
 CUSTOMERS

 Avoids clutter as not bombarded with multiple offers

 High relevance as generated based on individual
product/ category preferences
 Instant gratification incase of Quick Cash, Shopping
List (incentives for volume customers), etc.
 Makes customers feel special as keeps records of past
orders and generates customized coupons.
 Question 3

What should Catalina do next?

 FUTURE OPTIONS
 Expand the cycle -Sell more advertising cycles
 Expand geographic market both within US and
internationally
 Additional Marketing services to non super market
retailers, other sectors
 CIR Technology to provide direct store delivery
information to manufacturers
 Enter Coupon redemption business
 FUTURE OPTIONS (CONTD)
 Other innovative advertising programs. Eg FSI as
sampling for people who do not visit the supermarkets.
 Reduce lead time for the cycle.
 Have more In-store marketing techniques similar to that
of Act media way. It is an effective way to incentivize
non users.
 Come up with a web site offering promotional and
information services to consumers from retailers and
manufacturers.
 Build a community which encourages discussion on
where to buy from, best deals in town which will enable
Catalina to be advocates for brands