Blog 3.3: Cub Rewards

Describe how the company/business used the four “P’s” to add value and/or promote the product or service.

Product- Cub Rewards Card

Price- Free. It is a program designed to develop customer loyalty, by rewarding them with discounts on groceries and gas.

Place- Holiday Gas Station (Bloomington, MN)

Promotion- An automatic voice accompanied a slide on the prompter screen above my gas pump. The voice asked,”Do you have a cub rewards card? Because you can save 5 cents per gallon with every $50 purchase at your local cub.” Bright red and blue wording animated the automated voice bounced off the white screen.

2. What industry(s) is the product or service a part of?

Retail Food. Grocery. Auto. Gas.

3. Describe the target market.

Cub Foods is a supermarket chain that is a subsidiary of SuperValu Inc. Cub Rewards is designed to gain loyalty from customers to drive repeated visits. Additionally, Cub Rewards program has partnered with Holiday Gas station to bring more attention to the promotion. Through this promotion, Cub is targeting individuals who need to buy food, but are looking for a good deal. These customers are looking for convenience within their price range. The similarity between Holiday and Cub foods is they are both practical stops that all individuals need to make. The more Cub can be a part of everyday errands, the better. That is why this promotion benefits both Holiday and Cub Foods.

4. Does it work? Why or why not? Any general observations?

Yes, convenient loyalty programs will increase repeats. However, many people tend to forget their Cub rewards card when getting gas. Cub should consider other alternatives to maintain growing loyalty.

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