Problem:
There involves reading a case and answering some questions. There's not too many calculations-- mostly good marketing ideas with logical thinking and data and marketing strategies to back up your answers.
The case is: “Cabo San Viejo: Rewarding Loyalty” by Youngme Moon and Gail J. McGovern Harvard Business School case, no. 9-506-060
1. Describe the strength and weaknesses of Cabo San Viejo's existing customer portfolio.
2. What are the pros and cons of Cabo San Viejo implementing a loyalty rewards program?
3. Segment and label their customers into different "customer groups" and for each:
a. Should they launch a reward program targeted to this group, why/why not?
b. If yes, what should be the objective of the program?
c. Should the program focus on increasing value, brand, or relational equity?
d. Generate a few ideas of programs that would achieve this objective.
4. Outline a research and analysis plan that would help you make a more informed decision (i.e., 4 to 6 steps).