Loyalty

Program
MKPD 501 01
Mike Assaad
Victoria Markowski
Adam Mawer
Cecilia Setiawan
Timothy Wong

12/3/2013

Contents
Executive Summary ........................................................................................................................ 2
Market Summary ............................................................................................................................ 2
Value Proposition............................................................................................................................ 3
Benefits: Its a Win-Win Program .................................................................................................. 3
Product Offering ............................................................................................................................. 3
Vivre Loyalty Program How Does the Program Work? .......................................................... 3
Implementation Strategy ................................................................................................................. 5
Program Positioning & Relevance .................................................................................................. 5
Marketing Communications Mix .................................................................................................... 5
Financial Objectives........................................................................................................................ 7
Costs............................................................................................................................................ 7
Revenue Forecast ........................................................................................................................ 8
Contingency Plan ............................................................................................................................ 9
Bibliography ................................................................................................................................. 10

Executive Summary
Spry is Vivre Loyaltys marketing department in Mississauga, Ontario. We develop
marketing plans for new businesses and launch new membership programs. In this document,
Spry presents the marketing plan for the launch of a new loyalty program the Vivre Loyalty
Program.
The strategic goal of the Vivre Program is to position itself in the Canadian market as a
membership community for baby boomers allowing them to Embrace Choice and experience
life to the fullest.

Market Summary
With baby boomers (born between 1946 and 1964) representing approximately one third
of Canadian consumers, marketers often overlook them despite representing a wealthy target
possessing 70% of the countrys discretionary spending power (Letizia, WARC). According to
one survey, one in five boomers is actively resisting the aging process and refuse to be limited
to activities and products marketed towards an older demographic. Interestingly, because so
many Generation Y echo boomers are living with their boomer parents, there has been what is
known as a boom-boom effect. The same products and services that appeal to those in their
late teens and early twenties are appealing to youth obsessed baby boomers (Kotler et al., 209).
As such, although boomers fall behind younger generations in terms of adoption, the 46
to 64 year old group now spends more money on technology than any other demographic
(Letizia, WARC). By 2012, research found that boomers adoption of new technologies was
driving growth in the category with younger generations disenchanted over the speed at which
technology is changing. Therefore, a newer, sub-segment called Techno-Boomers is used to
describe increasingly mobile and tech-savvy boomers. With 87% of boomers owning a cell
phone, 57% owning a laptop, 20% on Facebook and 13% on Twitter (Letizia, WARC),
marketers must develop new and exciting ways to take advantage of this rapidly modernizing
market segment.
Psychologically, boomers recognize that they are aging but they do not see themselves
as getting old (Yankelovich, WARC). In fact, the defining attitude for boomers continues to be
about youthfulness. Boomers have long understood that getting what you want in life comes
from having a youthful sprit being engaged with life in a way that is active and spirited. What
boomers want is to live endlessly as middle-aged people and remake the experience of aging
into one of aging without getting old. Additionally, boomers have to intention to move towards
conformity as they age. The concept of expressing ones individuality and having a freedom to
choose is a boomer hallmark and has been adopted by subsequent generations (Yankelovich,
WARC).
Despite boomers wishing to maintain a sense of middle-agelessness, they also
recognize that they cannot prevent the aging process. Hence, issues such as health and
retirement saving are often top of mind among boomers. Retaining independence is a critical
element if boomers want to remake or create new experiences. As such, boomers are beginning
to make changes in health and wellness habits to keep them on the go regardless of their age
(Yankelovich, WARC). Finally, in an uncertain economic climate, boomers are catching onto the
need for more financial prudence. Boomers understand that they need to find smarter methods

of financial management. However, finding helpful resources to support their efforts is a hurdle
on their path to a financially sound future (Yankelovich, WARC).

Value Proposition
Vivre loyalty is a loyalty program targeted to baby boomers in the GTA with the potential
for national expansion. Preliminary research indicated that boomers despised the thought that
their formative days were behind them. In fact, marketers who discuss or elaborate on the aging
process while marketing to boomers generally do a disservice to their brand. Marketers should
appeal to boomers by promoting various experiences that the boomer enjoys or has yet to
experience. With this knowledge, a name for our loyalty program was sought with the intention
of capturing a sense of sophisticated carelessness and the idea of embracing once forgotten
surroundings (local, national or international). Failing to locate a name in English, a simple yet
effective term in a familiar language was our next alternative.
Vivre is French for to live, to experience or, more broadly, to celebrate life. Appealing
to boomers desire to remain forever young and still have new experiences, Vivre will allow
boomers to live their life to the fullest while maintaining a personality that is both youthful and
dynamic. Through Vivre, it is our intent to capture a piece of the increasingly growing and
successful loyalty program market. With information from a large market segment acting as our
incentive for participating businesses, Vivre seeks to appeal to a boomer demographic that want
to experience life yet save money while doing it. Indeed, many boomers are on the cusp of
retirement and financial concerns are of prime importance. Thus, Vivre looks to address two
common trends among boomers: 1) Desire to embrace life and have new experiences and 2) to
save money while doing it.

Benefits: Its a Win-Win Program

Member Benefits
Exclusive Monthly Offers
Customized Offers
Low Annual Fee/High Value
Print at Home or Mail Options
Ease of enrolment

Participating Business Benefits

Growth of Customer Base
Increased Revenue
Exposure to large percent of Canadian market
Access to comprehensive CRM database
Repeat offers strengthening loyalty

Product Offering
Vivre Loyalty Program How Does the Program Work?
To participate in the Vivre Loyalty Program, boomers simply visit www.vivreloyalty.com
(or www.vivreloyalty.ca as it would redirect to the same page) and click enroll now on the
landing page to begin choosing their personalized monthly and exclusive offers. The Vivre
website would not be complicated as research indicates that busy websites (large amounts of

text and design elements) act as a deterrent for boomers and would likely result in decreased
enrollments.
During the application process, the boomer must provide their basic information
including name, address, age, sex and e-mail address to create their account, obtain a
membership and access their Vivre Online Dashboard. Strict parameters would be placed on
the data entry process. For example, one trying to register cannot complete the process unless
they provide a valid Canadian postal code. While, like a complex website, this may act as a
deterrent for enrollment, we understand that our business appeal is our database. Having an
accurate and complete database only increases Vivres appeal to possible business members.
Upon completing the application process, the next step is to choose the offers they wish
to receive. Unlike other loyalty programs, Vivre provides its customers with a choice via four (4)
lifestyle categories: TRAVEL, WELLNESS, DINING and ENTERTAINMENT. Within each
category are specially selected brands and companies that have statistically higher brand
positioning among boomers. For example, in the dining category, research indicates that
Canadian boomers have frequented Boston Pizza more than any other chain restaurant in the
past two (2) years.
The boomer then selects the categories they wish to receive monthly offers from. Our
program has an annual membership fee to help offset initial start-up costs outlined later in this
report. Our membership fee is a tiered system based on number of categories selected:
1 Category = $10.00
2 Categories = $20.00
3 Categories = $30.00
4 Categories = $35.00
The price drops for four (4) categories because we want boomers to save money, through a
value added strategy, simply through enrolment. Plus, is a way for Vivre to increase its initial
profits.
Once the online payment (via credit card) is approved, boomers will have access to their
online dashboard acting as a central hub for their monthly and exclusive offers from companies
in their selected categories. As boomers have varying levels of comfort with technology, Vivre
has three (3) possible methods to redeem their monthly offers:

1) For the Boomer who isnt comfortable with technology, they may simply prefer to print
their offers from home and redeem the physical coupon

2) VIVRE loyalty members can show their card at participating retailers to redeem offers
from their membership categories. A loyalty card will be mailed to them following sign
up.

3) For the techno-boomers, customers may use the VIVIRE loyalty app (available for both
iPhone and Android operating systems) to redeem offers in-store via scanning their
smart phone.
Once an offer is redeemed via any of the above methods, that offer cannot be reused, re-printed
or shared with family or friends.

Implementation Strategy
The Vivre Loyalty Program will be launched in the Greater Toronto Area (GTA) and,
upon success, will be implemented in major cities across Canada. Vivre Loyalty will enlist a pull
strategy using advertising, promotion, social media and other forms of communication to
persuade baby boomers to become members.
We will target the baby boomer demographic exclusively by ensuring optimal service,
ease of use, quality offerings, and the formation of a member community. We will also target
affinity customers who feel it is important to engage with trusted brands and Canadian brands.

Program Positioning & Relevance

The Vivre Loyalty Program is relevant to our target market in that the concept addresses
the relatively untapped baby boomer segment as a whole. Numerous groups, associations, and
clubs target specific demographics within the baby boomer group such as golf enthusiasts,
travel lovers, or those interested in wellness activities.
Vivre embodies a unique position within the market by including various lifestyle
categories and interests through one access point. Following, secondary qualitative research, a
list of companies and retailers that boomers look to for their needs and wants was compiled
combining some that are long-trusted brands and some that are in-line with the ethos of living
life to the fullest.
The Vivre Program addresses the baby boomer desire for me-time and the individual
preferences that result from having this outlook. Many in this group are either on the cusp of
retirement or already retired. Their children are now adults and, aside from possible
grandchildren capturing their attention, they now have the chance to enjoy their time after years
of hard work. Those in the baby boomer target group who are still in the workforce close to
reaching their retirement, yearn for the freedom and time to engage in leisure activities of their
choosing. Vivre offers a customizable experience for baby boomers with differing interests and
tastes, while being easy to track and use. Monthly exclusive offers and discounts will
encourage member loyalty while keeping the program fresh and exciting as new offers become
available (including those suggested by members through customer feedback).

Marketing Communications Mix

At Vivre, we understand that that there is more to boomers than simply getting older. Our
goal is to create and market a new standard of life experiences for boomers with the keyword
being experience. New and familiar experiences are they key for Boomers' self-discovery. As
they are at the Esteem stage of Maslow's hierarchy, they think their best years are ahead of
them instead of behind them. With extra time due an empty nest or near to early retirement,

they want to pursue methods of self-discovery, self-expression and self-gratification. For

boomers, this is their time to experience what life has to offer them. That is why we encourage
all boomers to Embrace Choice. Experience Vivre.
As we plan our initial marketing communications mix, it is extremely important that our
mix reflects boomers media consumption. In other words, while boomers are increasingly
making the transition into cyberspace, the majority of boomers still use traditional media to
obtain the bulk of their information. For this reason, our main points of communication will be
radio, local newspapers, magazines, out-of-home advertising and television. Vivre will also
employ influencers as boomers are more likely to use a product or service when it is
recommended to them via a reputable person.

As indicated by the above graphic, Vivre will employ a pulsing pattern with continuous intervals
to draw on the strength of a continued presence in the Canadian marketplace. Also, and most
importantly, a pulsing pattern reinforces our programs message while at a lower cost to the
company. Finally, no matter the medium, the initial campaign will emphasize our slogan:
Embrace Choice. Experience Vivre.
We will be employing radio as it is an extremely popular medium among boomers. It is
easily accessible at home and during drive/commute time (6 a.m. 9 a.m. and 3 p.m. 6 p.m.).
Examples within the GTA may include 98.1 CHFI, Newstalk 1010 and Local newspapers, on
the other hand, require the physical object to be effective. As we are launching in the GTA, local
dailies including Metro and 24 Hours would be a good place to place our advertising. Plus,
boomers enjoy reading local newspapers as they provide a means to know what is happening in
the local community. While newspapers are text driven and rely less on the visual, the
marketing appeal of magazines lies purely with the visual. Boomers enjoy reading about current

trends and pop culture because it makes them feel younger and well-informed. Key magazines
of interest may include Chatelaine, Readers Digest and Macleans.
Further, Vivre Loyalty Program would seek out-of-home advertising as it provides
increased presence and exposure. It may also expose Vivre to non-boomer segments that may
spread the message for us (i.e. a 22 year old telling their parents about Vivre). An example
includes subway and bus shelter advertising. Another facet of our marketing mix is the use of
influence marketing. Vivre will approach influential members of the GTA baby boomer
community to communicate our loyalty program and its brand message. Influencers will be
provided with a free full-tier membership plus exclusive brand advocate offers. In exchange,
they are expected to refer at least 5 contacts to the Vivre Loyalty Program. We'll ask the brand
advocates encouraging contacts to list where (or who) they heard about the program from.
Finally, nearing the end of our campaign, we book a TV appearance on a show specifically
targeted to Boomers, such morning breakfast shows or Toronto Boomers on Rogers TV. As
television is the most expensive, yet most impactful medium relevant to our target market, we
plan to save Vivres television appearance until the end of our initial six week campaign as
boomers will likely be aware of our existence. The television appearance would be to enforce
our message one final time.

Financial Objectives
The budget for Vivre reflect its start-up costs, which include the need to develop a
comprehensive and secure database for Vivres customers, online capabilities, the production of
physical cards, and advertising costs. It should be noted that accurate predictions cannot be
made for the working budget following the first twelve months of operation, therefore, all figures
in this plan are reflective of our first year. The initial target for our customer base is set at
15,000 people.

Costs
Costs were divided into three categories during the planning stages of the program.
These categories include: online costs (including a high-end, secure database), card
production, and advertising. Online costs include mobile application development, the design of
a web portal, and the development of sharing capabilities for our online services. Though a
seemingly large expense, the estimated $27,800 for our online category is indicative of the need
to create and implement a sophisticated database system.
The second cost incurred will come as a result of physical card production which, for our
first year, numbers 16,000 cards at a total cost of $1900.40. Individually, each card will cost
$0.12 and will feature a barcode so it may be scanned for discounts directly. While 15,000 cards
is the issuing target for the first year, an additional one thousand cards were added as
compensation for our influencers and as potential replacement inventory for lost or stolen cards.
Remaining costs in the budget are the result of advertising needs. Utilizing numerous
media channels to promote the company, this is our largest cost at $35,790. This cost is
justified as our business, especially in the first year, is entirely dependent upon the growth of our
customer base. It is estimated that our largest advertising cost will be incurred from influencer
repayment (influential community members hired to help spread the word about our program).

Compensated for influencers is free full-tier membership valued at $35 for the year. If a total of
500 influencers are involved in our promotional initiative, this will result in a cost of
$17,500.Therefore, the total overall start-up cost for the Vivre Loyalty Program is an estimated
$65,490.40.

Online
App Development
Sharing
Web Services
(Total)

$ 25,000.00
$ 800.00
$ 2,000.00
$ 27,800.00

Advertising
Radio
Newspaper
$ 2,600.00
Magazine
$ 4,290.00
TTC
$ 5,400.00
Social Media
$
Miscellaneous (Potential
$ Guest
1,500.00
appearance costs)
Influencers
$ 17,500.00
(Total)
$ 31,290.00

Cards
Production

$ 1,900.40

Total Costs
Online Costs
Advertising
Cards
(total)

$ 27,800.00
$ 31,290.00
$ 1,900.40
$ 60,990.40

Revenue Forecast
Revenue in the first year will be generated through the growth of our customer base,
with profit coming in from Vivre membership applications. This would cost anywhere from $10
at a minimum to $35 at a maximum, for a total of four categories that one could reap the
rewards from. Using the above-mentioned target for our customer base, we assumed two final
totals for our revenue at the end of the first year. Under the pretext of achieving that target, our
minimum revenue was calculated at $10 times the 15,000 customers we expected to have had
as Vivre members. This would give us a minimum expected profit of 150,000 in the first year,
while our maximum was measured at $525,000. This was calculated with the same 15,000
customers but this time with the highest tier available at $35.
There was also a percentage plan set up for Vivres business partners, based on their
sales revenue by working with us. Given that our intention was to work on a case-by-case basis
with each partner, this meant that there was no set percentage for every company, and because
we were just starting, there was no way for us to calculate the percentage of sales from each

partner. Starting in Vivres second year, this scheme was to be implemented using the data
acquired from the previous financial year.

Revenue
Income Level
Maximum
15,000*$35
Minimum
15,000*$10

Calculated Revenue
$

525,000.00

150,000.00

Contingency Plan
The potential success of the Vivre Loyalty Program lies in its unique scope and
proposed penetration of the market. Based on the conducted research and the
continuous growth of the baby boomer population, our program embodies the potential
for expansion with the inclusion of more categories and participating companies, as well
as geographic expansion as the program is introduced in other cities across Canada.
We hope that Vivre will allow boomers to foster comfortable relationships with
brands and gives them a sense of pride at being a member. This emotional strategy
lends itself to what we know of the historical success of many well-known loyalty
programs in different categories (Kotler et al., 135)
The Vivre Loyalty Program must adapt to the needs of the growing baby boomer
population (of Canada). If the Vivre Loyalty Program is not initially well received as a
grassroots offering, we will pursue aggressive mass promotions (funding considered) to
emphasize the value of the Vivre program: its connection with baby boomer needs and
wants, as well as its unique value proposition and product offering. If the scenario does
not change, we will research seasonal promotion strategies (in conjunction with
seasonal exclusive offers) and research alternative launch locales.
Another potential risk for our marketing plan is that, if the Vivre Loyalty Program
meets or exceeds our optimistic expectations and becomes a huge success,
competitors may develop their own loyalty programs or include comparable features into
other existing programs. Through pre-emptive strategic planning, we would attempt to
enter the market first and take quality service steps insuring greater customer
relationship management (CRM) and building strong relationships.

Bibliography
Kotler, Philip, Kevin Lane Keller, Subramanian Sivaramakrishnan, and Peggy
Cunningham. Marketing Management 14th ed., Canadian ed. Boston, Mass.:
Pearson, 2012. Print.
Letizia, Jessica. (2013). Demographic Group: Baby Boomers. WARC. Date accessed:
November 21, 2013. Web.
Yankelovich Monitor. (2008). Y Reports 10 Things About Baby Boomers. WARC. Date
accessed: November 21, 2013. Web.

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