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1. Executive Summary MEGA Rewards Card

The company’s target market is the market economy. The purpose of our

company is to act as an intermediary between retailers and the consumer; providing an

extensive and elaborate rewards program to customers. What motivate retailers to sign

up for our marketing services is: the convenience, outstanding service, and the

outsourcing capabilities. Currently the industry is organized in such a way that, if a

retailer implements a rewards program, they must set up their own research and

development (R&D) department, conduct their own market analysis, and promote

various services by their own means.

As the world population increases, there is continuous market growth to meet

new needs of consumers. This relatively positive change suggests there is a need and

place for the services of our company to flourish. We at MEGA Rewards Card are a

marketing company. We are seen as a loyalty-based company that offers a full range of

consumer profiles by means of tracking. Many rewards companies exist in the market,

but not one that combines many retailers into one. Take our MEGA Rewards Card, it

offers convenience to the everyday consumer so he or she does not have to carry and,

or sign up for many rewards programs. This results in an abundance of unwanted plastic

cards. To retailers, the incentives are endless. By outsourcing their loyalty program and

join a mega-networked company that takes the hassle out of tracking consumer profiles.

MEGA Rewards Card was designed for convenience. This will help retailers do what they

do best, target market their customers in a fast, reliable, and hassle free way. Since the

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size of the retail market is a multi-billion dollar industry. In retrospect of target

marketing potential clients, it would depend on how many retailers, a. have a rewards

program set in place and b. wish to have a rewards program. The market share our

company anticipates will be broken down in time intervals of one – three years. These

consist of certain goals we have set for ourselves. This will be explained in greater detail

later in the marketing plan, under ‘Objectives.’

The market risks involved are retailers not wanting to join, poor service, and

direct competitors. The marketing budget for our first year of business (2009) is

expected to be $1,500,000. Distribution of the rewards card will be available via

correspondence or by individual retailers. As for our clients (the retailers), we will supply

them with unique consumer profile databases. Our state of the art computer software is

designed to generate detailed reports; this will make targeting potential customers for

each retailer an easier process.

The MEGA Rewards Card will be promoted to consumers via billboards,

magazines, newspaper, bus-terminals, etc. The consumer will be enticed to sign up for

the MEGA Card because it offers them the convenience of having to carry only one

rewards card when they go shopping. Also, they sign up for only one application and not

all the various ones they see at selected stores they walk into that implements a benefit

program. We will provide consumers access to the company website (Mega.com),

where they can see their reward card balance points online through our comprehensive

tracking system, which is made available to all consumers 24 hours a day and 7 days a

week.

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MEGA Rewards Card offers comprehensive consumer knowledge. The benefits

outweigh options readily available to consumer currently on the market. This service

stands out from the crowd because it is focused on providing ultimate convenience to

the modern-day shopper. Also, opposed to other rewards cards, we aim to reduce the

amount of clutter in one’s wallet, not add to it.

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2. Current Marketing Situation MEGA Rewards Card

Market Description

Since our company focus is on convenience, we will cater to the needs of retailers by

offering marketing services as an outsourcing company. This will save our clients money,

since they would not have to implement their own rewards and survey department; or

potentially eliminate theirs and sign-up for our services. Our detailed consumer reports

will focus primarily on providing excellent primary data to retailers. Our reports will

consist of consumer profiles, market trends and forecasts. We are able to offer the best

because this is our specialty and we hope to form a bond between the consumer and

many networked retailers. The ease of having to carry only one single card MEGA

Rewards Card, opposed to many rewards card is convenient on all aspects. Although, we

are targeting retailers to join, but we hope to allure consumers to demand our product

once they see the benefits. It is customary to see supply increase when consumers

demand something in the market, thus, making it difficult for retailers to resist joining

our company.

Product Review

In the first year, 2009, we aim to reach our expected sales revenue of $1,530,000. We

plan on charging according to the three different price point packages. We will offer

retailers different package rates according to their needs and budget. We will offer a

Bronze, Silver, and Gold Package. These packages are marketed to reach different needs

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and goals all while offering a price plan that work for our clients, the retailers. To

successfully reach our goal, we anticipate we will have within the first year of business

(2009):

• Seven (7) clients in the Bronze Package, which offers Tracking Service, Detailed

Reports, and Administrative Services

• Six (6) clients in the Silver Package, which offers the above services as listed and

24/7 Customer/ Technology Service Support

• Two (2) clients in the Gold Package, which offers all of the mentioned services, in

addition to Marketing Consulting

The chart below better displays these services and the expected amount of return each

package promises.

Package Anticipated Number of Clients

Services Service Price per Client

Net Revenue per Package

Bronze 7 Some $80,000 $560,000

Silver 6 Most $100,000 $600,000

Gold 2 All $200,000 $400,000

Review of Competition

Our MEGA Rewards Card program is unique because there is no other company out there

in the market that tracks individual points accumulated by every company and keeps a

separate entry log of it for the client and consumer. In any case, there are some close

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rivals who compete for customer loyalty in the market, such as AirMiles, The Hudson

Bay Company, Chapters, etc. These companies have already established their own

points and rewards system. Our goal is to target other retailers such as Pet Smart,

Scene, Esprit, to join our network. It should also be noted, retailers who do not sign up

for our exclusive program can also be considered as our rivals, in terms of incentives

they give out, promotion, etc.

Review of Distribution

Recent sales trends indicate many retailers wish to provide their loyal customers with a

benefits program; this would be in the form of points or rewards and for this trade of

points they get to see and track the items bought by individuals and generate a unique

profile of the common customer who shops at their company. To ease new retailers

who want to implement such a program, we would fit perfectly as an intermediary and

help them organize the rewards system for them; essentially doing all marketing related

work for them for a fee. In regards to distribution for our client, we would approach

retailers or they could search for us on the web (Mega.com) and we would be able to

work out a price point that works for them (Bronze, Silver, Gold program). As for the

distribution of the product, the card itself, consumers can sign up for the MEGA Rewards

Card in stores. After the information is verified and the name of the person who joins up

is printed on the back of the card, the consumer can expect their card to be directly

mailed out to them within five (5) business days. The card will also be available online,

thus consumers who wish to fill out an online application, may do so.

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3. SWOT Analysis MEGA Rewards Card

Strength

As a pioneer company in the rewards tracking business, MEGA provides a bridge that

allows retailers to connect with their customers. We not only provide service to our

clients but, also manage to reach out to individual consumers. In this fast growing

industry of consumer loyalty programs, we are able to demonstrate a numerous number

of strengths with our comprehensive services:

• MEGA is an innovative idea that allows our client, to outsource their rewards

department. By doing this, we save them money because they are paying for our

service and convenience. This would be quite less compared to them

implementing their own.

• The company core competence involves using the latest information technology.

MEGA thrives being a versatile company that offers a confidential internal

support system for its clients. For example, clients can track the sale of its

products to see how well individual products sell and track customer profiles—to

see which customer buys what and see whether they do so on a regular basis.

• On our unique and resourceful website, consumers can not only check their

reward point status but can also get lots of information regarding new

promotions and updated product information distributed on the behalf of our

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clients. There will be space for retailers to make notices for special promotions

exclusively available to card holders.

• Our focused strategy is in place in lou of our clients to get the best possible

support from MEGA. Therefore, we invest time and money in training our staff.

Another strength example is the dedicated team we have built to provide the

best service to both clients and consumers.

These strengths allow our business to remain dominant in the market and maintain

majority of the market share; for these same reasons, it help prevent interference from

potential competitors.

Weakness

We realize being a new business that certain weaknesses will exist within the market.

There are things we will have to pay close attention to, such as the following points:

• Building a solid and reliable reputation is important and will take time.

• Persuading retailers who have already implemented a reward system will be

difficult.

• Convincing new retailers to utilize our services since they do not know what to

expect of the market yet.

• MEGA integrates many retailers’ rewards system into just one rewards card

system. This creative idea has its benefits but, also remains vulnerable to the

possibility that our innovation may be duplicated by our competitors or new

competitors may shortly arise.

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• Customers may take time to accept and use the MEGA Rewards Card for their

daily shopping convenience

• MEGA relies on its Marketing Consulting as its main sales revenue. Thus, we will

have to target newer companies to help them establish their business and sell

them on the idea of incorporating the MEGA Rewards Card system.

Regardless of these weaknesses, we here at MEGA still see a huge opportunity for us in

the market place to provide the best service and convenience to both groups.

Opportunities

There are a variety of opportunities for MEGA. It is a unique business because there is no

other company that exists in the market. Therefore, we do not have any direct

competitors currently in the market place. Moreover, there seems to be a growing need

for the MEGA Rewards Card, since it is becoming a lifestyle for consumers to collect

reward points at their favorite shops; this is seen as simplifying a consumer’s shopping

experience. With our product it becomes that much easier, thus making our product

more desirable. This allows MEGA to gain a large portion of potential market share.

Going international is another opportunity available to MEGA. In five years, we plan on

building upon our strong brand recognition on a global scale. There are a number of

opportunities in various countries available for us to target and our MEGA Rewards Card

program would grow and continue to help other retailers worldwide provide the same

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innovative service to reach their target customer and implement a tracking system at a

faster and more affordable rate internationally.

In the future, if retailers decide to negotiate with each other and start a new trend

which allows consumers to exchange their points within our exchanging points system;

we will develop this new technique and flexibility to satisfy our clients’ demands. In

addition, it would keep the peace of mind of the consumer.

Threats

Threats exist in the market and MEGA is aware of them. The most significant threat

comes from competition. In regards to the market perspective, so far there is no direct

competitor but potential threats exist. Our big indirect competitors include AirMiles,

President Choice (PC), Hudson’s Bay Company (HBC) and Visa and MasterCard. These

companies offer similar rewards and services which we aware of. It should be noted

that, they have limited market share. Their big advantage is that, their reputation has

been built up. If we intend on beating them or possibly taking their customers away, we

have to offer a better service to attract clients. This would be done by offering more

convenience. We will certainly offer a great service with lots of bonuses for the

consumer to discard all their previous reward cards and have one MEGA Rewards Card.

Other threats that exist are other mega-like card companies being created. From a

customers’ perspective, certain people who have and use several rewards cards on a

regular basis are accustomed to their routine, so they might not want to switch over to

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the MEGA Rewards Card. If this is so, that would be a threat for our company’s existence,

but this problem would be eliminated when the retailer shuts down their own

independent rewards system and joins in on the networked MEGA Rewards Card system

that links multiple retailers that has the consumer in mind.

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3. Objectives and Issues MEGA Rewards Card

Objectives

1) MEGA’s “All-In-One” Rewards Card hopes to become the marketing leader in the

customer loyalty industry: Therefore, we anticipate achieving 25% market share

within the next three (3) years.

2) The first stage of our target marketing is to build up a visual-model to the public. To

complete this task, we are going to spend $42,330.60 (in 2009) of our budget on

advertisement; Moreover, MEGA Rewards Card will bring a brand new concept to

customer loyalty; in addition to providing detailed reports to both of consumers and

potential partners. We focus on convenience and customization to convince

consumers, retailers, and partners to utilize our service, thus, MEGA will be able to

accomplish brand recognition.

3) The second stage of our target marketing plan is to build up strong relationships

with our clients and potential partners. To complete this task, we will make a precise

consumer survey report to indicate the importance of MEGA’s “All-In-One” Rewards

Card for most consumers. At the same time, we will provide a future forecast that

demonstrates the difference using MEGA and not using MEGA in a scope of three (3)

years. We are confident that we will provide a better quality service program to our

clients and make them chose MEGA time and time again.

4) The third stage of our marketing target is to increase card holders to 60% in the

second year. To achieve this task, we will improve our marketing strategy to focus

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more on our potential card holders’ awareness and offer special promotions on the

behalf of the retailers (our clients) and promote unique activities to attract new

customers and keep the old customers to stay with the Mega rewards card.

Issues

As a new company, we need to convince the target market that MEGA will improve the

existing mode of rewards system to provide an extremely convenient systematic way of

reward tracking. MEGA will deliver a precise customized market report upon our

partners’ demand. With that being said, in order to achieve the above goals, there are

also some issues we need to take into consideration:

1) Money is a big challenge for our new company. In the beginning, we need to have

enough money to invest in our growing business that could result in cash flow.

Any money shortage will directly affect business stagnancy, our market share,

even make our target marketing fail; as a result, money is most critical factor for

our success.

2) The most difficult part is that we must stand up to existing rewards companies for

the sake of brand recognition. To impress major and minor market retailers, we

must come off strong and provide them with a detailed program that explains our

agenda that stresses the benefits.

3) Developing technology that is reliable and secure will be a challenge considering

we should design a system that integrates software from other existing reward

systems, so we do not lose time and money.

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4) To avoid the threat of new competitors, we will rapidly expand our client

database by strategically targeting new customers.

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5. Marketing Strategy MEGA Rewards Card

Focus On Marketing Objectives

The “All-In-One” concept is marketed so it is accepted and recognized by consumers

Convince retailers to accept our superb service and to maintain strong relationships

Increase awareness among potential clients by forecasting that we will increase the

number of card holders to 60% in the second year

To be the market leader and dominate the customer loyalty market share

Since our company acts as an intermediary, our job as an agent requires us to cooperate

with retailers and provide service to the selling-end, which will target the customers of

retailers.

Product

We provide a service that is convenient; it helps our clients save time and money. Our

product is an “All-In-One,” rewards system designed for retailers to implement instead

of them creating their own. By taking out the hassle of our clients having their own

rewards system, we do all that is necessary for them to reward their customers with

upmost loyalty. Presently in the market, a rewards card makes the difference if a retailer

gets the sale or not since it provides customers incentive to buy. This is why our service

is creative, special, and worth buying into. We are able to provide a complete marketing

package that acts as solution to those retailers who have not executed a rewards system

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and to those retailers who would replace their system with ours because we are able to

provide them the best expertise and service they can buy. The complete marketing

packages entails: tracking service, marketing consulting, 24/7 customer/ technology

service support, detailed reports, and administrative services. Our success derives from

being an outsource company. This is important because the cost to hire us and have our

service is more worthwhile because we are experts in our field and retailers do not need

to have separate departments that organize a compiled rewards system. Being a

professional marketing firm, our innovative idea about the new generation of customer

loyalty combines multi-companies rewards systems all-in-one mega card.

Place

Our main target being retailers, any retailer in the market potentially is our target

market. We will launch our services in the Greater Toronto Area (GTA) and then expand

widely across Canada. We recognize retailers have their own rewards system, but we

believe there is a need for our service in the marketplace and there will be enough

potential for us to expand and succeed.

Price

Price is an important aspect of our marketing strategy. We want to be attractive yet

competitive with our indirect competitors to keep up with the rapid changes that occur

in today’s technology driven market. Our business depends on profits and our main

income comes from the relationships we have with our clients. The incentive for them

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to sign with us is that, they could potentially save at least 40% - 50% of their cost by

outsourcing their marketing department(s). This allows them to conserve on big items

such as: labor costs, equipment expenses, negotiating lease agreements, saving rent

money, and lastly, operating expenses. As mentioned in the Product Review, we are

expecting to target fifteen (15) retailers and offer three different price points to attract

clients. To reiterate, the Bronze Package offers some of our services for $80,000 annual

membership. The Silver Package provides clients with most of our services for $100,000

annually. Lastly, the Gold Package offers all our services for $200,000 per annum.

Promotion

Being an outsourcing type of company that focuses on service, it is imperative for us to

offer convenience for both retailers and consumers. We would promote our services to

retailers by approaching them directly and setting up consultations. As for the general

public, we plan on promoting through billboards, being featured in magazines, having

our posters at retail locations, through the website, etc. The purpose of our promotion

is in hopes to eventually become the market leader in the loyalty rewards program. In

order to attract companies to join us, we are planning to offer some promotions to both

customers and clients as following.

a. To Our Clients: Once a retailer joins our advanced rewards system, they can save

one month’s transaction fee. Or alternatively, it can get 25% off its monthly fee for a

period of six months. In addition, our clients would receive free advertisement by

mediums such as: Mega rewards card website, newspapers and magazines in the

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first month of service. Moreover, retailers will be able to showcase new products to

customers at our annual Customer Appreciation Day. This is a good opportunity for

our clients to reward past and present customers while attracting new ones. The

showcase is essentially a product exhibition that hopes to bring in added profits and

engage with consumers and potential card holders in a casual manner.

b. To the Consumers

We are also plan to invest $3,527.55 each month for the purposes of advertising.

Promotion mediums include: mass media such as television, radio, newspapers,

magazines, billboards, the internet, posters in each of our clients stores, and at bus

terminals. This promotion is solely for the Mega rewards card Company. We would

encourage our clients to advertise through any mediums that are readily viable for

them. Mega represents a team effort that requires the promotion of various avenues to

reach maximum potential and market share.

: Customers who sign up for the Mega rewards card through the

retailer of their choice, will receive 10% off within the first month when they spend

$20 or more. There are additional saving options such as receiving free flyers from

the affiliated companies each week to get additional information regarding

upcoming events and special promotions. As stated before, the annual Customer

Appreciation Day will help trendy customers see the latest products, get free

samples, tips, gets their questions answered, and simply come out and enjoy

themselves.

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6. Action Program MEGA Rewards Card

What will be done

To have our marketing goals for our product be a success, we will need to invest a lot of

time and money into the initial set up. Thus, this requires investing $1,080,464.13 this

year (2009) to reach our intended clients, the fifteen (15) retailers. Producing new

templates, hardware, software, marketing initiatives, research and development

projects are all items we strive on doing our best in to meet the needs of the changing

market. Since customers are the number one objective for any retailer, we have to keep

up with today’s technologically advanced consumer to ensure we get optimal results. As

we grow our business, we plan on adding new features to our loyalty program each year

after hosting our annual Customer Appreciation Day. This way, we gain customer loyalty

and client feedback and can make changes that are sure to be on target. In short, we

will provide services such as: forecasting, consulting, tracking, technical support, market

reports that include market trends and analysis details.

:

When will it be done

Before the launch of our company, all of Mega’s employees will have to join together as

a team and come up with the best strategy and appropriate advertising channel to reach

our clients in our initial consultation in hopes to get as many contracts as possible.

Things will constantly be updated and alternated accordingly. We will be monitoring

current market trends and make future market predictions. In addition, we will be

:

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pricing our services at a lower rate at first. Later on, we will increase the prices of our

services as we build good reputation.

Who is responsible for doing it

Different tasks will be assigned to different people. We have specific departments set up

that will handle particular things. The Technology Department will handle the database,

websites, and all hardware and software components. The Marketing Department will

be responsible for the advertising and promotion of the Mega rewards card. Marketing

will also be in charge of approaching new cliental and sealing the deal. The Research and

Development Department will manage and design current and new projects. With that

being said, any remaining work, such as invoices, distribution, office work and follow-up

on leads will be handled by our Administrative Department. In addition, since we are a

marketing firm/ customer loyalty company, our full support team will work together and

as a whole is responsible for meeting the demands of our clients and delivering what we

promise to them. This will be done by means of joining skills and having all departments

corresponding with one another.

:

We will have various start-up costs in our first year of business. We have run the

numbers to the bare minimum. We are expecting to spend $411,480.00 for computer

hardware, software, website costs, and office furniture and other essentials. We are

expecting to pay out $470,000 for payroll for the various staff departments mentioned

How much will it cost:

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above. For building occupancy and other associated costs we have estimated it to cost

us, $71,187.75. As for general operations, we have calculated this amount to be

$199,276.38. With a grand total of $1,080,464.13 as the expected expenses in 2009. We

would advise, for more clarification, to refer to the Budget section of this proposal.

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7. Budgets MEGA Rewards Card

The following budget forecast displays a breakdown of our expected expenses and

expected revenue for our first three years in business. This spreadsheet will give

shareholders an idea of where our company lies in terms of profit, budget, and future

forecasts. It should be noted that these figures are generated from the mentioned

fifteen (15) retailers we have on board from the Bronze, Silver, and Gold Packages.

MEGA Rewards Card Budget Forecast for Year: 2009, 2010 & 2011

Year 2009 Year 2010 Year 2011 Expected Sales Revenue:

Tracking Service $ 210,000.00 $ 240,000.00 $ 256,000.00 Marketing Consulting Fee $ 1,010,000.00 $ 1,055,000.00 $ 1,265,000.00 24/7 Customer/ Technology Service Support $ 210,000.00 $ 240,000.00 $ 256,000.00 Detailed Reports $ 89,000.00 $ 113,000.00 $ 118,000.00 Administrative Services $ 41,000.00 $ 52,000.00 $ 55,000.00 Subtotal $ 1,560,000.00 $ 1,700,000.00 $ 1,950,000.00 LESS: Service Cancellations & Allowances $ 20,000.00 $ 22,000.00 $ 25,300.00 Net Service Revenue $ 1,540,000.00 $ 1,678,000.00 $ 1,924,700.00 Expected Percentage Increase Annually - 10.0% 15.0%

Expected Expenses: Intangible & Tangible Computer Software $ 320,000.00 $ 160,000.00 $ 80,000.00 Website Costs: Maintenance, Hosting $ 20,000.00 $ 20,000.00 $ 20,000.00 Furniture & Equipment $ 22,000.00 $ 8,500.00 $ 6,250.00 Computer Hardware $ 48,000.00 $ 15,000.00 $ 11,000.00 Office Essentials $ 1,480.00 $ 1,300.00 $ 1,250.00 Subtotal $ 411,480.00 $ 204,800.00 $ 118,500.00 LESS: Depreciation $ 71,480.00 $ 74,500.00 $ 78,650.00 Total Expenses $ 340,000.00 $ 130,300.00 $ 39,850.00

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Payroll:

Technology Department $ 130,000.00 $ 130,000.00 $ 130,000.00 Marketing Department $ 100,000.00 $ 100,000.00 $ 100,000.00 Administration Department $ 110,000.00 $ 110,000.00 $ 110,000.00 R & D Department $ 130,000.00 $ 130,000.00 $ 130,000.00 Total Payroll $ 470,000.00 $ 470,000.00 $ 470,000.00

Occupancy: Lease of Office Space $ 41,550.00 $ 41,550.00 $ 41,550.00 TMI- Taxes, Maintenance, & Insurance $ 12,000.00 $ 12,000.00 $ 12,000.00 Utilities $ 17,637.75 $ 17,637.75 $ 17,637.75 Total Occupancy $ 71,187.75 $ 71,187.75 $ 71,187.75

Operations: Advertising $ 42,330.60 $ 45,000.00 $ 42,330.60 Courier Service $ 2,116.53 $ 2,500.00 $ 3,130.00 Discounts $ 6,130.00 $ 7,500.00 $ 9,150.00 Distribution $ 3,150.00 $ 5,550.00 $ 7,540.00 Finance -- Accounting Services $ 2,170.00 $ 3,000.00 $ 3,150.00 Office Supply $ 705.51 $ 1,091.00 $ 1,200.00 Public Relations $ 6,390.00 $ 7,500.00 $ 8,450.00 R & D- Material Costs $ 81,133.65 $ 95,000.00 $ 107,500.00 Sales Promotion $ 41,625.09 $ 48,000.00 $ 65,005.00 Travel -- Gas Money, Air Plane Flights $ 12,650.00 $ 15,000.00 $ 20,000.00 Miscellaneous $ 875.00 $ 980.00 $ 1,260.00 Total Operations $ 199,276.38 $ 231,121.00 $ 268,715.60

Total Expected Expenses $ 1,080,464.13 $ 902,608.75 $ 849,753.35

Expected Gross Profit (Before Tax) $ 1,540,000.00 $ 1,678,000.00 $ 1,924,700.00 Expected Net Profit (Before Tax) $ 459,535.87 $ 775,391.25 $ 1,074,946.65

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8. Controls MEGA Rewards Card

Aim

To better achieve our business goals in different stages, we will implement two kinds of

controlling actions; one is micro-control and the other is macro-control. Micro-control

will help monitor the primary business objectives to help us progress, this will include

strategic business control in our short and long-term business plan. On the other hand,

macro-control will assist our business to perform ongoing performance checks in terms

of allocation of funds, human resources, management, and the quality of customer

service. These will be explained in greater detail under the heading, ‘Measurement’.

a.

The following outlines the goals our company strives to achieve in order to bring our

business success in the market: Mega “All-In-One,” wants to become the customer

loyalty leader in the industry: Therefore, we plan on achieving 25% market share within

the across Canada within the next three years.

Goal to Achieve

1) The first stage of our marketing goal is to build up a visual-model and introduce it to

the public. When it comes to publishing a large numbers of advertisements to the

market, “All-In-One” will surely bring an innovate concept to the rewards program

and develop a professional report which mirrors a tracking system that would be

made available exclusively to our clients. We focus heavily on convenience and

service to attract the maximum amount of retailers and their customers.

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2) The second stage is to establish strong partnerships with our clients. To attract our

clients to participate in our system, we will conduct consumer survey reports to

indicate how important “All-In-One” is for most consumers. In addition, we will

provide a detailed market survey to point out the success of Mega. We are confident

that we can provide a better quality service in the rewards program industry;

offering outstanding incentives without compromise. Keeping loyal customers

happy, which in the end makes retailers happy, knowing card holders feel confident

using the Mega rewards card and reaping all its benefits services.

3) The third stage is to increase the amount of Mega “All-In-One” rewards card holders

to 60% in the second year. More awareness, website promotion, incentives to join

in, and Customer Appreciate Day are all channels employed to attract new

customers and keep the older ‘loyal’ customers.

4) Each year, we expect to grow by certain percentage. This way, we are growing at a

steady rate that is profitable. In the second year (2010), we expect to grow our

market share by 10%. In the third year of business, we hoping to be more well

established and have the business to come to us, rather than, us chasing the

business; thus, in 2011, we anticipate to grow by 15%.

b.

To measure our company’s progress in the market, micro-controls will measure the

initial objectives that progresses quarterly, which help us to immediately adjust our

objectives at anytime. Macro-controls will be used to assess whether our expenses go

Measurement

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according to our planned budget and it will limit the amount of employees we have, this

way we can save money on labour. Moreover, macro-controls help measure what our

business lacks in product quality and determine the quality of customer service

satisfaction.

The above tasks we will be accomplished by means of:

1) Periodic, yet precise statistic reports that measure the progress of our business

objectives.

Micro

2) Internal data reports to analyze the amount of sales and check whether it is

compliant with our budget plan.

3) Setting up a multi-level management structure that supervises and allocates tasks to

employees.

Macro

4) Market research (customer feedback and surveys) to measure product quality,

customer satisfaction, and brand awareness.

c.

To insure our objectives are successfully met, each quarter, we will evaluate the

performance of our achievement. Our evaluation design will be based our initial

business objectives. If we fall behind our objectives, we will find underlying issues and

seek ways to solve them.

Evaluation

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d.

In the case of our business’s performance, if it does not meet our initial objectives, we

will consider adjusting our business strategy to adapt to the current market situation. To

sum up, our business strategies will be designed to withstand and continue to thrive in

many diverse market situations.

Correct Actions

1) If we do not have many consumers signing up for the Mega rewards card, we will

boost our advertisement to make our company a more household name.

Possible Scenarios:

2) If it becomes difficult to introduce our services to potential clients and consumers,

we will re-innovate our approach so they are applied with ease.

3) If it becomes hard to convince potential clients to join with us, we will create a

detailed analysis that includes a solution report to explain the benefits of our service

by highlighting the advantages and offering a special promotion for the first few

months of signing.

4) If our actual budget does not comply with our forecasted budget, we will cut costs

where we can and possibly reallocate our recourses to use them as effectively as

possible according to that particular market situation.