Daily Bazar Case Study Daily Bazar a leading supermarket chain in India. Everyday Rewards: is a Loyalty Program run by Daily Bazar for its customers. Customers swipe Everyday rewards card during every purchase to get bonus points while Daily Bazar collects the purchase details of the customers. Case study 1 Large retailers in India like Daily Bazar and Bada basket are using their loyalty programs to send out offers to their customers through different channels, e.g. Email or direct mail. For Example: Get X-times points if you shop with Daily Bazar supermarkets and spend at least Rs.Y (in category Z), offer is valid until DD/MM/YYYY The objective is to maximise the profit of the retailer with the customers who received the offer. For each customer the incentive, threshold, for what (total store/categories) and offer period can vary. Therefore the parameters X, Y, Z and offer period DD/MM/YYY can be different for each customer! 1 How would you use customer transactions to optimise these parameters? 2 How could you classify and group customers for a specific department, e.g.dairy, who share similar shopping behaviours? 3 What objectives would you chose for each of these customer groups and how would these parameters look like? 4 How will you measure the success of your offers/parameters and how can you prove that different parameters influence the profit? Case study 2 Offers could also be used to increase the sales of specific vendor products, e.g. Colgate toothpaste. In this case hundreds of products can be part of a single campaign and thus we have to create hundreds of offers. Nonetheless the number of offers each customer will receive is limited to just a few. The objective is to maximise the total sales over all participating vendors with their products. Additional complexity is given through some constraints: Each offer can have a minimum or maximum circulation. 1 Can you come up with a pragmatic assignment algorithm, which uses

individual customer transactions on product level to allocate appropriate product offers for a customer? 2 Will this algorithm change if you do this with millions of customers?

3 How will you measure the success in increase of sales for each product? Present back the results of both case studies in the form you like and feel most comfortable within 60 minutes. We are not expecting a PowerPoint presentation. We want to understand your thinking and creativity to use transactional data in the campaign (optimisation) process.