Neck & Neck: Leveraging the Club Neck Information
Commercial Director Prado wonders how to leverage the loyalty card information to prepare the Fall 2008 budget. The case discusses the value of subjective and objective information for profit planning purposes. Spanish children's apparel retailer Neck & Neck uses loyalty card information for tactical purposes, such as promotional campaigns. Its management team is thinking about how to incorporate that information to the budgeting (profit planning) process. From an analytical standpoint the case looks at the surprising results of a mailing campaign that reveals the consequences of inadequate updating of the customer database. Also, the budgeting data in the case may be used to teach regression model selection and R-squared.