Concepts and Cases
Edited by Joseph Mark S. Munoz
Thelma Rocha and Tales Andreassi INTRODUCTION Establishing consumer loyalty in competitive markets via an exchange currency is not an easy task. The complexity is heightened when one examines the Brazilian reality, given that the country does not have a culture of accumulating points to be exchanged for prizes, like other countries such as the USA or the UK. Loyalty programs refer to business initiatives typically participated in by a coalition of enterprises in order to cultivate customer loyalty and repeated patronage. This chapter examines the case of a company in Brazil called Dotz Marketing S.A. that specializes in loyalty programs. The firm started as a microenterprise and grew into a large firm in a matter of years. This case examines its growth path. The Brazilian market witnessed the emergence of several loyalty programs with mixed results. In the 1990s, there were attempts to set up programs to form coalitions of firms, such as that of Smart Club (of Dutch origin) but the venture was not successful and the firm closed. In 2000, entrepreneur Roberto Chade and his partners launched the firm Dotz Marketing S.A. The aim was to develop a loyalty program based on the accumulation of a virtual currency, called Dotz, and exchange this for prizes in affiliated establishments. The Dotz program is innovative and inclusive. Contrary to traditional programs that tend to be restricted to a single firm, the program allows consumers to gain points when making purchases in several establishments such as shops, hotels, and restaurants. It...
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