Samenvatting

In this report, the topic of loyalty programs in a franchise business model will be discussed with the analysis focusing on the situation at Mexx International. Currently, there is one centrally run program, Mexx Connect, in the company's most important markets in Western Europe. However, in Region 3 (Central and Eastern Europe, Central Asia, Middle East and Latin America) there is a franchise system where the partners are not restricted to having to use one program.
This creates a strategic problem for Mexx because currently the brand is represented in different ways in the region. Confusion and disappointment might arise for customers visiting Mexx in different parts of the world. Just as there is one brand image, mission and vision, there should only be one loyalty program. As this is currently not happening, the initiative was launched to find out what can be done in order to unify or at least streamline Mexx International's loyalty program efforts worldwide.
This report presents the research into the current situation concerning this topic and it gives a recommendation to Mexx for the strategic direction it should take. Based on the best practices and the research into the current situation, both internal and external, it was concluded that the best strategy for Mexx to take is to make the strategic decision of having Mexx Connect in all stores worldwide. This strategy would allow for the company as a whole to target all of its loyal customers, who buy the brand for what it represents, not for how big a discount they can get.
This strategy may be difficult to achieve because of internal resistance from the partners, competitive pressures and uncertain economic conditions, but it is believed that by focusing on Mexx's ability for transformation and development, it is possible to change customer opinions and the loyalty program standards in that region. It just takes a clear vision of where this strategy will take Mexx and the commitment from every single employee.