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Essay text:
Families are among the most valuable customers and share many
needs and interests. This combination of needs coherence and financial value
means the brand can exploit the Pareto (or Differential Marketing) principle1 to
create tailored value and communication propositions. This can in turn help to
increase customer-bonding levels, given that emotional loyalty is driven by trust
and appreciation.
Therefore, in 1998 Sainsbury’s launched the Club 0-5 in response to Tesco’s Baby
Club. The objectives were to keep existing high value customers, increase their
loyalty, and improve the spending of medium value customers...
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