Instructions: Before answering the below prompt, be sure to (re) read WELCOME TO THE COFFEEHOUSE background. The largest national coffee chain has decided to expand aggressively in your market. While The Daily Grind is confident their coffee is better tasting and fresher, they have seen a 10% drop in sales at their three locations closest to the competitor's new locations since they've opened. As a result, the executive team has decided to invest more money into marketing and promotions. They've come to you with several ideas they'd like to get your perspective on. Which option would you advise them to go with? A.) Introduce a customer loyalty program. The Daily Grind could create their own rewards program offering discounts and small-value incentives to guests. It could be based around a buy-10-coffees-get-one-free model and/or include random freebies, such as size upgrades or additional espresso shots. The Daily Grind could legally modify the program without giving customers prior notice- making it easy to tweak the program as it develops. On top of the value of the freebies themselves, costs for setting up a loyalty program like this include scannable key chain tags costing $.74 per unit (with an initial activation fee of $.30 per unit), that will require $600 to design. The Daily Grind would also have to invest $379 into a gift card software program that works with its current POS system, along with a one-time processing set-up fee of $75 per location. B.) Invest in new digital menu boards. Transitioning to digital menu boards in all 11 The Daily Grind locations would be another option. Digital menu boards make it easy to add new products and promote various selections quickly based on supply, profit margins, etc., and are proven to influence customer purchasing patterns. The salesperson at BCG Signage has quoted a cost of $3,790 per store to equip them with digital boards. BCG also offers hour- long training sessions to teach store managers and