Discount Coupons at BFL: A Privilege for Shareholders or A Means of Wealth Erosion?

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Abstract

Bharat Footwear Limited (BFL) is an Indian upmarket footwear manufacturer with an extensive retail network. The case presents the experience of a customer while purchasing a pair of shoes in a BFL retail outlet in Ahmedabad, India. The purchase price of the footwear was INR 4000. The customer was offered a 20% discount, using an exclusive discount coupon meant for BFL shareholders provided he was willing to share 40% of the savings with the sales agent. The customer must decide whether to accept the deal or not. The case provides adequate data to discuss the decision-making context, business value of the secondary market for shareholders’ discount coupons based on estimated data. The case analysis further leads to a debate on whether BFL should continue with the discount coupon scheme.

Additional Information

Product Type Case
Reference No. O&DS0004
Title Discount Coupons at BFL: A Privilege for Shareholders or A Means of Wealth Erosion?
Pages 8
Published on Jan 9, 2024
Year of Event 2023
Authors Ravichandran, N; Narayanaswami Sundaravall; Shah, Bhavin;
Area Operations & Decision Sciences (O&DS)
Discipline Operations Management
Learning Objective 1. Structure and resolve a resource allocation among multiple players 2. identify multiple players, their objectives, priorities, and a solution approach 3. Asymmetry of information and its linkage to the bargaining power of individual players 4. Root cause analysis 5. Fool-proofing a system
Keywords Shareholder's Coupons; Monetizing Coupons; Pricing Coupons
Country India
State Gujarat
City Ahmedabad
Organization Bharat Footwear Limited (Fictitious)
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