RE: RE: RE: Data Analytics---the keyA good reading is on page 25 of ther Ubika Research report done for Futura on Nov 14, 2007. Futura did not have the Aeroplan rewards program back then, although Aeroplan was mentioned in passing.
On page 6 it said that Futura had difficulty making its mark as it was a relative "late comer" to a crowded and mature category. Many national retailers already were linked with Air Miles or Aeroplan, or had their own established proprietary programs.
Page 25 is titled: "Can Futura succeed?" Servicing independent merchants cost effectively was the way to go. There are 160,000 such merchants in Canada. Major national loyalty programs are less interested in servicing these merchants as the economics of reaching this segment is unattractive to them.
Futura seems to have a niche carved out for themselves to fill the void. But signing up a thousand merchants for example, is challenging and needs to be achieved in a profitable manner. Futura is relying on Direct Sales Agent to acheive this.
Aeroplan is mentioned again on page 26. "Creating an Aeroplan" in a niche market. Futura could provide "Aeroplan-type" affinity to many local clusters if critical mass can be acheived within them. As a few years passed, not only the abvoe was being implemented, but interestingly, with the very Aeroplan program itself.
Page 28 discussed "Challenges and Risks". Good indepth reading about 6 areas of concern.
Conclusion: Broadening of Futura's strategy was the right thing to do, given that it faced a "me too" situation in the Canadian loyalty program space. Company has good potential but still has some ground to cover from the "cup to lip".
--------------------------
The stock was only 1.5 cents back in early 2011 and now touched 6 cents for a while. Shares traded since the start of 2011 out of 164 million issued. Average price 3.6 cents.
100 million traded since Nov 1, 2010. 60% of float. Would think it's time for the stock to move up. Those who want it, have it.
The autodealers in the Toronto area could emerge as a critical mass cluster(s). Something to build upon in the coming years in further attracting local independent merchants in an "Aeroplan type" affinity. I think Futura are onto something, but it will depend on good execution, while at the same time keeping sales costs down when signing up clients and servicing the loyalty program.
I bought in in May based on this potential, but it will require some patience.