Case Study: Kudler Fine Foods
On June 14th, Kudler Fine Foods will launch its first vegan cupcake. The new addition is a variation of sprinkles’ best selling chocolate cake with cream cheese frosting, and strawberry cake with authentic organic strawberries. The cupcake chain is substituting coconut oil and vegan cream cheese for dairy and egg ingredients. Customers with a sweet tooth can find the cupcake chain domestically in cities like La Jolla California, Del Mar California, and Encinitas California. Customers can also find the cupcake chain internationally in Canada and Paris, France. Through extensive research Kudlers marketing team has compiled a strategic marketing and communications plan to aid in a successful product launch for both domestic and international markets. This paper will elaborate on the opportunities for this product, which are most often upon various segments of the target market. Additionally, in this paper the subject to identify is the product description, positions, target audience, SWOT analysis, market potential, growth, strategies and, objectives. This paper will also cover the
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marketing communications including public relations, advertising, and promotions, domestic, and international marketing strategies, and financial information discussing the three year budget plan for the new product launch. Kudler Fine Foods invite all customers to a sweeter and healthier way of eating.
Product Description
Kudler is a premiere gourmet grocery store dedicated to quality and strives to produce and sell the finest bakery products, meats, produce, cheese as well as domestic and imported wines. The natural development of their product line sparked the desire to produce a gourmet vegan desert line. To break ground and introduction the new product line Kudler decided to begin with a vegan cupcake desert. Kudler chose to make the cupcakes vegan to meet the needs of all customers. Consumers are striving to lead healthier lives and are looking to make better choices in the foods they consume. In addition Kudler plans to use as many local ingredients from local farmers and growers. Kudler Fine Foods new vegan desert line will begin with a gourmet vegan cupcake. The cupcake line is known as “Kudler Gourmet Vegan Delights” and will feature several vegan cupcake varieties including strawberry, banana, chocolate, vanilla, and more exotic varieties such as kiwi, apricot, mango, and lemon-poppy seed. Kudler has chosen a slogan “healthy, nutritious and delicious deserts” and has undergone extensive customer surveys and sifted through piles of feedback to create a delicious and healthy vegan cupcake line that will satisfy everyone in the family. The new vegan cupcake line is available in all of Kudlers grocery store locations (California, Canada, and Paris France).
The vegan cupcakes are baked fresh, and sold fresh, excess product or product not sold at the close of business will be donated to local food banks and shelters. Kudler believes strongly in being active in the community and giving back. The vegan cupcakes retail for $1.25 – 2.75, depending on the type and size of the cupcake. Any purchase of 6, 12 or 24 cupcakes qualifies for a discount. Weekly specials offering deep discounts on the “cupcake of the week” will help bring in customers and samples will encourage them to buy cupcakes and try new flavors. The frequent shopper program already offered by Kudler will expand to include the new cupcake line. Points can be earned that can be used in the store toward purchases and specials that include a free
cupcake.
Product Positioning
Kudler Fine Foods has been working hard to position the vegan product lines and stores in new markets including Canada and France. Kudler plans to expand further once success is achieved in the new locations. Product placement is vital to the acceptance and success of a new product line or store location. Kudler is using advertisements and samples to draw in new customers and is confident that once new customers come in and taste and experience the fresh, superior quality of Kudler products word of mouth advertising will help bring in even more customers. Introducing an all vegan cupcake line is risky as veganism is still fairly new to the mainstream however using local ingredients from local farmers and growers will allow customers to obtain familiar with the product line. Local farmers and growers will also provide advertising for Kudler and will receive advertisement. A healthy, nutritious, and desert option will be popular with families and consumers looking to lead healthier lives but still enjoying a sinful tasting desert. Additional research will help Kudler stay on track and make adjustments to their product offerings as consumer demands and tastes shift and expand.
Targeting The vegan cupcake line is targets primarily socially conscious consumers without necessarily large amounts of discretionary income. Cost-control is thus vital to maintaining the target prices, which allow Kudler to market more to lower-income demographics than many competing vegan products. Significant market sectors will likely be college students and young adults who will make somewhat more expensive purchases for socially positive goods or services based on their shared core values with Kudler products. Kotler and Keller (2007) describe core values as “the belief systems that underlie consumer beliefs and behaviors […determining] at a basic level, people’s choices and desires over the long term” (p. 88). By appealing to these core values, Kudler’s vegan cupcakes will likely attract upscale customers based entirely on quality, while the socially conscious aspect will drive attraction from these target sectors, at a manageable cost.
Market Needs Kudler’s targeted marketing will likely fulfill that market niche identified above; the cost- and socially conscious consumer. Vegan products has the potential for a clear high-end market , as witnessed by companies in large American city’s charging three to four USD per cupcake, when purchased in bulk - minimum one dozen - and not including shipping - averaging 20 USD depending on location (BabyCakes, 2011). Kudler can beat that price and maintain a high product quality, which will attract consumers who want to eat healthy and consume responsibly, but may have previously believed that such a balance was not possible. Kudler’s emphasis on locally sourced goods will also be a positive factor here, giving the product line an advantage over even such high-end competitors as such referenced above; ordering from Los Angeles or New York City may have a chic appeal, but it certainly is not local for much of the world. Studies have shown that on average, every dollar spent on local products will generate four times that for the local economy (Black, 2009). Kudler can make the case that its products are healthy for consumers, healthy for local workers and the economy, and affordable.
marketing communications including public relations, advertising, and promotions, domestic, and international marketing strategies, and financial information discussing the three year budget plan for the new product launch. Kudler Fine Foods invite all customers to a sweeter and healthier way of eating.
Product Description
Kudler is a premiere gourmet grocery store dedicated to quality and strives to produce and sell the finest bakery products, meats, produce, cheese as well as domestic and imported wines. The natural development of their product line sparked the desire to produce a gourmet vegan desert line. To break ground and introduction the new product line Kudler decided to begin with a vegan cupcake desert. Kudler chose to make the cupcakes vegan to meet the needs of all customers. Consumers are striving to lead healthier lives and are looking to make better choices in the foods they consume. In addition Kudler plans to use as many local ingredients from local farmers and growers. Kudler Fine Foods new vegan desert line will begin with a gourmet vegan cupcake. The cupcake line is known as “Kudler Gourmet Vegan Delights” and will feature several vegan cupcake varieties including strawberry, banana, chocolate, vanilla, and more exotic varieties such as kiwi, apricot, mango, and lemon-poppy seed. Kudler has chosen a slogan “healthy, nutritious and delicious deserts” and has undergone extensive customer surveys and sifted through piles of feedback to create a delicious and healthy vegan cupcake line that will satisfy everyone in the family. The new vegan cupcake line is available in all of Kudlers grocery store locations (California, Canada, and Paris France).
The vegan cupcakes are baked fresh, and sold fresh, excess product or product not sold at the close of business will be donated to local food banks and shelters. Kudler believes strongly in being active in the community and giving back. The vegan cupcakes retail for $1.25 – 2.75, depending on the type and size of the cupcake. Any purchase of 6, 12 or 24 cupcakes qualifies for a discount. Weekly specials offering deep discounts on the “cupcake of the week” will help bring in customers and samples will encourage them to buy cupcakes and try new flavors. The frequent shopper program already offered by Kudler will expand to include the new cupcake line. Points can be earned that can be used in the store toward purchases and specials that include a free
cupcake.
Product Positioning
Kudler Fine Foods has been working hard to position the vegan product lines and stores in new markets including Canada and France. Kudler plans to expand further once success is achieved in the new locations. Product placement is vital to the acceptance and success of a new product line or store location. Kudler is using advertisements and samples to draw in new customers and is confident that once new customers come in and taste and experience the fresh, superior quality of Kudler products word of mouth advertising will help bring in even more customers. Introducing an all vegan cupcake line is risky as veganism is still fairly new to the mainstream however using local ingredients from local farmers and growers will allow customers to obtain familiar with the product line. Local farmers and growers will also provide advertising for Kudler and will receive advertisement. A healthy, nutritious, and desert option will be popular with families and consumers looking to lead healthier lives but still enjoying a sinful tasting desert. Additional research will help Kudler stay on track and make adjustments to their product offerings as consumer demands and tastes shift and expand.
Targeting The vegan cupcake line is targets primarily socially conscious consumers without necessarily large amounts of discretionary income. Cost-control is thus vital to maintaining the target prices, which allow Kudler to market more to lower-income demographics than many competing vegan products. Significant market sectors will likely be college students and young adults who will make somewhat more expensive purchases for socially positive goods or services based on their shared core values with Kudler products. Kotler and Keller (2007) describe core values as “the belief systems that underlie consumer beliefs and behaviors […determining] at a basic level, people’s choices and desires over the long term” (p. 88). By appealing to these core values, Kudler’s vegan cupcakes will likely attract upscale customers based entirely on quality, while the socially conscious aspect will drive attraction from these target sectors, at a manageable cost.
Market Needs Kudler’s targeted marketing will likely fulfill that market niche identified above; the cost- and socially conscious consumer. Vegan products has the potential for a clear high-end market , as witnessed by companies in large American city’s charging three to four USD per cupcake, when purchased in bulk - minimum one dozen - and not including shipping - averaging 20 USD depending on location (BabyCakes, 2011). Kudler can beat that price and maintain a high product quality, which will attract consumers who want to eat healthy and consume responsibly, but may have previously believed that such a balance was not possible. Kudler’s emphasis on locally sourced goods will also be a positive factor here, giving the product line an advantage over even such high-end competitors as such referenced above; ordering from Los Angeles or New York City may have a chic appeal, but it certainly is not local for much of the world. Studies have shown that on average, every dollar spent on local products will generate four times that for the local economy (Black, 2009). Kudler can make the case that its products are healthy for consumers, healthy for local workers and the economy, and affordable.