Marketing Case Study: Kudler Fine Foods
Kudler Fine Foods
MKT421
Kudler Fine Foods
Kudler Fine Foods is a California based gourmet food store that carries domestic and imported foods, founded by Kathy Kudler. The La Jolla store that opened in 1998 was the beginning of the Kudler Foods Company. The second store was opened within two years at Del Mar and their latest store opened in 2003 at Encinitas. The company is seeking to expand to other locations. The business objective of Kudler Fine Foods is to ensure profits by offering very high quality products at competitive prices. The company focuses on satisfaction of customers through various strategies. (2003 strategic plan: Kudler Fine Foods) This paper is discussing the importance of marketing research combined …show more content…
with competitive intelligence in the development of Kudler Fine Food’s marketing strategy and tactics. It analyses the areas which require marketing research and identifies two key areas of marketing problems.
For any business firm to become successful, identifying and addressing the customer requirements is the most important thing as the customers are the greatest source of revenue and profit for the business. Today, marketing research is accepted as the best means to accomplish the business goals for firms. Marketing research helps a company to identify what types of products and services are profitable and can be introduced in the market. Competitive intelligence is increasingly used in marketing research strategies to understand the competitors. When companies incorporate competitive intelligence in their marketing research tactics, they can find feasible solutions to their existing issues in marketing and in turn can improve profits. Successful company’s best understand how to meet their customer demands and they positively differentiate their company and its products from competitors. (Long, 2006). Marketing research should be a very important consideration in forming the marketing strategies and tactics for Kudler Fine Foods. Market research will be beneficial for Kudler to explore the customer interests and customer requirements to improve the business. It will be beneficial for the company to study the growth potential of any new product or service that is in consideration. An appropriate understanding and use of competitive intelligence will help the company to identify the prospective of existing or impending competitor products. Kudler foods can develop superior marketing and customer relationship strategies by incorporating competitive intelligence in their marketing research strategies. Kudler foods should make use of market surveys to collect information on customer demands and purchase decision drivers to analyze the future growth of their product/service. The marketing team needs to work out how Kudler positions in terms of all marketing Ps against the competitors.
For any company, the product, place, price and promotion defines the marketing mix. The products offered in Kudler fine foods are the gourmet foods. It includes meat, seafood foodstuffs, baked items, cheese and diary, wine, coffee and tea. Kudler has also started catering service in their stores. Kudler is functioning now in three geographic locations which are at La Jolla, Del Mar and at Encinitas. The pricing at Kudler Fine Foods is competitive. The products are priced reasonably benchmarking other top competitors in the field. Kudler uses a cost-plus minimum pricing strategy to hit minimum 5% margin threshold, with a market-based plan to build in extra margin around what the market is disposed to bear. The promotion of Kudler Foods products is carried out at the discretion of the company. Kudler has self-funding programs such as the frequent purchaser and the cooking classes. Kudler is best known for its value added services rather than discounts to its customers. (Kudler Fine Foods, 2008)
In the year 2004, Kudler’s budget for sales and marketing efforts was $368,200. When compared to the simple marketing techniques used by the founder in the past, this was a huge sum. She used to print a flyer to distribute with the local newspapers during the peak weeks of her business, every year. Other marketing methods included advertising through some local restaurants and local radio stations, tri-fold brochures advertising the catering business and business cards. (2003 strategic plan: Kudler Fine Foods). Though the company could run successfully with its three stores offering finest gourmet foods, there are some issues in the marketing of Kudler products. Kudler can benefit from conducting a marketing research to identify the issues. The process of marketing research includes defining the problem, analysis, collecting data, interpreting data and solving the issue. Marketing research together with competitive intelligence will help Kudler Fine Foods to make advantages in its forthcoming business ventures.
The major business plan for Kudler in the near future is its expansion to more geographical locations.
Two major problems are identified in the marketing strategies of Kudler in the context of the expected expansion. Primarily, the company needs to find if the geographic location would be a fit for the company. Secondly the company should know if the existing modes of valuing its customers be feasible to build up a potential customer base to ensure business success. To find solutions to these two key marketing problems, Kudler can make use of the process of marketing research. Kudler needs to focus on the two key issues of customer value and the need for a suitable geographic location when they design their marketing tactics. The best way to do a marketing research on customer value is to conduct surveys through any professional marketing research agencies. Through the survey the customer should be prompted to answer whether or not they think Kudler is providing value for their prices and if the customers are satisfied with what they get in return. From the feedback got from the customers, Kudler can identify what to add, what to withdraw, how to improve customer satisfaction and also can realize if the customers are expecting anything more. Such a marketing research will help the company to understand which all products are more liked by the customers and if any product is less preferred because of its price and many more things that can help the company to improve its profits. Regarding the marketing research to identify the correct location, Kudler can seek the service of any marketing research agency. Even an efficient staff team also can handle the marketing research, combining the benefits of applying competitive intelligence. For example, they can select a geographic location and do a primary research for viability and profitability of their business in that area using internet tools. For example, Kudler Foods is targeting some locations in Southern
California to expand their business. The location of Carlsbad is in the coastal area and the location may be suitable for a new store as there are no major stores in that region. The marketing research should focus on the existing competitor firms in that area and analyze how they profit from their business. Most of the information would be available through an internet research. Furthermore, Kudler has to look for experienced marketing research agencies with proficiency in competitive intelligence, before taking a decision. (2003 strategic plan: Kudler Fine Foods).
The process of marketing research incorporating competitive intelligence will enable Kudler foods to recognize the issues it has in marketing their products. The feedback collected from the customers will provide sufficient data for the company to find solutions to the problems. For example, Kudler is a company which recognizes the importance of word of mouth marketing to attract new customers. Social media marketing will be beneficial for a firm like Kudler to increase its customer base. After analyzing the marketing research report, Kudler should develop new strategies like customer referral program and Affiliate Marketing because such programs will encourage customer loyalty and at the same time help in achieving its business goals. Kudler can create opportunities for people to refer business with the referral marketing strategy. Affiliate marketing is a partnership method of marketing that will offer customers a passive income from the business.
Though Kudler Fine Foods is an established firm with a popular brand name, the competition in the field is increasing as more and more companies are entering the market of gourmet foods. Kudler foods should always keep the pace in marketing so that it can maintain and improve its customer base and business. In the process of expansion, they can make use of the marketing analysis report to decide the most suitable geographic location for their business. Competitive intelligence will enable Kudler foods to gather and analyze public information about the competitors within the market place. Marketing research will also help Kudler foods to improve the quality of their products and the mode of customer service for better satisfaction of their existing customers. They can make use of such information in their future expansions. There is no doubt that marketing research is important in the development of Kudler Fine Food’s marketing strategy and tactics. Kudler should also consider the elements of competitive intelligence to design a most advantageous marketing strategy and tactics for its future growth.
References
2003 strategic plan: Kudler Fine Foods. Retrieved on November 19, 2013 from https://ecampus.phoenix.edu/secure/aapd/cist/vop/index.html
Long, A (2006). Competitive Intelligence + Market Research = Optimized Market Intelligence. Retrieved on November 19, 2013 from http://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/Competitive-Intelligence---Market-Research-%3D-Optimized-Market-Intelligence-43104.aspx
Virtual Organizations: Kudler Fine Food’s, 2008. Retrieved on November 19, 2013 from
https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler/KudlerHome002.htm
MKT421
Kudler Fine Foods
Kudler Fine Foods is a California based gourmet food store that carries domestic and imported foods, founded by Kathy Kudler. The La Jolla store that opened in 1998 was the beginning of the Kudler Foods Company. The second store was opened within two years at Del Mar and their latest store opened in 2003 at Encinitas. The company is seeking to expand to other locations. The business objective of Kudler Fine Foods is to ensure profits by offering very high quality products at competitive prices. The company focuses on satisfaction of customers through various strategies. (2003 strategic plan: Kudler Fine Foods) This paper is discussing the importance of marketing research combined …show more content…
with competitive intelligence in the development of Kudler Fine Food’s marketing strategy and tactics. It analyses the areas which require marketing research and identifies two key areas of marketing problems.
For any business firm to become successful, identifying and addressing the customer requirements is the most important thing as the customers are the greatest source of revenue and profit for the business. Today, marketing research is accepted as the best means to accomplish the business goals for firms. Marketing research helps a company to identify what types of products and services are profitable and can be introduced in the market. Competitive intelligence is increasingly used in marketing research strategies to understand the competitors. When companies incorporate competitive intelligence in their marketing research tactics, they can find feasible solutions to their existing issues in marketing and in turn can improve profits. Successful company’s best understand how to meet their customer demands and they positively differentiate their company and its products from competitors. (Long, 2006). Marketing research should be a very important consideration in forming the marketing strategies and tactics for Kudler Fine Foods. Market research will be beneficial for Kudler to explore the customer interests and customer requirements to improve the business. It will be beneficial for the company to study the growth potential of any new product or service that is in consideration. An appropriate understanding and use of competitive intelligence will help the company to identify the prospective of existing or impending competitor products. Kudler foods can develop superior marketing and customer relationship strategies by incorporating competitive intelligence in their marketing research strategies. Kudler foods should make use of market surveys to collect information on customer demands and purchase decision drivers to analyze the future growth of their product/service. The marketing team needs to work out how Kudler positions in terms of all marketing Ps against the competitors.
For any company, the product, place, price and promotion defines the marketing mix. The products offered in Kudler fine foods are the gourmet foods. It includes meat, seafood foodstuffs, baked items, cheese and diary, wine, coffee and tea. Kudler has also started catering service in their stores. Kudler is functioning now in three geographic locations which are at La Jolla, Del Mar and at Encinitas. The pricing at Kudler Fine Foods is competitive. The products are priced reasonably benchmarking other top competitors in the field. Kudler uses a cost-plus minimum pricing strategy to hit minimum 5% margin threshold, with a market-based plan to build in extra margin around what the market is disposed to bear. The promotion of Kudler Foods products is carried out at the discretion of the company. Kudler has self-funding programs such as the frequent purchaser and the cooking classes. Kudler is best known for its value added services rather than discounts to its customers. (Kudler Fine Foods, 2008)
In the year 2004, Kudler’s budget for sales and marketing efforts was $368,200. When compared to the simple marketing techniques used by the founder in the past, this was a huge sum. She used to print a flyer to distribute with the local newspapers during the peak weeks of her business, every year. Other marketing methods included advertising through some local restaurants and local radio stations, tri-fold brochures advertising the catering business and business cards. (2003 strategic plan: Kudler Fine Foods). Though the company could run successfully with its three stores offering finest gourmet foods, there are some issues in the marketing of Kudler products. Kudler can benefit from conducting a marketing research to identify the issues. The process of marketing research includes defining the problem, analysis, collecting data, interpreting data and solving the issue. Marketing research together with competitive intelligence will help Kudler Fine Foods to make advantages in its forthcoming business ventures.
The major business plan for Kudler in the near future is its expansion to more geographical locations.
Two major problems are identified in the marketing strategies of Kudler in the context of the expected expansion. Primarily, the company needs to find if the geographic location would be a fit for the company. Secondly the company should know if the existing modes of valuing its customers be feasible to build up a potential customer base to ensure business success. To find solutions to these two key marketing problems, Kudler can make use of the process of marketing research. Kudler needs to focus on the two key issues of customer value and the need for a suitable geographic location when they design their marketing tactics. The best way to do a marketing research on customer value is to conduct surveys through any professional marketing research agencies. Through the survey the customer should be prompted to answer whether or not they think Kudler is providing value for their prices and if the customers are satisfied with what they get in return. From the feedback got from the customers, Kudler can identify what to add, what to withdraw, how to improve customer satisfaction and also can realize if the customers are expecting anything more. Such a marketing research will help the company to understand which all products are more liked by the customers and if any product is less preferred because of its price and many more things that can help the company to improve its profits. Regarding the marketing research to identify the correct location, Kudler can seek the service of any marketing research agency. Even an efficient staff team also can handle the marketing research, combining the benefits of applying competitive intelligence. For example, they can select a geographic location and do a primary research for viability and profitability of their business in that area using internet tools. For example, Kudler Foods is targeting some locations in Southern
California to expand their business. The location of Carlsbad is in the coastal area and the location may be suitable for a new store as there are no major stores in that region. The marketing research should focus on the existing competitor firms in that area and analyze how they profit from their business. Most of the information would be available through an internet research. Furthermore, Kudler has to look for experienced marketing research agencies with proficiency in competitive intelligence, before taking a decision. (2003 strategic plan: Kudler Fine Foods).
The process of marketing research incorporating competitive intelligence will enable Kudler foods to recognize the issues it has in marketing their products. The feedback collected from the customers will provide sufficient data for the company to find solutions to the problems. For example, Kudler is a company which recognizes the importance of word of mouth marketing to attract new customers. Social media marketing will be beneficial for a firm like Kudler to increase its customer base. After analyzing the marketing research report, Kudler should develop new strategies like customer referral program and Affiliate Marketing because such programs will encourage customer loyalty and at the same time help in achieving its business goals. Kudler can create opportunities for people to refer business with the referral marketing strategy. Affiliate marketing is a partnership method of marketing that will offer customers a passive income from the business.
Though Kudler Fine Foods is an established firm with a popular brand name, the competition in the field is increasing as more and more companies are entering the market of gourmet foods. Kudler foods should always keep the pace in marketing so that it can maintain and improve its customer base and business. In the process of expansion, they can make use of the marketing analysis report to decide the most suitable geographic location for their business. Competitive intelligence will enable Kudler foods to gather and analyze public information about the competitors within the market place. Marketing research will also help Kudler foods to improve the quality of their products and the mode of customer service for better satisfaction of their existing customers. They can make use of such information in their future expansions. There is no doubt that marketing research is important in the development of Kudler Fine Food’s marketing strategy and tactics. Kudler should also consider the elements of competitive intelligence to design a most advantageous marketing strategy and tactics for its future growth.
References
2003 strategic plan: Kudler Fine Foods. Retrieved on November 19, 2013 from https://ecampus.phoenix.edu/secure/aapd/cist/vop/index.html
Long, A (2006). Competitive Intelligence + Market Research = Optimized Market Intelligence. Retrieved on November 19, 2013 from http://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/Competitive-Intelligence---Market-Research-%3D-Optimized-Market-Intelligence-43104.aspx
Virtual Organizations: Kudler Fine Food’s, 2008. Retrieved on November 19, 2013 from
https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler/KudlerHome002.htm