Kudler Fine Foods

MKT 421

Carrie Preisinger 4/15/2013

Kudler Fine Foods

This paper the subject to examine is the company of Kudler Fine Foods Marketing plan also identifies and defines issues that do exist in their current marketing strategies and tactics. The paper will analyze and identify the importance of competitive intelligence by doing additional research on how to run a more effective marketing plan. Kudler Food marketing strategic plan has the means for growth if the company rethinks the current retail market and utilizing all available resources. "Marketing as the name implies is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in a way that benefit the organization and its stakeholders". From this definition it shows that it is the vehicle that businesses ride upon such that they can connect to the consumers, their intended target. Also, it is evident that marketing seeks to find the needs and wants of individuals in relation to satisfying them. In the market model in which this exist, the buyer seeks to buy that which is good, quality and improved, but in return the seller seeks to have customers who are loyal to their products, purchase them and enjoy that which they have produced. Kudler Fine Foods is an upscale gourmet grocery market that specializes in the finest meats, cheeses, produce, and fine wines. The stores was founded in 1998 and located in the San Diego Metropolitan areas. The first store is in La Jolla, a second store is in Del Mar, and the third is in Encinitas. The owner is Kathy Kudler, she is aware that Del Mar and Encinitas stores are not doing very well under the same business model when first opened. The company has been profitable since the beginning but to continue the success the company needs to understand the

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importance of marketing research. Applying the different types of marketing research process it will help move Kudler Fine Foods forward. Kathy Kudler started the company and the business decisions were solely based on her she thought what was best for the company. Kathy relied on not that much marketing research to further reach other consumers. It seems that she caters to the local community and mostly those that refer others to her establishments. For Kudler fine foods to elevate over the competition, Kathy needs to increase the stores marketing efforts by looking into newspaper ads, Internet website, radio commercials, and neighbor fliers. In order to succeed, it is fundamental that businesses satisfy consumers needs (and desires) for goods and services. Appropriate market research provides the data necessary to understand those needs and respond to them effectively and profitably. Kudler Fine Foods (KFF) has performed market research in the past. Some of that research has been helpful; some has not. Additional market research is needed for KFF to reach a larger share of the market and increase profitability. Kudler Fine Foods is a gourmet grocery store. KFF sells meat, produce, cheese, and wine. They also provide catering services. KFF has targeted two market segments, high-income consumers and gourmands (gourmet food enthusiasts). These markets were selected based on the strengths owner Kathy Kudler brings to her organization. Gourmet food is Kathys passion. KFF has used historical data, customer surveys, and feedback from its sales force to discover what its target market wants. Observing patterns in historical data and extending those patterns to predict the future, or trend extrapolation, is the best-known statistical method for predicting future sales. Sales force survey forecasts, such as the feedback from managers at the operations review

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meetings on the sample offerings Kathy is considering, are another logical approach to discovering what the target customer wants. KFFs customer surveys are an additional tool used to fine-tune what their customers (new and existing) really want. The company has begun to track customer purchase behavior to forecast which products and services are most likely to be in demand and when specifically (yearround, seasonally, holidays, etc.) There are four basic functions of management; planning and strategizing, organizing, leading, and controlling. These functions are necessary at all levels of the management process. Different levels of management may function more heavily in one function than another. A description of each function is listed in Table A. Table A: Management Functions and descriptions 1. Planning and Strategizing Necessary to set future goals and objectives and important to develop a plan to reach the future goals. 2. Organizing Specifying how the company's resources will be used to achieve goals. 3. Leading "Energizing people to contribute their best individually and in cooperation with other people" 4. Controlling Measuring performance and comparing it to the set goals, changing what is necessary, and watching progress. Kudler Finer Foods is overseen by the founder and president of the company, Kathy Kudler. Kudler has three store managers and three directors that report directly to her; a director of finance and accounting, a director of store operations, and a director

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of human resources. Each director also has employees that report directly to that position to assist them with their job. Through Porter's competitive forces model, Kudler can grasp the need for advancement in technological functions to support whichever business strategy Kudler decides to choose. Although the choosing process is unknown, the apparent choice for Kudler is an innovative strategy. These findings are supported by Kudler's entrance into two new markets, catering and organic produce, and the requests to IT for an interactive website. Kudler will need to implement this strategy fully and must make some decisions in terms of restructuring the company. Lastly, the organization needs to implement processes to monitor the market and realign the strategy with the ever-changing environment. "Some studies show that more than 90 percent of executives surveyed strongly agree that IT can facilitate a strategic advantage that has a significant impact on profitability and even survival of their organizations". Porter's competitive forces model theory is used "to develop strategies for companies to increase their competitive edge. An IT system is one of the leading edges that can make or break a company in this new millennium. Porter's model is different according to the industry but can be broken down for Kudler into five forces: the threat of new competitors, the bargaining power of suppliers, the bargaining power of customers, the threat of substitute products or services, and the rivalry among existing firms. When using this model on Kudler's technology, the company is not utilizing many new technological advantages as interactive websites and sophisticated databases of gathered information with crosscommunication possibilities.

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References

Armstrong, G., & Kotler, P. (2009). Marketing: An introduction (9th ed.). Upper Saddle River, NJ: Pearson Education. Kerin, R. A., Hartley, S. W., Berkowitz, E. N., & Rudelius, W. (2009). Marketing (9th ed.). New York, NY: McGraw Hill. Kotler, P., & Keller, K. L. (2009). Marketing management (13th ed.). Upper Saddle River, NJ: Prentice-Hall. Perreault, W. D., Cannon, J. P., & McCarthy, E. J., Jr. (2009). Basic marketing: A marketing strategy planning approach (17th ed.). New York, NY: McGraw Hill.