Kudler Fine Foods
Kudler Fine Foods has made significant progress within a few short years. The small business was able to open two new locations to expand their gourmet food retail outlets. With the expansion of a catering division in the horizon as well, it has come time for Kudler Fine Foods to reevaluate their marketing strategies. The company will use the 4P method as the basis for their marketing foundation -- product, place, price, and promotion. Using a well thought out marketing strategy is a key component to support the company's desired expansions. Kudler must conduct research to ensure that they are differentiated enough to find their own niche while also positioning themselves at the right place in the market. This analysis will cover some of the items that should be included in Kudler's strategic marketing plan. Recommendations will be made as to how Kudler's can craft a pricing and positioning strategy.
Price and Position
Price is generally one of the first items considered in regards to marketing; however this only part...
Many companies fail to consider their brand equity into the equation. Oscar Wilde defined a cynic as someone who knows "the price of everything and the value of nothing." It is common today that with rising commodity and raw material costs, that companies sacrifice quality through cost saving measures. To save money and keep prices low, companies will trim products and make cost cutting measures at every opportunity the face. For marketers, though, it is vital to think beyond price and to maintain an intuitive grasp on the value of at least one seminal thing: brand equity (Edwards, 2011).
Brand equity represents the value added portion of the price that consumers perceive with making purchasing decisions. It is often the case that companies are so quick to compare themselves on pricing measures that they do not consider how consumers view the value of their products compared to the value of the products offered by their competitors. As a result, these companies miss some key opportunities for profitability. For example, if companies increased prices by just 1%, and demand remained constant, on average operating profits would increase by 11%. Using a 1% increase in price, some companies would see even more growth in percentage of profit. Sears would see 155%; McKesson, 100%; Tyson, 81%; Land O'Lakes, 58%; and Whirlpool, 35% (Mohammed, 2010).
The key to capturing the value added portion of a product's price is to establish effective differentiation. American Heritage defines differentiate and positioning as (Tehrani, 2009):
The place is also a moderately difficult facet to alter. Locating Kudler's stores to regions where they are going to be most successful is crucial to their success. Because one of Kudler's methods of differentiation is their convenience with one-stop shopping for gourmet needs, it's important that they locate their stores in areas where marketing research has shown a high percentage of consumers that would likely appreciate this convenience and have a
Marketing Research of Gourmet Grocery Store The organization is not a chain of stores, but a group of three stores of medium size located at La Jolla, Del Mar and Encinitas in the San Diego area. The store is not trying to compete with the big marketing chains to achieve high volumes. At the same time, it has a very fine image, as it is located in high class shopping areas.
Kudler Fine Foods was created in an effort to provide high quality products to customers in the southern part of California. It offers clients a wide selection of specialty food products, including everything from baked goods to fresh produce and refined wines. "Kudler Fine Foods is committed to providing our customers with the finest selection of the very best foods and wines so that your culinary visions can come true" (Website
KUDLER Option Differentiating Between Market Structures Table Compare the four market structures by filling in the table. Perfect competition Monopoly Monopolistic competition Oligopoly Example organization Grocery stores Utility companies Cable companies Automobile companies Goods or services produced by the organization Indistinguishable from others unique Very unique Fairly unique Barriers to entry nonexistent Virtually insurmountable high Relatively high Number of organizations many few A small group Price elasticity of demand Highly elastic none Relatively inelastic Relatively inelastic Is there a presence of economic profits? negligible yes yes Kudler Fine Foods Virtual Organization: The firm's strategic plan and marketing overview Kudler Fine
Kudler Marketing Resource: Kudler Fine Foods Virtual Organization The importance of marketing: Kudler Fine Foods The food business is a very volatile industry. Recently, there have been several favorable trends that could possibly work in Kudler Fine Foods' favor: a trend towards buying more organic food, and an interest in exotic and imported goods. Consumers are more concerned than ever with the ingredients and history of what they consume. "Organic food retail sales
KUDLER Functional Area Relationships: Kudler Kudler Fine Foods Mission, vision, values, and goals Kudler Fine Foods has made a commitment to providing healthy products to its customers like fresh produce -- and fine, gourmet items as well. These products may span from the freshest cauliflower to imported cheeses. It is not an ostentatiously 'healthy' company with an organic mission, but it strives to offer customers who are concerned and interested in what they put