Kudler Fine Foods Marketing Analysis Kudler Fine

Kudler Fine Foods Marketing Analysis 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 of the equation. 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): To constitute the distinction between. To perceive or show difference in or between; and discriminate. Positioning is described as: The right or appropriate place. The way in which something or someone is placed. The act or process of positioning. To place in proper position. An advantageous place or location.

Therefore to build brand equity there has to be a balance and a collaborate effect between positioning and differentiation. For example, even if your product is different than your competitors then you must position it as such so these differences appeal to the consumers. If your product is different but the consumers cannot perceive the difference then the differentiation does not add value to the product. Therefore to capitalize on differentiation a company must position itself to do so. The opposite is true as well.

You cannot position a product as differentiated if the difference is not clear. If the difference between products is not clear then consumers will not perceive any value added substance that would justify a price premium over the competition. If you try to position a product as different but the differences aren't distinct then this can actually have a counterproductive effect and consumers could opt for a lower priced competitor who is perceived as not all that different as the product that is positioned as such.

Recommendations Kudler Fine Foods should conduct market research to determine how consumers perceive their products and services. Kudler is currently positioning itself as highly differentiated premium food items retail and catering service. However, if the consumers to.