Kudler Fine Foods Marketing Analysis Kudler Fine Essay

Excerpt from Essay :

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…

Sources Used in Document:

Works Cited

Edwards, H. (2011). The Sensitive Art of Pricing. Marketing, 19.

Mohammed, R. (2010). Building a New Pricing Strategy. Minority Business Entrepreneur, 34, 36, 38.

Tehrani, N. (2009). On Differentiation and Positioning. Customer Inter@ction Solutions, 1.

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