Kudler Marketing Resource: Kudler Fine Foods Virtual

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 reached an estimated $10.3 billion in 2003, up from $3.5 billion in 1997" (Dimitri & Oberholzer).

However, because prices of organic foods tend to be higher than those of standard-grown products, demand can be volatile, particularly during an economic downturn. When people are concerned about affording basic necessities, buying organic is less important to them. Kudler must use marketing research to determine if demand for organics is continuing to grow at a rapid pace, or is leveling off. It must forecast several economic scenarios, to anticipate likely demand patterns. Additionally, demand for organic foods is not all created equal.

While consumers may have a desire to purchase organically-grown vegetables and fruits, they may feel less strongly about baked goods made with organic flour. Marketing research can help determine areas of highest demand. Anticipating demand patterns is essential in the food industry, because the inventory is perishable and cannot even be sold at a discount, past a certain point, particularly at a company which bases its reputation upon quality rather than price, like Kudler.

Kudler must also keep abreast of the prices and offerings of its competitors, of which there are many in the organic foods market. Whole Foods is continuing to expand its all-organic offerings across the nation, and has a strong and loyal following. Even some discount and 'big box' stores like Wal-Mart are offering organic options.

Kudler must determine what organic products are desired, what are the prices and the offerings of the major competitors, and then position itself in the marketplace to offer something different, either on the basis of price or a uniquely differentiated product.

The demand for 'ethnic' and international foods is also growing: "What once seemed foreign is now becoming mainstream, and the craving for more and different foods continues to grow as the palates of American diners become more sophisticated" (Demand for ethnic and international foods reflects a changing America, 2005, Frozen Food Digest.). As well as healthy and sustainable foods, Kudler also offers a wide selection of out-of-the-ordinary international products.

However, these products are also often priced at a premium, so Kudler must determine what products are in greatest demand, at what price point, and also what products it can feasibly compete with on the marketplace, given the plethora of specialty retailers in specific areas such as cheeses and wines. Although Kudler sells over the Internet, so do its competitors, and consumers can easily engage in price comparisons when selecting products from different online food retailers. Once again, the need to offer a unique product and a unique service.