Marketing Research Paper – Kudler Fine Foods
Marketing Research Paper – Kudler Fine Foods University of Phoenix MKT 421 Allan Hopkins In the current retail food industry there are numerous competitors fighting for the same dollar. It is important for each company to identify their target market, identify their competitors, and then build their marketing plan. The information below will detail Kudler Fine Foods marketing strategy which includes expanding its services, improving its efficiency of operations, and increasing the customer purchase cycle. The paper will also discuss areas where Kudler Fine Foods needs to further their market research.
Kudler Fine Foods is a specialty upscale food retailer operating in the state of California. Currently they are selling their products out of locations in La Jolla, Del Mar, and Encinitas. At this time Kudler Fine Foods is focused on the higher end customers, maintaining an inventory of the best domestic and imported goods in several product categories including produce, pastries, and meat. According to Kudler’s mission statement, “our selections, coupled with our experienced, helpful and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping outing” (Kudler Fine Foods, 2009).
At Kudler Fine Foods they would rather provide high quality products and value added service, instead of economical products in a convenience store environment. Kudler’s current marketing strategy focuses on three key initiatives. The first initiative involves expanding their current services. Kudler marketing identified an opportunity to increase revenue by offering specialty food parties to its customers. Kudler believes that this program will increase the purchase of higher end products and also increase the word of mouth marketing involving Kudler.
The second initiative identified is the frequent shopper program. This program is expected to increase revenue through repeat shopping. Kudler marketing believes that its customers would rather have reward points toward high end products instead of everyday discounts on its products. This program would also help to track the purchasing habits of its customers to better meet the customer demand. The third initiative is focuses on increasing the efficiency of operations and will work to reduce costs. The company will work to streamline processes and trim expenses.
An employee training program will be established as well as improved software. There will also be an increased effort to reduce on-hand stock and reduce overhead. A key to effective marketing is understanding market research. According to Gopinathan Thachappilly, “market research is a continuing exercise to collect and analyze environmental, consumer, competitor and industry information to make marketing decisions less risky” (Thachappilly, 2009). Marketing research involves identifying a companies target customers, identifying where the products will sell, and identifying market trends.
Marketing research is an ongoing process and something that a company must invest in to remain successful. John Pierobon states that marketing research involves “finding where your products are most likely to sell…discovering how to overcome barriers to market entry…understanding customer’s needs…establishing fair market prices for your products” (Pierobon, 2004). Kudler Fine Foods completed marketing research in 2008 through a customer survey. Questions were posed to customers regarding convenience, products, and customer service. Kudler received positive feedback around areas pertaining to store hours and overall store satisfaction.
The Kudler stores received negative feedback pertaining to the selection of products in their stores, merchandise value for the money, and courteous customer service representatives. When customers were asked if the stores provided a good selection of products, 65% of customers presented a negative response. When customers were asked if the merchandise sold was a good value for the money, 60% of the customers provided a negative response. Another question posed to customers was whether or not the customer service representatives were very courteous, 61% responded with a negative reaction.
The three questions listed above identified some key areas of opportunity for Kudler Fine Foods. It is obvious that Kudler Fine Foods needs to conduct further research in the areas of product selection, value of products, and customer service. Kudler’s current marketing strategy identified programs to focus on high end products and services through specialty cooking clinics and a high-end frequent shopper program. With the results of the 2008 survey it would be a waste of resources to implement these marketing initiatives.
Through survey responses it seems that Kudler customers would much rather see a wider variety of products in the stores with better pricing. Kudler customers are looking for more selection and more value. One of the marketing initiatives did include customer training which was also identified by the survey. The Kudler customers stated that the employees were not very courteous, which will keep customers away from the stores. No matter what products your store has, if the customer service is poor, you will not be successful. It is critical for Kudler Fine Foods to know their market.
Competitive intelligence is a means of knowing your customers, your competitors, and your market. Competitive intelligence can also help to identify what may happen in a market, or what a competitor may do in the future. When developing a marketing strategy and marketing tactics, Kudler will need to incorporate competitive intelligence into its actions. With proper competitive intelligence Kudler may have saved some time and properly identified the opportunities stated by their customers in the survey results. Competitive intelligence will help Kudler Fine Foods increase market share and improve customer satisfaction.
The current marketing initiative seemed to have missed the mark and would waste company resources and dollars. Through marketing strategy and research Kudler Fine Foods has the opportunity to become a better company. The company has a goal of expanding the services it currently provides through high end parties, increasing the efficiency of operations through employee training and software, and increasing the customer purchase cycle by introducing a frequent shopper program. Although these initiatives may have some positive results, through market research and competitive intelligence, there could be better alternatives.
Kudler Fine Foods should go back to the drawing board and reassess their marketing strategy and sales plan. References Kudler Fine Foods (2009). Kudler Fine Foods, retrieved August 3, 2009 from https://ecampus. phoenix. edu Pierobon, J. (2004). The Importance of Marketing Research, retrieved August 3, 2009 from www. pierobon. org Thachappilly, G. (2009). Market Research – Importance, Goals and Methods, Marketing Research Focuses on Customers, Competitors and Conditions, retrieved August 3, 2009 from www. businessmanagement. suite101. com