Marketing Analysis at Kudler Fine Foods

Marketing Analysis at Kudler Fine Foods

Kudler Fine Foods, a gourmet food store was founded by Kathy Kudler in 1998 with the vision to provide customers with a variety of quality products such as bakery, meat and seafood, cheese and dairy, wine, and produce with over 350 fresh fruits, vegetables, herbs and spices from all over the world. Kudler Fine Foods opened its first store at La Jolla, California and within five years of operations expanded to Del Mar in the year 2000 and Encinitas in the year 2003 all stores located in San Diego County, California. Kathy Kudler is committed to provide to her customers the finest selections of the very best foods and wines. After introducing at her stores a variety of organic products from local growers; according to the 2006 market survey 33% of the surveyed people agree that the stores have a good selection of products but the 2007 market survey showed a 5 points decline or 28% and Mrs. Kudler wants to implement a catering service in addition to the in-store parties to improve her products demand.

“Marketing research is the process of defining a marketing problem and opportunities, systematically collecting and analyzing information, and recommending actions.” (Kerin-Hartley- Berkowitz-Rudelius, 2005). Analyzing the survey data provided by Kudlers’ marketing department regarding the overall opinion of very satisfied customers with the store, the 2006 data shows 8 customers out of 63 interviewed disagree with the store; the 2007 data shows that 11 customers out of 69 disagree with the store which indicates a 37% change increase in dissatisfied customers compare to 8% change increase in satisfied customers. (KFF intranet). Mrs. Kudler wants to pursue the implementation of a catering service and is very important to perform a market research to identify not only why customers dissatisfaction is increasing before it becomes a problem but the feasible opportunities present at the market for expansion. I believe that the survey data is inadequate due to the small sample of interviews. I believe that Mrs. Kudler needs to hire a professional marketing research company and extend the survey area towards possible target markets in addition to the existing ones focusing on how to increase customers’ loyalty. “The loyalty business model relies on training of employees to achieve a specific paradigm: quality of product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability. Loyalty marketing is an extension of that effort, relying upon word-of-mouth and advertising to draw upon positive experiences of those exposed to loyalty business model inspired ventures to attract new customers.” (Carrol – Reichheld, 1992). Customers’ loyalty will be crucial for the implementation of the catering service business since word-of-mouth will be an important player in the success of the new venture. The results and recommendations of the research will play a major role identifying the relative value for the decision making process.

The marketing mix at Kudlers in regard to the four Ps (product, pricing, promotions, and place) describes the strategic position of a product inside the stores. At first, Kudler will have to concentrate in offering event catering inside the 3 stores to advertise the organic products and create a menu with very explicit pictures offering dishes and appetizers. Kudler will have probably to condition a small area inside or outside of each store in partnership with the local organic growers. The area set will be like a farmers’ market and take advantage of the freshness and taste of the produce to prepare the dishes. Since Kudler will partner local organic growers’ prices will probably be near cost of production using a cost-plus minimum pricing strategy to hit the 5% minimum margin threshold to test the feasibility of the venture and later on adjust it according to market value. Cooking class socials and the frequent shopper program will continue at Kudlers for promotions since they are offered as a way to increase the consumption of high-margin items among existing customers and to build awareness, trial, and regular shopping among new customers. (KFF intranet). The food prepared by world-renowned chefs, local celebrities, and Kathy Kudler will promote upscale events and eventually they will become part of their customers’ social network. After reaching the 50% gain on new customers, Mrs. Kudler will take the opportunity to offer a full-service catering to private entities for special events including a make-to-order menu with specific dietary or religious needs specifying the usage of organic products. Improving existing locations inside or outside will be used as place to launch the new venture.

Kudler will have to benchmark competition such as Bristol Farms and Whole Foods Market in order to identify