Current Business Need Due to the expanding customer base of Kudler Fine Foods, a need to improve or update current networking capabilities and business systems has been identified. “Recent economic conditions and business success appears to indicate that the company will be adding numerous new locations over the next two years” (University of Phoenix Kudler Overview, 2014). The location additions are massive steps for Kudler, therefore a new and improved system should be implemented. One upgrade that should take place is combining organizational units and groups to execute access ... ... middle of paper ... ...he MIS will assist management with reporting. It will allow the generation of detailed reports which can be used to calculate sales and determine what should be purchased for inventory.
"Kudler Fine Foods has experienced significant growth and is now focused on expanding the services, improving the efficiency of its operations and increasing the consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers" (, ). This paper will justify the importance of marketing research in the development of Kudler Fine Foods marketing strategy and tactics. It will also identify the areas where additional market research is needed and analyze the importance of competitive intelligence and analysis in regards to the development of Kudler Fine Foods marketing strategy and tactics. Kudler is offering parties in the store to show customers how to prepare specialty foods. The draw for the consumers is to be trained by world-renowned chefs, local celebrities, other food experts, and even Kathy Kudler herself, and to be invited to exclusive, upscale events.
The company plans on offering cooking class socials. “We will initiate specialty cooking classes 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.” (Apollo Group, Inc., 2007) These classes will enable Kudler Fine Foods to tap into awareness of what customers want, where the customers are that are interested and if the catering business could be a valuable asset to the company. The well known marketing mix of, product, price, place and promotion are key components that Kathy Kudler and her staff will need to consider as she considers this new expansion of the business. The company carries a unique assortment of gourmet foods and will be able to use these products in addition to newer products in the catering service. The types of products at Kudler Fine Foods allow the company to cater events such as weddings, receptions and classy parties where the quality of the food and beverages are the main consideration.
Kathy Kudler does this by “monitoring what other gourmet foods stores are offering, what’s being advertised in gourmet magazines, what is being shown at gourmet conventions, and what shows up on gourmet Web sites” (Apollo Group, Inc 2005). By taking advantage of this information, Kudler can stay current with new products that are available in the gourmet food industry. This process can help Kudler raise the quality of their strategic planning. Kudler has the opportunity to make changes and improvements in the way business is conducted that can increase operational efficiency using advances in information technology. For example, Kudler’s website has indicated that forecasting future inventory needs has not been very successful using their current method.
After experiencing substantial growth, Kudler Fine Foods is now interested on increasing the loyalty and profitability of its consumers through the expansion of services, improving operation efficiency, and increasing the consumer purchase cycle (Apollo Group, 2004). Market research is the first step that Kudler Fine Foods must perform in order to increase customer loyalty and profitability. Market research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions (Kerin,Hartley,Berkowitz &Rudelius, 2005). This is performed for the purpose of reducing risk and uncertainty therefore allowing managers to make better decisions (Kerin,Hartley,Berkowitz &Rudelius, 2005). The market research process consists of five steps; define the problem, develop a research plan, collect relative data, analyze the data, solve the problem (Armstrong &Kolter, 2005).
As well, merchandise inventory is kept up to date through this system and reports of net profits per sale daily are calculated. These advances could not have taken place without the advancement of technology. Advancing technology will enhance Kudler’s competitive intelligence and their ability to continue to drive business performance by increasing their market knowledge and raising the quality of strategic planning with an ability to modify when needed (Turban 2003. p.610). The technology that Kudler has in place currently, has allowed them to assess where they have been most successful in the selling of their products and establishing growth in that area. Technology also allows Kudler to use benchmarking to compare and contrast its services against others in the industry and modify its current tactics that fall in line with its strategy.
This would give valuable information for the management and by joining the systems from all stores they could operate more cost efficient by centralizing more activities. Kudler’s Strategy Kudler’s corporate-level strategy is the concentric diversification strategy. A company that follows this strategy expands by creating or acquiring new businesses related to the firm’s core business (Gomez, Mejia & Balkin, 2002). Kudler fine foods core business is the selling of high quality fine food products. Besides their three stores Kudler tries to find new ways to sell their product like the new catering service that is being setup.
Changes in technology have helped Kudler to create new business opportunities. The development of a strategic information system is helping Kudler change the way it does business. The system is outwardly focused, aiming at direct competition, with the introduction of organic fruits and vegetables, and a catering service to beat the competition with offerings. The system is also inwardly focused through the improvement of the efficiency of the operation (Turban, Rainer, & Potter, 2003). The use of the internet has given Kudler a window into its competition as will as a portal to its customers.
In conclusion, Kudler fine foods has a market that specializes in providing the best service possible to their customers . Market research is a main factor that will identify market need, size and competition. The gathering of information from other business owners in other states and increasing services for frequent shoppers that is needed implements more profits. Competitive intelligence gives and outlook on what other business owners are doing. Therefore your able to strategies against what other organizations are doing within their business.
In order to continue to meet the mission of the company Kudler Fine Foods has had to keep up with current trends in technology and will need to continue in the future. Due to the wide variety of organic offerings offered by Kudler Fine Foods (KFF) stores, changes in technology are vastly important. Improved ability to grow and transport organic produce has helped KFF to stock its stores with a vast range of products that it would not have been able to ten years ago. Knowledge of offerings of cheeses and wines manufactured by smaller companies at higher quality are available to KFF due to increased communication and advertising on the internet. Use of computers to track customer’s purchases helps to stock those items that are most popular as well as anticipate offerings that the consumer would most likely purchase later.