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Operational Changes at Kudler Find Foods

Satisfactory Essays
Operational Changes at Kudler Find Foods

The Kudler culture is aimed at providing the best shopping experience and total customer satisfaction. One way to satisfy customers is to offer a changing selection of products since customers always appear to be demanding something new. Kudler's latest strategy is to offer a whole new selection of locally grown organic products.

As demand for organic foods continues to increase, high volume sales through mass outlets such as supermarkets are rapidly replacing the direct farmer connection. According to AgMRC (2007) site, “American shoppers spent more than $51 billion on natural and organic products in 2005” (¶ 2). Considering rapid growth of organic food trends in recent years, Kudler management excepts to achieve higher profit margin by selling organic products supplied by local growers. “As of today organic food accounts for 1-2% of food sales worldwide. Future growth is expected to range from 10-50% annually depending on the country” (Organic Food, 2008, ¶ 3). Organic produce is grown without bug killer, fertilizer, hormones, or antibiotics. People buy organic food because they believe that it is healthier for them. Soil Association (2008) site list 10 reasons to eat organic food that is shown in Table 1.

Customer Preference Identification

The new strategy would affect Kudler's current business process in many ways. The idea is to apply a systematic, well-planned approach to managing the entire flow of organic produce from local growers through Kudler stores to the end customers (Illustration 1). Evaluation of consumer preference for organic products can help shape the new plan and determine how it should be executed. The main question would be, “Is there a market potential for organic products in San Diego metropolitan?”

Kudler can determine what its potential customers desire by study and analysis of local population culture. Organic market forecasting can help Kudler management decide whether the new strategy is the right move for them or not. As a result, Kudler's marketing research department has a new task ahead of them and that is to gather data from other competitive organic food stores as well as analyzing organic market trends to identify the most efficient approach to achieve Kudler's new goal.

Product Selection

Many companies are achieving significant competitive advantage by the way they configure and manage their supply chain operations. The first step in implementing the new supply chain begins with researching on the types of organic produce offered by local growers that meet specific demand of targeted customers.
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