Market_Research_Kudler_Foods

Marketing Research November 21, 2010 Kudler Fine Foods (KFF) is a successful gourmet food store in the San Diego area that has experienced rapid growth and is ready for expansion. Its founder, Kathleen Kudler, open the first store in 1998. By the end of the year it generated a profit. By 2003, stores in Delmar and Encinitas opened its doors. Within the next 12 months, market research strategy will play an important part of the KFF organizations strategic and tactical planning to increase customer loyalty by leveraging the organizations better understanding of customer purchase patterns. Provide more efficient operations. Offer high-margin services developing and enhancing their supplier partnership programs, thereby increasing profitability by reducing cost. In addition, new customers will be acquires through word of mouth and social network marketing (Apollo Group, 2008). This paper will discuss the various elements of marketing research, which includes justifying the importance of marketing research in the development of Kudler Fine Food’s marketing strategy and tactics. Identifying the areas where additional market research is needed. Analyze the importance of competitive intelligence and analysis in regards to the development of Kudler Fine Food’s marketing strategy and tactics. Importance of Marketing Research Part of KFF’s initiatives is to consolidate and relocate the store in Delmar. The demographics for Delmar made it an ideal location for the second store in 2000 with a median income in 2000 of $98,257 and population of only 4389, but economic growth indicators suggest the store can support itself. However, the store in Del Mar is not performing as anticipated. Economic indicators for growth show signs of good potential for thriving area. However, the demographics of the location were not feasible to maintain operations. A plan for 2007 is to consolidate the operations for the Delmar store and relocate in Carlsbad, a few miles south. The Demographics for Carlsbad indicate a good area for the relocation. KFF will offer gourmet cooking classes facilitated by world renowned chefs, local celebrities, and other food experts. The anticipated outcome will increase more traffic to the store, thereby, increasing revenues; increase the purchases of the high margin products; create a potential service for in-home cooking classes for a premium. These programs not only will make a visit to the store a social network gathering, it will encourage customer loyalty and word-of-mouth advertising. In addition, other marketing strategies will include direct mail to affluent zip codes, radio, TV, newspaper, and magazine advertisements. Additional Market Research By using primary research, KFF conducts surveys to make sure they align with customer’s needs and areas of improvement. Surveys conducted in 2008 and 2009 indicate that one area of concern is the customer’s perception of the value they receive when they buy products from KFF. The type of survey used for conducting the research is the Likert Scale. Of the 64 respondent, 29 (45.31%) disagreed in 2008; 69 respondents, 27 (39.7%) disagreed in 2009. KFF will have to address this area of concern by implementing the supplier partnership program to assist in lowering costs and pass the benefit or creating higher value by the expansion of the services that includes the in store cooking and in-home classes. “We are currently assessing other geographic areas in Southern California to continue our growth. We are interested in the Carlsbad, California area and we are looking at a site on Carlsbad Village Drive between Interstate 5 and the highway leading up the coast. The only major stores in that area are a Vons, an Albertsons, a Prontos’ Gourmet Market and a few convenience stores. There is a Japanese restaurant in this block, Sushi Taisho, which has been there for many years and is usually quite busy. During the summertime, many people come to Carlsbad to go to the beach and we expect our summer sales to be quite high” (Apollo Group, 2008, p.1). Competitive Analysis In order for a successful marketing campaign to be successful, one needs to learn all about their competition. “Competitive intelligence essentially means understanding and learning what's happening in the world outside your business so you can be as competitive as possible. It means learning as much as possible--as soon as possible--about your industry in general, your competitors, or even your county's particular zoning rules. In short, it empowers you to anticipate and face challenges head on” (Competitive Intelligence, n.d, p. 1). Traditional supermarkets, Ralphs, Vons, and Albertson in the surrounding area, offer traditional type of products. Recently they have started catering to the health conscious consumer by offering organic foods. Fortunately, KFF is positioned to a broader customer, who perceives themselves as a connoisseur of fine foods, wants the very best, and excellent customer service. As such, the aforementioned supermarkets pose no threat to KFF. However, a primary competitor, Cardiff Seaside Market (CSM), established in the local area since 1985, is within two to miles in proximity of the stores in Delmar and Encinitas. There is no indication of expansion for CSM. With KFF ongoing strategic initiatives for growth and expansion, the threat from CSM will subside. Conclusion KFF has been a successful community icon since 1998 by strategically and tactically using market research. The organizations goals and initiatives include new customer focused programs; better information management; targeted awareness building and behind the scenes efficiency will fulfill these objectives by implementing organizations strategic and tactical planning to increase customer loyalty by leveraging the organizations better understanding of customer purchase patterns; proving more efficient operations; and offering high-margin services developing and enhancing their supplier partnership programs, thereby increasing their revenues and cutting costs. The roll out and implementation of the marketing initiatives is paramount in the growth, expansion, and success for KFF.   References Apollo Group. (2008). Kudler fine foods. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler/KudlerHome002.htm Competitive Intelligence. (n.d). Retrieved from http://www.entrepreneur.com/encyclopedia/term/82080.html