Marketing__Kudler_Fine_Foods

Marketing: Kudler Fine Foods Karinna Kruse MMPBL502 December 20, 2010 Ken Zula Marketing Plan for Kudler Fine Foods Kudler Fine Foods is a well-established organization founded by Kathy Kudler, a successful businesswoman who accomplished her dream by opening a gourmet store. In few years, Kudler Fine Foods opened two more stores in San Diego metropolitan area. Kudler Fine Foods is a unique organization that offers the finest gourmet products in its modern designed departments (e.g. bakery, meat, cheese and dairy, produce, wine) as well as professional advice from hired chefs and wine stewards. Furthermore, the organization offers attractive cooking and wine appreciation classes to attracting and educating the customers (University of Phoenix, 2010). The organization`s ambitious goal is to explore the new resources by offering new products to its customers, along with targeting new segment of customers. Furthermore, Kudler Fine Foods intents to offering increase its catering services. Kathy Kudler has offer catering services upon the customers` request, and they were proven to be a successful service. Kathy Kudler managed to keep the cost down by handling all the aspects of the catering (e.g. delivery, set-up, clean-up, using the received tips to cover the travel expenses), and the profit margin is 25% higher than the profit margin for the same products sold in the stores (University of Phoenix, 2010). The organization uses survey to monitoring the customer satisfaction, and the results were conclusive enough to determining corrective actions. However, for more adequate results, the corporate management needed to create a marketing plan that will cover all the aspects of new intended business of catering service. “Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing affects all individuals, all organizations, all industries, and all countries” (Kerin, Hartley, Berkowitz, & Rudelius, 2006, p. 8). To increase customers` satisfaction, and successfully expand the catering services, Kudler Fine Foods needs to perform a marketing research to assessing and identifying the customers` needs and marketing mix, to help the organization in creating a functional marketing strategy. Marketing research represents the process of understanding the market through a collection of information, and analysis (Kerin, Hartley, Berkowitz, & Rudelius, 2006). Market research represents a very useful tool in decision-making process, and it consists of the following steps 1) define the issue by setting the research objectives, and identifying the actions; 2) develop the research plan by specifying the constrains, selecting data needed for marketing action, and collect data (using the concepts and methods determinants) ; 3) collect the most relevant information by collecting the secondary and primary data; 4) develop findings, by analyzing and presenting the findings; 5) take the appropriate marketing actions by making marketing recommendations, implementing them, and evaluating the results (Kerin, Hartley, Berkowitz, & Rudelius, 2006). Kudler Fine Foods`s management decided to expand the catering service that was proven profitable for the company, and represents an opportunity to increase the customer satisfaction. The organization has an important advantage of providing catering services by using organic and gourmet products because of consumers are more aware of the benefits of the organic products. According to United States Department of Agriculture (2010), the organic farming represents one of the fast growing segments of the United States agriculture, because organic products became extremely popular among consumers. The Organic Consumer Association (OCA), a nonprofit organization promotes the consumption of organic food for increasing, and sustaining the consumers` health (Organic Consumers Association, 2010). The below listed chart shows the sales increase of the organic for the target years 2003 to 2007. Kudler Fine Foods`s management must develop a complex marketing program that addresses the consumers ‘needs by using the marketing mix factors, or the four P`s (product, price, promotion and place) (Kerin, Hartley, Berkowitz, & Rudelius, 2006).Kudler Fine Foods has the reputation of a gourmet store that offers high quality products and services. Therefore, the organization`s mission is to constantly improving the customers ‘in-store experience by offering an attractive atmosphere (e.g. European design Bakery department, skilled employees, etc.), professional advice from chefs and wine stewards, and free sampling of different type of gourmet cheese (University of Phoenix, 2010). All these efforts are important to maintain the organization`s success, customer satisfaction, and ultimately, customer loyalty. Satisfied customers will return to purchase more products; also they represent a valid source of advertising. Furthermore, for the new catering service Kudler Fine Foods needs to ensure that the menu consists of popular items, and recipes. One option for receiving the customers’ opinion is to offer free organic or catering item sampling. Another available option for determining the popular products is by using the inventory process to determine the top sold items. During the sporadic catering service, Kathy Kudler was responsible for determining the price for the service. With professional managerial skills she succeeded in keeping the cost down, and covered the travel expenses by using the tips (University of Phoenix, 2010). However, for a the new catering services business, Kathy Kudler must consider not only the capital invested in the catering menu, also she must consider which is the targeted consumer category for the catering service, and the competition`s prices for products and services. Kudler Fine Foods`s customers are interested in the cooking, or dining experience, rather than in price, as they are “are less price conscious than the typical store customer” (University of Phoenix, 2010, p. 13). Considering the quality of the gourmet, and organic products provided by Kudler Fine Foods, the potential price for its catering service will be higher than the prices for similar services, and the organization`s management must make the catering service attractive, therefore, the price must be reasonable, and affordable. Kathy Kudler needs to recognize the importance of promotion, as a helpful tool to the organization`s success. Through promotion, the organization has the opportunity to communicate its attractive messages to people (existing customers, or potential customers), and to create interest in the products and services offered to them. Currently, the organization is using advertising its products in major newspapers, during the busy sales season, and in local newspapers throughout the rest of the year. Kudler Fine Foods has other forms of advertising, such as a monthly printed flyer distributed through local newspapers, radio station advertising, and brochures distributed in the stores, or mid-upscale restaurants (University of Phoenix, 2010). The organization should invest more capital in promoting its products and services to increasing the awareness of consumers for its gourmet products, and services. Therefore, Kudler Fine Foods should use promote itself through all the available methods (e.g. Television, Internet, etc.). The IT technology will increase the organization`s efficiency, and increase savings in time, machinery, or human resources. Kathy Kudler also used the printed form for advertising the catering service, as tri-fold brochures. These brochures are distributed in the store, and the customers can access them freely. Furthermore, Kathy exchanges business cards when she organizes catering events. The promotion methods used by Kathy Kudler represent the right choice of advertising. However, the new catering event could be brought to a higher number of clients by using the other listed specific form of advertisement (e.g. buses banners, radio, television, Internet, etc.). The organization`s constant research to satisfying customers` tastes results in attractive products offered by each department (e.g. bakery, meat, wine and cheese, produce), and monetary investment in hiring professional chefs, wine stewards who will offer professional cooking, or wine advices, along with monthly in-store lessons to customers (University of Phoenix, 2010). Therefore, the best place to initiating a regular catering business operation will be in-store, or on-site because this strategy will be more timely efficient, and will be less labor, and travel costly. In addition to the catering service, Kudler Fine Foods plans to adding more product lines, as the customers` requests for a specific type of product continues to grow. Therefore, the organization decided to contract with local growers, for fresh organic products (University of Phoenix, 2010). This partnership will be beneficial for all parties and will create more opportunities for business development. Local growers will bring a fresh flavor to Kudler Fine Foods`s catering business because they will supply with organic products, that are appealing to customers. Furthermore, the business agreement with the gourmet organization will set an example for other potential organic growers and will have a positive impact on local economy. Similarly, Kudler Fine Foods will significantly minimize the costs of purchasing, the stock for perishable goods and will create an adequate supplier relation program that will benefit to all the employees. Kudler Fine Foods`s customer-oriented policies along with a high quality of products offer contributed to the growth of the organization in the last decade. Furthermore, the organization`s goal in satisfying its clientele, and a constant care in improving its services (e.g. customers surveys, mystery shopper, etc.) rewarded Kudler Fine Foods with the well-deserve reputation. By creating a catering service within the organization represents a social responsibility statement, and a testimony of understanding the customers` expectations. Kudler Fine Foods has all the necessary human resources, machinery, supplies, and place to create a sustainable catering business. Furthermore, Kudler Fine Foods`s decision to contracting with local organic farmers will help the catering service by adding healthier choices in selecting the menu. The organization`s corporate management needs to develop an aggressive promotion of its products and services through taking advantage of the latest technology. References Kerin, R., Hartley, S., Berkowitz, E., & Rudelius, W. (2006). Marketing (8th ed.). New York, NY: McGraw-Hills. Kudler Fine Foods [Computer Software]. Retrieved on December 19, 2010 from University of Phoenix, Simulation, MMPBL- Management Enterprise website. Nutrition Business Journal. (2010, December). U.S. Organic Food Sales: 1997-2007. Retrieved on December 19, 2010 from http://www.nutritionbusinessjournal.com Organic Consumers Association. (2010, December 19). About Us. Retrieved on December 19, 2010 from http://www.organicconsumers.org USDA. (2010, September 14). Organic Production. Retrieved on December 19, 2010 from http://usda.gov