Marketing Kudler Fine Foods
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INTRODUCTION
Kudler Fine Foods is a gourmet food store which also offers in store parties in order to introduce customers to their products and also teach customers how to prepare their specialty foods. They have expanded to three stores and are continuing to see growth opportunities in their industry. Kudler Fine Foods has planned on contracting with local growers to obtain their produce and now they want to add a catering service. Before they can do so, they must run the possibility fully through a marketing standpoint in order to assure the success of this project. This study will comprise of the opportunities Kudler Fine Food has in its marketing mix that will help them operate a successful catering business.
Kudler Fine Foods has a Survey in place that they have been using for the past two years know. The survey is an example of primary data which is information which is newly collected (Kerin et al, 2006). This is very helpful information because the surveys contain information about the customer’s opinion of the store, the products it offers, prices and customer service. In 2006 the store got high customer reviews but the downside to it was that about 45 percent of customers disagreed with the amount of money that they spent on the goods and services. Another area that could have used improvement was the customer service and the amount of knowledge the employees had about the goods. Also more than half of their customers were dissatisfied with their purchases in 2007 (Apollo Group, 2004). “The broad goal of marketing research is to identify and define both marketing problems and opportunities and to generate and improve marketing actions” (Kerin et al, 2006). This research shows that they need to focus on customer service as well as supply more of the products that the customers are satisfied with. This is important because customer service is the key. With a catering company the customers need to know that they will get the highest quality service because most of the events are treasured events like weddings or family events that will have lasting memories.
In order to track customer spending habits and to keep the right products and the right amount of a product in stock Kudler has introduced their “frequent buyer” program. By introducing this program Kudler is not only helping their selves, but they are also rewarding their customers for shopping with them. This is an example of secondary data which is data that is already recorded (Kerin et al, 2006). This information can also include benchmarking other companies in the area to compare prices and services. This can even be done by simple internet searches. If Kudler wants to stay ahead they need to do market research on their competitors so that they can have the competitive edge.
Now that the types of marketing research have been discussed, the components of a marketing mix must be discussed. The four components of a marketing mix are product, place, price, and promotion. The product that needs to be offered by way of catering, but it also must be fresh food that is prepared in a professional manner. The product must also taste good because it is a food product. Another aspect of a catering company is the service. This service is a product that will result in favorable reviews of the event. The next component is the place where the event is held, Kudler already offers small parties and instruction in homes. This will be the next level they need to offer services in halls and other venues that people would want, such as weddings and other galas. Kudler needs to use promotion tools such as television, radio, news papers, and also word of mouth advertising. Kudler is also trying to implement advertisement in their direct mail program which sends fliers out to high income zip codes (Apollo Group, 2006). This brings us to the price aspect. This will be a high end service so people are going to have to pay a high price. Kudler needs to keep prices competitive while luring in prospective customers as well as keeping the customers that they already have.
Kudler can use its frequent buyer tracking system in order to have an idea of what products their customers will want to have at their party. Also they can have a wide array of choices since they do not have to keep large quantities of all items in stock. They should also offer a little flexibility to the customer by letting them bring some idea into the catering service that they may have, or have seen some other place. This will show that they are interested in the needs of the customer as well as offering them goods and services for profit. This ultimately could be a way of marketing research that helps the company stayed informed on the introduction of new products in the industry.
Also Kudler needs to make sure that their prices stay competitive to other catering services in the area. They can offer services that may result in a higher fee; for example it will cost more to have the meal prepared by a celebrity chef. They should be flexible with the costs offering different meals at different costs to the customer. It cannot be stressed enough that Kudler needs to focus on staying competitive since this is a new service that will be added and they do not have the reputation of some other catering companies in the area.
Kudler also needs