Kudler Fine Foods-Marketing



Kudler Fine Foods-Marketing

Brian R. Duncan

University of Phoenix

MBA-502

July 15, 2008

“The firms that gain loyal customers by providing unique value is the essence of successful marketing” (Kerin et al., Chapter 1, pg 14). Through a variety of sales and marketing strategies, Kudler Fine Foods plans to increase customer loyalty and profitability. The customer focused programs, frequent shopper program, direct mailing program, cost cutting initiatives and customer relationship management tactics are designed to achieve quality results (Kudler Fine Foods Portal, Sales and Marketing, pgs 1-2). Improving the customer’s value chain while instilling loyalty is hoped to increase higher margins in product sales. This paper discusses elements important in the evaluation of the Kudler Fine Foods catering campaign, how to connect pro-active sales/marketing and ways successfully to implement plans of achieving formulated goals.

h) Marketing Research

Kudler Fine Foods conducted surveys in 2006 and 2007 which gave a good example of how having customer feedback can improve future outcomes. “Although marketing research isn’t perfect, it seeks to reduce risk and uncertainty to improve decisions made by marketing managers” (Kerin et al., Chapter 8, pg 4). As a reaction to the 2006 results, Mrs. Kudler must have made appropriate changes, because consumer response was considerably more positive in a very few valuable areas. Store atmosphere, product mix and the customer view of merchandise value improved in the 2007 survey. Customer service, however, did not receive favor again. This result should be top priority on management’s agenda if strategic goals are to be met. Though the population sample in the surveys were not large, the feedback is valuable enough to raise concerns and implement change.

i) Marketing Mix for Catering Service

Mrs. Kudler also provides a catering service, which is promoted through flyers at the store. Management intends to promote the service through in store parties and cooking classes, which should increase customer loyalty and raise profitability. Historically, the catering that Kathy Kudler performed brought in substantial tips and expanded the social network. Now that the new customer focused programs are being implemented, the customer service quality needs to be updated in order to support structural goals for upscale customers. A strong customer service policy must be enforced to retain clientele.

An effective way for Kudler to prepare for the catering service is to formulate which controllable marketing mix factors should be combined (Kerin et al., Chapter 1, pg 12). This is done by establishing the target market, and deciding how to define the famous P’s (Product, Price, Promotion, Place). For example, Mrs. Kudler has tried to cater parties providing dishes that win consumers (product), reasonable rates (price), promoting through word of mouth/flyers (promotion) and developing in store parties/cooking classes that encourage guests to order the company’s goods and services (Place). The company has already succeeded in cultivating a strong social network that has potential to grow. As mentioned, however, if customer service issues are not dealt with immediately, the clientele will start to fade. An organization might have a brilliant marketing mix, but is only as strong as its links.

j) Determining Products

Mrs. Kudler will satisfy her goals if she uses the knowledge she gathers from customers, improves on existing processes and communicates company policies. “The American Marketing Association, representing marketing professionals, states that 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 it’s stakeholders” (Kerin et al., Chapter 1, pg 5). The company has many ways of assessing the likes and dislikes of clientele. Making use of the knowledge gained from purchasing patterns and providing taste booths on high volume shopping days will help in product selection. Though Kudler has achieved considerable growth, and shopping stimulants such as the cooking classes are funding themselves, unpredictable market fluctuations must be accounted for. Therefore, products should become part of the consumer’s life. A strong recommendation would be to gradually emphasize the health benefits of particular product combinations. The Kudler Fine Foods target customers will take to this and the company should increase in market share.

k) Relative Pricing

Determining the prices for Mrs. Kudler’s catering services are calculated on the basis of consumer choices for product combinations. For the purposes of realistic considerations, this paper uses a website called Occasions By Cheryl as a source for pricing variables. Cheryl says that the details of a party will decide final prices for a catering job. Costs Intangible are what she uses to describe particulars such as: how food preparation is finalized, how the food is served and the kind of presentation. She offers French Service (food partially prepared and finalized at the table), American/Banquet Service (food is prepared in the kitchen and served on site), or Buffet. These 3 styles of service require different fees depending on the needed chefs or servers.

Catering gourmet foods requires courtesy options due to the higher income level that the company does business with. Therefore, pricing changes occur depending on the situation. For example, parties might call for Hors d’ Oeuvre circulation or a bartender (from the wine selection). These services will include extra charges and will factor into the final bills. Occasions by Cheryl sets hourly wages at $24.95 (staff), $29.95 (event captain), and $15 (staff) driving time wages. Additionally, the dishes served on might be disposable or not, which also factors into pricing. Traditionally Mrs. Kudler has dealt with all catering implementation alternatives, however, new party requests will necessitate further package options. (Occasions By Cheryl, pgs 1-4). Final prices should always be sufficiently benchmarked.

l) What Does Place Mean?

The in store party and cooking class kitchen has obviously already met Health Department codes, which is necessary for the establishment of a “place” to root the catering business. Cooking and serving externally is not much different from the social network events held at Kudler Fine Foods. In addition to the established kitchen at the store, “place” is also used to describe the party locations. The facility to which Mrs. Kudler organizes the logistics of catering operations will decide the comfort ability of the catering service.

m) Promotion

Promotion for the catering business has been reliant upon in store flyer distribution (at

checkout) and through word of mouth. For Mrs. Kudler, the business has excelled due to her ability to network and please consumers (Kudler Fine Foods Portal, pg 16). She has made good use of opportunities, however, can improve on the profitable catering service through increased promotion. The company plans to use the in store parties and cooking classes to expand the social network, and as higher income levels shop at the stores, appropriate and respectful promotions should increase as well (Kudler Fine Foods Portal, Sales and Marketing, pg 1).

“In real estate, there is a concept called “highest and best use” of a piece of property. An

investor maximizes his return when he develops his property in order to capture as much income

as possible” (The Highest and Best Use of Your Restaurant, pg 1). The catering service is using

the property for extended business and customers should all know of the extra benefits offered

by the store. If an office party of home event, Kudler Fine Foods has an opportunity to become

part of consumer’s work/personal functions. Packages should be priced for all kinds of

gatherings and priced/communicated through free tasting, at store events and at check out.

Successful marketing will not coerce the consumer, but convey the valuable options in a friendly

way. A Humanistic perspective is always favored (ex: They can lead a horse to water, but you

cannot make them drink).

h) Technology and Target Market

Being a gourmet food store in 2008 will require updated technology in order to compete

with current businesses. The company has introduced automation for inventory and ordering to

help with operations. Additionally, the website should be immediately upgraded with e-

commerce capabilities and an extensive catering service section. Many consumers will visit the

site on a whim and find out that their favorite store can provide food for their events. No matter

the scale of their function, each package should be described at the website. This will enable the

customer to feel connected to the company, both at the store and home. Mrs. Kudler recognizes

the importance of word of mouth promotion, which re-enforces the idea of in store gatherings

and cooking classes. Over time, the organization will increase profitability if these events are

positive and properly promoted. This is best done when attempting to increase the customer’s

value chain.

o) Catering and the Local Growers

Both the catering service and direct buying from local growers will potentially increase

profit for Kudler Fine Foods. Making good use of real estate (using the in store kitchen for

catering cooking) and improving efficiency/lowering cost (agile inventory system) gives the

organization a competitive advantage in the gourmet food industry. “Marketing has encouraged

the purchasing department to find ways to reduce costs of ordering foods and minimize the

amount of food to be stored, while also having a zero stock out policy. In response, purchasing

has developed a supplier relations program and has solicited the help of marketing to roll out the

program” (Kudler Fine Foods Portal, Sales and Marketing: Sales Plan, pg 4). Staff sales has an

opportunity to increase their pay if targeted revenue is met. With the new service and supplier

relationship, this is a very inspiring time for the company. The true goal is to find a good

balance between growth and what will be honestly sustainable. Therefore, ongoing assessments

and informed forecasting should accompany each new decision when formulating and

implementing.

This paper hopes to convey the importance of realistic and pro-active approaches to help

Kudler Fine Foods take full advantage of inherent opportunities. Catering services require

impeccable customer service. Mrs. Kudler has developed the customer base through gourmet

product availability and her involvement with the store. She will have to establish strict

customer service guidelines to improve on the recent surveys that were taken. The 7 day focus

schedule she keeps will have to be re-allocated due to the new higher volume of clients and the

geographic expansion. Kudler Fine Foods has a niche in the food industry that requires careful

consistent monitoring for it to succeed.

References

Attias, Michael. The Highest and Best Use of Your Restaurant. Retrieved July 8, 2008 from



Catering Price Index: About Our Catering Price Benchmarking Service. Retrieved July 8, 2008

From

Doyle, Lucy. How to Start Your Own Catering Business. Retrieved July 8, 2008 from



Kerin, Roger A. Hartley, Steven W. Berkowitz, Eric N. Rudelius, William (2006) Marketing, 8e.

New York. The McGraw-Hill companies.

Kudler Fine Foods Virtual Organization. Retrieved July 2, 2008. University of Phoenix

rEsource, MBA-502 course material.

Occasions by Cheryl. Retrieved July 8, 2008 from

http:cost_intangibles_catering_annapolis.htm

Starting a Home Catering Business. Retrieved July 8, 2008 from



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