Businesses must conduct market research to explore the size, potential of the market, and the characteristics of the market before producing products or service. By doing great market research businesses find out what type of products or services consumers want. In this paper I will discuss the history of Kudler Fine Foods Organization, importance of marketing research to Kudler Fine Foods, importance of competitive intelligence to Kudler Fine Foods, and analysis Kudler Fine Foods marketing strategy and tactics. History of Kudler Fine Foods
Kathy Kudler was a Vice-President of Marketing for a defense contractor. As a hobby Kathy enjoyed cooking fine gourmet meals and wanted the best products, and service to help prepare these meals. Since she was seeking other opportunities in life she thought it would be good to have an epicurean food shop in La Jolla.
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After developing business plan and obtaining financing she opened the first Kudler Fine Foods Organization on June 18, 1998. Within the first nine months of the store opening the company was at the break-even point and was very profitable for their first year of opening. In 2000, the company opened in Del Mar and in 2003 the company opened another store in Encinitas. Now they are operating in other locations across the country (Kudler Fine Foods Portal, 2011). Importance of Marketing Research
Marketing is an important activity for Kudler Fine Foods. Marketing will incorporate the whole business and is vital to sound Kudler Fine Foods business health. Market Research is crucial for Kudler Fine Foods to have knowledge of what kinds of products or services would be profitable to present to consumers. With respect to products already on the market,excellent market research will give Kudler Fine Foods the knowledge to know if they have satisfied customers in the past and if they need to make changes to product packaging, delivery, or the product itself. Marketing research will allow Kudler Fine Foods to devise a feasible marketing plan or calculate the success of their existing plan to help in the areas of promotions, pricing, and places.
These areas can be improved upon by Kudler Fine Foods marketing department. The marketing department in Kudler Fine Foods can perform to different types of marketing research for the company. The department can perform secondary research which will involve collecting data already published to help make company database. The database will perform situation analysis for Kudler Fine Foods. Performing secondary research will help Kudler Fine Foods identify competitors, and implement a strategy for benchmarking and to help determine the sections they will need to target with demographics, usage rate, population, life style and behavioral patterns in mind. Kudler Fine Foods can also perform primary research to gain information by monitoring sales levels and amount of effectiveness of previous company practices.
With primary research Kudler Fine Foods will be able to follow competitor plans so they can collect information on current market competition. Secondary and primary research is important to Kudler Fine Foods marketing objectives. Secondary and primary research will also help with the areas of improve for the marketing of Kudler Fine Foods which will help the company gain more consumers and be able to gain more market share (Khera Communications, 2011). Importance of Competitive Intelligence
Competitive Intelligence will allow Kudler Fine Foods to do the research so they will know what their competitors are doing. Since Kudler Fine Foods may not be the only epicurean shop in their area, this means they are not the only ones targeting the consumers in their area. Competitive Intelligence is vital to Kudler Fine Foods, this will allow the company to gather information and find out what are the competition’s weakness and strengths. If Kudler Fine Foods does not pay attention to what their competition is doing they may risk putting their company in a volatile situation (Marketing Plan, 2011).
The marketing department in Kudler Fine Foods has to remember that the collection of competitor’s information is not a simple task. With each step of the marketing plan for Kudler Fine Foods the company needs to first ask the correct questions and then try to gather the correct answers to the questions. Collecting random information will not benefit the use of the company’s competitive intelligence. The marketing department needs to make sure they what type of information they are searching for so after they have collected the information they can properly sort the information they collected. The marketing department can ask question regarding competitors pricing, how do competitors pay their sales department, when does competitors release their next product, how long do competitors sign contracts with major suppliers, and why did competitors change to different major suppliers?
These types of questions will give the marketing department of Kudler Fine Foods specific answers that will help the company gain an advantage over competitors (Marketing Plan, 2011). Competitive Intelligence will help Kudler Fine Foods marketing department know how much market share their competitors hold, and how long their competitors have had these market shares and if these market shares are profitable. The answers the marketing department obtain from the previous statement will help them know how and where to enter the market and how to target their competitors consumers. Most importantly Kudler Fine Foods marketing department has to remember competitive intelligence is important to the company’s marketing plan, it also allows the company to know why competitors are selling certain products or services and to whom (Marketing Plan, 2011). Kudler Fine Food Market Strategy and Tactics
A strategy is an idea, basically a conceptualization of a way to accomplish a goal. For example Arm&Hammer devised a new reason for current consumers to pick up their product at supermarkets and for them to use more baking soda. Basically sell and use Arm&Hammer as a deodorizer, by suggesting this to consumers this led to new strategic idea for Arm&Hammer, and now the company has a whole new line of deodorizers for consumers to purchase.
A tactic is the steps you take to perform the strategy. For example Arm&Hammer used media, retail promotions, and the Internet to advertise their new products (Leadership in Perspective, 2006). For Kudler Fine Foods the company has a very strong mission statement which defines the functions of the company. The owner, Kathy Kudler has implemented her thoughts into the company that produces great returns for her company. The strategic intent for this company indicates how the company will use their resources, labor, and capability to win over competitor’s consumers. Kathy Kudler has to establish tactics to implement her plans for the company successfully.
Her plans have to include effective supply distribution, cost leadership, and distinction and focal point. The future of Kudler Fine Foods depends on how the company will decide to demonstrate their strategies and use their tactics. For example if another epicurean shop opens up in the same area of Kudler Fine Foods. If the marketing department along with the management team is aware of competition in the area they will implement the strategic points and tactics to keep consumers because with another competing store in the same area could ruin Kudler Fine Foods consumer base. Kudler Fine Foods would have to access their own strengths and weaknesses in this situation (Leadership in Perspective, 2006). Conclusion
Although Kudler Fine Foods is a great company and have been able to maintain their market share, it is a necessity for the company to keep and maintain a great market plan, which includes market research, competitive intelligence, strategic and tactic planning. Market research, competitive intelligence, and strategic and tactic planning is essential to any and all businesses. These are vital to Kudler Fine Foods to retain their customer base and also for the organization to keep and gain more market shares.