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Autor:   •  October 19, 2010  •  3,907 Words (16 Pages)  •  371 Views

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Kudler Fine Foods

Introduction

Kudler Fine Foods is a specialty grocery store that provides high quality foods to its customers. The Kudler mission is:

To provide our customers the finest in selected foodstuffs, wines, and related needs in an unparalleled consumer environment.

Our selections, coupled with our experienced, helpful and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping outing.

We will provide this service because we 'shop the world' for our products; purchase only the finest of products are highly selective in acquiring our team members; and will go to extensive lengths to assure that Kudler's is the purveyor of choice for customers aspiring to purchase the finest epicurean delights. (University of Phoenix: Virtual Organizations, Kudler Fine Foods, 2005).

Kudler Fine Foods has embarked on a new sales and marketing designed to decrease costs and increase revenues for the fiscal year 2006.

Membership Rewards

During 2006, Kudler plans to increase customer loyalty by offering new customer focused programs such as: frequent shopper/rewards programs and cooking class socials. Kudler's wants to provide better information management; this new initiative involves tracking purchase behavior at the individual level and providing high value incentives through a partnership with a loyalty points program. The demographic information gained by tracking purchase behavior will help improve customer satisfaction and planning for future growth of the company. Kudler would like to focus on internal processes to increase behind the scene efficiency and cost cutting initiatives. Kudler's purchasing department has developed a supplier relations program. This inventory program will reduce costs or ordering foods and minimize the amount of food to be stored, while maintaining a zero stock out environment. Using the existing technical infrastructure, Kudler will modify its existing database to help accomplish its goals for upcoming year. SQL generated reports will help to determine if the business achieves its cost reduction and revenue goals.

Currently, Kudler provides a monthly newsletter providing shoppers with current specials and store information. Kudler new marketing strategy involves the creation of a membership rewards program. The membership program will reward customers who frequently purchase store products, attend special store functions, sign up friends (new shoppers), and purchase special bonus store items. Registration for the rewards program involves filling out a membership information form. Store employees will enter the information gathered from the membership form into the database. A membership card or telephone number at the point of sale (POS) terminal will identify members during checkout or at any customer service center. It has been determined that price is not the primary differentiating factor for Kudler consumers; in fact, these shoppers are focused on quality and finding specialized items. Therefore, Kudler will not offer discounts on store items like lower end markets. For customers that purchase frequently, Kudler has collaborated with several other companies to create a loyalty points program. Customers can then redeem these points for high-end gift items.

The Kudler loyalty points and redeemable gift program breakdown is as followed:

Frequent Shopper Program - Earning Points

100 Loyalty points 1 Redeemable coupon

10 Loyalty points For purchases totaling $100

5 Loyalty points For every special event attended, i.e. cooking social

5 Loyalty points For every new friend signed up

1 Loyalty points Each special bonus item purchased

Gift Items - Spending Points

Ashford

10% off

Brooks Brothers

15% off

eBags

25% off

Apple

Up to 17% off & free shipping orders over $50

Dell Computers

12% off

Philips

Up to 40% off

FTD

20% off

Equifax

33% off

AT&T 17% off monthly bill and more

Sprint PCS

25% off monthly bill

Busch Gardens

Up to 30% off

Independence Air

10% off

Wine.com

15% off

The existing Kudler database will require changes in order to accommodate the new marketing strategy. Details on the necessary changes appear later in this paper. The new membership rewards program will also assist with the collection of demographic information, which is also important for the success of the marketing strategy. The estimated revenue growth generated by the membership program and special event program is 12.25% for the 2006 fiscal year. At the end of 2006, comparing the current year to the previous year will validate this estimate.

Valued Customer Membership

Kudler's new strategy for increasing profitability will include introducing new programs aimed at increasing revenues by adding to its customer base and increasing customer loyalty. Since the store's founding in 1998, Kathy Kudler's vision of a one-stop gourmet grocery store has been the main reason for its success. In keeping with its current image as a "boutique grocery," Kudler's will introduce expanded services to attract new up-scale customers who do not find it necessary to shop by price. Direct mail advertising will target hi-income zip codes to attract new customers who have not yet become aware of the Kudler name and mission.

Current plans are to invite customers to become members of Kudler's Valued Customer program. The appeal of this membership is unique in the grocery industry,

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