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Imc Kudler Fine Foods

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Kudler Fine Foods: IMC

Candice M. Hansen

Marketing - MKT/463

Esmail Rahimian, PhD.

May 22, 2006


In this paper, I will discuss Kudler Fine Foods and the importance of marketing research as it relates to it's strategies and tactics. I will also identify where additional market research is needed. Finally, I will discuss the importance of competitive intelligence and analysis in regards to the development of Kudler Fine Foods.

Kudler Fine Foods

Kudler Fine Foods is a local upscale specialty food store located San Diego, California. The company has three locations (La Jolla, Del Mar and Encinitas). Each store has approximately 16,000 square feet of retail space located in fashionable shopping center. The stores are stocked with the very best domestic and imported foods. Every is stocked and carries upscale fresh meats and seafood, baked goods, produce, deli, and dairy departments. The owner, Kathy Kudler, opened the first of three stores in 1998. In 2000, Kathy opened a second store with a third store opening in 2003 (Kudler Virtual Organization, 2006).

Marketing Objectives

Kudler Fine Foods has experienced significant growth and wants to expand it's services, improve efficiency of operations, and increase the consumer purchase cycle. The ultimate goal is to increase customer loyalty and profitability of each shopping visit.

Increase Services

To accomplish these goals, the Kudler marketing department has developed three marketing initiatives that will improve sales and profits as well as reduce costs. First, Kudler plans to increase revenue in each store by holding parties to show people how to prepare specialty foods. To increase customer participation at these parties, the customers will be entered into a contest that allows them to win high-ticket prizes (Kudler Virtual Organization, 2006).

Introduce Frequent Shopping Program

Second, Kudler will encourage customer shopping trips and improve loyalty by introducing a loyalty points program. This marketing initiative will track the customer's buying habits and allow Kudler to target to specific customers. Looking at the current information technologies databases, Kudler foods has a system that tracks internal sales data but wants to enhance the system so they can track the demographic information and buying trends of each customer (Kudler Virtual Organization, 2006). However, when I read this I was a bit skeptical as I feel it is an invasion of one's privacy.

Improve Service

Kudler Fine Foods has decided to use Nordstrom's Department Stores as a benchmark. To help with this initiative, management is developing training programs and developing software that will facilitate the needed customer service training of employees. Studying the companies current capital budget and information systems technology budget, the company will spend $91,715 on new software licenses to improve training (Kudler Virtual Organization, 2005). In addition the company has budgeted $45,000 for a new customer relationship management system or CRM.

Importance of Marketing Research

In the next 12 months, Kudler Fine Foods plans to increase their customer loyalty by offering added high-margin services, leveraging the better understanding of their customers purchase patterns, and providing more efficient operations. They will accomplish this through their suppliers of their food and beverages. By partnering and by purchasing larger quantities for bigger discounts. The key to Kudler's success will be about building a long-term, profitable consumer base. Loyal consumers are usually more profitable due to frequent visits. and are often insulated from the marketing efforts of competitors.

Strategies and Tactics

Developing strategies and tactics is important when developing a IMC. To develop a IMC plan, the company must insure that all marketing initiatives align with the company's mission statement. When selling gourmet foods, it is more important to have the highest quality foods and customer service than it is to have low prices. Kudler must stay focused on this aspect at all times when developing new tactic and strategies as not to succumb to the pressures of the discount shopper. For example, Our family use to own unique high end shoe stores in Southern California. They were run by two different family members with two very distinct management styles. Eventually, by one of the owners not aligning themselves to their Mission and trying to compete with discount stores the shoes store chain folded. In hindsight, management should have stuck to their mission by providing exceptional service and the finest quality shoes without going to a department store.

Demographic and Psychographic Information Both psychographic and demographic information will be used to create the marketing strategies for Kudler Fine foods. Demographics measures of characteristics of individuals or households, such as age, sex, place of residence, or family income. Persons who have certain of these characteristics in common are grouped. (Wikipedia)

Psychographics measure attitudes, beliefs, and lifestyle characteristics. They are usually used in connection with demographics and not alone. Demographics and psychographics are critical to the success of an IMC Campaign.

Competitive Intelligence and Analysis

Information will come from a variety of sources, both within the organization and external to it.

Sales representatives deal on a daily basis with customers - and will hear what the competitors have been doing. They are the business foot soldiers - with the ear to the ground who can forewarn management about impending enemy campaigns.

Research & Development may come across new patents.

Purchasing may find out that a supplier is now also supplying a competitor.

Market research



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