Kudler-Marketing

Introduction

From gourmet meals to simple healthy comfort food, and everything in between, Gourmet Steve, your Personal Chef, provides healthy, delicious, and affordable home-cooked meals. (gourmetsteve.com, Retrieved August 4, 2007)

Kudler is reaching for the stars as with all businesses looking to expand and grow. However, there is a process and prerequisites to growth in the business industry. Anything is possible with the right marketing mix and a good foundation to build on. Kudler has the ability to accomplish the expansion of services to include catering by utilizing marketing resources and adjustments to their business operations. In this paper I will endeavor to address some of these adjustments and marketing resources.

A. Assess the relative value of the two pieces of market research.

Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions. (Kerin−Hartley−Berkowitz−Rudelius: 2005)

Kudler has not really done adequate market research for the expansion ideas they have in mind. The surveys did not produce enough of a consumer reaction to gain accurate input regarding customer satisfaction with the present services and products. Base on the information gathered the customer's were dissatisfied. Kudler's first step is to define the marketing problem and opportunity. The problem seems to be gathering research information to substantiate them moving into the organic foods and catering market. Kudler has gone from strategic objectives to actions without considering formulating an organized plan that will evaluate the effectiveness of their decision. Kudler has described the type of actions they want to initiate and the expected outcomes.

Through research I discovered that gourmet and organic foods are an increasing interest for consumers these days. People are changing their eating habits because of health issues and desire for quality products. People are smarter about the foods they eat these days, and more consumers have turned to organic food products for personal health and reasons of quality. The organic and gourmet convenience foods market in the U.S. and Canada is emerging at an accelerating rate. Organic foods, gourmet convenience products, and partially prepared specialty items, once a novelty, have grown to become an integral part of the overall consumer shopping environment. This serves to indicate a consumer's commitment to personal health, quality food consumption, and intelligent shopping. (AllBusiness.com, 2007) Kudler has to become aware of the competition and what their business aspirations are. Access to primary and secondary data will help them attain this information. International countries are venturing into the gourmet and organic foods market. Dutch market for organic foods stands poised for growth as consumers are increasingly drawn to the environmental and health allure of organic foods. (Scandurra, Laura Gabel, 1997)

The frequent shopper program is a good idea but again Kudler has not done any investigation to determine the success of the idea with their present customers. The in store parties and cooking demonstrations would provide a good atmosphere for gathering personal opinions from the customers. Kudler wants to expand their consumer base as well as the services and products. Kudler needs customer loyalty and not only customer satisfaction. Research shows that customer loyalty has a much more profound effect on business results than customer satisfaction--you can go out of business with customers who are simply "satisfied". Loyal customers repurchase at two to four times the rate of "satisfied" customers; Loyal customers enthusiastically recommend your company to others--providing revenue from new customers at little cost to acquire them; Loyalty leaders can and do charge about 10% more than their peers; and customer loyalty reduces the cost of customer defections--the average company must replace the 10% to 30% of the customers it loses per year. (haygroup.com ,2007)

B. Explain the components of the marketing mix for Kudler's new catering service (product, place, price, promotion)

Kudler will need to develop an enticing menu listing products with pictures of mouth watering dishes and appetizers. The products offered will be determined by contracts formed with the local organic farmers and manufacturers. The space utilized to maintain the organic food section will be established by the response of the customers and what produce is available. R&D will need to be performed to determine consumer demand for this type of service along with which one of the store locations will provide the primary location for the catering service that is accessible to the customers and will offer the lowest cost for delivery. Positioning your product or service is important because customers thrive on the convenience. Kudler has already stated that they will be using the demand pricing strategy. This is good for the products that are in high demand but what about the new items that Kudlers will want to introduce. Pricing for their catering service is expected to be slightly higher than a regular catering service. "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 its stakeholders. (Kerin−Hartley−Berkowitz−Rudelius, 2005) Pricing strategy is needed to convince customers that they are receiving their money's worth in the quality of the products and ingredients that went into making the delectable tasty dishes that will be prepared as ordered in a timely manner. There will have to be an established value in the service the customers are receiving that can't be compared to anywhere else. Promotion can begin with the in store parties and cooking classes by issuing invitations with relevant information enticing people to use the new catering service. Kudler already uses the local newspapers but if opportunity presents itself talk show interviews and the internet would be a good place to advertise.

C. Explain how Kudler should determine the products it wants to offer

Kudler could compare the market prices for the products being sold by the competition. Check the shelves to see what items are moving fast and what items are moving slow. Although Kudler would like to come out the gate swinging maybe take it slow to see how the new marketing ideas will influence customer response.

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