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Market Research

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Kudler Fine Foods

Kudler Fine Foods is a local upscale specialty food store with three locations in the San Diego area. Each of these stores is located in a fashionable shopping center with nearly 16,000 s.f. of retail space. These stores offer the very best domestic and imported products from organic produce to specialty meats. After experiencing substantial growth, Kudler Fine Foods is now interested on increasing the loyalty and profitability of its consumers through the expansion of services, improving operation efficiency, and increasing the consumer purchase cycle (Apollo Group, 2004).

Market research is the first step that Kudler Fine Foods must perform in order to increase customer loyalty and profitability. Market research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions (Kerin,Hartley,Berkowitz &Rudelius, 2005). This is performed for the purpose of reducing risk and uncertainty therefore allowing managers to make better decisions (Kerin,Hartley,Berkowitz &Rudelius, 2005). The market research process consists of five steps; define the problem, develop a research plan, collect relative data, analyze the data, solve the problem (Armstrong &Kolter, 2005).

Kudler Fine Foods defined their problem or objective as increase loyalty and profitability of consumers. In order to achieve this, they are proposing to increase revenue by expanding services and initiating a frequent shopper program. They are also purposing a cost reduction measure through increase efficiency (Apollo Group, 2004).

As an expanding service, Kudler Fine Foods will conduct in store events that teach customers how to prepare specialty foods. This upscale party will feature renowned chefs, local celebrities and other food experts in order to draw customers. The anticipated outcome of the social festivities is to increase sales on high margin foods and beverages. In addition, special discounts can be offered to customers who bring a guest to the event. It is believed that this program will encourage consumer loyalty and word-of mouth marketing (Apollo Group, 2004).

The frequent shopper program proposed by Kudler is designed to track consumer purchase behavior and offer customer incentives through a loyalty points program. Better understanding the customers purchase pattern is one way that Kudler believes that they can refine their processes and while maintaining customer satisfaction. Kudler Fine Foods understands that quality and selection are most important to their customer and price is not a differentiating factor. Therefore, the loyalty points program will provide customers with redeemable points that can be used for high-end gift items such as airline upgrades or other specialty foods (Apollo Group, 2004).

In order it increase efficiency, Kudler is going to evaluate its internal operation and procedure. This will require the organization to develop employee-training programs and integrate new technology to help reduce costs. As a comparison tool, Kudler Fine Foods customer service policy will be modeled after Nordstrom department stores (Apollo Group, 2004). The success of this proposal is highly contingent on how well the organization independent departments communicate and work as a team.

Surveys are one-way that Kudler Fine Foods has collected data on their performance as it pertains to meeting their customer's needs. Consumers were asked a series of statement and asked to weight their level of agreement or disagreement. This collected information is called primary



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