The Importance of Market Research to Kudlers Fine Foods - Essay Example

A new enterprise like Kudler Fine Foods, a gourmet grocery store that to caters to target would find marketing research an invaluable tool in strengthening its operations, expanding its services, and increasing the consumer purchase cycle. Kudler Fine Foods has experienced significant growth in the last ten years that is reflected in its annual profit and large base of customers. The need for new locations after the opening of the Encinitas branch in 2003 shows that the market has accepted the strong presence of Kudler Fine Foods in the gourmet store market. The company believes that people’s concern of over quality and health have contributed to the success of the company. Consumers are drawn to Kudler’s no-preservatives baked goods as well to its old world style of baking process. In addition to this, the meat and seafood from certified organic producers met the exacting demands of the discerning customers ; thus, it is common sighting in Kudler’s to see the crème of the society selecting prime cuts during weekends. The herbs and spices are much sought after by local chefs and the wide variety of tropical fruits are mostly patronized by the health conscious customers. The cheese and dairy section were given a boost by the cheese sampling done every Saturday as well as the wine appreciation classes that sparked the interest of the common public. Nevertheless, Kudler also reaches out to the public through its reasonable prices so that everyone would appreciate gourmet food. Indeed, Kudler Fine Foods has gone a long way in its market development. However, the importance of marketing research cannot be undermined as there are many new entrants into this market segment. In addition to this, the fast-growing operations must be consistent in providing excellent service to its existing and potential customers. Kudler must not rest on its laurels; instead, it must develop a strong market research that would lead it to greater success through a larger market base. The main thrust of this paper is to confirm the importance of market research which can benefit the growth and maturity of Kudler Fine Foods. A sound market research would definitely do wonders by giving insight on domains or segments that can be tapped to develop. A good market profiling of customers both existing and potential could lead to sound tactical campaigns. Competitive intelligence and market analysis would provide the owners a clear picture of the whole gourmet store market which would correctly identify direct and indirect competitors. Aside from this, threats such as possible substitutes as well as new players can be recognized so Kudler Fine Foods can prepare counter-measures to these threats. Moreover, additional areas of marketing research that would be beneficial to the company may be added as well. The Importance of Market Research to Kudler’s Fine Foods The phenomenal growth of this company would also translate to a larger base of operations. Aside from the conventional administration, operations, and accounting departments, the company must have its own marketing department. This marketing department’s main goal would be to develop products and identify channels of distribution that would assist in the company’s growth. The department will be in charge of all marketing campaigns that would open new markets or strengthen existing products. A growing company needs a sound and comprehensive marketing plan to be able to dominate the market ; thus, Kudler’s Fine Foods needs this plan now more than ever. Planning is the most important function of management since a good plan will dictate the organizational goals and targets. Since Kudler Fine Foods main focus is expansion, its major concern should be developing efficient transactions that would raise productivity as well as increase the speed in delivering services to the customers. This would entail not only marketing intelligence in creating programs that would reward customers through a bonus program for their loyalty but also a dedicated merchandising activity that would reveal the details of a customer’s pattern of purchase. It must be emphasized however that Kudler’s Fine Foods has a special customer base that needs no discounts like low-end supermarkets. The high-end customers of Kudler’s would greatly appreciate loyalty points that can be redeemed for additional gourmet items, gift packs of choice goods, airline first-class upgrades, and even resort and spa gift certificates. It should be remembered that Kudler’s niche market has a certain lifestyle that is luxurious yet health-conscious. The significance of recognizing market behavior such as customer’s buying patterns has never failed in giving insights that would guide the marketing department in its tactical planning. For example, stocks such as exotic cheese or gluten which exhibits an increase in demand must be give n immediate thought by the marketing department. At the same time, operations will be benefited by this identifiable customer behavior since they can track and forecast inventory and supply at key stores. In fact, this is one of the core strength of Wal-Mart. Their major investment in technology has enabled them to identify exactly what products are missing in any of their shelves at a given time. Another area in marketing that the company could look into is launching of a new product or service. This could be carefully mapped out by doing a marketing research that would identify the profile of the prospective market such as age, gender, location, and purchasing power. It can launch a new product that can appeal to the children of the existing consumers for good reasons: their parents are the main endorser and the parents have the purchasing power too. The challenge is to come up with a new product that would appeal to children – gourmet sandwiches that are tasty and healthy. This would also cut the time needed in food preparation. The parents can buy a set of 5 different gourmet sandwiches, refrigerate them and heat when needed. This strategy has an add value of breeding the young customers as loyal customers when they have become adults. Importance of Market Research in Pricing Although Kudler Fine Foods has tried its best to satisfy customers through its quality delivery of services, one fact could not be ignored: its costly price. Pricing is one important marketing mix that Kudler’s has overlooked. It has thrived on positioning and product but somehow failed to improve its pricing. In this recession, even the wealthy would be cutting back on their budget so it is important for the company to make adjustments on its pricing. This could only be done by exhausting ways that could probably reduce cost which can result to greater customer satisfaction. Marketing research will inform Kudler of the competitors prices and determine if their products or services are price sensitive. Due to the recession, it is not uncommon for the market behavior to substitute cheaper products which could be a threat to the company’s existing products. Purchasing department must critically identify inventory, suppliers , supplier relations, distribution channels, and quality control so it can cut costs and streamline the flow of products especially those that have short shelf-life. Near expiration products can be sold at lower prices so that it could still be converted into a sale rather than loss. In addition to this, market intelligence would reveal some of the competitors marketing strategies being employed especially at this trying times. The valuable information would also objectively illustrate the market share of the company. Knowledge of one’s market share can guide the company in formulating a marketing plan that would reveal their opportunities and threats. However, it is important first to assess the company’s internal strengths and weaknesses so proper measures can be implemented in arresting issues. Kudler’s efforts in benchmarking Nordstom stores is one way of inserting quality management that would help improve delivery of services. Another important effort of Kudler’s is it investment in training and development. The current employees have to be ready for a bigger operations and must be service-oriented. The Marketing department so far has made a major decision to invest in programs that would aid training. Also, software programs and systems that promote efficiency are currently being put in place so monitoring sales and product inventory in outlets would efficient. It is a good thing to note that Kudler’s Fine Foods website is user-friendly and contains relevant information that attracts consumers. Some of them are : real-time availability of stocks, ordering in advance, home delivery through website ordering ,as well as articles that provide information on health benefits of consuming organic products. However, the writer believes that there is still a need to post the current price list so consumers can make decisions on their purchase. Also, a more detailed list of the 250 types of cheese and other dairy products. Their availability in stores must also be posted so that customers would not be disappointed in visiting a store that has run out of stocks. In general, Kudler’s Fine Foods has taken major steps in developing its product lines as well as improving its service. As mentioned, expansion is rapidly growing which implies that it has a strong base market. However, it still needs market research that would provide valuable insights to the marketing department. The issue of pricing can be arrested by proper market intelligence. Nevertheless, Kudler’s Fine Foods is on its way of capturing the lion’s share of the market. Read More