Analysis of Kowalski's Markets

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Kowalski’s Markets

Management
10/29/12

TABLE OF CONTENTS
Section 1-OverviewPage Number
History2
Products/Services2-3
Target Customers3
Size and Senior Management3
Section 2-Kowalski’s External EnvironmentPage Number
Rivalry4
Availability of Substitutes4-5
Deli Section5
Potential for entry6
Section 3-Michael Porter’s generic strategiesPage Number
Differentiation6
Store Design6-7

Section 4-Organizational StructurePage Number
Matrix Structure7-8
Civic organizational Strategy8
Recommendations9
Section 5-Observations and AssumptionsPage Number
Atmosphere9
external features9-10
Culture10
Image11

The first Kowalski's Market was opened in 1983 on Grand avenue. It was opened by Jim and Mary Anne Kowalski with the help of a loan from one of their friends. The first Kowalski's was a converted Red Owl Country Store where Jim had been previously employed. The couple opened their second Kowalski's Market in White Bear Lake, again, converting a Red Owl Country Store. It was at this point that Kowalski’s began the long and arduous process of trying to differentiate their Kowalski's Markets in order to remain competitive and profitable against the much bigger chain grocery stores. In 1991, Kowalski's made one of their first steps to differentiate their stores from others by purchasing a bakery facility that could supply their stores with fresh bakery products at a discounted value. However, it was not until August of 2,000 that Kowalski's Markets really became a unique and differentiated grocery store. That year, the Kowalski’s opened a Kowalski's Market in Woodbury that was designed to look like a European village. It features a glass-walled bakery oven, three restaurant concepts, a department store-quality gift shop, an educational and meeting area, a full service JUUT Salonspa, and a Natural Path department offering organic and natural foods and homeopathic remedies. This decision to incorporate all of these unique aspects in one store truly separated Kowalski's Markets from others in the grocery industry. In fact, it was heralded as being next level in terms of grocery store capabilities. They opened several more stores in the preceding years, and they renovated the existing stores in order to keep consistent with the European village theme that differentiated them from the rest of the market. Currently, there are 9 stores within the twin cities area (Hooker and Company, 2012).

Kowalski's Markets have many of its own signature products, such as their Kansas City style BBQ sauces, their locally roasted ground coffee, their own organic pasta sauces, and locally made chocolate bars; they also sell their own style of pizza, and have signature bakery products which are made fresh every day from their very own bakery department. These signature products are all in addition to their own deli, which supplies seafood and meats. Within this deli, they will conveniently make individualized sandwiches for the customer. Furthermore, all Kowalski’s markets have their own gift shop section that correlates with the current season. In addition to all of these features, Kowalski's also has their own catering department (Hooker and Company, 2012). Kowalski's Markets target customers are those who live locally within the twin cities area, and those who need catering for parties (which predominantly consists of families of high school and college graduates). Because they sell large amounts of organic food, from chocolate, fruits and vegetables, meats and sauces, and everything in-between, healthy eaters are also target customers. They have programs for those who are looking to eat healthy, such as Good Foods for Good Health, which helps you find foods and recipes that are health conscious, and the Natural Path program, which helps people identify healthier varieties of their favorite products. So, they cater to those who are looking for...
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