July 26, 2010
Kudler Fine Foods currently has three locations-La Jolla, Del Mar, and Encinitas-throughout San Diego, with a fourth location possibly in the company’s near future. The company maintains several systems including strategic plan, legal, finance and accounting, sales and marketing, human resources, and operations. This paper is an analysis of the marketing system for Kudler Fine Foods, and touches briefly on the company’s background and strategic plan. Marketing Focus for Kudler Fine Foods Virtual Organization
Kudler Fine Foods is an “upscale specialty food store located in the San Diego metropolitan area” (Apollo Group, Inc., 2008, Intranet home, para. 1). The company, founded by Kathy Kudler in 1998, opened its first location in San Diego’s La Jolla area. With the opening of her first store, Kathy Kudler hoped “to create one store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want” (Apollo Group, Inc., 2008, Internet home, para. 1). After the success of her first store, Kathy opened a second store in the Del Mar area in 2000. Inspired by her success with the first two stores, she decided to open a third store in 2003, this one located in the Encinitas area. Currently, she hopes to find a location for a fourth store. “Each store has approximately 16,000 s.f. of retail space located in a fashionable shopping center. The stores are stocked with the very best domestic and imported foodstuffs and divided into” five departments-Bakery, Meat and Seafood, Produce, Cheese and Dairy, and Wine (Apollo Group, Inc., 2008, Intranet home, para. 1). Kudler Fine Food’s mission statement states, “Kudler Fine Foods is committed to providing our customers with the finest selection of the very best foods and wines so that your culinary visions can come true” (Apollo Group, Inc., 2003, p. 3). Kathy Kudler envisioned “a premiere gourmet grocery store” for those shoppers who wish to find the freshest possible “meats, produce, cheeses, and wine” to satisfy their taste for gourmet meals (Apollo Group, Inc., 2003, p. 3). Strategic Objectives
Kudler Fine Foods “experienced significant growth” during the first five years of operation. Currently the focus is to expand its services as it improves “the efficiency of its operations,” and increases its “consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers” (Apollo Group, Inc., 2008, Sales and Marketing, para. 1). Kudler’s strategic objective is to increase the loyalty of the consumers and the profitability of the company. To accomplish this objective, a discussion of the following three areas will ensue: expanding services, frequent shopper program, and increased efficiency. Expanding Services
One way in which Kudler may expand its services is by offering parties in the store. At each party a different world-renowned chef, local celebrity, other food expert, or Kathy Kudler will teach customers how to purchase and prepare specialty foods. Customers will also receive invitations to some of the exclusive and upscale events that take place in and around San Diego. “The anticipated outcomes will be to increase the customer purchase rate of high margin food and beverage items and to get consumer to make an evening at Kudler Fine Foods part of their social network” (Apollo Group, Inc., 2008, Sales and Marketing, para. 2). Kudler hopes the increased time spent in the store will help to increase the amount of money customers spend at the store as well as the frequency of the visits to the store. One way in which the company hopes to increase both the frequency of visits and increase amount spent by each customer is through contests offered at each store. One such contest is to see who brings the most guests to each party. For each guest brought,...