Not enough money and too much stress lowers the quality of life that people have, and their standards of living also drop, as they are forced to get by with cheap, low-quality items (Nickels, McHugh & McHugh, 2010). Walmart has changed how the retailer and the manufacturer negotiate prices. The manufacturer used to be the one to tell the retailer, "I can make this for you for this much." But Walmart has become so big, so important, that now they
In order for Kudler Fine Foods to develop a functioning frequent shopper program, it must track and monitor consumers shopping behavior. The drive of market research is to collect data on consumers and prospective consumers. The collected statistics support business decision making, which therefore diminishes the risks involved in making these conclusions. This type of research would also benefit the consumer by lowering the cost on items bought most, while giving them personalized incentives to return. As a result, legal matters concerning privacy of the consumer has risen and established far more attention.
Grocery stores are in competition with smaller markets like Kudlers and Whole Foods. If the brand name grocery stores like Ralphs and Vons did not offer organic and specialty items, the market structure of Kudler Fine Foods would differ. This market structure positively affected Kudler because there was no barrier to entrance within the quality foods market. What negatively affects the company with this market structure is that they are compared to big companies who are able to supply some of these rare items at a more competitive price. One of the marketing strategies that ensure the company of long-term profitability is the personal relationship built with the customer base.
Kudler may not have the resources to launch advertising for the company because problems have occurred because of the lack of experience to the target market. Kudler needs a target market to allow the company to focus on marketing dollars and brand communication on a exact markets that is more likely to buy from than or other markets. This is a much more reasonable and efficient, and successful way to make potential clients and generate business. Kudler chain of stores makes them a distinguished factor in the market. This is why a lack of customers will have a huge affect on the growth of the company because of the decrease of the sales in the
Outline the argument that supermarket power is a ‘zero-sum game’ It is argued that supermarket power dominates the grocery industry and limits consumer choice. The big four supermarkets, Tesco, Asda, Sainsbury and Morrisons, with over 9,190 stores nationwide, entice the public to spend almost three out of every four pounds spent groceries in their stores. This essay will outline the argument that supermarket power is a zero sum game, a situation were one participant's gains result from another participant's equivalent losses (Wrong cited in Allen, 2009, p.70) This argument will show how consumers, the high street, suppliers and their workforces are the lossers. Supermarkets assert that their market power results in a positive-sum game, a situation where all groups participating benefit to some degree, supermarkets claim they provides choice to consumers, and are not a threat to the high street. They also claim to benefit local communities by encouraging retail revatilisation in previously run down areas thus creating new jobs.
Benjamin Biddle CRJ 325 9/3/2013 The Wal-Mart film was quite disturbing. Has honestly made me re-think where exactly I do my shopping from now on. “The High Cost of Low Prices” is such a suitable title for this documentary for a number of reasons. We do not always see the repercussions of what these big businesses do to the communities they pretend to enrich and support. What Wal-Mart actually costs the community as opposed to what they give back is substantially off kilter.
Kudler Fine Foods has shown the upscale of products not is important that customers see the product as such. If the product is not marketing the upscale quality of the décor sales can decline for store locations. Importance of Competitive Intelligence Competitive intelligence is an area within the company that may pose a challenge. Competitive intelligence is imported to Kudler Fine Foods to help show what will keep the company successful. It doesn’t appear that there is many other upscale specialty food stores in the areas, Kudler would have to look in other regions.
Gourmet food is more expensive to purchase, than food at a regular grocery store. A gourmet specialty shop has higher fixed costs. Since there are no food preservatives in the food sold there, there is a high turnover rate for food expiration dates. The product waste potential is high, and ordering needs to be constant. An automated ordering system will help with this issue, as well.
While many will only be looking for other dollar stores following exactly the same format, that is incorrect. In today's marketplace all types of retailers are adding dollar departments and dollar aisles to their stores. Every one of these companies represents a threat to your business. It's important that you know them and what they are doing. Determine how best to use your company's strengths to overcome the strengths and overall performance of the competition you've found.
However, there is opportunity with the organization to understand customer buying patterns, market needs, promotion effectiveness, and determine customer price limits. Therefore, the recommendations are to truly utilize the concentrate growth strategy by adopting a loyalty program. Consumers are aware that is very costly to shop at WFM. Even though many desire an exclusive organic, whole food diet, it is not affordable in today’s economic times. Focusing on one market or region at a time, WFM should roll out an incentive program for loyal consumers that offer price breaks every time they shop.